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
54%
Avg Occupancy
Annual average
$582
Avg Nightly Rate
All property types
$3.6M
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
54% occ × $582/night
$114,075
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $45,630
Est. net operating income
Before mortgage & depreciation
$68,445
At $3.6M avg price
Implied cap rate
1.9%

* 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

Sedona STR investing, answered

Is Sedona, AZ a good short-term rental market?

Sedona is a Southwest STR market averaging a 3.9% cap rate, 54% annual occupancy, and $582/night across STR-viable listings, based on 41 active listings. 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.

What is the average Airbnb occupancy rate in Sedona?

STR-viable properties in Sedona average about 54% 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 $582/night and 54% occupancy, a typical Sedona STR grosses roughly $114,075 per year before expenses, leaving an estimated $68,445 in net operating income against a $3.6M average price, an implied 1.9% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Sedona?

The strongest-performing STR property types in Sedona are Single Family, Luxury Villa, Casita. Among highest ADR for non-coastal STR in the US. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Sedona?

STR-viable listings in Sedona average around $3.6M. Primary STR ZIP codes include 86336, 86339, 86351. Combined with the market's 3.9% average cap rate, that price level sets the return baseline you'd underwrite against.

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 Sep 1, 2026

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