Palm Springs updated its short-term rental regulations in July 2026, amending Chapter 5.55 of the Palm Springs Municipal Code. If you own a vacation rental — or you're thinking about buying one — these changes affect your permit, your operations, and your bottom line.
What the July 2026 Ordinance Actually Changed
The Palm Springs City Council passed the amended ordinance as a direct response to AB 1775, state legislation that shifted certain frameworks around short-term rental licensing and business operations. Veronica Goodhart, Director of Special Program Compliance, presented the update as a first reading — meaning the council is moving deliberately, not rushing.
The core change: the city expanded operational flexibility for licensed vacation rental businesses while reinforcing public safety requirements and employee protections. Think of it as a recalibration. The city isn't opening the floodgates, but it is acknowledging that the STR landscape has matured and that rigid pre-AB 1775 rules needed updating to stay workable.
What didn't change: Palm Springs still requires a valid short-term rental permit. Noise, occupancy, and good-neighbor rules remain in force. The city's compliance infrastructure — one of the more active enforcement programs in the valley — is staying intact.
What This Means for STR Owners and Investors
Palm Springs has historically taken a measured approach to vacation rental regulation, and this ordinance continues that pattern. The balance the council is striking matters: more flexibility for licensed operators, no retreat on the neighborhood protections that make STR-zoned areas livable for permanent residents too.
For investors evaluating STR purchases across the Coachella Valley, this is a reminder that Palm Springs Just Updated Its Short-Term Rental Rules Again — Here's What Changed in July 2026 isn't just a headline. It's a signal to review permit status, operating agreements, and projected returns before closing on any short-term rental property. Find out what your home is worth →
What This Means For You
• If you already hold a Palm Springs STR permit, review the amended Chapter 5.55 language to confirm your operations still meet compliance requirements under the new framework.
• If you're shopping for an investment property, verify that any Palm Springs listing you're considering is in an approved STR zone — and factor in the updated licensing conditions before running your numbers.
• If you own a property and are weighing whether to apply for an STR permit, this ordinance adds some flexibility but doesn't eliminate the process — plan for compliance costs from day one. Find out what your home is worth →
• If you're a full-time resident near STR properties, the ordinance's emphasis on public safety and neighborhood protections is worth reading — the enforcement mechanisms haven't been weakened.
Palm Springs Just Updated Its Short-Term Rental Rules Again — Here's What Changed in July 2026 is the kind of regulatory shift that tends to get buried in city council agendas. But for anyone with a financial stake in Coachella Valley real estate, staying current on these changes is simply part of owning here. You can browse more local market insights on the Craft & Bauer blog.
Frequently Asked Questions
Does the July 2026 ordinance change the Palm Springs STR permit requirement?
No. A valid short-term rental permit is still required under Chapter 5.55. The July 2026 amendments updated operational provisions and added flexibility for licensed businesses, but the permit requirement itself remains in place.
How does AB 1775 affect Palm Springs vacation rental rules?
AB 1775 is state legislation that prompted Palm Springs to revisit its existing STR framework. The city used the ordinance update to align local rules with new state requirements while preserving its own public safety and neighborhood protection standards — a balance city staff specifically cited in the council presentation.
Should I wait to buy an STR property in Palm Springs until the ordinance is fully adopted?
The ordinance was introduced as a first reading, meaning a second reading and final adoption typically follow. It's reasonable to consult with a local real estate professional familiar with the current permit landscape before closing — understanding exactly which zoning and licensing conditions apply to a specific property is essential to projecting accurate returns.