The City of Palm Springs has unanimously approved a new ordinance which will cap short-term vacation rental homes at 20% in residential neighborhoods. This ordinance will take effect for any STR permits issued after October 17, 2022. 

Existing permits and new applicants who received their permits prior to the October 17^th cutoff will be grandfathered in. The City Council has also voted that there shall be a limit of 26 times per year that a STR can be rented out. The change is in effect for all new permits and will go in to effect for existing permits on January 1, 2026. 

The councilmembers also voted to create a junior permit which will have reduced fees for properties that will only be rented out 6 times per year. These types of permits are not included in the 20% cap.