Are you interested in investing in a Airbnb rental property? If you’re looking for a city with a strong short-term rental market, Flagstaff, AZ, may be worth considering.
In this blog post, we’ll take a closer look at the short-term rental market in Flagstaff and provide some data points to help you make an informed decision.
Overview of the Flagstaff Airbnb Rental Market
Flagstaff, AZ, located in Coconino County, is a popular tourist destination that offers easy access to outdoor activities, including skiing, hiking, and exploring nearby national parks. The city’s vibrant arts and culture scene, as well as its proximity to the Grand Canyon, make it a popular year-round vacation spot. As a result, Flagstaff has a strong short-term rental market.
According to Chalet, there are currently 2,202 active short-term rentals in Flagstaff, AZ. The average daily rate for these rentals is $270.30, and the occupancy rate is 60%, which is quite high compared to other similar-sized cities. As a result, the annual revenue for a short-term rental in Flagstaff is $51,300.
Supply
The most popular homes are 3-bedroom homes, comprising 30.89% of inventory. This is followed by 2 and 1-bedroom homes at 21.98% and 19.14% of the total inventory, respectively.
Airbnb Rental Market Performance
The short-term (Airbnb) rental market in Flagstaff, AZ has been performing well in recent years. According to Zillow, homes in the city appreciated 5.20% in the last year, and the median home value is $646,525. While this may seem high, it is important to note that Flagstaff is a popular vacation destination, and home prices in desirable locations tend to be higher.
In addition to home appreciation, there has been a 4.30% increase in the supply of short-term rentals in Flagstaff. Despite this increase, the occupancy rate remains high, and the average gross yield is 7.94%. These numbers suggest that investing in a Airbnb rental property in Flagstaff could be a smart financial decision.
Another financial factor to consider is property tax. According to SmartAsset, the average property tax in Flagstaff is 0.63%. This is a relatively low rate compared to other cities in the United States, which is another factor that could make investing in a short-term rental property in Flagstaff attractive.
Average Daily Rate
The median ADR for the market is $270.30. The Average Daily Rate is the highest for 6-bedroom homes ($411) followed by 7-bedrooms and 5 bedrooms at $361 and $356 respectively.
Airbnb Laws and Regulations
If you’re considering investing in a short-term rental property in Flagstaff, it’s also important to consider the city’s short-term rental regulations. Fortunately, Flagstaff’s regulations are investor-friendly. The city allows Airbnb rentals in all zoning districts, and there are no restrictions on the number of permits that can be issued.
However, it’s important to note that there are some regulations in place. For example, short-term rental owners are required to obtain a permit from the city and collect and remit a transient occupancy tax. They are also required to comply with safety and health standards and provide a contact person to respond to complaints or concerns from neighbors.
Hosts
The market is dominated by property management firms. The largest host is Evolve with 3.99% of the total inventory and an average review of 4.88 ⭐️s .
Other Considerations
In addition to the financial and regulatory factors, there are a few other considerations to consider when investing in a Airbnb rental property in Flagstaff. One of these is the median household income, an important factor to consider when determining the potential demand for short-term rental properties. According to the US Census Bureau, the median household income in Flagstaff is $61,026.
Another consideration is the climate. Flagstaff has a semi-arid climate, with hot summers and cold winters. The city receives an average of 100 inches of snowfall each year, which could impact the demand for short-term rentals during the winter months.
Guests
The majority of the guests come from inside of Arizona. 19.75% of all guests are from Phoenix followed by Scottsdale with 6.53%.
Population
Flagstaff is a medium-sized city with a population of approximately 77,000 people. The city is located at an elevation of 7,000 feet, making it an ideal destination for those seeking to escape the heat and enjoy cooler temperatures. Various natural landscapes, including the San Francisco Peaks and the Coconino National Forest, surround the city.
Sports, Education, and Crime
Flagstaff is home to a number of sports teams, including the Northern Arizona University Lumberjacks. This university is also one of the main colleges located in Flagstaff, along with Coconino Community College.
In terms of crime, Flagstaff’s crime rate is slightly higher than the national average. However, the city’s crime rate has been decreasing in recent years, making it a safer place to live and visit.
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Tourism
One of the main industries in Flagstaff is tourism, and the city receives visitors from all over the world. According to Visit Flagstaff, the city receives approximately 5 million visitors per year. The majority of these visitors come from nearby states like California and Nevada, but visitors also come from as far away as Europe and Asia.
When it comes to tourist attractions, Flagstaff has plenty to offer. Some of the city’s most popular attractions include the Lowell Observatory, which is famous for its discovery of Pluto, and the Museum of Northern Arizona, which showcases the region’s natural and cultural history. Flagstaff is also a gateway to the Grand Canyon, making it a popular destination for those looking to explore this natural wonder.
Peak Seasons
The peak season in Flagstaff varies depending on the time of year. The summer months are a popular time for outdoor activities like hiking, mountain biking, and camping. In the winter months, the city becomes a hub for skiing and snowboarding. In addition, the fall season is a popular time to visit Flagstaff to see the changing colors of the leaves.
Conclusion
The Airbnb rental market in Flagstaff, AZ, is thriving, with high demand and increasing supply. The average daily rate and occupancy rate are both impressive, and the average gross yield for short-term rentals is above the national average.
Overall, Flagstaff, AZ, offers a strong short-term rental market that has been performing well in recent years
