Last updated: February 2025
Arizona, known for its diverse landscapes and sunny weather, offers excellent opportunities for short-term rental investors. From vibrant cities to scenic desert destinations, these markets provide strong investment potential. Stretching from the majestic Grand Canyon to the serene deserts of Tucson, and from the bustling streets of Phoenix to the red rocks of Sedona, Arizona encapsulates an array of experiences that cater to adventurers, culture enthusiasts, and leisure seekers alike. This diverse appeal makes the state a year-round destination for travelers, thus presenting lucrative opportunities for those looking to invest in the short-term rental market.
This guide aims to illuminate the top markets within Arizona for short-term rentals, evaluating factors such as rental performance metrics, regulatory environments, and tourist attractions. By shedding light on these key areas, we provide investors with the insights needed to navigate Arizona’s short-term rental landscape successfully. Whether it’s leveraging Phoenix’s urban appeal, tapping into Sedona’s spiritual and scenic allure, or exploring the historic charm of Tucson, Arizona offers a canvas for investors to create profitable Airbnb ventures.
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
1. Flagstaff, Arizona
Flagstaff, AZ, is a popular destination for visitors to the Grand Canyon and other nearby national parks, offering a mix of outdoor activities and cultural experiences.
Flagstaff has seen a notable increase in home values by 5.20%, with the average price reaching $646,425. With an ADR of $191.00 and an occupancy rate of 62%, the annual revenue is $43,445 from 2,202 active rentals. The gross yield is 5.60%, and the cap rate is 3.36%.
To delve deeper into Flagstaff’s investment potential, check out Chalet Intel. Our platform offers comprehensive data and tools for making informed investment decisions.
2. Tucson, Arizona
Tucson, AZ, known for its rich cultural heritage and vibrant arts scene, is also home to the University of Arizona.
Tucson has seen a slight increase in home values by 2.10%, with the average price reaching $282,573. The market thrives with an ADR of $124.00 and an occupancy rate of 55%, leading to an annual revenue of $24,090 from 1,200 active rentals. The gross yield here is 4.50%, with a cap rate of 3.50%.
Discover more about investing in Tucson through Chalet Intel.
Top 15 STR Markets for 2025 – Where to Invest Next
Airbnb Rental Markets Set to Outperform in 2025
Download our comprehensive guide to learn:
- 📊 Which STR markets are set to outperform in 2025 based on revenue growth, occupancy trends, and supply shifts.
- 🏡 Where home prices are still affordable while generating high rental income.
- 📈 How to identify markets with strong appreciation potential for both short-term cash flow and long-term gains.
- ⚖ Which cities have the best (and worst) STR regulations—so you don’t get caught off guard.
- 🔎 The demand trends driving guest bookings and what amenities maximize revenue in each market.
3. Phoenix, Arizona
Phoenix, AZ, the capital city, offers a mix of urban attractions and outdoor activities, including hiking in the nearby mountains.
Phoenix has seen a moderate increase in home values by 3.00%, with the average price reaching $350,000. The city’s ADR is $150.00, with an occupancy rate of 50%, resulting in an annual revenue of $27,375 from 1,500 active rentals. The gross yield is 4.40%, and the cap rate is 3.20%.
For more comprehensive insights into Phoenix as a rental market, explore Chalet Intel.
