Palm Desert Airbnb Rental Market Data, Revenue and Occupancy Rates 2026

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Palm Desert Airbnb Rental Market Data, Revenue and Occupancy Rates 2026

Is Palm Desert, CA a good Airbnb market in 2026?

Yes, with caveats. Palm Desert’s Airbnb market posts a median annual revenue of $73,728, with median occupancy at 17% and ADR at $297 (Chalet data). Regulation is active and layered—short-term rentals are legal but require annual permits, HOA approval, and compliance with strict enforcement.

Top-quartile operators see upside to $93,640. However, home values moved -2.4% year-over-year, highlighting asset volatility. Review the latest [Palm Desert STR regulations](/rental-regulations/palm-desert-ca) before investing.

New this quarter

Q2 2026 Market Momentum

Revenue rose despite lower occupancy — operators are pricing more aggressively.

Active Operator Revenue (Q2)

$15,245$7,68698.3%

Per active full-time listing, Apr–Jun

Average Occupancy (Q2)

21.6%28.3%6.7%

Investment thesis

Why invest in Palm Desert, CA Airbnb rentals?

Palm Desert’s short-term rental market is defined by a sharp yield premium, with the canonical median annual revenue standing at $73,728 across 1,170 full-time listings, according to Chalet data. This figure anchors a market where median occupancy is 17% and the median ADR is $297, translating to a robust gross yield of 13.4% on a median home value of $548,870. Palm Desert ranks #66 nationally for gross yield, underscoring its efficiency as a revenue engine in the Coachella Valley. The market’s pronounced seasonality is visible in the spread between its peak month, January, when median revenues reach $14,770 at 20% and $436, and the trough in May, when revenues fall to $2,405 with 16% occupancy.

The two-bedroom segment forms the backbone of Palm Desert’s inventory, with 635 listings—43% of supply—generating a median annual revenue of $36,328, supported by an ADR of $317 and occupancy of 31%. Investors targeting this cluster benefit from scale, liquidity, and a product that aligns with both leisure and event-driven demand. Meanwhile, one-bedroom units, with 312 listings, deliver $26,947 in annual revenue at an ADR of $278, and occupancy of 27%—a viable entry point for those seeking lower acquisition costs and steady cash flow. For tailored underwriting or on-the-ground insights, a Chalet agent can provide granular comps and regulatory context.

Geographically, the 92260 zip code (central Palm Desert) leads on both revenue and yield, with 617 listings posting a median annual revenue of $92,769, an ADR of $308, and a yield of 15.9% on a median home value of $584,053. This area’s performance is buoyed by proximity to El Paseo, event venues, and established resort infrastructure. In contrast, 92211 (northwest Palm Desert) sees 478 listings with a median revenue of $53,680, ADR of $297, and yield of 10.2%—a lower-yield alternative with a slightly higher occupancy rate, appealing to investors prioritizing stability over upside.

At scale, Palm Desert’s winners are operators who can navigate regulatory complexity and seasonality while capturing drive-market demand. The guest base is overwhelmingly regional, with 10.9% of reviews from Los Angeles and another 5.5% from San Diego, complemented by a 9.2% international share. Booking lead times average 71 days, and average stays run 3.7 nights, supporting both short bursts and longer event-driven bookings. Investors can model scenarios and stress-test assumptions using the Chalet ROI calculator.

Key risks are concentrated in regulatory friction and asset value volatility. The most material movement this year: home values moved -2.4% year-over-year, a headwind for equity-driven strategies. The seasonal trough in May brings median monthly revenue down to $2,405 at 16% occupancy, underscoring the need for strong off-peak pricing and expense management. Regulation is active and layered—short-term rentals are legal but tightly zoned, with annual permits, HOA approval, and a total tax burden of 19.75%. Enforcement is structured and proactive, with steep penalties for non-compliance; review the latest Palm Desert STR regulations before underwriting.

Palm Desert’s short-term rental market is a yield-driven play, anchored by $73,728 median annual revenue, but success depends on regulatory fluency and disciplined seasonality management.

Chalet exclusive

The market average hides a two-tier reality

Most market reports quote a single average, but in every STR market a wide gap separates full-time professional operators from part-time and underperforming listings. Underwriting against that average understates the upside for operators willing to do the work — and overstates it for everyone else.

Chalet's active-operator benchmark filters out part-time and dormant listings so you can underwrite against what real operators in this market actually earn.

Top Quartile Operators$93,640

Top 25% of 369 listings

Active Operator Average$69,036

← This is your real underwriting benchmark

All-Listings Average$33,178

What typical market reports quote — every listing, incl. part-time

Bottom Quartile

Where are you in your STR journey?

Three ways investors typically use this page. Pick the one that matches you.

Highest ROI segment

I'm converting an LTR to STR

See the revenue lift and occupancy upside of switching a long-term rental to a short-term in Palm Desert.

Run LTR → STR comparison

Monthly Revenue & Seasonality

Revenue per active listing in Palm Desert, CA, by month. Demand peaks Dec–Feb.

Monthly Revenue Trend

Revenue per active listing by month in Palm Desert, CA

$5,184

Season	Occ.	Revenue
Summer Jun–Aug	16%	$4,320
Spring Mar–May	39%	$4,874
Fall Sep–Nov	13%	$4,221
Winter Dec–Feb	18%	$8,773

Monthly Occupancy & Daily Rates

How occupancy and ADR move through the year — peak, shoulder, and low season patterns.

Monthly Occupancy Rate

Annual avg 23% · peaks at 60% in Mar

60% (Mar)

Summer peak

23%

Annual avg

Revenue by Bedroom Count

Annual revenue, occupancy, and ADR by bedroom configuration — Palm Desert runs mostly 2 Bedrooms, but 5 Bedrooms deliver the highest annual revenue.

Bedrooms	Listings	Occupancy	ADR	Annual Revenue
Studio	186	22%	$212	$17,162
1 Bedroom	314	27%	$278	$26,947
2 BedroomMost common	639

Home Values & Guest Demand

Median home-value trend and where Palm Desert guests travel from.

Median Home Value

$548,870▼ 2.36% YoY

Source: Zillow ZHVI

Peak: $571,882 in Jun 2024

Home values in Palm Desert are softening — buyers may have negotiating leverage they didn't have 12 months ago.

Where Guests Come From

Top origin cities · Palm Desert

Step 1: Find your Palm Desert team

Match with Palm Desert's top STR-specialist agents

Get matched with Palm Desert, CA realtors who specialize in short-term rentals — they know which neighborhoods actually cash flow and which to avoid. We've vetted them all.

No fees · Average match in 5 minutes

1,170

Active STRs tracked in Palm Desert

$549K

Median home value

Step 2: Line up financing

Match with STR-specialist lenders

Conventional lenders often won't underwrite STR income. We connect you with lenders who use DSCR, projected revenue, and Airbnb-specific underwriting.

Compliance & Rules

Airbnb Rules & Regulations in Palm Desert, CA

Before setting up an Airbnb in Palm Desert, review the local STR regulations and confirm any HOA restrictions on your specific property.

Full Palm Desert STR regulation guide

Are Airbnbs legal in Palm Desert, California?

Yes, Airbnbs are legal in Palm Desert with a city permit and business license, but only in permitted zones and subject to HOA/CC&R restrictions.

Do I need a license to operate an Airbnb in Palm Desert?

Yes, you need a city permit and business license to operate an Airbnb in Palm Desert.

Step 3: Stress-test the deal

Calculate your Airbnb income potential in Palm Desert, CA

Run any Palm Desert address through Chalet's calculator — instant, data-backed estimates of occupancy, nightly rate, and annual revenue, plus cash flow and returns.

Calculate Your Income Potential

Palm Desert market average

$73,728

/yr

Projected gross rental income at market occupancy and nightly rate.

Avg daily rate

$297

Occupancy

17%

Gross yield

13%

Calculator unlocks the full per-property deal report.

Frequently Asked Questions

Direct answers to the questions investors ask most about this market.

Is Airbnb profitable in Palm Desert, CA?

Yes. Operating a short-term rental in Palm Desert, CA can be highly profitable. Listings see consistent guest demand, with a whole-market median of $73,728 annually at 17% occupancy.

How much can you make on Airbnb in Palm Desert, CA?

The whole-market median is $73,728 per year. Bedroom count drives the spread: Studios average $17,162, 1 Bedrooms average $26,947, 2 Bedrooms average $36,328.

Trust & Sources

How we build this report

Data sources

Proprietary Chalet STR performance data (1,170 active listings tracked daily)
Local Chalet market-partner verification
City permit records and public county data

Methodology notes

Active operator = listing with sustained availability and booking activity over the trailing 12 months
Revenue figures are gross of platform fees, before operating expenses and taxes
Updated monthly · last refresh August 2026