Question 1

Which is better for STR bonus depreciation in 2026: Joshua Tree, CA or Palm Springs, CA?

Accepted Answer

Joshua Tree wins on pure depreciation math — a lower land ratio (15% vs 28%) means more of every purchase dollar buys depreciable structure and finishes. Palm Springs works if you want the luxury market and higher nightly rates, but the tax math is meaningfully weaker.

Question 2

What is the typical Year-1 bonus depreciation write-off on a Joshua Tree short-term rental vs a Palm Springs short-term rental?

Accepted Answer

On the median Joshua Tree STR ($397K), Year-1 bonus depreciation is approximately ~$103K (26% bonus-eligible of purchase price). On the median Palm Springs STR ($769K), Year-1 is approximately ~$177K (23% bonus-eligible). Higher bonus-eligible % combined with lower purchase price typically yields the best return-on-tax-dollars.

Question 3

When should an STR investor choose Joshua Tree over Palm Springs?

Accepted Answer

Choose Joshua Tree if: Investors optimizing for Year-1 write-off per dollar. Lower entry price ($397K median vs $769K), better bonus depreciation math, and 69% Diamond density. Choose Palm Springs if: Investors who want a luxury coastal-desert brand and higher weekly rents. Accept a weaker land ratio and Diamond density (35%) in exchange for market prestige.

Joshua Tree, CA vs Palm Springs, CA — short-term rental bonus depreciation head-to-head

Joshua Tree wins on depreciation math

Joshua Tree vs Palm Springs — data head-to-head

When to choose Joshua Tree

When to choose Palm Springs

Not sure which is right? Run the numbers on a specific property.

Metric	Joshua Tree, CA	Palm Springs, CA
Median bonus-eligible % (of purchase price)	26%Better tax math	23%
Median STR purchase price	$397K	$769K
Typical Year-1 write-off	~$103K	~$177K
Median land ratio	15%	28%
Diamond density (≥24% bonus-eligible listings)	69%	35%