Written by: Ashley Durmo
Introduction
Scottsdale, Arizona, is a premier location for short-term rental investments. Known for its luxury resorts, vibrant nightlife, and proximity to stunning desert landscapes, Scottsdale attracts tourists year-round. Here’s a guide to the top-performing ZIP codes in Scottsdale, focusing on gross yield, annual revenue, and property values to help investors make informed decisions.
85257 – South Scottsdale
- Gross Yield: 8%
- Annual Revenue: $46,628
- Zillow Home Value: $553.4K
South Scottsdale, covered by ZIP code 85257, is known for its proximity to Old Town Scottsdale, the Arizona State University campus, and Tempe Town Lake. With a gross yield of 8% and an annual revenue of $46,628, this area offers solid returns for short-term rental investors. The Zillow home value of $553.4K makes it relatively affordable compared to other Scottsdale neighborhoods, making it an excellent entry point for investors looking to capitalize on its central location and year-round tourist traffic.
85250 – Central Scottsdale
- Gross Yield: 8%
- Annual Revenue: $50,404
- Zillow Home Value: $612.3K
IP code 85250 includes neighborhoods near Scottsdale Fashion Square and Camelback Mountain. With a gross yield of 8% and an annual revenue of $50,404, this area is attractive to investors seeking a balance between high revenue potential and home values. The $611.8K Zillow home value reflects the area’s premium appeal, drawing visitors interested in upscale shopping, hiking, and quick access to downtown Scottsdale’s vibrant entertainment scene.
85266 – North Scottsdale
- Gross Yield: 7%
- Annual Revenue: $89,569
- Zillow Home Value: $1.2M
The 85266 ZIP code is located in North Scottsdale, known for its luxurious homes, exclusive golf courses, and stunning desert vistas. With the highest annual revenue on the list at $89,569, this area caters to high-end travelers and is ideal for investors targeting luxury short-term rentals. However, the Zillow home value of $1.2M reflects the premium required to enter this market. For those able to invest in this area, the returns are substantial, especially for properties catering to affluent guests seeking exclusivity.
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85260 – North Central Scottsdale
- Gross Yield: 7%
- Annual Revenue: $48,867
- Zillow Home Value: $714.2K
ZIP code 85260 includes neighborhoods close to WestWorld of Scottsdale and the McDowell Sonoran Preserve, making it a hotspot for events like Barrett-Jackson car auctions and outdoor enthusiasts. With a gross yield of 7% and an annual revenue of $48,867, this area provides steady returns with a mid-range Zillow home value of $714.2K. The combination of event-driven demand and recreational appeal makes it a versatile choice for investors.
85251 – Old Town Scottsdale
- Gross Yield: 7%
- Annual Revenue: $35,507
- Zillow Home Value: $527.6K
ZIP code 85251, encompassing Old Town Scottsdale, is one of the city’s most iconic areas. Known for its lively nightlife, art galleries, and upscale dining, this area attracts a broad range of visitors. With the highest number of full-time listings at 2,778, competition is fierce, but demand is equally robust. A gross yield of 7% and an annual revenue of $35,507 reflect the area’s popularity. The Zillow home value of $527.6K makes it relatively affordable, especially for investors looking to capitalize on Old Town’s year-round appeal.
Conclusion
Scottsdale’s diverse neighborhoods provide opportunities for every type of investor. Whether targeting luxury rentals in North Scottsdale or high-demand areas like Old Town, investors can benefit from the city’s strong tourist market and year-round visitor activity. Each ZIP code offers unique benefits, catering to different traveler preferences and ensuring steady income potential.
