Desert Hot Springs, CA Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

67 / 100

Desert Hot Springs offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.

Desert Hot Springs Short-Term Rental Market Overview

Desert Hot Springs stands out as an accessible entry point into the Southern California short-term rental market, with average home values around $447,942 and an above-average revenue-to-price ratio that gives investors more room for returns than many neighboring desert and coastal communities. The market currently hosts 346 active Airbnb listings generating an average annual revenue of $34,919, and its proximity to Joshua Tree National Park and the greater Coachella Valley fuels a steady stream of leisure travelers. While occupancy sits at 41%—slightly below the state average of 43%—the favorable cost basis and strong seasonal peaks make this a market worth a closer look.

Key Market Statistics

According to Rabbu market data, the Desert Hot Springs short-term rental market shows:

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 346
Average Daily Rate (ADR) vs. $551 state avg. $294
Average Occupancy Rate vs. 43% state avg. 41%
RevPAN ADR * Occupancy Rate $121
Average Monthly Revenue Historical 12-month average $2,909
Average Annual Revenue Historical 12-month average $34,919

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Desert Hot Springs

Favorable property prices relative to revenue potential, combined with strong seasonal demand from desert tourism and the Coachella Valley's cultural draw, make Desert Hot Springs an appealing market for STR investors seeking yield.

Key investment factors

  • Above-average revenue-to-price ratio keeps acquisition costs manageable relative to income potential
  • Desert and hot springs tourism drives concentrated high-season demand from January through April
  • Average home values under $448K are well below the broader California median, lowering the barrier to entry
  • Hot tub and pool amenities featured in 74–77% of listings signal strong guest demand for wellness-oriented stays
  • Rapid listing growth (129% YoY) reflects rising investor confidence in the market's trajectory

Expert Market Assessment

"With an ROI score of 67 out of 100 labeled an "Attractive Opportunity," Desert Hot Springs delivers solid revenue relative to property costs but requires savvy seasonal management. The market's sharp seasonality—April peaks near $5,744 per month while September bottoms out around $1,865—means investors need to budget for lean summer months. Three- to five-bedroom properties command the best balance of revenue and occupancy, making mid-size family or group homes the sweet spot. The supply-demand balance and growth trajectory both sit at average, suggesting the market hasn't overheated but warrants monitoring given the rapid influx of new listings."

— Rabbu Market Analysis Team

Understanding Desert Hot Springs's ROI Score: 67/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

Factor Desert Hot Springs Performance Weight
Revenue-to-Price Ratio Above average 40%
Occupancy Stability Below average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Desert Hot Springs earns a 67 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" band—driven primarily by an above-average revenue-to-price ratio that highlights the market's favorable economics relative to California property costs. Occupancy stability scores below average, reflecting the sharp seasonal swings between the busy spring season and quieter summers, so investors should factor in uneven cash flow. Pairing this score with thorough local regulatory research and a seasonal pricing strategy will help investors capture the market's upside while mitigating its softer months.

Short-Term Rental Regulations in Desert Hot Springs

Understanding local STR regulations is essential before investing in Desert Hot Springs. Here's the current regulatory landscape:

Permit Requirements

The City of Desert Hot Springs in California requires short-term rental operators to obtain a vacation rental permit and business license before listing a property. Investors should verify current application requirements and fees directly with the city's planning or code enforcement department, as processes can change.

Key Restrictions

Common restrictions in Desert Hot Springs and similar California markets may include occupancy caps based on property size, minimum stay requirements, noise ordinances with quiet hours, designated parking requirements, and limits on the number of permits issued within certain zones. HOA rules in gated communities or planned developments can impose additional restrictions or outright bans on short-term rentals.

Tax Obligations

Short-term rental operators in California are typically subject to transient occupancy taxes (TOT), and Desert Hot Springs levies its own local TOT rate on stays under 30 days. Platforms like Airbnb often collect and remit these taxes on behalf of hosts, but investors should confirm compliance with both city and state tax obligations.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Desert Hot Springs can provide current regulatory guidance.

Short-Term Rental Financing for Desert Hot Springs

Financing an Airbnb investment in Desert Hot Springs requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Desert Hot Springs Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Desert Hot Springs is likely to maintain its pronounced winter-to-spring peak, with revenues from February through April estimated to remain 40–60% above the annual monthly average. Listing growth of 129% year-over-year suggests rising investor interest, which could begin to pressure occupancy rates if supply outpaces demand. Investors entering now should plan for softer summers—September and October dip below $1,900 per month—and price aggressively during the desert high season to capture the bulk of annual revenue. ADR may see modest upward drift of 2–4% as the market matures, though occupancy stability will be the metric to watch."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Desert Hot Springs, CA

What is the average Airbnb occupancy rate in Desert Hot Springs?
The average occupancy rate for Airbnb listings in Desert Hot Springs is currently 41%, just slightly below the California state average of 43%. Occupancy varies significantly by property size—studios lead at 65%, while 4-bedroom homes average around 32%. The desert's strong winter and spring seasons push occupancy higher from January through April, with softer demand during the hotter summer months.
How much do Airbnb hosts make in Desert Hot Springs?
On average, Airbnb hosts in Desert Hot Springs earn approximately $2,909 per month or $34,919 per year based on trailing 12-month booking data. Revenue varies widely by property size: studios average about $1,068 per month, while 6+ bedroom properties can bring in around $12,657 monthly. Peak months like March and April can generate $4,844 to $5,744, while September may dip to around $1,865.
Is Desert Hot Springs a good market for Airbnb investment?
Desert Hot Springs earns an ROI score of 67 out of 100, placing it in the "Attractive Opportunity" category. The market's standout strength is its above-average revenue-to-price ratio—average home values of $447,942 paired with $34,919 in annual revenue offer a favorable cost-to-income relationship compared to much of California. Investors should be prepared for seasonal revenue swings and below-average occupancy stability, but the low entry price and strong peak-season demand make it a compelling option with the right strategy.
What is the average daily rate (ADR) for Airbnb in Desert Hot Springs?
The current average daily rate in Desert Hot Springs is $294, which is notably lower than the California state average of $551. ADR scales meaningfully with property size, from $106 for studios up to $1,111 for 6+ bedroom homes. The 3-bedroom segment averages $321 per night and represents one of the largest listing categories, making it a popular investor target.
Are short-term rentals legal in Desert Hot Springs?
Short-term rentals are permitted in Desert Hot Springs, though operators are generally required to obtain a vacation rental permit and business license from the city. Local regulations may include occupancy limits, noise restrictions, and parking requirements. As rules can evolve, investors should confirm the latest requirements with the City of Desert Hot Springs before purchasing or listing a property.
When is peak season for Airbnb in Desert Hot Springs?
Peak season in Desert Hot Springs runs from roughly February through April, when pleasant desert temperatures attract the most visitors. April is the highest-earning month at an average of $5,744, followed by March at $4,844 and February at $3,429. The slowest months are September ($1,865) and October ($1,895), reflecting the extreme summer and early fall heat that naturally reduces demand.
How many Airbnbs are there in Desert Hot Springs?
Desert Hot Springs currently has 346 active Airbnb listings. The market has seen significant growth of 129% year-over-year in active listings. Three-bedroom homes make up the largest share of supply with 100 listings, followed by 1-bedroom units (88) and 4-bedroom homes (80).
How is Airbnb revenue calculated in Desert Hot Springs?
The annual and monthly revenue figures shown for Desert Hot Springs are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, drop regional outliers, and roll the remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently rather than to forecasts, while still naturally reflecting seasonal peaks and slower months because each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

  • Regularly updated active Airbnb and STR listing counts by market and property size
  • Average daily rates, occupancy rates, and RevPAN metrics across property configurations
  • Monthly and annual revenue trends based on trailing 12-month booking performance
  • Home value data sourced from Zillow Home Value Index (ZHVI) for investment analysis
  • Data aggregated from multiple proprietary and third-party sources for consistency

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Local regulations and tax requirements may change; investors should verify current rules with Desert Hot Springs and Riverside County authorities before purchasing. Individual property results will vary based on location within the market, property condition, pricing strategy, and management quality.

Next Steps

Ready to invest in Desert Hot Springs's short-term rental market? Take action with these resources:

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