Short-Term Rentals in the Coachella Valley (2025 Update)

Thinking about operating (or booking) a short-term rental in the Coachella Valley? Rules vary widely city-to-city. Below is a plain-English snapshot of what’s allowed, what’s not, and where to find the official rules.

Important: Regulations change. Always verify with the city and read the actual ordinance before you rent or advertise. Nothing here is tax or legal advice—talk to your own tax advisor and attorney.

Palm Springs

Allowed, capped by neighborhood. Palm Springs issues Vacation Rental Registration Certificates but limits total certificates to 20% of homes within each organized neighborhood. If a neighborhood is at/over the cap, new applications go to a waitlist until the percentage falls below 20%. Existing certificates are grandfathered. See the city’s density page and application resources. (Palm Springs, CA)

Cathedral City

Mostly prohibited (with narrow exceptions). The city phased out most standalone STVR permits effective January 1, 2023. New/renewed permits are generally limited to home-sharing in your primary residence or in certain common-interest developments (HOAs) whose CC&Rs allow it. Read the municipal code Chapter 5.96 for details. (eCode360)

Rancho Mirage

Prohibited citywide. As of July 1, 2022, all short-term rentals (27 days or fewer) are banned in every zone, including advertising for short-term stays. Stays of 28+ days are allowed. See the city’s STR page and code references. (Rancho Mirage)

Palm Desert

Allowed with a permit, with zone limits. Palm Desert issues STR permits and distinguishes on-site (hosted) vs. off-site (unhosted). On-site STRs are allowed in specified residential zones (including RE, R-1M, R-1, R-2, R-3 and certain downtown overlays). Apartments, ADUs, and JADUs are prohibited as STRs. Off-site STRs are prohibited in the HPR zone. See Chapter 5.10 for the full list of permitted zones and rules. (eCode360)

La Quinta

Heavily restricted; new permits largely banned. La Quinta has a permanent ban on new General and Primary STVR permits, with limited exempt areas where new permits may still be issued. Homeshare permits (owner on-site during the stay) and some large-lot exemptions can be allowed under the code. Check the city’s STVR program page for the latest maps, FAQs, and links to the municipal code. (La Quinta, CA)

Indian Wells

Extremely limited; 29-night minimum most of the year. New STR permits generally require a 29-night minimum stay, except around the BNP Paribas Open (a limited window allows 7-night minimum). HOAs can opt out of the minimum-stay rule (permit & TOT still required). See the city’s STR page. (cityofindianwells.org)

Indio

Allowed with a permit (popular for festivals). Indio operates a structured STR program: permits, inspections, and collection/remittance of TOT/TBID are required. The city’s STR portal centralizes permitting, compliance, and a complaint hotline.

Coachella (City)

Allowed with an active permit and tax registration. Coachella requires an STR permit and collection/remittance of 13% Transient Occupancy Tax (TOT). Advertising or renting without an active permit is prohibited. See the city’s STR page and ordinance materials. (Coachella)

Desert Hot Springs

Allowed with a hard cap and spacing rules. The city caps STR permits at 4% of all housing parcels (recalculated annually) and imposes 500-foot spacing between STR parcels. ADUs cannot be used as STRs; TOT and TBID apply. There’s a waitlist when the cap is reached. (Desert Hot Springs, CA)

Unincorporated Riverside County (outside city limits)

Allowed with a County certificate—area-specific caps/spacing may apply. In unincorporated areas, you must obtain a Short-Term Rental Certificate under Ordinance 927 (as amended). Some policy areas (e.g., Idyllwild, Wine Country) have caps, spacing distances, and ownership limits; countywide spacing and age-of-responsible-guest rules may also apply. Start with the County STR Program page and the text of Ordinance 927. (Riverside County Planning Department)

Quick Reference: Official Policy Links

Palm Springs – Vacation Rentals: application & neighborhood cap info. (Palm Springs, CA)
Cathedral City – STVR Ordinance (Ch. 5.96): phase-out & exceptions. (eCode360)
Rancho Mirage – STR Program: citywide prohibition & FAQs. (Rancho Mirage)
Palm Desert – STR Ordinance (Ch. 5.10): zones, hosted vs. unhosted, prohibitions. (eCode360)
La Quinta – STVR Program: permanent ban on most new permits + homeshare/large-lot pathways. (La Quinta, CA)
Indian Wells – STR Info: 29-night minimum (7-night exception during tennis). (cityofindianwells.org)
Indio – STR Portal: permits, compliance & hotline.
Coachella – STR Program & FAQs: permits required; 13% TOT. (Coachella)
Desert Hot Springs – Vacation Rentals: 4% citywide cap, spacing, FAQs. (Desert Hot Springs, CA)
Unincorporated Riverside County – STR Program & Ordinance 927: county certificate, area-specific caps. (Riverside County Planning Department)

Practical Tips

Don’t advertise until your permit is issued. Many cities treat advertising without a permit as a violation. (See Coachella’s FAQ.) (Coachella)
Confirm your zone/HOA rules. City permission never overrides HOA CC&Rs (common across cities). (See Palm Desert code purpose.) (eCode360)
Mind minimum-stay windows. Indian Wells has special tournament rules. (cityofindianwells.org)
Expect taxes and assessments. Most cities require TOT and, in some cases, TBID assessments (e.g., Desert Hot Springs). (Desert Hot Springs, CA)

Disclaimer (Tax/Legal)

This post is for informational purposes only and is not tax or legal advice. Buyers, sellers, owners, and renters should consult the appropriate city regarding current Short Term Rentals, their own tax professionals, accountants, and attorneys about how these rules—and any local taxes, fees, or permitting requirements—apply to their specific real estate transactions and use.

The following are frequently asked questions:

What homes and condos make the best rentals?

Well located homes and condos with private heated pools and spas and 2-3 or more bedrooms are prime vacation home rentals. Homes with 4 or more bedrooms can allow for even greater appeal and can produce higher yielding rentals. Upscale luxury homes and estates generate the greatest income, particularly luxury homes that feature expansive grounds, big pools, lush landscaping, luxurious amenities and suite-style bedrooms. More bedrooms and bathrooms are always a plus.

How much rental income might I expect?

Income potential can vary considerably by house or condo, the number of days the home is available for rentals, its location, style, size, availability on key holidays and special events, amenities.

As with any investment, it is not possible to predict or guarantee future performance, but many of the 3 bedroom homes and condos in the Vacation Palm Springs program have consistently generated in the range of $25,000 to $35,000 or more in annual gross rental income. Some of our clients that have 3 bedroom mid-century homes have grossed over $50,000/year. Larger and luxury homes, 4 bedrooms or more, have consistently exceeded $60,000 or more a year. Larger luxury estates in prime locations have produced significantly greater incomes, as much as $70,000 to over $100,000 annually and more.

Location, quality of furnishings, the appeal of the outdoor area and pool, views, all contribute to the marketability of a vacation home. The Paul Kaplan Group's agents are trained and experienced to help buyers choose those properties that will be viable vacation rental homes.

What might I expect for wear and tear?

Wear and tear are both a reality and a risk associated with residential property rentals and is the responsibility of the homeowner. Vacation rentals are in many ways similar to hotel lodging, so wear and tear and routine maintenance is a reality and downside of the good fortune of generating income and a cost of doing business when renting a home or condo.

What about furnishings for the home?

Your vacation home should be furnished to reflect a balance of comfort and style. Having televisions and DVDs in all bedrooms and living rooms is important as well as reading lights in each bedroom and living area. In addition to appealing design and style, vacationing guests are looking for a place with furnishings to allow for comfort, conversation, dining and relaxation both inside the home and poolside. Wireless Internet is a must. A local landline phone service is required for use in event of emergencies. We can supply a comprehensive checklist from vacation management companies of required furnishings and supplies.

Who handles maintenance?

Homeowners are responsible for paying utilities, pool service, gardening service as well as maintenance and upkeep. Your vacation management company checks the home before guests arrive after the guests depart and again after it has been cleaned cleaning inspect for quality. They also regularly assist and notify owners of items needing maintenance as well as ordering and assistance in coordinating the necessary repairs.

If a guest experiences a malfunction while a guest is occupying your home, your management team coordinates the service response and notifies the owner of the resolution in order to reserve your rental income and satisfy the guest. If a repair item is significant, the company will first consult with you as the homeowner before authorizing the repair expenditure.

Palm Springs Vacation Rental

Palm Springs is one of the rare places where you can purchase a home and rent it out when not using it, sometimes year round. (Check the current Short Term Rental ordinance for restrictions). Many of our clients purchase 2nd homes here in Palm Springs - when not using it themselves, they rent it out to make additional income to help cover some of the home ownership expenses.

The Paul Kaplan Group will assist you to help you decide on the best rental investment property. (*However, every home is unique. We do not guarantee the potential income for any home).

NOTE: The City of Palm Springs and other cities in the Coachella Valley have recently debated their individual policies regarding vacation rentals. We suggest anyone considering purchasing a vacation rental home, to contact the appropriate City Hall to learn more about the current local ordinances & potential changes, regulating vacation rentals in each city. These ordinances are subject to change, so best to check back regularly to keep informed on the latest potential changes to vacation rental policies in the area you are considering.

Disclaimer:
The information provided in this blog is for general informational purposes only and should not be construed as legal, financial, or tax advice. Real estate transactions can have significant financial and legal implications, and each situation is unique. Readers are strongly encouraged to consult with qualified professionals—including a licensed lender, accountant, attorney, and/or financial advisor—before making any decisions related to mortgages, loans, taxes, contracts, or real estate transactions. The Paul Kaplan Group and its agents make no guarantees as to the accuracy, completeness, or applicability of the information provided, and assume no liability for actions taken in reliance upon it.