A Complete Guide to Short-Term Rental Regulations in Palm Springs, CA
Updated for 2026 | By PalmSpringsRes.com
If you are considering buying a vacation rental or converting your property into an income-producing asset,
understanding the city’s rules is essential.
What Is Considered a Short-Term Rental?
- Rental of a residential property for 28 days or fewer
- Applies primarily to single-family homes
- Generally prohibited in apartments and most multi-family buildings
Rentals exceeding 28 days are considered long-term rentals and are not regulated under the city’s STR ordinance.
Types of Vacation Rental Permits
1. Vacation Rental Certificate (Full STR Permit)
- Standard permit for full short-term rental activity
- Limited to 26 rental contracts per calendar year
- Subject to neighborhood density caps
2. Junior Vacation Rental Certificate
- Limited to 6 rental contracts per year
- Not counted toward the 20% neighborhood cap
- Owner must reside on property during rental
- Reduced fee structure
Neighborhood Density Limits (20% Cap)
Palm Springs limits the number of full Vacation Rental Certificates to
20% of homes within each defined neighborhood.
If a neighborhood reaches capacity, new applications are placed on a waitlist.
Investor Tip: Always verify permit eligibility before purchasing a property intended for STR use.
Occupancy & Operational Rules
- Maximum occupancy: 2 guests per bedroom (up to 8), plus up to 2 children under 12
- Typically limited to 2 vehicles
- No event-style or “party house” rentals
- 24/7 local contact required (30-minute response time)
- City registration number must appear in all advertising
Required Taxes
- Transient Occupancy Tax (TOT): 11.5%
- Tourism Business Improvement District (TBID): 1%
- Monthly tax filing required — even if no rentals occur
Application Requirements
- Online application submission
- Proof of ownership
- $500,000+ liability insurance
- Safety inspection compliance
- Permit and registration fees
Approval timelines typically range from 30–90 days. Applications are not accepted while a property is in escrow.
Penalties for Non-Compliance
- Substantial fines for operating without a permit
- Certificate suspension or revocation
- Two-year suspension after repeated violations
Thinking About Buying a Vacation Rental?
Not every home in Palm Springs qualifies for a short-term rental permit.
If you’re considering investing, we can:
- Verify STR eligibility before you make an offer
- Review neighborhood density status
- Estimate potential rental income
- Analyze tax implications
Frequently Asked Questions About Palm Springs Short-Term Rentals
Are short-term rentals allowed in Palm Springs?
Yes, short-term rentals are allowed in Palm Springs for stays of 28 days or fewer.
However, property owners must obtain an approved Vacation Rental Certificate
before advertising or renting the home.
What is the 20% short-term rental cap in Palm Springs?
Palm Springs limits full Vacation Rental Certificates to 20% of the homes
within each defined neighborhood. Once a neighborhood reaches that limit,
new applicants are placed on a waiting list.
How many times per year can I rent my Palm Springs vacation home?
Properties with a full Vacation Rental Certificate are limited to 26 rental
contracts per calendar year. Junior Vacation Rental permits are limited to
6 rental contracts per year.
What taxes do short-term rental owners pay in Palm Springs?
Owners must collect and remit an 11.5% Transient Occupancy Tax (TOT)
plus a 1% Tourism Business Improvement District (TBID) assessment.
Tax returns must be filed monthly, even if no rental income was generated.
What is the occupancy limit for vacation rentals in Palm Springs?
Occupancy is generally limited to two guests per bedroom, up to a maximum
of eight adults, plus up to two children under age 12 beyond that limit.
Additional restrictions may apply.
Can I buy a home in Palm Springs and automatically use it as a short-term rental?
No. Not all homes qualify. Permit availability depends on neighborhood density
caps and city approval. Always verify STR eligibility before purchasing a property.