Southwest3.9% avg cap rateLive · 41 active listings

Sedona, AZ

Red rock luxury - Arizona's premier retreat market

Sedona commands some of the highest nightly rates among non-beach STR markets in the US, fueled by luxury wellness retreats, spiritual tourism, world-class hiking, and exceptional red rock photography backdrops. The drive-to market from Phoenix (2 hours) and Las Vegas (4 hours) sustains year-round demand. Sedona enforces a strict short-term rental licensing process through the City of Sedona.

3.9%
Avg Cap Rate
Net operating income / price
57%
Avg Occupancy
Annual average
$519
Avg Nightly Rate
All property types
$3.3M
Avg List Price
STR-viable properties

41 active listings in Sedona are analyzed and ranked right now

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Estimated Annual Performance

Gross rental revenue
57% occ × $519/night
$108,167
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $43,267
Est. net operating income
Before mortgage & depreciation
$64,900
At $3.3M avg price
Implied cap rate
2.0%

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

Why Investors Choose Sedona

Among highest ADR for non-coastal STR in the US
Wellness and spiritual tourism drives premium longer stays
Red rock views add 25-40% premium on nightly rate
Strict city STR license required - supply naturally constrained
Peak season: Oct - May (avoids summer heat)
Top property types: Single Family, Luxury Villa, Casita
Primary zip: 86336, 86339, 86351

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.Stats sourced from 41 active listings · last updated Jul 17, 2026

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