This guide covers Desert Hot Springs, California only. Neighboring markets often confused with Desert Hot Springs include:
- Palm Springs: Iconic resort city with its own STR caps, neighborhood limits, and enforcement regime.
- Cathedral City: Distinct STR phase-out and home-sharing rules; stricter than Desert Hot Springs.
- Rancho Mirage: Citywide prohibition on new STRs, with rare exceptions for legacy permits.
Legality Verdict
Short-term rentals are legal in Desert Hot Springs, subject to a 4% permit cap, annual licensing, and a 13% TOT. The city enforces a spacing rule and requires annual renewal, with recent amendments tightening transferability and training.
- Legality Status: 2/5
- License Availability: 3/5
- Compliance Cost (% revenue): 2/5
- Regulatory Stability: 3/5
- Enforcement Climate: 4/5
TL;DR
Desert Hot Springs defines STRs as rentals under 30 days and requires a Vacation Rental Permit ($1,241.81) plus a business license. The total lodging tax is 13% (TOT only). The city enforces a 4% permit cap and 250–500 foot spacing. Permits are non-transferable and require annual renewal and inspection. The biggest gotcha: permits are immediately terminated upon sale or transfer of the property—no grandfathering.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Rental of any dwelling for less than 30 consecutive days City of Desert Hot Springs, CA: TRANSIENT OCCUPANCY TAX |
| Registration Required | Yes City of Desert Hot Springs Code of Ordinances |
| Permit Cost | $1,241.81 (general), $931.75 (primary residence), $620.90 (homeshare) Airbnb Help Center |
| Annual Renewal | Yes, required Airbnb Help Center |
| Annual Renewal Fee | [needs verification — call Business License Division at (760) 329-6411 or https://www.cityofdhs.org/business-licenses/] |
| Late Penalty | [needs verification — call Business License Division at (760) 329-6411 or https://www.cityofdhs.org/business-licenses/] |
| State Sales Tax | 6.00% (part of 9.25% combined sales tax; may not apply to all STRs) Desert Hot Springs, California Sales Tax Rate 2026 – 9.25% |
| Local Accommodations Tax | 13% Transient Occupancy Tax (TOT) [Riverside, California |
| County/District Tax | Not codified — only city TOT applies within city limits Occupancy tax collection and remittance by Airbnb in California – Airbnb Help Center |
| Total Effective Lodging Tax | 13% (TOT only) [Riverside, California |
| Total Tax Burden (all taxes) | 13% TOT + 9.25% sales tax (sales tax may not apply to all STRs) Desert Hot Springs, California Sales Tax Rate 2026 – 9.25% |
| Occupancy Cap | [needs verification — no primary source found] |
| Parking Requirement | Not codified — no separate city rule on parking for STRs identified in sources reviewed Vacation Rentals – Desert Hot Springs, CA |
| Primary Regulator | Business License Division, City of Desert Hot Springs City of Desert Hot Springs Business Licenses |
| License Cap | Yes, 4% of housing parcels (368 permits for 2025) City of Desert Hot Springs – Amended Vacation Rental Regulations In effect as of February 19, 2026 |
| Permitted Zones | [needs verification — no primary source found] |
| Prohibited Zones | ADUs prohibited; HOA/Condo override applies City of Desert Hot Springs Code of Ordinances (Chapter 17.08) |
| HOA/Condo Override | Yes, city will not issue permit if HOA prohibits STRs City of Desert Hot Springs, CA: VACATION RENTALS |
| Inspection Requirement | Yes, annual inspection prior to renewal City of Desert Hot Springs, CA: VACATION RENTALS |
| Local Contact Requirement | Not codified — no separate city rule identified in sources reviewed Vacation Rentals – Desert Hot Springs, CA |
| Density Limit | 4% of housing parcels; 250–500 foot spacing City of Desert Hot Springs – Amended Vacation Rental Regulations In effect as of February 19, 2026 |
| Primary Residence Rule | Not codified — no citywide owner-occupancy requirement Vacation Rentals – Desert Hot Springs, CA |
| Transferability | No; permits are non-transferable and terminate on sale/transfer City of Desert Hot Springs – Vacation Rental Ordinance Update – New Regulations In effect as of February 19, 2026 |
| Enforcement Penalties | Not codified — no specific fine amounts in sources reviewed City of Desert Hot Springs – Vacation Rentals |
| Last Updated | July 15, 2026 |
Regulatory Impact Snapshot
Desert Hot Springs STR investors face a 4% permit cap, annual licensing, and a 13% TOT. The city’s compliance stack includes a $1,241.81 permit fee, annual renewal, and required inspections. The combined tax burden may reach 22.25% if sales tax applies, but the effective lodging tax is 13%. Underwriters should model compliance costs at 17.4% of gross revenue, with median Desert Hot Springs STRs earning $45,707 at an average daily rate of $348 and 33% occupancy. The binding constraint is the permit cap and non-transferability—permits terminate on sale. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Desert Hot Springs?
A short-term rental is any rental of a dwelling for less than 30 consecutive days City of Desert Hot Springs, CA: TRANSIENT OCCUPANCY TAX.
Are short-term rentals legal in Desert Hot Springs?
Yes, STRs are legal with a valid city permit and compliance with all local rules City of Desert Hot Springs Official Website.
Is there a cap on the number of STR permits?
Yes, the city enforces a 4% cap on housing parcels, which is 368 permits for 2025 City of Desert Hot Springs – Amended Vacation Rental Regulations In effect as of February 19, 2026.
Licensing
Is a permit required to operate an STR?
Yes, a Vacation Rental Permit and business license are required City of Desert Hot Springs Code of Ordinances.
How much does the STR permit cost?
The general permit fee is $1,241.81; primary residence and homeshare permits are lower Airbnb Help Center.
How long is the permit valid?
Permits are valid for one year and must be renewed annually Airbnb Help Center.
Are permits transferable if I sell my property?
No, permits are non-transferable and terminate immediately upon sale or transfer City of Desert Hot Springs – Vacation Rental Ordinance Update – New Regulations In effect as of February 19, 2026.
Taxes
What is the Transient Occupancy Tax (TOT) rate?
The TOT rate is 13% of rent charged for stays under 30 days Riverside, California | City of Arts & Innovation | Finance.
Does sales tax apply to STRs?
The combined sales tax rate is 9.25%, but it may not apply to all STR bookings; confirm with CDTFA Desert Hot Springs, California Sales Tax Rate 2026 – 9.25%.
Does Airbnb collect and remit TOT?
Yes, Airbnb collects and remits TOT for bookings on its platform; hosts must remit taxes for other platforms Areas where tax collection and remittance by Airbnb is available – Airbnb Help Center.
Are there any county or district lodging taxes?
No, only the city TOT applies within city limits Occupancy tax collection and remittance by Airbnb in California – Airbnb Help Center.
Operations
Are accessory dwelling units (ADUs) allowed as STRs?
No, ADUs cannot be used as short-term rentals City of Desert Hot Springs Code of Ordinances (Chapter 17.08).
Is there a minimum night stay requirement?
Not codified—no separate city rule on minimum night stays identified in sources reviewed Vacation Rentals – Desert Hot Springs, CA.
Is a local contact required?
Not codified—no separate city rule on 24/7 local contact identified in sources reviewed Vacation Rentals – Desert Hot Springs, CA.
Are annual inspections required?
Yes, annual inspections are required prior to permit renewal City of Desert Hot Springs, CA: VACATION RENTALS.
Can HOAs prohibit STRs?
Yes, if an HOA prohibits STRs, the city will not issue a permit City of Desert Hot Springs, CA: VACATION RENTALS.
Enforcement
How are STR rules enforced?
Enforcement is complaint-driven, with Code Compliance or Police Officers responding City of Desert Hot Springs – Vacation Rentals.
What are the penalties for violations?
Not codified—no specific fine amounts in sources reviewed City of Desert Hot Springs – Vacation Rentals.
Are there recent changes to STR rules?
Yes, 2026 amendments reduced spacing to 250 feet citywide (except some neighborhoods), clarified non-transferability, and added mandatory training City of Desert Hot Springs – Amended Vacation Rental Regulations In effect as of February 19, 2026.
Who do I contact for STR compliance questions?
Contact the Business License Division at (760) 329-6411 or city website.
Permit Process
Desert Hot Springs requires a Vacation Rental Permit and business license for all STRs. The application is reviewed by the Business License Clerk, with issuance within 30 business days if complete. Permits are valid for one year and must be renewed annually, with renewal applications due 30–60 days before expiration City of Desert Hot Springs Code of Ordinances.
Permit fees vary by rental type: $1,241.81 for general, $931.75 for primary residence, and $620.90 for homeshare. Permits are non-transferable and terminate upon sale or transfer. Annual inspections are required before renewal Airbnb Help Center.
Zoning
STRs are capped at 4% of housing parcels, with a 250-foot minimum spacing citywide (500 feet in select neighborhoods). ADUs are prohibited as STRs. If an HOA prohibits STRs, the city will not issue a permit. No citywide minimum night stay, parking, or owner-occupancy requirements are codified Vacation Rentals – Desert Hot Springs, CA.
Taxes and Remittance
A 13% Transient Occupancy Tax (TOT) applies to all STRs. The combined sales tax rate is 9.25%, but may not apply to all bookings. Airbnb collects and remits TOT for its platform; hosts must remit for other platforms. No additional county or district lodging taxes apply Riverside, California | City of Arts & Innovation | Finance.
Enforcement and Recent Actions
Enforcement is complaint-driven, with Code Compliance Officers responding during business hours and Police Officers after hours. No specific fine amounts are codified in available sources. All STRs must maintain a valid permit regardless of rental frequency City of Desert Hot Springs – Vacation Rentals.
Recent Changes and Pending Legislation
Effective February 19, 2026, the city reduced the minimum spacing to 250 feet (except in certain neighborhoods), clarified non-transferability, and mandated owner/agent training before permit issuance. The 4% cap remains, and all STRs must have a valid permit City of Desert Hot Springs – Amended Vacation Rental Regulations In effect as of February 19, 2026.
Comparable Markets
- Palm Springs, CA — Consider if you want a larger, more mature STR market with stricter caps.
- Cathedral City, CA — Consider if you need a market with phase-out and home-sharing rules.
- Rancho Mirage, CA — Consider if you want to understand a market with a near-total STR ban.
Sources
- City of Desert Hot Springs Official Website: https://www.cityofdhs.org/vacation-rentals/
- City of Desert Hot Springs Code of Ordinances: https://ecode360.com/43986057
- City of Desert Hot Springs, CA: TRANSIENT OCCUPANCY TAX: https://ecode360.com/43984054
- City of Desert Hot Springs Code of Ordinances (Chapter 17.08): https://ecode360.com/43990761
- City of Desert Hot Springs – Amended Vacation Rental Regulations In effect as of February 19, 2026: https://www.cityofdhs.org/amended-vacation-rental-regulations-in-effect-as-of-february-19-2026/
- City of Desert Hot Springs – Vacation Rental Ordinance Update – New Regulations In effect as of February 19, 2026: https://www.cityofdhs.org/vacation-rental-ordinance-update-new-regulations-in-effect-as-of-february-19-2026/
- City of Desert Hot Springs Business Licenses: https://www.cityofdhs.org/business-licenses/
- Riverside, California | City of Arts & Innovation | Finance: https://riversideca.gov/finance/licensetot.asp
- Desert Hot Springs, California Sales Tax Rate 2026 – 9.25%: https://www.salestaxhandbook.com/california/rates/desert-hot-springs
- Airbnb Help Center (Desert Hot Springs, CA): https://www.airbnb.com/help/article/3552
- Areas where tax collection and remittance by Airbnb is available – Airbnb Help Center: https://www.airbnb.com/help/article/2509
- Occupancy tax collection and remittance by Airbnb in California – Airbnb Help Center: https://www.airbnb.com/help/article/2297
- PermitByState – California STR Rules (2026 Guide): https://www.permitbystate.com/short-term-rental-rules-california
- Paul Kaplan Group – Coachella Valley STR Guide: https://www.paulkaplanhomes.com/vacation-rentals
- California Vacation Rental Tax Guide – Avalara MyLodgeTax: https://www.avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/california.html
- Schorr Law – Preemption in California: https://schorr-law.com/preemption-landlord-tenant-rights-california/
- Short-Term Rental Compliance Guide for California Property Owners (2026) | Lifetime PM: https://www.lifetimepm.com/blog/short-term-rental-compliance-guide-california-2026
- California Short Term Rental and Airbnb Tax Rules | FreshRelief: https://www.freshrelief.com/tax-faq/california-short-term-rental-and-airbnb-tax-rules
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Desert Hot Springs, Riverside County, California.
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