Tucson, Arizona, is a popular destination for both tourists and short-term renters. With its warm weather and diverse culture, Tucson has a lot to offer to those looking to rent out a property.
Whether you are a seasoned real estate investor or just starting out, this city offers many opportunities to make a great return on investment.
Let’s take a closer look at the short-term (Airbnb) rental market in Tucson and what it has to offer.
Market Overview
To understand the dynamics of the short-term rental market in Tucson, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 30.04% of inventory. This is followed by 2 and 4-bedroom homes at 29.00% and 17.11% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Tucson experienced an appreciation of 1.17%. This data indicates a significant increase in property values.
Median Home Value
As of January of 2025, Homes in Tucson have appreciated by 1.17%. The median home value in Tucson is $328,800 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Tucson boasts a significant Airbnb rental market, with approximately 2,897 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $158. The Average Daily Rate is the highest for 5-bedroom homes ($285) followed by 4-bedrooms and 3 bedrooms at $247 and $219 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 56% for Airbnb rentals in Tucson. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Tucson ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.26% in Tucson. This figure suggests that short-term rentals in the city offer a favorable return on investment. Tucson is ranked #66 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Tucson earn an average of $22,060 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Tucson is 0.90%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Regulations
Tucson’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
Top Places for Airbnb in Tucson
Tucson’s top submarkets for Airbnb investments include areas like ZIP code 85706, which has the highest gross yield at 11% and an annual revenue of $27,696. In contrast, ZIP code 85730 offers more extensive opportunities with 105 full-time listings, but a lower gross yield of 9%.
Hosts
The market is not dominated by property management firms. The largest host is Evolve with 4.85% of the total inventory and an average review of 4.89⭐️s .
Median Household Income in Tucson
The median household income in Tucson, Arizona, is $48,058, according to data from the U.S. Census Bureau. This is relatively low compared to other popular destinations, making it an attractive option for budget-conscious travelers.
