STR Revenue Palm Springs: What Owners Actually Earn in 2026
Palm Springs short-term rentals generated an average annual revenue that ranges anywhere from roughly $38,100 to $89,000 depending on the data provider and property type, according to market datasets from AirDNA, Airbtics, and AirROI. At Maverick STR, we get asked constantly why these numbers swing so wildly, and the honest answer is that they measure different things: different date ranges, different listing pools, and median versus average calculations that produce very different pictures of the same market.
Key Takeaways
Palm Springs short-term rental revenue estimates for 2026 range from about $38,100 to $89,000 annually depending on the source (AirDNA, Airbtics, AirROI), largely due to differing methodologies and property mixes.
AirDNA reports a 53% occupancy rate and $468.30 average daily rate for Palm Springs STRs as of May 2026, both up year over year despite active listings dropping 7.4%.
Revenue is sharply seasonal: monthly market data shows March and April near $8,200 to $8,300, while September drops to roughly $3,089, driven by festival demand versus desert summer heat.
The City of Palm Springs caps vacation rental certificates at 20% of residential dwelling units per neighborhood under Municipal Code Chapter 5.25, and limits standard permits to 26 rental contracts per calendar year.
Professionally managed properties reportedly average around 62% annual occupancy, with October through May occupancy of 75 to 90% offsetting a much softer summer.
Coachella and Stagecoach weekends alone can add an estimated $3,000 to $10,000 or more in annual revenue for well-positioned properties.
If you own or are considering buying a short-term rental in Palm Springs, the revenue question is rarely as simple as a single headline number. Major data providers like AirDNA, AirROI, and Airbtics each publish a different annual revenue estimate for the same city, sometimes differing by tens of thousands of dollars. That spread confuses owners trying to set expectations, and it is the single biggest gap in most articles written on this topic.
This case study walks through the actual numbers behind str revenue palm springs performance in 2026, reconciles why the estimates disagree, and breaks down what a realistic pro forma looks like once you account for management fees, transient occupancy tax, and the city's specific operating restrictions. We manage revenue strategy for owners across several markets, and Palm Springs behaves differently from a market like Nashville: it runs more seasonal cycles, carries tighter permit-side regulation, and reacts more sharply to a handful of annual events.
What Is the Average STR Revenue in Palm Springs Right Now?
Average short-term rental revenue in Palm Springs for the twelve months ending mid-2026 falls somewhere between $38,100 and $89,000 annually, depending on which market data provider you consult and how they define the sample. AirROI reports $56,996 in average annual revenue with a $522 average daily rate (ADR) and 37.7% occupancy for the period spanning August 2026 through July 2026. A broader dataset of 6,018 active listings reports a notably higher $63,360 estimated annual revenue at 60.0% occupancy and a $463 ADR.
Meanwhile, AirDNA's own overview cites $38,100 in annual revenue against a $468.30 ADR and 53% occupancy, and Airbtics reports a median of $89,000 across 3,275 active listings with 56% occupancy for the February 2026 to January 2026 window. The gap between $38,100 and $89,000 is not a data error; it reflects different sample sizes, different treatment of newly listed versus established properties, and average versus median calculations. A median tends to run higher when a smaller number of extremely high-performing luxury estates skew the mean downward in an average-based dataset, or vice versa.
For planning purposes, we tell owners to treat $50,000 to $65,000 as a reasonable base-case range for a well-managed, professionally priced two-to-three bedroom property, with luxury estates in premium neighborhoods pushing well past $90,000. The property-type breakdown discussed further below offers a more useful framework than any single citywide average.
How Do Occupancy Rate and ADR Compare Across Data Sources?
Occupancy rate and average daily rate (ADR) figures for Palm Springs short-term rentals vary from 37.7% to 60.0% occupancy and $449 to $522 ADR depending on the provider, largely because each dataset samples a different slice of the market's roughly 6,028 active listings as of May 2026, per AirDNA's supply data. Specifically, AirDNA's own overview reports 53% occupancy and a $468.30 ADR, up 4% and 3% respectively over the prior year, even as active supply declined 7.4% from May 2026 to May 2026.
A larger 6,018-listing dataset reports the highest occupancy figure at 60.0% alongside a $463 ADR and $278 revenue per available rental (RevPAR). AirROI's narrower sample shows just 37.7% occupancy but a higher $522 ADR, suggesting its dataset may weight toward higher-end, lower-volume luxury listings that book fewer nights at premium rates. Older May 2026 AirDNA-sourced figures put ADR at $495.80 with 53% occupancy, roughly consistent with AirDNA's current numbers.
The practical takeaway: don't anchor to one number. Compare your own property's ADR and occupancy against a range, and weight the comparison toward whichever dataset most closely matches your property type, bedroom count, and neighborhood. A studio condo and a four-bedroom Movie Colony estate will never track the same average.
Why Do Palm Springs Revenue Estimates From AirDNA, AirROI, and StaySTRA Disagree So Much?
Palm Springs revenue estimates disagree primarily because different data providers use different date ranges, different listing inclusion criteria, and different statistical measures (mean versus median) to calculate their headline figures. AirROI's $56,996 figure covers August 2026 through July 2026 and reports occupancy of 37.7%, a notably conservative number compared to a 60.0% occupancy figure reported over what appears to be a similar trailing twelve months by another provider.
As a result, revenue outputs diverge even when ADR figures land in a similar band. One dataset separately cites both $74,700 average annual revenue at 39% occupancy in one view and 15,684 average active Airbnb and VRBO listings for the twelve months ending August 2026 in another, illustrating how even a single provider can present seemingly inconsistent figures depending on which report or filter generated the number. Additionally, Airbtics' $89,000 median figure likely excludes newer or lower-performing listings that haven't accumulated a full booking history, which inflates the median relative to a full-market average.
For owners, the practical fix is to never rely on a single "average revenue" headline. Instead, request a property-specific comparable set (comps) from a revenue manager who can pull actual competing listings in your exact neighborhood, bedroom count, and amenity tier. This is the analysis we run for every new client before setting a pricing strategy, because a citywide average tells you almost nothing about what your specific three-bedroom pool home near Vista Las Palmas will actually earn.
How Does Revenue Change by Season and Festival Calendar?
Palm Springs short-term rental revenue swings dramatically by season, with spring festival months generating two to three times the revenue of summer's slowest stretch. Monthly market data shows March revenue reached $8,249 at 88.2% occupancy and a $525 ADR, while April climbed to $8,274 revenue at a $574 ADR, both months coinciding with the desert's peak festival and event season. By contrast, September revenue dropped to just $3,089, with occupancy falling to 32.0% and ADR softening to $442.
Month | Estimated Revenue | ADR | Occupancy |
January | $5,164 | $451 | 64.5% |
February | $6,413 | $498 | 81.3% |
March | $8,249 | $525 | 88.2% |
April | $8,274 | $574 | 72.0% |
June | $3,726 | n/a | 40.0% |
July | $3,943 | n/a | 41.9% |
August | $3,605 | n/a | 35.5% |
September | $3,089 | $442 | 32.0% |
Source: LTM 2026 market data.
Notably, occupancy rebounds fast once temperatures ease. Separate reporting cited in market recaps shows October occupancy climbing back to 48.4% and November reaching 59.1%, as the desert's more than 300 days of annual sunshine (per the Greater Palm Springs tourism board) draws snowbirds and event travelers back. Property-level analysis confirms this pattern, estimating that professionally managed homes see 75 to 90% occupancy from October through May, compared to just 30 to 45% during the peak summer heat.
Events matter enormously here. Coachella and Stagecoach weekends alone can add $3,000 to $10,000 or more in incremental annual revenue for a well-located property, depending on size and neighborhood. Static, "set it and forget it" pricing misses this demand spike entirely: a property priced the same in April as it is in August leaves real money on the table during festival season, and it may price itself out of summer bookings altogether.
What Does Revenue Look Like by Property Size and Type?
Revenue potential for Palm Springs short-term rentals scales significantly with bedroom count and property type, ranging from an estimated $30,000 to $50,000 annually for a studio or one-bedroom condo up to $90,000 or more for a larger luxury estate. A two-bedroom pool home typically earns $48,000 to $78,000 per year, while a three-bedroom pool home lands in the $65,000 to $110,000 range under professional management.
Property Type | Estimated Annual Revenue |
Studio / 1-bedroom condo | $30,000 to $50,000 |
2-bedroom pool home | $48,000 to $78,000 |
3-bedroom pool home | $65,000 to $110,000 |
4+ bedroom estate | $90,000 to $175,000+ |
Source: Palm Springs short-term rental market data.
Design and location drive a meaningful premium within each tier. Mid-century modern architecture, mountain views, and premium pools in neighborhoods like The Movie Colony and Vista Las Palmas command the highest nightly rates in the city, a pattern consistent with what we see managing revenue strategy for owners in other design-forward markets. A dated furniture package or an unremarkable pool setup can knock a property down a full pricing tier regardless of bedroom count, which is why listing optimization and photography quality matter just as much as square footage when you're forecasting revenue.
What Are the Key Palm Springs Regulations That Affect STR Revenue?
Palm Springs regulates short-term rentals under Municipal Code Chapter 5.25, which restricts vacation rentals to single-family dwelling units and caps the number of certificates issued at 20% of total residential dwelling units within any given neighborhood. Standard vacation rental permits limit an owner to 26 rental contracts per calendar year, and a two-night stay counts the same as a ten-night stay toward that cap. This detail dramatically changes optimal pricing strategy: if you're limited to 26 total contracts annually, every one of those bookings needs to be priced to maximize revenue per stay, not just filled to maximize occupancy.
The city also distinguishes a homeshare (where the owner lives on-site) from an unhosted vacation rental. Both categories require a valid Palm Springs Short Term Rental Ordinance registration certificate plus a Transient Occupancy Tax permit. Operating without a certificate can trigger a fine as high as $5,000 and permanent ineligibility for future registration. Occupancy is capped at two guests per bedroom or eight total, whichever is lower, plus up to two additional children age 12 or younger. Parking is limited to two vehicles per unit, and compound-style event use is not allowed.
Palm Springs short-term stays are subject to an 11.5% Transient Occupancy Tax plus a separate 1% assessment through the Greater Palm Springs Tourism Business Improvement District on stays under 28 days, both of which must be reported and remitted monthly. For a property grossing $60,000 annually, that's roughly $7,500 in combined TOT and TBID obligations before any management fees or operating costs, a figure every pro forma needs to build in from the start rather than treating as an afterthought.
What Does a Realistic Palm Springs STR Pro Forma Look Like?
A realistic Palm Springs short-term rental pro forma starts with gross booking revenue and subtracts management fees, taxes, cleaning, utilities, insurance, and maintenance to arrive at net operating income, typically leaving an owner with 55 to 70% of gross revenue depending on management structure. Using a mid-range $60,000 gross revenue scenario for a two-to-three bedroom property, here is how the major line items typically break down. Note that cleaning, utilities, and insurance costs vary enough by property size, pool presence, and turnover frequency that we present these as ranges rather than fixed figures until we have your specific property in hand.
Line Item | Typical Range (Annual) |
Gross booking revenue | $48,000 to $78,000 (2BR pool home) |
Transient Occupancy Tax (11.5%) + TBID (1%) | Approximately 12.5% of gross revenue |
Full-service management fee | 15% to 30% of gross revenue |
Cleaning and turnover | Varies by property size and turnover frequency |
Utilities and pool service | Varies; pool homes carry added service costs |
Insurance and maintenance reserve | Typically budgeted as a fixed monthly reserve |
Management fee range based on 2026 Palm Springs market data; tax rates per City of Palm Springs regulatory sources.
Management fees alone can swing net income by 15 percentage points depending on whether you choose a co-hosting arrangement or full-concierge service. This is precisely where a dedicated revenue strategy, not a flat percentage fee with static pricing, changes the math. Independent research across 541 Airbnb listings found that properties using dynamic pricing saw an average 36.3% increase in gross revenue per unit, alongside a 37.3% increase in nights booked. On a $60,000 base, that kind of lift represents real money, which is why we build pricing strategy around tools like PriceLabs paired with real-time market intelligence rather than relying on a platform's built-in smart pricing alone.
How Should Owners Interpret Neighborhood-Level Performance Differences?
Neighborhood location within Palm Springs materially affects both achievable ADR and the practical availability of a rental certificate, since the city's 20% neighborhood cap means some desirable areas may already be at or near capacity for new vacation rental permits. Premium neighborhoods like The Movie Colony and Vista Las Palmas command higher nightly rates thanks to their concentration of mid-century modern architecture and mountain views, but that same desirability can mean fewer available certificates for new entrants.
Before purchasing a property with the intent to operate it as a short-term rental, confirm certificate availability directly with the city rather than assuming approval, since a home in a neighborhood already at its 20% cap cannot receive a new standard vacation rental certificate regardless of how strong the revenue potential looks on paper. This single step gets skipped constantly by out-of-state investors who fall in love with a listing photo before checking local eligibility, and it is one of the first things our team verifies when advising a new Palm Springs acquisition.
Beyond the cap itself, neighborhood character drives guest expectations and review quality. A property that leans into its mid-century design heritage, rather than fighting it with generic furnishings, tends to command stronger reviews and repeat direct bookings, something we see consistently when guiding STR revenue management strategy for design-forward properties in other markets too.
Practical Guidance: How to Improve Your Palm Springs STR Revenue
Improving Palm Springs short-term rental revenue requires combining dynamic pricing with seasonal calendar strategy and compliance awareness, since the city's 26-contract annual limit changes how aggressively you should price festival-season stays compared to a market with unlimited bookings. Below is a practical framework we walk owners through.
Audit your permit status first. Confirm your certificate type, remaining contract count for the year, and whether your neighborhood has room under the 20% cap before making any pricing decisions.
Price festival months aggressively. With ADR peaking near $574 in April and Coachella/Stagecoach adding an estimated $3,000 to $10,000 in incremental revenue, these weeks deserve premium, event-aware pricing rather than a flat seasonal rate.
Reconsider minimum stays under the 26-contract cap. Since a two-night and ten-night stay count identically toward your annual limit, longer minimum stays during high-demand weeks can increase per-contract revenue without using up more of your annual allotment.
Don't ignore shoulder season. October and November occupancy recovers to nearly 50 to 60% as temperatures drop; static pricing that assumes summer-level demand well into fall leaves money on the table.
Budget taxes and fees into your listing price, not against it. With TOT and TBID combining for roughly 12.5% of gross revenue, factor this into your nightly rate strategy rather than absorbing it as a margin hit after the fact.
Compare management models honestly. Full-service fees of 15 to 30% of gross revenue make sense for out-of-state owners who need boots on the ground; co-hosting at 10 to 18% can work if you're locally present and only need pricing and marketing support.
If you self-manage a single Palm Springs property, basic tools and attentive calendar management often get you fine results. Where we consistently see revenue left on the table is with owners running two or more properties, or out-of-state investors trying to track festival calendars, permit renewal dates, and competitive pricing shifts from a different time zone. That gap is exactly why our revenue management services pair PriceLabs-driven dynamic pricing with hands-on market analysis specific to each submarket, rather than a one-size-fits-all algorithm.
What Do Palm Springs STRs Contribute to the Local Economy?
Short-term vacation rentals represent a meaningful share of Palm Springs' tourism economy, with visitors spending an estimated $309.3 million directly in the City of Palm Springs in 2026 according to the Economic Impact of Short-Term Vacation Rentals Coachella Valley 2026 report. That spending generated approximately $59.7 million in city tax revenue and contributed to nearly $357 million in total economic impact once indirect and induced effects are included. Across the broader Coachella Valley, the same report estimates 1.2 million short-term vacation rental visitors in 2026, representing close to 19% of overnight visitors and $906.9 million in direct visitor spending.
These figures matter for owners beyond civic pride; they explain why the city maintains active enforcement of its Chapter 5.25 rules rather than treating short-term rentals as a minor side issue. With that much tax revenue tied to compliant operation, expect continued scrutiny of unpermitted rentals and periodic ordinance updates, including the recent amendments referenced under Ordinance No. 2133. Staying compliant here directly protects your ability to keep operating and collecting revenue in a market this economically significant to the city.
Frequently Asked Questions
What is the average STR revenue in Palm Springs?
Average annual short-term rental revenue in Palm Springs ranges from roughly $38,100 to $89,000 depending on the data source, with AirROI reporting $56,996 and other datasets reporting $63,360 for overlapping twelve-month periods in 2026. A reasonable planning range for a well-managed two-to-three bedroom property is $50,000 to $65,000 annually, with luxury estates exceeding $90,000.
How much can a Palm Springs vacation rental earn?
Earnings depend heavily on property size and management quality: expect $30,000 to $50,000 for a studio or one-bedroom condo, $48,000 to $78,000 for a two-bedroom pool home, $65,000 to $110,000 for a three-bedroom pool home, and $90,000 to $175,000 or more for a four-bedroom estate under professional management.
How can I get a Palm Springs rental revenue estimate?
The most accurate way to get a revenue estimate is a property-specific comparable analysis pulling actual competing listings in your exact neighborhood and bedroom tier, rather than relying on a single citywide average from any one data provider. Maverick STR offers this type of market analysis as part of its revenue management consulting for owners evaluating a Palm Springs purchase or reassessing an existing property's pricing strategy.
What is the average Airbnb occupancy in Palm Springs?
Occupancy estimates range from 37.7% to 60.0% depending on the data source, with AirDNA reporting 53% occupancy as of May 2026, up 4% year over year. Occupancy is highly seasonal, ranging from around 88% in March to as low as 32% in September.
What is the average Palm Springs Airbnb daily rate?
Average daily rate (ADR) for Palm Springs short-term rentals typically falls between $449 and $522 depending on the source, with AirDNA reporting $468.30 as of May 2026, up 3% year over year. ADR peaks around $574 in April during festival season and drops closer to $442 in September, the market's slowest month.
What are the best breakdowns of vacation rental platform revenue streams, including fees, ads, host services, and experiences?
Platform revenue for sites like Airbnb and VRBO comes from several layered streams: guest service fees charged on top of the nightly rate, host service fees deducted from payouts, paid placement for hosts seeking better search visibility, and ancillary services like experiences or travel insurance add-ons. For an owner, understanding these fee layers matters because every OTA fee is revenue you don't capture, which is why many owners pair their OTA listings with a commission-free direct booking website to recapture repeat guests without paying platform fees twice.
How does dynamic pricing actually increase Palm Springs STR revenue?
Dynamic pricing adjusts nightly rates in real time based on demand signals like festival dates, day of week, and booking lead time, rather than using one flat rate year-round. Independent research across 541 Airbnb listings found dynamic pricing increased gross revenue per unit by an average of 36.3%, making it especially valuable in a market as seasonal as Palm Springs.
Can I use professional revenue management if I don't live in Palm Springs?
Yes. Revenue management and dynamic pricing services are location-independent and can be applied to any Palm Springs property regardless of where the owner lives, since pricing strategy relies on market data and software rather than physical presence. Maverick STR offers this consulting to owners nationwide, while local, hands-on services like cleaning coordination and guest check-in require an on-the-ground presence in one of its serviced markets.
Conclusion: What This Means for Your Palm Springs Property in 2026
The honest answer to what drives str revenue Palm Springs performance is that no single number tells the whole story. Revenue ranges from $38,100 to $89,000 depending on the data source, occupancy swings from roughly 32% in September to nearly 90% in March, and the city's 26-contract annual cap fundamentally changes how you should price each booking compared to an unrestricted market. Owners who price around the festival calendar, respect the neighborhood certificate caps, and build TOT and TBID obligations into their pricing from day one consistently outperform owners running one flat rate year-round.
As 2026 progresses and active supply continues its modest decline while occupancy and ADR both trend upward per AirDNA's most recent data, the properties that will keep outperforming are the ones treating pricing as an ongoing strategy rather than a one-time decision at listing setup.
If reconciling conflicting market data and building a real pricing strategy around Palm Springs' 26-contract cap and festival calendar feels like more than you want to manage alone, get started with Maverick STR. Our revenue management clients see an average revenue increase of 20 to 30% through PriceLabs-driven dynamic pricing paired with hands-on market analysis, and our managed properties consistently outperform their local markets by 30 to 50%. Reach out to talk through what a property-specific revenue forecast looks like for your Palm Springs address.
Written by Chase Gillmore, Owner & Operator at Maverick STR
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