10 Best Places to Buy Short-Term Rentals in Phoenix (2026)

According to Chalet Data, Phoenix’s short-term rental landscape in 2026 is defined by strong yield opportunities clustered throughout its north, central, and east neighborhoods. Across the city, gross yields for Airbnb investments range from 7.5% up to 9.9%, with median home values spanning from about $331,000 to $622,000. While Phoenix sits near the US median for yield, its occupancy rate of 53% outpaces most major markets, and ADRs have surged 40% year-over-year.

The most competitive neighborhoods pair above-average occupancy with either affordable entry prices or premium nightly rates, and the best performers are seeing supply tighten as listings drop. Investors should note that spring and winter drive the bulk of annual revenue, with March typically the peak month for bookings.

As home values have dipped and competition has shifted, the window for attractive payback periods remains open, if you focus on the right submarkets.

The Best Phoenix Neighborhoods for Airbnb, Ranked by Yield

Source note: Data as of July 11, 2026. Each listing’s annual revenue is calculated from its own ADR × occupancy × 365, using trailing 12-month data, and is gross before expenses. The table reports the median listing’s revenue, alongside independently computed median ADR and median occupancy, so multiplying the table’s ADR by occupancy will not reproduce the revenue figure.

Gross yield divides the median revenue by the median home value (Zillow ZHVI). See our full methodology. Annual revenue for active operators reflects listings with sustained booking activity and is the best benchmark for underwriting your own purchase.

1. Deer Valley: High yield meets rising demand

Momentum in Deer Valley is unmistakable, as the market posted an 8% jump in occupancy and a striking 30% surge in ADR year-over-year for June 2026, even as active listings fell by 17%.

This supply squeeze has kept the area’s median occupancy at 54%, well above the US median of 45%, and supported a robust median annual revenue of $42,014. March is the seasonal highlight, when occupancy climbs to 78% and ADR reaches $218, while July’s 46% occupancy reflects the annual summer slowdown typical of Phoenix’s climate.

Deer Valley’s gross yield of 9.9% places it in the 61st percentile nationally, making it a leader among US short-term rental markets for return potential. With a payback period of just 10.4 years at the active-operator benchmark, investors can expect relatively swift capital recovery compared to many other metro areas.

The dominance of three- and four-bedroom homes, which together account for the majority of listings and the highest annual earnings, points to strong demand from families and groups who value space and suburban amenities. These dynamics, combined with a moderate home value of $426,125, continue to attract buyers looking for resilient nightly rates and tightening supply. For a deeper breakdown by property type and revenue tier, see Deer Valley’s analytics page.

Who this market is ideal for: Buyers seeking reliable yield and lower risk of oversupply.

2. Maryvale: Budget entry, steady returns

Homebuyers targeting affordability will find Maryvale’s median price of $330,652 the lowest among Phoenix’s top neighborhoods, providing a rare entry point for investors seeking a 9.0% gross yield.

The area’s sharp seasonality is evident, as occupancy surges to 59% in March paired with a $189 ADR, then contracts to just 28% by June, reflecting the impact of Phoenix’s extreme summer heat on short-term rental demand. These swings make winter and spring the most lucrative seasons, together accounting for 54% of annual revenue.

Relative to the US field, Maryvale’s gross yield and 45% occupancy rate land exactly at the national medians, but its ADR of $147 is well below the US median of $232. The 11.5-year payback period remains competitive thanks to the low acquisition costs, despite a 30% year-over-year drop in occupancy and a 62% spike in ADR as operators adjust pricing to offset weaker demand.

The dominance of 1-bedroom listings (111 out of 191) shapes the area’s typical earnings, but the highest annual revenue comes from 4-bedroom homes, signaling opportunities for investors willing to scale up. The data suggest that while demand softened, Maryvale’s pricing flexibility and accessible entry costs continue to attract value-focused buyers. For a full breakdown of Maryvale’s STR performance, see the Maryvale analytics page.

Who this market is ideal for: Value-driven buyers and first-timers with a focus on cash flow.

3. Camelback East: High-end revenue, resilient occupancy

Revenue performance in Camelback East is shaped by pronounced seasonality, with occupancy soaring to 77% in March and ADR hitting $190 during the peak. As summer arrives, occupancy drops to 50%, reflecting Phoenix’s heat-driven demand swings and the neighborhood’s appeal to winter and spring visitors. This seasonally weighted revenue mix, with 32% of annual earnings landing in winter and only 20% in summer, gives investors a clear roadmap for pricing and marketing strategies.

Camelback East sits at the 49th percentile for gross yield among 501 US markets, but its 56% occupancy rate outpaces the national median of 45%, signaling robust year-round demand for high-end homes. The active full-time operator count of 737, alongside a 24% drop in listings over the past year, has tightened supply and fueled both an 8% occupancy gain and a 37% leap in ADR.

Underwriting here means weighing a moderate payback period of 11.5 years against the neighborhood’s proven ability to support both one-bedroom and large luxury listings, with six-bedrooms earning nearly $100,000 annually. For more detail on earnings by property type and season, the Camelback East analytics offer a full breakdown.

Who this market is ideal for: Investors targeting higher revenue and diverse guest segments.

4. North Gateway: Luxury rates, sharp seasonality

Price-driven investors will note that North Gateway’s median home value of $621,737 sits well above the Phoenix average, and its gross yield of 8.6% places it in the 47th percentile among 501 US markets. The area’s ADR, at $286, outpaces the US median by $54, signaling real pricing power for owners targeting luxury or group stays.

February is the clear high season, with occupancy reaching 67% and ADR climbing to $367, while June occupancy tumbles to just 26%, underscoring a pronounced off-peak dip. Spring and winter together drive 63% of annual revenue, so underwriting here demands conservative assumptions for summer and fall.

Recent data shows a complex momentum picture. Occupancy dropped 39% year-over-year in June, but ADR surged 52% and active listings fell by 22%. This pattern suggests resilient pricing even as demand softens, likely due to a shrinking pool of available luxury homes.

The payback period stretches to 11.8 years, making North Gateway best suited for buyers with a long-term horizon and appetite for high nightly rates. With only 35 full-time listings, competition is limited, but investors must be prepared for sharp seasonal swings and the capital outlay required for premium properties. For a granular view of revenue drivers and risk, the North Gateway analytics offer a detailed breakdown.

Who this market is ideal for: Buyers seeking premium nightly rates and larger homes.

5. Alhambra: Occupancy leader on a budget

Market dynamics in Alhambra have shifted sharply, as a 27% jump in occupancy and a 49% rise in ADR since last June collided with a 27% drop in available listings. This supply squeeze has pushed occupancy to a Phoenix-leading 60%, well above the US median of 45%, even though the area’s $143 average daily rate trails the national figure.

March stands out as the busiest month, when occupancy hits 75% and ADR climbs to $154, while August marks the slowest period with just 48% occupancy, reflecting the area’s pronounced seasonality and the impact of summer heat on demand.

Alhambra’s median gross yield of 8.2% lands it in the 41st percentile among 501 US markets, so while it does not lead on yield, it excels in booking consistency. The payback period, at 12.7 years of gross active-operator revenue, is slightly longer than the city median, but remains reasonable given the high occupancy and accessible $347,339 median home price.

The dominant 1-bedroom segment (85 listings) offers a low barrier to entry, though 4-bedrooms command the highest annual revenue at $34,491, suggesting that scale can boost returns for those able to invest more upfront. For a full breakdown of property types and returns, see Alhambra’s analytics.

Who this market is ideal for: Investors seeking high occupancy and lower entry costs.

6. Encanto: Central, consistent, and supply-tight

Market dynamics in Encanto have shifted notably in the past year, with occupancy climbing to 60%, well above the US median of 45%. The neighborhood’s seasonality is pronounced. March stands out as the high-water mark with 79% occupancy and a $148 ADR, while June dips to 50%, reflecting the area’s draw for spring travelers and a softer summer period.

This central Phoenix locale balances a median home value of $436,889 against an 8.2% gross yield, placing it in the 40th percentile for yield among 501 US markets and offering a payback period of about 12.6 years at active-operator revenue levels.

The supply squeeze is evident, as listings fell 26% year-over-year even as occupancy gained 5% and ADR surged 35%. This tightening supply, paired with a revenue mix that leans heavily on winter (32%) and spring (24%), signals strong demand during Phoenix’s peak tourism months.

Most listings are 1-bedrooms, which generate $13,942 annually at a $107 ADR, but larger 4-bedroom properties can gross $54,252 per year with a $327 ADR, suggesting that investors who can secure bigger homes may achieve outsized returns.

Encanto’s blend of historic charm and modern amenities continues to attract a diverse guest base, supporting stable bookings throughout the year. For buyers who want consistent bookings in the heart of Phoenix, the Encanto analytics offer a granular look at revenue by property size.

Who this market is ideal for: Buyers seeking central location and stable occupancy.

7. North Mountain: Steady bookings, moderate price

Pricing trends in North Mountain reflect a market that rewards patience and careful underwriting. Occupancy rates climb to 71% in March, coinciding with a robust average daily rate of $182, before dropping to 39% in May as demand softens after the winter high season. This pronounced seasonality means investors must plan for significant revenue concentration in winter (32%) and spring (26%), with leaner months in summer and fall, shaping cash flow expectations throughout the year.

Compared to the US median, North Mountain’s 7.8% gross yield lands in the lower third of all 501 tracked markets, while occupancy at 48% edges above the national median of 45%. The payback period of 13.1 years signals steady, moderate returns rather than rapid capital recovery, making the area attractive to buyers comfortable with a measured investment horizon.

The dominance of 1-bedroom listings (85 active, $12,714/year) reflects the neighborhood’s appeal to solo travelers and couples, but investors able to secure larger homes can tap into the outsized earnings of 4-bedrooms, which command $43,221 annually at a $326 ADR. These patterns are shaped by North Mountain’s moderate home values and consistent, if unspectacular, booking momentum, as evidenced by a 1% occupancy gain and a striking 39% ADR jump over the past year, even as listing supply contracted by 23%. For a full breakdown of North Mountain’s STR performance, see the North Mountain analytics page.

Who this market is ideal for: Investors seeking a middle ground on price and occupancy.

8. Central City: Urban core, high occupancy

Demand in Central City surges each spring, with occupancy reaching 78% in March and average daily rates climbing to $144, while September marks the slowest month at 54% occupancy. This pronounced seasonality drives a strong winter and spring revenue mix, accounting for 31% and 27% of annual income, respectively, and rewards owners who can maximize bookings during peak periods.

The median occupancy rate of 57% stands well above the US median of 45%, though Central City’s gross yield of 7.7% lands at just the 36th percentile nationally, reflecting a market with high occupancy but lower nightly pricing than the US median ADR of $232.

Recent momentum is striking. Over the past year, occupancy jumped 29% and ADR climbed 32%, even as listings fell by 21%, creating a clear supply squeeze that benefits existing operators. The payback period of 13.3 years, calculated from active-operator revenue, signals a moderate return horizon for investors, especially given the market’s relatively low median home value of $337,602.

A bedroom mix dominated by 1-bedroom units (278 listings) suggests a focus on solo travelers and couples, but those seeking higher returns should note that 3-bedroom properties command the top earnings at $31,050 per year and $232 ADR. For buyers prioritizing central location and consistent bookings, the Central City analytics provide a full breakdown of revenue drivers.

Who this market is ideal for: Buyers seeking affordable entry and high booking rates near downtown.

9. South Mountain: Lower occupancy, stable rates

Data from the latest year reveals that South Mountain’s occupancy swings dramatically with the seasons, reaching a high of 71% in March but plummeting to just 12% by June.

This pronounced winter-spring concentration, with 35% of annual revenue earned in winter and only 15% in summer, means that operators must plan for extended low-demand periods and manage cash flow accordingly. Compared to the US median, South Mountain’s 7.6% gross yield lands at the 35th percentile of 501 tracked markets, with occupancy and ADR both trailing national norms.

Active operators here collect $26,697 annually on average, and investors face a payback period of about 13.5 years, an underwriting horizon shaped by both the area’s moderate home values and its softening demand. The sharp 48% year-over-year drop in occupancy, even as ADR climbed 32%, signals a market where pricing power has not fully offset weaker booking volume and a 9% contraction in listings.

This environment favors larger properties. While 1-bedrooms are most common, four-bedroom homes deliver nearly $40,000 a year at a $269 nightly rate, offering a compelling path for buyers who can navigate the volatility highlighted in the South Mountain analytics.

Who this market is ideal for: Buyers comfortable with off-season swings and value pricing.

10. Paradise Valley: Premium ADR, longer payback

Luxury-focused investors will find Paradise Valley’s short-term rental market shaped by strong nightly rates and pronounced seasonal swings. Occupancy climbs to 71% in March with an ADR of $263, then drops sharply to 36% in June, making winter and spring the dominant revenue seasons (32% and 29% of annual revenue, respectively).

Compared to other US markets, Paradise Valley’s gross yield of 7.5% sits at the 34th percentile, with occupancy slightly above the national median but an ADR that matches the US median of $232.

Recent data shows a complex market dynamic. Occupancy has fallen 18% year-over-year, while ADR surged 56% and listings contracted by 26%. This combination suggests demand is softening amid reduced supply, likely as some owners exit after peak pricing. The most common listings are 3-bedrooms (152 active, $31,867/year at $273 ADR), but 4-bedrooms outperform on revenue ($37,385/year at $314 ADR), highlighting the premium placed on larger homes.

The long payback period of 13.6 years reflects both high home values and the market’s reliance on peak-season earnings, requiring careful underwriting and a focus on luxury positioning. For investors focused on premium properties and strong nightly rates, the Paradise Valley analytics detail how luxury homes perform in this market.

Who this market is ideal for: Buyers seeking luxury inventory and high nightly rates.

How to read these rankings before you buy

Gross yield is a powerful first filter for comparing neighborhoods, but it only reflects the relationship between annual revenue and purchase price, not your net cash flow after expenses, taxes, or financing. The headline annual revenue averages all listings, while the active-operator figure focuses on properties with consistent bookings, offering a more realistic benchmark for buyers planning to run a professional operation.

Still, every property’s performance depends on its size, amenities, and guest appeal. Use these rankings to narrow your search, but always underwrite at the property level, accounting for local costs, regulatory compliance, and the specifics of your target listing.

How to Act on This

Buying a short-term rental in Phoenix means weighing more than just yield and revenue. Start by confirming current city regulations. As of July 2026, all Phoenix STRs require a city-issued permit, with a $250 fee per property and a notarized attestation for properties with new accessory dwelling units.

The city’s rules can change, so verify requirements before closing. Arizona also imposes a transaction privilege tax (TPT) on short-term lodging, and some bookings may be subject to an additional hotel tax. Beyond compliance, consider the seasonality of Phoenix’s market, spring and winter are the strongest periods, so cash flow can swing month to month.

Neighborhoods with high occupancy rates offer more booking stability, while those with premium ADRs may deliver higher upside but require patience in slower months. Property type matters is larger homes in higher-yield areas can outperform smaller units, but only if guest demand supports them.

Finally, connect with a local short-term rental agent who understands Phoenix’s evolving landscape and can help you navigate both regulation and property selection. Find your Phoenix Airbnb agent here to get started with a strategy tailored to your goals.