Palm Springs · Projection
Count the contracts, then the nights.
Palm Springs limits how many rental contracts a home can take each calendar year. A projection here starts with that number and the stay length it implies, not with an occupancy rate borrowed from somewhere else.
Step one
How many contracts the certificate allows.
Under Municipal Code Chapter 5.25, a contract is any stay without the owner present, paid or not. The ceiling depends on the certificate.
| Certificate | Contracts per calendar year | What it means for the projection |
|---|---|---|
| New vacation rental certificate | 26 | Fewer, longer stays. Twenty-six four-night stays fill about 104 nights, so minimum stays and seasonal pricing carry the model. |
| Existing certificate | 32, plus up to four more in the third quarter | More room for short winter stays, with a little summer flexibility. |
| Junior vacation rental | 6, at a lower registration fee | For owners who mostly use the home themselves and rent a few weeks a year. |
| Homeshare | Contract count does not apply | The owner is on site during the stay, which changes the whole model. |
Step two
Can a new certificate be issued on this street?
The City caps vacation rentals at 20% of homes in each organized neighborhood. Where a neighborhood is at or over 20%, a new application is returned and the owner can join a wait list, served first in time, first in right. Existing certificates are not affected. The City updates its neighborhood density list weekly.
Then the costs the City sets: Transient Occupancy Tax filed every month, with a zero return when nobody stayed, and a 1% tourism district assessment on stays under 28 days. A late filing costs 10% of the tax due or $50, whichever is greater, plus interest.
Casago's Palm Springs team manages about 310 homes in the city. Each projection is built for one address and one certificate type, with every assumption labeled.
Sources, checked October 27, 2026
- Palm Springs Municipal Code, Chapter 5.25 Vacation Rentals
- City of Palm Springs, Vacation Rental Density
- City of Palm Springs, Vacation Rental TOT Information
Educational, not legal or tax advice. Confirm the rules for your address with the City.
Palm Springs projection questions
How many rentals can a new Palm Springs certificate take?
No more than 26 contracts in a calendar year. Existing certificates allow 32, plus up to four more in the third quarter, and a Junior certificate allows six.
Does a free stay for a friend count as a contract?
Yes, unless the person is on the owner's filed list of up to five friends and family who may stay at no cost without the owner present.
What if my neighborhood is over the 20% cap?
The City returns the application and you can ask to join a wait list. Certificates are then issued first in time, first in right.
Palm Springs
See what 26 contracts look like for your home.
Your local Palm Springs team will check your neighborhood's density, the certificate that fits and the stays that make the year work. Prefer to talk? Call (760) 558-4949.
Acme House Company is a DBA of Acme CA, Inc., operating as Casago Greater Palm Springs. California DRE #02420145. Michael E. Flannery, Designated Broker.