Palm Desert, CA Airbnb Market Data, Statistics, and Occupancy Rates

Palm Desert Short-Term Rental Market Overview

Palm Desert stands out as a desert resort market where short-term rentals benefit from strong seasonal demand, particularly during the winter and spring months when snowbirds and vacationers flock to the Coachella Valley. With 757 active Airbnb listings, an average occupancy rate of 53% (well above the 43% California state average), and average annual revenue of $37,554, the market offers a compelling entry point for investors seeking exposure to a tourism-driven destination. The ROI score of 56 out of 100 reflects a balance of healthy demand and above-average market growth, tempered by the seasonal revenue swings typical of desert markets.

Key Market Statistics

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

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

Why Investors Consider Palm Desert

Palm Desert attracts STR investors because of its reliable seasonal tourism demand, competitive occupancy relative to the state average, and above-average market growth trajectory.

Expert Market Assessment

"Palm Desert represents an attractive but seasonally dependent opportunity for short-term rental investors. The market's peak earning months — March and April, which average $5,209 and $6,178 respectively — deliver roughly three times the revenue of the softest months like September ($2,006) and October ($2,038), so cash-flow planning around this cycle is critical. With occupancy comfortably above the California average and an above-average growth trend, the fundamentals support a positive outlook for well-positioned properties. Investors who target 2- to 4-bedroom properties and equip them with the amenities guests expect in this market should find themselves well-aligned with current demand patterns."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Palm Desert

Average revenue by month in Palm Desert

Revenue in Palm Desert follows a sharp seasonal curve, peaking in April at $6,178 and bottoming out in September at $2,006 — a spread of over $4,100 that underscores the market's dependence on winter-spring tourism. Investors should expect roughly 60% of their annual income to concentrate between January and April, with the summer through early fall requiring careful expense management.

Active Airbnb listings by property size in Palm Desert

Two-bedroom units dominate supply with 309 listings (41% of the market), followed by 1-bedrooms at 145 and 3-bedrooms at 143. Larger properties with 4+ bedrooms are significantly underrepresented — just 63 listings combined — which could signal opportunity for investors willing to target that segment given their substantially higher earning potential.

Average daily rate (ADR) by property size in Palm Desert

ADR scales dramatically with property size in Palm Desert: studios and 1-bedrooms sit near $250, while 5-bedroom homes command $1,377 and 6+ bedroom properties reach $1,931 per night. The sharpest jump occurs between 4-bedroom ($565) and 5-bedroom properties, suggesting that larger luxury-tier homes occupy a distinct pricing tier with limited competition.

Average RevPAN by property size in Palm Desert

Revenue per available night tells a clear story — 5-bedroom properties lead at $923, far outpacing 2- and 3-bedrooms which cluster around $192–$193. Studios lag at just $77 RevPAN, making them the weakest performers on a per-night basis and a less efficient use of capital compared to mid-size or larger units.

Average occupancy rates by property size in Palm Desert

Two-bedroom and 5-bedroom properties achieve the highest occupancy rates at 65% and 67% respectively, while studios struggle at just 31%. The relatively strong fill rates for 2-bedrooms, combined with their large supply share, suggest consistent demand in that segment, though 5-bedrooms pair high occupancy with far greater revenue potential.

Average monthly revenue by property size in Palm Desert

Monthly revenue ranges from $1,803 for studios to an impressive $29,212 for 6+ bedroom properties, with a notable jump above the 4-bedroom threshold ($5,223) into the luxury tier. For mainstream investors, 3-bedroom units at $3,821 per month offer a solid middle ground between acquisition cost and earning power.

Average annual revenue by property size in Palm Desert

Annual revenue potential climbs steeply with size: 2-bedrooms average $40,099, 4-bedrooms reach $62,686, and 5-bedroom properties surge to $230,276. The outsized returns on 5- and 6+ bedroom homes ($350,547) suggest that large luxury properties, while requiring greater upfront investment, can deliver exceptional revenue in Palm Desert's resort-oriented market.

Most common amenities for Airbnb listings in Palm Desert

Kitchens (92%), pools (90%), and parking (89%) are near-universal in Palm Desert listings, reflecting the baseline expectations of guests visiting a desert resort destination. Hot tubs (81%) and BBQ grills (78%) are also prevalent, signaling that outdoor living amenities are essentially table stakes — any new listing without a pool and outdoor entertaining space will face a significant competitive disadvantage.

Understanding Palm Desert's ROI Score: 56/100

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

What This Means for Investors

Palm Desert's ROI score of 56 out of 100 places it in the "Attractive Opportunity" band, reflecting a market with healthy demand fundamentals and above-average growth but a moderate revenue-to-price ratio given average home values near $859K. Occupancy stability and supply/demand balance both score as average, while the market growth trend stands out as above average — a signal that investor interest and visitor demand are both expanding. Pairing this data with thorough research into Palm Desert's current STR regulations and your target property's specific neighborhood dynamics will give you the most complete investment picture.

Short-Term Rental Regulations in Palm Desert

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

Permit Requirements

The City of Palm Desert, California, generally requires short-term rental operators to obtain permits or register their properties before listing them for transient use. Investors should verify current permit requirements directly with the city's planning or code compliance department, as local rules can evolve.

Key Restrictions

Common restrictions in desert resort markets like Palm Desert may include occupancy limits tied to bedroom count, minimum-night stay requirements, noise ordinances with quiet hours, designated parking mandates, and potential caps on the number of STR permits issued. HOA rules in many Palm Desert communities can impose additional layers of restriction, so reviewing CC&Rs before purchasing is essential.

Tax Obligations

Short-term rental operators in California are typically subject to transient occupancy taxes (TOT), and some jurisdictions may also impose tourism or business improvement district assessments. Platforms like Airbnb often collect and remit state and local taxes on behalf of hosts, but operators should confirm their specific obligations with Palm Desert's finance department.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Palm Desert's short-term rental market is expected to continue benefiting from above-average growth trends and the enduring appeal of the Coachella Valley as a winter escape. Seasonal patterns suggest ADR and occupancy will remain strongest from February through April, with estimates pointing toward ADR holding steady in the $360–$380 range during peak months. Year-over-year listing growth of 92% signals rising investor interest, though new supply could moderate occupancy rates slightly if demand doesn't keep pace. Investors entering now should plan for softer summer months (June–October) and budget accordingly, while capitalizing on the lucrative high season."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Palm Desert, CA

What is the average Airbnb occupancy rate in Palm Desert?

The average Airbnb occupancy rate in Palm Desert is currently 53%, which is notably higher than the 43% California state average. Occupancy varies significantly by property size — 2-bedroom units lead the mainstream categories at 65%, while studios trail at 31%. The winter and spring high season drives the strongest fill rates, with summer and early fall seeing lighter demand.

How much do Airbnb hosts make in Palm Desert?

On average, Airbnb hosts in Palm Desert earn approximately $3,129 per month, or about $37,554 annually, based on trailing 12-month booking data. Earnings vary widely by property size: studios average around $21,645 per year, while 5-bedroom homes can generate upwards of $230,276 annually. Peak months like April can produce over $6,100 in revenue, whereas slower months like September may yield closer to $2,000.

Is Palm Desert a good market for Airbnb investment?

Palm Desert scores a 56 out of 100 on Rabbu's ROI Score, placing it in the "Attractive Opportunity" category. The market benefits from above-average growth trends and solid occupancy, though revenue is heavily concentrated in the winter-spring season. Investors who plan for seasonal cash-flow variability and target the right property size — particularly 2- to 4-bedroom homes — can find meaningful returns here, especially as the Coachella Valley continues to attract visitors.

What is the average daily rate (ADR) for Airbnb in Palm Desert?

The current average daily rate for Airbnb listings in Palm Desert is $366, which sits below the $551 California state average. ADR scales sharply with property size: studios and 1-bedrooms hover around $250–$251, while 4-bedroom properties average $565 and 6+ bedroom homes command $1,931 per night. This pricing structure rewards investors who can offer larger, well-appointed properties.

Are short-term rentals legal in Palm Desert?

Short-term rentals do operate in Palm Desert, with 757 active Airbnb listings currently tracked in the market. However, the City of Palm Desert may require permits, registration, or compliance with specific local regulations. Prospective investors should contact the city's code compliance or planning department directly to confirm current rules, as STR regulations in California desert communities have been subject to change.

When is peak season for Airbnb in Palm Desert?

Peak season in Palm Desert runs from approximately February through April, coinciding with the influx of snowbirds and spring festival visitors to the Coachella Valley. April is the highest-earning month with average revenue of $6,178, followed by March at $5,209 and February at $3,688. The slowest months are September and October, when desert heat suppresses visitor demand and average revenue dips below $2,100.

How many Airbnbs are there in Palm Desert?

As of April 2026, there are 757 active Airbnb listings in Palm Desert. The market has seen significant year-over-year listing growth of 92%, indicating rapidly rising investor and host interest. Two-bedroom units make up the largest share of supply at 309 listings, followed by 1-bedrooms (145) and 3-bedrooms (143).

How is Airbnb revenue calculated in Palm Desert?

The annual and monthly revenue figures for Palm Desert are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remaining data up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently, while naturally reflecting seasonal peaks (like March and April) and slower months (like September) because each month draws on its own historical performance. Individual results can vary based on property quality, pricing strategy, location within Palm Desert, 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 revenue per available night metrics
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Property value data sourced from Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to inform competitive positioning

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. Data reflects trailing 12-month averages as of the date indicated and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before making investment decisions.