Desert Hot Springs, CA

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Desert Hot Springs short-term rental market based on reliable data.

Listings

455 / 757

Reliable / Active

Cap Rate

9%

Middle-Earners Gross Yield

Revenue

$35,331

Middle-Earners Revenue

Occupancy

48%

Middle-Earners Occupancy

Home Value

$376,908

Median Home Sale Price

Top Earners

$106,151

Top-Earners Revenue

Desert Hot Springs

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Desert Hot Springs.

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C

Challenging to Investors

Desert Hot Springs Regulations

STRs are technically legal but constrained by strict caps (4% of parcels) and a 500‑foot separation rule; ADUs are prohibited and HOA authorization can veto permits. Permit costs are high (general permit ~$1,242 + taxes/insurance) and non‑transferable, with no grace period on renewals, all of which materially raise investor risk and compliance burden.

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About Desert Hot Springs

Desert Hot Springs, California, is a small city located in Riverside County with a population of approximately 28,000 residents. Situated about 10 miles north of Palm Springs, it is renowned for its naturally occurring hot and cold mineral springs. The city's proximity to Palm Springs, a major tourist destination, makes it an attractive location for short-term rentals.

One of the main appeals of Desert Hot Springs is its hot springs resorts, which attract visitors looking to relax and rejuvenate in mineral-rich waters. establishments like Two Bunch Palms (https://twobunchpalms.com)) and Miracle Springs Resort & Spa (https://miraclesprings.com)) highlight the therapeutic benefits that have drawn people to the area for decades.

For outdoor enthusiasts, Desert Hot Springs offers easy access to Joshua Tree National Park (https://www.nps.gov/jotr/index.htm),,) which is approximately 30 miles away. The park is renowned for its hiking trails, rock climbing opportunities, and stunning desert landscapes.

Cultural and historical landmarks are also significant draws. Cabot’s Pueblo Museum (https://www.cabotsmuseum.org)) is a unique structure built by hand in the early 20th century and offers visitors a glimpse into the area's history and the life of explorer Cabot Yerxa.

Another notable mention is the Big Morongo Canyon Preserve (http://www.bigmorongo.org),,) located within a short driving distance. The preserve is one of the largest cottonwood and willow riparian habitats in California, ideal for bird watching and nature hikes.

Given its climate, wellness focus, and strategic location near Palm Springs and various natural attractions, Desert Hot Springs presents a compelling case for short-term rental investment.

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