Desert Hot Springs is on the north side of the Coachella Valley, across I-10 from Palm Springs, with about 33,000 residents [1]. It had the lowest median home value of the valley cities we cover (Census, 2020–2024), and the lowest owner-occupancy: about 51% of occupied homes are lived in by their owners [1].
Housing types and prices
About 64% of homes are detached single-family houses, 25% are in buildings of two or more units, and 8% are mobile homes [1]. Few homes are seasonal (about 5% of housing units) [1], so this is mostly a year-round market.
Price context, September 2026 [2]: ZIP 92240 had a median listing price of about $434,000, with 172 homes for sale and a median 64 days on market. The Census estimate of median owner-occupied home value for 2020–2024 was about $355,000 [1].
Things buyers ask about in Desert Hot Springs
Hot mineral water. The city sits over a hot mineral-water aquifer. The spa resorts draw their water from their own wells in it, according to the local water district [3]. State records put the average temperature of hot-water wells along the Mission Creek Fault at about 118°F [4]. The water district doesn't draw from or test the hot aquifer [3]. If a property advertises a mineral-water well or pool, ask for the well's records and permits.
Can I rent it out short-term? Possibly, but permits are capped. Every vacation rental needs a city permit, and permits are capped at 4% citywide [5]. As of February 19, 2026, vacation rentals must be at least 250 feet apart, or 500 feet in the Rolling Hills, DHS 41 and Hacienda Heights neighborhoods. Owners must also complete city-certified training before a permit is issued [5]. A permit ends immediately when the property is sold [5], so a buyer cannot count on the seller's permit.
Renting long-term. About half of occupied homes here are rented [1]. If you're buying a home that already has a tenant, get the lease, the rent history and the expense records from the seller, and check any HOA's leasing rules.
Utilities. Water and sewer are Mission Springs Water District [3]. Electricity is Southern California Edison.
Public schools. Desert Hot Springs is served by Palm Springs Unified School District (psusd.us) [6]. School assignment depends on the exact address, so check with the district.
Tom and Janet in Desert Hot Springs
The Tom and Janet transaction records we reviewed (seven closed 2026 sales) do not include a Desert Hot Springs sale. They serve the city from their Palm Desert base [7][8]. Janet works with buyers, including first-time buyers, and coordinates with lenders and VA loan specialists [9]. Tom works with 1031 exchange intermediaries for investment purchases and sales [10].
Talk to Tom and Janet: (951) 201-6982 · Tom Callaway, DRE #01915294 · Janet Callaway, DRE #01897623 · LPT Realty, Inc.
Desert Hot Springs FAQ
Does a vacation-rental permit transfer to the buyer in Desert Hot Springs? No. Under the rules in effect since February 19, 2026, the permit terminates immediately when the property is sold [5].
Why is it called Desert Hot Springs? The city sits over a hot mineral-water aquifer that supplies its spa resorts; hot wells along the Mission Creek Fault average about 118°F, per state records [3][4].
What does a home cost in Desert Hot Springs? In September 2026 the median listing price in ZIP 92240 was about $434,000 [2].
Sources
- U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates (tables B01003, B25001, B25003, B25004, B25024, B25077), via Census Reporter: https://censusreporter.org/profiles/16000US0618996-desert-hot-springs-ca/ (retrieved 2026-09-30).
- Realtor.com® Economic Research, ZIP-level Inventory Core Metrics, month 2026-09 (file RDC_Inventory_Core_Metrics_Zip.csv, posted 2026-09-30). Data courtesy of Realtor.com: https://www.realtor.com/research/data/
- Mission Springs Water District, Hot Mineral Water: https://www.mswd.org/mswd/page/hot-mineral-water ; https://www.mswd.org/
- California Department of Water Resources, Bulletin 118, Desert Hot Springs Subbasin (7-21.03): https://water.ca.gov/-/media/DWR-Website/Web-Pages/Programs/Groundwater-Management/Bulletin-118/Files/2003-Basin-Descriptions/7_021_03_DesertHotSpringsSubbasin.pdf
- City of Desert Hot Springs, "Vacation Rental Ordinance Update – New Regulations In effect as of February 19, 2026" (posted Jan. 27, 2026): https://www.cityofdhs.org/vacation-rental-ordinance-update-new-regulations-in-effect-as-of-february-19-2026/
- Palm Springs Unified School District, Schools: https://www.psusd.us/schools
- Tom and Janet Callaway's own transaction records (Deals table, 7 closed sales, read 2026-09-30).
- TJ Callaway Realty, About: https://tjcallawayrealty.com/about
- TJ Callaway Realty, About Janet: https://tjcallawayrealty.com/about/janet
- TJ Callaway Realty, About Tom: https://tjcallawayrealty.com/about/tom