Southwest6.3% avg cap rate

Scottsdale, AZ

Desert luxury — golf, spa, and spring training

Scottsdale is a year-round STR market with an inverse seasonality from beach destinations — peak season runs October through May when snowbirds, spring training fans, golf groups, and bachelorette parties flood the market. The premium amenity set (private pools, resorts, golf access) drives strong ADR and occupancy in winter when most beach markets go quiet.

6.3%
Avg Cap Rate
Net operating income / price
61%
Avg Occupancy
Annual average
$520
Avg Nightly Rate
All property types
$680K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
61% occ × $520/night
$115,778
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $46,311
Est. net operating income
Before mortgage & depreciation
$69,467
At median price
Implied cap rate
10.2%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Scottsdale

Inverse seasonality — hot when beach markets are cold
Cactus League spring training brings massive group demand (Feb–Mar)
Private pool is a near-requirement — adds 20-30% to nightly rate
Bachelorette / group travel — high ADR, high spend demographic
Peak season: October – May (inverse beach seasonality)
Top property types: Single Family, Luxury Home, Villa
Primary zip: 85251, 85254, 85255, 85259, 85260

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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