Short-term rental rules · Palm Springs, California
Short-term rentals in Palm Springs, explained properly.
Short-term rentals are legal in Palm Springs but tightly capped: no more than 20% of residential dwelling units in any organized neighborhood may hold a standard vacation rental certificate, and standard permit-holders face annual limits on how many separate rental contracts they can book. Homesharing (owner present) and a lower-fee, lower-volume Junior certificate offer easier paths in capped neighborhoods.
Draft. These rules were compiled from the official sources listed below but have not yet been checked line by line. Confirm with the city before making decisions.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Yes, as an ancillary/secondary use of single-family homes only[1][2] |
| Neighborhood cap on standard certificates | 20% of residential dwelling units per organized neighborhood[1][2] |
| Certificate types available | Standard Vacation Rental, Junior Vacation Rental, Homeshare[2] |
| Owner-occupancy required? | No for standard and Junior certificates; yes for Homeshare[2] |
| Maximum occupancy | 2 persons/bedroom, 8 overnight max (12 for estate homes); +4 daytime (10am–10pm)[2] |
| Annual rental contract limit | 26 (new permittees) / 32 + up to 4 in Q3 (existing) / 6 (Junior)[2]Confirming |
| 24/7 local contact required? | Yes — 15-minute phone response, 30-minute in-person response[2] |
| Annual certificate fee | $1,046 (standard) / $523 (Junior) / $261 (Homeshare)[3]Confirming |
| Typical combined guest tax | 12.5%[4][5] |
| Last researched | September 25, 2026 |
Watch this market
Want to know when Palm Springs's rules change?
We watch Palm Springs's official rule pages, council agendas and California legislation. When a change affecting short-term rentals is proposed or passed, we email you what changed, when it takes effect, and a link to the source.
No spam. Unsubscribe anytime. See our privacy policy.
Detailed rules
The full picture, section by section
Eligibility & zoning
| Property type eligibility | Single-family dwellings only; apartments/multifamily prohibited[2] Only single-family dwellings (including "estate homes" with 5+ bedrooms) may register as vacation rentals or homeshares. Apartments and other multifamily housing units cannot be used as short-term rentals under any certificate type. |
|---|---|
| Cannot apply while property is in escrow | Applications rejected if property is in escrow[6] The city will not accept a vacation rental certificate application for a property that is currently in escrow (i.e., mid-sale), which affects timing for buyers hoping to operate a short-term rental immediately after purchase. |
| What counts as a "short-term" rental | 28 consecutive days/nights or less[2] Any rental of 28 consecutive days (the city's proposed ordinance revision would clarify this as "nights") or less triggers vacation rental regulation. An ongoing month-to-month tenancy is exempt from these rules. |
Licensing & application
| Application processing time | 30–90 days; no advertising/renting until written authorization issued[6] The Vacation Rental Compliance Department typically takes 30 to 90 days to process a certificate application. Owners cannot begin advertising or renting until they receive written authorization; doing so beforehand triggers violations and can result in permanent ineligibility. |
|---|---|
| Inspection and insurance requirements | Building/fire/safety inspection required initially and annually; commercial liability insurance mandatory[2] A building, fire, and safety inspection is required before a certificate is issued and again at each annual renewal. Owners must maintain commercial liability insurance covering the rental use. |
| Unincorporated Riverside County properties | Not covered by this city certificate — separate county permit required[6] Palm Springs's certificate system applies only within city limits. A property in unincorporated Riverside County (even with a Palm Springs mailing address) needs a separate short-term rental permit from Riverside County's Transportation and Land Management Agency (TLMA). |
Operating rules & enforcement
| Parking requirement | 1 guest vehicle/bedroom overnight; +2 daytime[2] Overnight parking is limited to one guest vehicle per bedroom. Two additional guest vehicles are allowed during the day. |
|---|---|
| Outdoor sound/noise rule | Amplified sound not audible at the property line[2] Sound equipment must be used only within fully enclosed structures, and outdoor amplified sound cannot be audible at the vacation rental's property line. |
| Written rental contract requirement | Required with a responsible renter age 25+ for every booking[2] Every booking requires a written contract naming a responsible renter who is at least 25 years old; the owner remains responsible for guest conduct and code compliance during the stay. |
| Penalties for violations | $500 first violation, $1,000 subsequent; $5,000–$10,000 for operating without a certificate[2] A first violation draws a $500 administrative citation, escalating to $1,000 for each subsequent violation. Operating an unregistered vacation rental carries a $5,000 fine plus permanent ineligibility for a certificate, and continuing to operate afterward can bring a $10,000 fine. A third violation within 12 months triggers a 2-year certificate suspension; unpaid TOT (after notice) triggers a 12-month suspension; missing advertising requirements brings a 6-month suspension on a first offense and revocation on a second. |
Taxes & fees
| Transient Occupancy Tax rate | 11.5% (13.5% for "group meeting hotels")[4] Palm Springs Municipal Code Chapter 3.24 sets an 11.5% TOT on the rent charged for most transient stays, including vacation rentals; a higher 13.5% rate applies specifically to a "group meeting hotel" classification not typically applicable to short-term rentals. |
|---|---|
| Tourism Business Improvement District (TBID) assessment | 1% of gross rental revenue[5] A 1% TBID assessment on gross rental revenue for stays under 28 days has applied since July 1, 2021, paid monthly alongside the TOT return. |
| Monthly TOT filing required even with no rentals | Yes[7] A TOT return must be filed every month regardless of whether the property was actually rented during that period; all due dates and delinquency penalties are enforced. |
| Is there a California state lodging/sales tax on STRs? | No — TOT is set entirely at the local level[8] California has no statewide sales tax or lodging tax on short-term stays; the Transient Occupancy Tax is authorized under Revenue & Taxation Code § 7280 and set entirely by each city or county, with rates commonly ranging from about 8% to 15% statewide. |
Changes
Recent and pending changes
Checked Palm Springs city council/Administrative Appeals Board activity and California state legislation as of the research date below. The Administrative Appeals Board was actively refining a management-company-registration and "days"-to-"nights" ordinance update as of a May 2025 meeting, expected to return for further review; confirm current status directly with the city before relying on the existing ordinance text for close calls. Separately, statewide SB 346 (effective January 1, 2026) lets cities compel STR platforms to disclose listing data, but only if the city adopts an implementing ordinance — confirm whether Palm Springs has done so.
The city's current vacation rental certificate framework — including the 20% neighborhood cap, certificate types, and annual contract limits — was adopted via Ordinance 2075 on November 28, 2022.
SB 346, effective January 1, 2026, lets California cities compel short-term rental platforms like Airbnb and Vrbo to disclose listing addresses, parcel numbers and URLs, but only if the city adopts an ordinance invoking the law; it also allows audits and penalties for platform non-compliance.
Palm Springs's Administrative Appeals Board voted in May 2025 to direct legal counsel to incorporate a requirement that vacation rental management companies register with the city, and to clarify the ordinance's "28 consecutive days" language to "28 consecutive nights." The revised ordinance was expected to return for board review; current status should be confirmed with the city.
Sources
Every rule above links to one of these
Newsletter
Not tracking Palm Springs specifically?
One email a month with STR rule changes across the US markets we track.
No spam. Unsubscribe anytime. See our privacy policy.
Questions
Managing properties in several cities?
Tell us what you're trying to decide and which markets you operate in. We read every message.
This page is general information compiled from official sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.