There’s some welcome news out of Palm Springs City Hall — and it’s a big win for local vacation rental homeowners.
What Happened
On October 22, the Palm Springs City Council voted unanimously to cancel the planned 2026 reduction in the maximum number of short-term rental (STR) contracts. A second reading and final vote took place on November 12 to formalize the decision.
What This Means for You
If your STR permit was issued before October 2022, you currently enjoy 36 annual contracts (32 anytime + 4 during the third quarter).
Under the prior ordinance, those “legacy permits” were set to drop to 26 total contracts starting in 2026 — the same as newer permits.
The Council’s latest action keeps legacy permits at 32 + 4, preserving your ability to host more guests throughout the year and continue maximizing your home’s revenue potential without new restrictions.
How We Got Here
ACME House Company is proud to be an active member of Vacation Rental Owners & Neighbors of Palm Springs (VRON-PS) — the nonprofit that champions responsible vacation rentals and homeowner rights.
Our own Kenny Cassady, ACME’s Director of Business Development, currently serves as President of the VRON Board of Directors. For the past ten months, Kenny and the VRON team have collaborated closely with City staff and officials to keep this issue front-and-center.
When the 2022 change was adopted, the City had never conducted an impact study — so VRON commissioned Tourism Economics, a respected national research firm, to analyze what the reduction would actually cost Palm Springs.
The Findings Were Clear
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$1 million in annual lost City TOT / TBID revenue
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$16.9 million in lost annual STR visitor spending
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$21.7 million total annual loss when factoring in indirect impacts to local business sales, tax revenue, and jobs
With the City already facing a budget deficit, Council members moved to avoid these losses and protect both the local economy and Palm Springs’ vital tourism ecosystem.
What’s Next
VRON has also submitted several additional proposals to modernize and improve the STR ordinance, which City Council will revisit at a later date.
ACME will continue to keep our homeowners informed every step of the way — and we’ll share updates as soon as new details become available.
Help Protect the Future of Vacation Rentals in Palm Springs
The progress made this month is proof that advocacy works. If you’re passionate about preserving fair and responsible vacation rental policies, we encourage you to JOIN Vacation Rental Owners & Neighbors of Palm Springs (VRON-PS) and help support ongoing advocacy for short-term rentals in our community.
Together, we can ensure Palm Springs remains a thriving destination — for visitors, homeowners, and local businesses alike.