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.
Across 102 active STR-viable listings analyzed this month, Sedona shows a 4.3% median cap rate at a $698K median list price, 50% occupancy, and $313/night. That ranks #16 of 57 markets in STRROI's live ranking. At typical prices, cash flow is tight: most listings only pencil out with a large down payment, a below-list purchase, or above-market nightly rates.
Sedona real estate market right now
As of October 16, 2026, STRROI is tracking 102 homes for sale in Sedona that could run as short-term rentals, at a median list price of $698,000. The middle half are priced between $456K and $1.8M. That works out to a median of $477 per square foot for a typical 1,554 square foot home. Homes here have been on the market 89 days on average, close to the 101 days typical across the 56 markets in STRROI's ranking. 33 of them were listed in the last 30 days.
These numbers cover the homes for sale STRROI analyzes as potential short-term rentals in Sedona, mainly ZIP 86336. They are not every home sale in the area, so they can differ from MLS-wide figures. Month-by-month price history starts Oct 2026 and fills in as the market is re-checked each month.
What's for sale in Sedona right now
Of the 102 homes for sale we analyzed in Sedona, 19 (19%) project positive monthly cash flow with 20% down at a 7.5% rate, and none rate Buy or better on STRROI's 1-10 scale. 2-bedroom homes are the most common (51 for sale, median $499K). They also post the best median cap rate of any bedroom count, 5.2%, against 1.8% for 5+ bedroom homes. By property type, manufactured homes lead at a 11.8% median cap rate across 28 listings.
- Watch: 5
- Weak: 51
- Avoid: 46
| Beds | For sale | Median price | Cap rate |
|---|---|---|---|
| 2 | 51 | $499K | 5.2% |
| 3 | 30 | $948K | 3.5% |
| 4 | 9 | $2.2M | 2.7% |
| 5+ | 12 | $4.0M | 1.8% |
| Type | For sale | Median price | Cap rate |
|---|---|---|---|
| Single-family homes | 41 | $2.4M | 2.4% |
| Townhouses | 32 | $679K | 4.5% |
| Manufactured homes | 28 | $175K | 11.8% |
Top-ranked homes for sale in Sedona this month
Scored 1-10 against real Airbnb comps. Addresses, photos and the full underwriting are in the app.
- #1Watch · 5/103 bd · 3 ba townhouseZIP 86336 · listed at $673K
- Cap rate
- 6.7%
- Cash flow
- +$15/mo
- Nightly
- $447 at 50%
- #2Watch · 5/103 bd · 5 ba townhouseZIP 86336 · listed at $673K
- Cap rate
- 6.7%
- Cash flow
- +$15/mo
- Nightly
- $447 at 50%
- #3Watch · 5/103 bd · 4 ba townhouseZIP 86336 · listed at $703K
- Cap rate
- 6.4%
- Cash flow
- -$164/mo
- Nightly
- $447 at 50%
How Sedona compares
Sedona is the top-ranked of the 3 Southwest markets in STRROI's live ranking, ahead of Joshua Tree (3.6% cap rate). Its 4.3% cap rate is 1.4 points above the 2.9% median across all 57 ranked markets, and its $698K typical list price is pricier than the Southwest median of $535K.
| Rank | Market | Cap rate | Typical price |
|---|---|---|---|
| #16 | Sedona, AZ | 4.3% | $698K |
| #22 | Joshua Tree, CA | 3.6% | $400K |
| #35 | Scottsdale, AZ | 2.5% | $535K |
Rank is national, by median cap rate across active STR-viable listings. Cash flow uses STRROI's default financing assumptions. See the full ranking
Estimated Annual Performance
* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.
Why Investors Choose Sedona
Sedona STR investing, answered
Is Sedona, AZ a good short-term rental market?
Sedona is a Southwest STR market with a 4.3% median cap rate, 50% annual occupancy, and $313/night across STR-viable listings, based on 102 active listings. It ranks #16 of 57 markets by median cap rate in STRROI's live ranking. This month none of its 102 homes for sale rate Buy or better.
What is the average Airbnb occupancy rate in Sedona?
STR-viable properties in Sedona average about 50% occupancy across the year. Peak season is Oct - May (avoids summer heat). Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.
How much do short-term rentals earn in Sedona?
At $313/night and 50% occupancy, a typical Sedona STR grosses roughly $57,351 per year before expenses, leaving an estimated $34,411 in net operating income. Across analyzed listings the median cap rate is 4.3%. Individual results depend on property, amenities, and management.
What types of properties work best for STR in Sedona?
Among homes for sale right now, 2-bedroom homes post the strongest median cap rate by size (5.2%), and manufactured homes lead by property type (11.8%). With guests, the best-performing STR types here are Single Family, Luxury Villa, Casita. Matching the local guest profile and the amenities that drive bookings matters more than raw square footage.
How many homes for sale in Sedona cash flow as an Airbnb?
19 of 102 STR-viable listings (19%) project positive monthly cash flow after the mortgage, assuming 20% down at a 7.5% rate on a 30-year loan. The top-ranked listing this month is a 3-bedroom townhouse in ZIP 86336 listed at $673K, projecting a 6.7% cap rate and +$15 a month.
What is the median home price in Sedona, AZ right now?
The median list price of the 102 homes for sale STRROI tracks in Sedona is $698,000, and the middle half are priced between $456K and $1.8M. The median price per square foot is $477. These are homes that could run as short-term rentals, mainly ZIP 86336, not every sale in the area. Against a 4.3% median cap rate, that price level sets the return baseline you'd underwrite against.
How long do homes stay on the market in Sedona?
Homes for sale in Sedona have been listed 89 days on average, close to the 101 days typical across the 56 markets in STRROI's ranking. 33 of them were listed in the last 30 days.
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 102 active listings · last updated Oct 16, 2026
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