A well-positioned short-term rental in Sedona, Arizona is estimated to gross $85,000 - $165,000 a year, at an average daily rate of $310 - $520 and annual occupancy of 60% - 68%. Net cash flow after a full expense load and debt service typically lands between $8,000 - $28,000. Those are estimates for illustration rather than a projection for any specific property.
Sedona short-term rental numbers for 2026
| Metric | Estimated range |
|---|---|
| Entry price | $700,000 - $1,400,000 |
| Average daily rate | $310 - $520 |
| Annual occupancy | 60% - 68% |
| Gross annual revenue | $85,000 - $165,000 |
| Net cash flow after debt service | $8,000 - $28,000 |
| Peak season | March through May and September through November |
| Do we buy here? | No, we do not currently buy here. |
Figures are estimates assembled from our own closings and active-listing comparables, offered for illustration. They are not projections for any specific property, and actual performance varies with location, condition, amenities, management, and season.
What drives demand in Sedona
Sedona runs on scenery. Red rock views, hiking, and a wellness and spiritual tourism base produce two strong shoulder seasons rather than one peak, which makes revenue more evenly distributed across the year than most leisure markets.
View is the single largest rate driver, and it is priced into the purchase. Two structurally identical homes a quarter mile apart can differ by several hundred thousand dollars on sightlines alone.
Regulation in Sedona
Arizona state preemption applies here too, so Sedona cannot ban short-term rentals, and the city has been vocal about the housing pressure that creates. Licensing and nuisance enforcement are active. The regulatory floor is solid, but political friction is higher than in the Phoenix metro.
Regulation is a pass or fail gate, not a factor to weigh against revenue. Confirm the rules for the specific parcel and the HOA before you write an offer, because county-level permissiveness frequently does not apply inside city limits. See how to check STR regulations before buying.
What a deal has to clear here
- Revenue supported by real comps. Eight to twelve active listings within one bedroom of the subject, live at least twelve months, underwritten to the median rather than the mean.
- Cash flow after a full expense load. Management at market rate, cleaning, supplies, utilities, insurance at short-term rental rates, property tax at the reassessed value, and debt service at the rate you will actually get.
- A reserve sized to the trough. Peak season is March through May and September through November. Model the worst three consecutive months against fixed costs, because those costs do not pause.
- Regulatory headroom. A permit you can actually obtain, in a jurisdiction that is not mid-moratorium, with governing documents that permit nightly stays.
- An exit that does not depend on the STR premium. If the only buyer is another short-term rental investor, you carry regulatory risk twice.
Our take on Sedona
Not usually. Sedona is a legitimate market with real demand and protected regulation, but the revenue-to-price ratio is materially worse than the Phoenix metro because the view premium inflates basis faster than it inflates rate. We would rather deploy the same capital in Scottsdale or Mesa and buy more revenue per dollar.
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Frequently asked questions
How much can you make on Airbnb in Sedona?
A well-positioned short-term rental in Sedona is estimated to gross $85,000 - $165,000 a year, at an average daily rate of $310 - $520 and annual occupancy of 60% - 68%. Net cash flow after a full expense load and debt service typically lands in the $8,000 - $28,000 range. Figures are estimates for illustration, and actual performance varies with location, capacity, amenities, and management.
What does it cost to buy a short-term rental in Sedona?
Entry prices in Sedona generally run $700,000 - $1,400,000 for property that can compete in the nightly rental market. On top of the purchase you should budget closing costs, furnishing of roughly $20,000 to $45,000 depending on size, and an operating reserve sized to the shoulder season.
Is Sedona a good short-term rental market in 2026?
Not usually. Sedona is a legitimate market with real demand and protected regulation, but the revenue-to-price ratio is materially worse than the Phoenix metro because the view premium inflates basis faster than it inflates rate. We would rather deploy the same capital in Scottsdale or Mesa and buy more revenue per dollar.
What is the peak season in Sedona?
Peak demand runs March through May and September through November. Because fixed costs continue through the shoulder months, the reserve requirement should be modelled against the worst three consecutive months rather than against the annual average.