Sedona, AZ Airbnb Market Analytics & Investment Insights

Sedona's seasonality is genuinely inverted from desert expectations. Spring (March–May) is the peak season at 64% occupancy and $422 ADR — the intersection of ideal temperatures, wildflower blooms, and Phoenix/Scottsdale weekend escape demand. Fall (September–November) comes in second at 58% occupancy and $427 ADR, when cooler temperatures and foliage color create the year's most photogenic booking window. Winter holds 52% occupancy through December–February as the destination captures visitors escaping northern cold. Summer (June–August) drops to 46% occupancy but still commands $340 ADR — the wellness, spa, and luxury traveler demographic is more heat-tolerant than budget leisure visitors. The Village of Oak Creek, southeast of Sedona proper, offers the market's best yield-adjusted entry at $500,000–$800,000 with Bell Rock and Cathedral Rock views, generating approximately $70,000–$78,000 annually on properties that cost 30–40% less than Uptown Sedona. West Sedona's residential corridor offers the widest property variety at $650,000–$1.1 million, with genuine red rock views and the market's best balance of ADR premium and acquisition cost. A Chalet agent who knows which VOC properties and West Sedona parcels clear HOA restrictions can save an investor months of due diligence.

The demand architecture is structurally differentiated from any other market in this series. Sedona draws from at least four independent traveler segments: nature tourists targeting Cathedral Rock, Devils Bridge, and Oak Creek Canyon; wellness and spa visitors drawn to L'Auberge de Sedona, Enchantment Resort, and Mii amo; the spiritual and vortex tourism niche — a genuinely dedicated segment who book specifically for energy site experiences; and the Phoenix metro's 5+ million residents who drive two hours for a weekend escape year-round. This demand diversification explains why even the market's weakest month (April, curiously, at only 30% in the data given cooler spring conditions in some years) still holds premium ADR. The 64-day average booking lead time reflects a guest population that plans deliberately, creating early-window pricing opportunities for operators who open calendars 60–90 days out. The Chalet ROI calculator models each neighborhood's revenue profile against current acquisition prices.

Why Not Invest in Sedona Airbnb Rentals?

The risks concentrate in two areas. Entry prices are the primary constraint: at $880,391 median home value, Sedona is the second-most expensive market in this study after Scottsdale. Standard 70–75% LTV financing at 7.5% rates produces approximately breakeven cash flow on an $880,000 property generating $79,786 in revenue — the NOI of roughly $49,000 barely covers $46,000 in annual debt service. The Sedona thesis only works at low leverage (40–50% down) or all-cash, which limits its accessibility for most individual investors. Professional operator concentration is significant — the top host manages 148 listings at a 4.95 rating, and the top ten operators hold approximately 49% of market supply, setting a quality bar that individual investors must meet. Summer heat suppresses June–August occupancy to 46%, and HOA restrictions in Sedona's resort condo developments can prohibit STRs regardless of Arizona's preemption law.