
Airbnb market analysis and investment insights
$313
Sedona, AZ — Market Intelligence Report
Researched by Chalet's Senior STR Analysts · Verified with local Sedona market partners
Sedona, Arizona’s short-term rental market is defined by its steady, full-time operator performance: active hosts averaged $47,622 in annual revenue over the past year, according to Chalet data. This figure sets the tone for an investment landscape where professionalization matters—while the broader median revenue sits slightly higher at $49,838, that number is skewed upward by a large tail of part-time and casual listings (1,560 out of 2,436 total). Occupancy hovers at a median 50%, with an average daily rate of $313 and a median gross yield of 5.61% against a median home value of $888,809. Nationally, Sedona ranks #381 for STR returns. Seasonality is pronounced: March is the clear peak with $4,862 in monthly revenue at 75% occupancy, while August is the trough at just $2,967 and 33% occupancy—a near-halving of income between high and low season.
Within Sedona, the 3-bedroom and 4-bedroom segments have crystallized as core investment products. Three-bedroom properties (575 listings) averaged $54,696 in annual revenue at a robust $423 ADR and 50% occupancy, while 4-bedrooms (193 listings) pushed higher at $76,877 annually and a $606 ADR, albeit with slightly softer 46% occupancy. These segments offer scale and flexibility for groups and families, capturing demand from both drive-market and fly-in guests. For investors seeking a foothold, the 1-bedroom and 2-bedroom tiers are also liquid, with 727 and 593 listings respectively, generating $30,535 and $40,081 in annual revenue—though at lower ADRs and similar occupancy rates. For tailored acquisition strategies and on-the-ground insights, connect with a Chalet agent.
Geographically, the 86336 zip code dominates the landscape, hosting 1,698 listings with a median annual revenue of $53,123, $328 ADR, and 53% occupancy—outperforming the market baseline and offering a 5.4% median yield on a $975,000 median home value. In contrast, 86351 (486 listings) trails with $38,185 median revenue and 41% occupancy, reflecting both lower ADRs ($263) and softer demand. Investors focused on maximizing revenue density and yield will find the core 86336 cluster offers the most resilient fundamentals, with a deeper pool of professional operators and higher guest turnover. For those considering entry or expansion, a Chalet agent can help target the right micro-market.
At scale, Sedona’s winners are operators who optimize for seasonality and guest mix. Demand is driven overwhelmingly by domestic travelers, with Phoenix (6.0% of reviews), Tucson, Los Angeles, and New York among the top origin markets; international guests account for just 3.2%. Booking lead times average 48 days (median 29), and the average stay is 3.7 nights—favoring operators who can dynamically price and market for both short breaks and longer getaways. The market’s high superhost share (68%) and average 4.92 star rating signal a competitive, quality-driven environment. For a granular underwriting of projected returns, leverage the Chalet ROI calculator.
Risks are concentrated around regulation and volatility in home values. Over the past year, revenue per listing rose 6.5%, occupancy climbed 3.5%, ADR increased 1.5%, and supply expanded by 5.7%. However, median home values declined 2.5%, and the August trough exposes operators to severe seasonal swings. While Sedona’s regulatory environment remains permissive—STRs are explicitly legal, with no license cap and a $200 annual permit—pending state legislation could empower the city to impose caps or minimum distances between rentals, introducing a new layer of uncertainty. For the latest on compliance and operational rules, see Sedona STR regulations.
Sedona’s STR market is a professionalizing, yield-driven landscape where scale operators and disciplined seasonality management are rewarded, but regulatory vigilance and capital discipline are essential for long-term outperformance.
| 86336 |
| 5% |
| $53,123 |
| 2,547 |
| $975K |
For a complete breakdown, visit our guide to Airbnb laws in Sedona, AZ