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.
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. 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 notable increase in home values by 3,18%, with the average price reaching $418,914. With an ADR of $383.00 and an occupancy rate of 61%, the annual revenue is $28,567 from 4,934 active rentals. The gross yield is 6.82%, and the cap rate is 4.09%.
To delve deeper into Phoenix’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 3.31%, with the average price reaching $332,847. The market thrives with an ADR of $243.00 and an occupancy rate of 56%, leading to an annual revenue of $22,060 from 2,510 active rentals. The gross yield here is 6.63%, with a cap rate of 3.98%.
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.
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- 🔎 The demand trends driving guest bookings and what amenities maximize revenue in each market.
3. Mesa, Arizona
Mesa, Arizona, is the third-largest city in the state and part of the Phoenix metropolitan area.
Mesa has seen a moderate increase in home values by 2.53%, with the average price reaching $439,750. The city’s ADR is $186.00, with an occupancy rate of 56%, resulting in an annual revenue of $28,669 from 1,145 active rentals. The gross yield is 6.52%, and the cap rate is 3.91%.
For more comprehensive insights into Phoenix as a rental market, explore Chalet Intel.
