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🌵Desert Homes with Seasonal Sizzle🌶️
Today, we're diving into the desert. Destinations like Phoenix and Palm Springs shine in the cooler months—offering high ADRs and brand recognition that draws repeat guests.
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August 21st, 2025
Good evening STR Report Community!
In today’s issue, you will find:
📱Today’s Article: 🌵Desert Homes with Seasonal Sizzle🌶️
📈 Trending Market Highlight: Palm Springs, California and Branson, Missouri
✉️ STR News: Hosts embrace AI for guest messaging as Hospitable reports 45% jump & more
💸 Mortgage Rate Watch
👟 Unique Airbnb of the Week
🏫 Subscriber Perks: Go Live Playbook, including: Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, STR Buy Box Template, & Tax Savings E-Book
✅ Community Perks: Top-Tier Property Management, Personal Airbnb Investment Finder, and STR Loans & More
📬 See our collection of newsletters here: Prior Newsletters
🌵 Desert STRs: Hot Winter Returns Without the Snow
The desert might not be the first place you think of for a thriving STR, but from November to April, markets like Phoenix, AZ and Palm Springs, CA are magnets for snowbirds, golfers, and festival-goers. As the end of summer nears, we’re looking at what markets might stand out this upcoming cold season. ❄️

During these months, occupancy often sits between 60–70%, with top-performing 3BR homes pulling in $70K to $120K annually. The guest pool is diverse—retirees escaping winter, bachelorette parties seeking warm-weather escapes, and event travelers coming for golf tournaments, music festivals, and art fairs.
The key to winning in this niche? Visual appeal. Desert STRs photograph beautifully—think hammocks swaying under palms, sparkling pools with mountain backdrops, and shaded patios with misters for the warm afternoons. These features help listings stand out in competitive markets like Joshua Tree and Palm Springs, where inventory is dense.
While summer bookings tend to drop sharply, a well-run desert property can more than make up for it in the high season. The main watchouts are higher AC costs, pool maintenance, and market saturation in certain locations.
Prime Markets:
Need some inspiration on where to look? Check out these below.
Phoenix, AZ
Joshua Tree, CA
Palm Springs, CA
Pros:
📅 Strong Nov–April occupancy (60–70%) — Cooler months bring a flood of visitors escaping colder climates, driving consistent bookings throughout winter.
💰 $70K–$120K potential for 3BR homes — Well-designed properties with great amenities can achieve strong annual revenue despite seasonal dips.
🏖️ High visual appeal with poolside and outdoor living spaces — Desert homes with Instagram-worthy designs and outdoor features often outperform similar-sized properties without them.
Cons:
🌞 Summer bookings drop sharply — Extreme summer heat discourages travel, making the off-season noticeably slower compared to winter highs.
💦 High AC and pool maintenance costs — Cooling large spaces and maintaining pools can be expensive, cutting into net returns.
📌 Competitive saturation in some markets — Popular desert destinations like Joshua Tree and Palm Springs have a high volume of STR listings, making differentiation critical.
Desert STRs offer a unique opportunity to capture strong seasonal demand without the snow. With high winter occupancy, strong annual earning potential, and the natural visual appeal of desert living, these markets can deliver impressive returns for investors who lean into design and guest experience. However, success comes from careful planning—balancing the challenges of summer slowdowns, higher utility and maintenance costs, and navigating competitive markets. 🌴✨

Palm Springs, California🌴
Downloadable Palm Springs, California Short-Term Rental Market Report
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Average Daily Rate (ADR): $424.70 per night
Occupancy Rate: 51.32%
Annual Revenue Potential: Around $79,419.02 per year
Read our full Palm Springs, California Short-Term Rental Market Report attached above.
Branson, Missouri🎡
Downloadable Branson, Missouri Short-Term Rental Market Report
|

Average Daily Rate (ADR): $178.13 per night
Occupancy Rate: 50.81%
Annual Revenue Potential: Around $33,035.61 per year
Read our full Branson, Missouri Short-Term Rental Market Report attached above.
📬 See our collection of 70+ market reports here: Prior Trending Market Reports

📱 Casago Bets on Franchise Model to Take Over Vacasa Properties
The franchise model is having a moment. The challenge will be to maintain quality standards at the local level, and to ensure that the fee structure benefits both parties.
💸 Hosts embrace AI for guest messaging as Hospitable reports 45% jump
Hosts are increasingly leaning on artificial intelligence to handle guest communication, according to new data from property management software provider Hospitable.
💸Mortgage Rate Watch – August 21st, 2025
Current Mortgage Rates (as of August 20, 2025):
30‑Year Fixed: 6.61 % (+0.01 %)
15‑Year Fixed: 5.97 % (+0.01 %)
30‑Year Jumbo: 6.68 % (−0.02 %)
7/6 SOFR ARM: 6.13 % (−0.03 %)
30‑Year FHA: 6.19 % (+0.01 %)
30‑Year VA: 6.21 % (+0.01 %)
Market Overview: Mortgage rates have barely budged today, continuing a stretch of minimal daily shifts that keep 30‑year fixed rates near the lower end of their recent range. The slender increase in borrower costs—equating to roughly 0.4 percent of a loan amount in points—highlights how even small moves can impact mortgage shopping decisions.
Rate Trends & Forecast:
Short-Term: Expect continued stability in mortgage rates, with only marginal daily fluctuations tied to bond market shifts and new data releases.
Long-Term: Analysts caution that even if the Federal Reserve moves toward rate cuts, mortgage rates may not significantly decrease without further economic cooling, as long-term yields and inflation expectations play a dominant role.
For real-time mortgage rate updates, visit Mortgage News Daily.

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Subscriber Perks:
📖🏡💰 Go Live Playbook
The "Go Live Playbook" is your all-in-one guide featuring a beginner’s guide e-book, messaging templates, Airbnb welcome book, STR buy box template, and tax savings tips to kickstart your short-term rental success.
Community Perks with The STR Report
🏠 Top-Tier Property Management – Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. See how much more your property could earn—click to get your free performance assessment.
🔎 Personal Airbnb Investment Finder – Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing at least a 15% Cash-on-Cash return.
🤑 STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.
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