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 20.3% of gross revenue, with median Desert Hot Springs STRs earning $39,002 at an average daily rate of $353 and 30% occupancy. The binding constraint is the permit cap and non-transferability—permits terminate on sale. Run this market in our Airbnb Calculator →
