Are you eyeing Bermuda Dunes and wondering if the numbers truly work? You’re not alone. The area offers golf‑course estates, convenient access to events, and strong winter demand, but the data can look noisy at first glance. In this guide, you’ll see the price and rent range in context, how seasonality affects returns, the rules that matter for short‑term rentals, and a practical checklist to protect your pro forma. Let’s dive in.
Quick take: when Bermuda Dunes makes sense
Bermuda Dunes can be a smart play if you buy at the right basis, lean into seasonal demand where allowed, and keep expenses tight. Long‑term rental cap rates at typical purchase prices are modest, so you often win by targeting value‑add (ADU potential, layout upgrades) or by selectively using short‑term rental windows where compliant. Above all, underwrite with conservative long‑term assumptions and then model upside from festivals and peak winter months.
Market snapshot: prices and why they vary
Publicly reported medians in Bermuda Dunes range widely. The U.S. Census reports a median value of owner‑occupied housing units around $596,300, which offers a steady baseline rather than a month‑to‑month sales median. You may also see higher short‑window figures on portals because a few golf‑estate closings can swing monthly medians in such a small market. Use a 12‑month rolling median and hyper‑local comps to avoid being misled by thin samples.
- Baseline reference: the Census owner‑value median is about $596,300. See Census QuickFacts.
- Why numbers disagree: low sales counts, a mix of tract homes and higher‑end country‑club product, and different methodologies for list vs sold vs owner‑reported values.
Where investors focus: product and location
Golf communities and gated product
Bermuda Dunes Country Club and nearby gated areas offer larger lots, pool homes, and golf frontage at mid‑to‑upper price points. These addresses can command premium resale value and peak‑season rental rates, but the entry price and HOA rules can shape cash flow. Always verify HOA rental policies before underwriting festival or short‑term income.
Non‑golf tracts and infill
Outside of the country‑club footprint, many single‑family homes trade at lower entry prices. These areas often pencil better for long‑term rental yields. Focus your comp set by subdivision and street so your rent and price assumptions match the product.
STR candidates and convenience factors
Homes with pools, strong bedroom counts, and layouts that accommodate groups tend to earn more during winter and festival periods when allowed by county and HOA rules. Proximity to Interstate 10, event routes, and air access is a plus. The adjacent private facility at Bermuda Dunes Airport supports higher‑end visitor traffic. You can explore the airport context at Crown Aero.
Demand and seasonality: how the calendar drives cash flow
Greater Palm Springs tourism remains robust, with winter visitors and marquee events like Coachella, Stagecoach, and the Indian Wells tennis tournament driving occupancy and nightly rates. That demand is not flat all year, so you should model peaks and valleys. For context on regional tourism trends and reports, review Visit Greater Palm Springs research.
Summer heat typically softens short‑term demand and lengthens vacancy for vacation rentals. Long‑term rentals are steadier but will not capture festival spikes. Choose your operating model up front and budget accordingly.
Rental math: quick scenarios with today’s medians
Below is a simple illustration using public sources cited in this guide. Always replace with property‑specific figures when you underwrite.
Inputs used:
- Median market rent: about $2,395 per month. See Zumper’s rent index.
- Price reference points: roughly $596,300 (Census owner‑value median) plus higher medians you may see on portals in the mid and upper tiers.
- Expense assumption: a common investor shortcut is the 50 percent rule for operating costs, which approximates taxes, insurance, maintenance, management, vacancy, and reserves. Learn more about this rule of thumb on BiggerPockets.
Illustrative long‑term rent math:
- Annual gross rent: $2,395 × 12 = $28,740.
- Using the 50 percent rule: estimated NOI ≈ $14,370.
- At a $596,300 price point, that pencils to a gross yield near 4.8 percent and a cap rate around 2.4 percent.
- At higher purchase prices typical of golf‑oriented homes, gross yield and cap rate compress further unless you add income or reduce costs.
What this shows:
- Long‑term rentals at mid‑to‑upper prices often yield sub‑3 percent cap rates. You improve outcomes by buying well, creating additional rentable space (ADU where allowed), trimming operating costs, or adding compliant seasonal short‑term windows. If you plan to operate a short‑term rental, remember that platform fees, cleanings, supplies, and professional STR management rates are higher than long‑term management. Model those carefully.
Rules that shape returns
Short‑term rental permits and compliance
Bermuda Dunes is in unincorporated Riverside County. The county’s Short‑Term Rental program requires a certificate, adherence to occupancy, signage and response standards, and ongoing compliance. Read the county’s current requirements on the Riverside County STR program page. Before you rely on festival income, confirm that the parcel is eligible and that your HOA does not prohibit or limit STRs.
Transient Occupancy Tax (TOT)
Unincorporated Riverside County applies a TOT on short stays. Current county guidance lists 10 percent of gross rent as the tax, and operators must register and remit. Review details on the County Treasurer’s TOT page. Factor TOT and any tourism district fees into your net revenue.
ADUs for value‑add
California ADU policy is favorable, and Riverside County offers a Permit‑Ready ADU program with pre‑approved plans that can shorten timelines on qualifying lots. Check site eligibility, utilities, setbacks, and any HOA constraints. Explore the program at Riverside County Building & Safety PRADU.
Risks to price and cash flow
Water and landscaping costs
The Coachella Valley relies on imported and managed water. Conservation rules and changing allocations can affect irrigation‑heavy properties like golf‑adjacent homes and large lawns. For context on regional water issues and ongoing coverage, see this roundup on Coyote Gulch. When you underwrite, compare expected landscaping and pool costs across properties.
Flood control and insurance
Parts of the valley benefit from active flood‑control investments, such as the Thousand Palms Channel improvement project. You can view the CEQA filing at CEQAnet. Always verify a property’s FEMA flood zone and obtain insurance quotes early, since premiums can vary with wildfire, wind, and heat exposure.
Taxes and special assessments
Riverside County tax bills commonly include special assessments, also called CFDs or Mello‑Roos, in addition to the base 1 percent property tax. These can meaningfully change holding costs. The county explains these line items on the Riverside County Assessor’s special assessments page. Pull the parcel tax bill during due diligence and plug the exact figures into your pro forma.
How Bermuda Dunes compares nearby
Think of Bermuda Dunes as a middle ground in the valley. Indio often offers lower entry prices and very strong festival‑adjacent STR demand. La Quinta trends higher with more luxury golf communities. Palm Desert sits closer to the retail and services hub and sees steady long‑term demand. Your best comp set is not town‑level medians but the immediate subdivision and product type you are buying.
Due diligence checklist for ROI buyers
Use this list to protect your underwriting and surface deal risk early:
- Validate comps and velocity
- Pull a 12‑month rolling MLS comp set for the target street or subdivision. Thin samples can distort monthly medians, so use a longer lookback.
- Confirm STR status and rules
- Check county eligibility and apply for an STR certificate if you plan to operate one. Review current rules on the Riverside County STR program site. Register and remit TOT per the County Treasurer. Get HOA confirmation in writing if applicable.
- Pull the parcel tax bill
- Identify special assessments like Mello‑Roos or landscape districts before you write your offer. Start with the Assessor’s special assessment resource.
- Map flood and insurance exposure
- Verify FEMA flood zone, then review nearby public works activity. The Thousand Palms Channel project is a useful example at CEQAnet. Obtain insurance quotes for dwelling and fire coverage.
- Evaluate ADU feasibility
- If value‑add is your plan, check PRADU eligibility, utilities, setbacks, and permitting steps. See Riverside County PRADU.
- Model both LTR and STR scenarios
- Prepare a conservative long‑term model and a separate seasonal model that includes STR management, cleanings, platform fees, supplies, TOT, and reserve funding. Align each line item with parcel specifics.
Bottom line
Bermuda Dunes can deliver attractive outcomes if you match the submarket to your strategy. Long‑term rentals are steady but tend to pencil at lower cap rates at typical prices. Short‑term rentals can lift income during winter and festival periods where permitted, but they require strict compliance and active management. The best deals come from precise comps, careful expense control, and targeted value‑add like an ADU where allowed.
If you want appraisal‑grade pricing, STR guidance, and access to curated on‑ and off‑market options, connect with The Nick Miller Team. We combine certified appraisal expertise with hands‑on investor advisory across the Coachella Valley.
FAQs
What should an investor know about Bermuda Dunes prices in 2026?
- Public sources show a wide range because monthly medians swing in a small market; use the Census owner‑value median around $596,300 as a baseline and rely on 12‑month MLS comps for the exact street or subdivision.
How do short‑term rental rules work in unincorporated Bermuda Dunes?
- You need a county STR certificate, must follow occupancy, signage, and response standards, and have to remain in good standing; read current requirements on the Riverside County STR program page and confirm HOA rules before operating.
How much Transient Occupancy Tax applies to STR bookings in Bermuda Dunes?
- Riverside County lists a 10 percent TOT on gross rent for unincorporated areas; operators must register and remit, and some platforms may collect but you remain responsible for reporting.
Do ADUs help returns in Bermuda Dunes under county programs?
- Yes, if your lot qualifies; Riverside County’s Permit‑Ready ADU program offers pre‑approved plans that can shorten timelines, but you still need to confirm utilities, setbacks, and any HOA restrictions.
What are the main risk factors investors should underwrite locally?
- Water and landscaping costs, flood and insurance exposure, special assessments on the tax bill, and market liquidity in a small community; verify each item at the parcel level before you buy.
