7 Step Guide to Coachella Rental Regulations
1. City Overview: Short-Term Rental Landscape
Homes in Coachella have depreciated by -0.72%, with the median home value at $640,446, according to Zillow. The average property tax is 0.94%, per SmartAsset. These figures suggest potential investment opportunities for short-term rental (STR) investors due to favorable property tax rates and steady tourism demand.
Coachella currently has 3,942 active short-term rentals. The average daily rate for these rentals is $510, leading to an annual revenue of $58,433 as of March 2025. The average gross yield for STRs in the city is 9.12%. Despite a higher unemployment rate of 6.2% compared to the national average of 4.1%, Coachella remains a strong market due to consistent guest demand, particularly from Los Angeles, San Francisco, and San Diego.
The most popular property types are 2-bedroom units, with an average daily rate of $510 and an annual revenue of $75,774. Top-performing amenities include Cleaning before checkout, Garden or backyard, and Pianos, reflecting guest preferences.
2. Quick Facts
- Chalet Coachella Investor Potential & Regulation Score: Moderately Friendly.
- Permit Required: Yes.
- Zoning Restrictions: Yes, STRs must comply with Riverside County zoning regulations, which vary based on property type and location.
- Maximum Occupancy: Two adults per bedroom, plus two additional guests. Children under 12 are not included in occupancy limits.
- Tax Requirements: Hosts must collect and remit a 10% Transient Occupancy Tax (TOT).
- Renewal Frequency: Annually.
- Insurance Required? While not explicitly required by law, liability insurance with a minimum coverage of $500,000 per occurrence is strongly recommended.
- Enforcement Level: Strict.
