Introduction
Phoenix, Arizona, known for its warm climate, vibrant culture, and stunning desert landscapes, has emerged as a hotspot for short-term rental investments. With a burgeoning real estate market and a steady stream of visitors drawn to its attractions, understanding the dynamics of the Airbnb scene in Phoenix is crucial for both investors and travelers alike.
Market Overview
To understand the dynamics of the short-term rental market in Phoenix, let’s delve into some key statistics and figures.
Supply
The most popular homes are 4-bedroom homes, comprising 29.81% of inventory. This is followed by 3 and 1-bedroom homes at 26.56% and 20.76% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Phoenix experienced an appreciation of 0.50%. This data indicates a significant increase in property values.
Median Home Value
As of January of 2025, Homes in Phoenix have appreciated by 0.50%. The median home value in Phoenix is $414,800 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, Phoenix boasts a significant Airbnb rental market, with approximately 3,795 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 $265. The Average Daily Rate is the highest for 5 bedroom homes ($505) followed by 4-bedrooms and 3 bedrooms at $430 and $398 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 61% for Airbnb rentals in Phoenix. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Phoenix ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 9.09% in Phoenix. This figure suggests that short-term rentals in the city offer a favorable return on investment. Phoenix is ranked #60 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Phoenix earn an average of $28,567 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 Phoenix is 0.57%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Top Places for Airbnb in Phoenix
Phoenix top submarkets for Airbnb investments include areas like ZIP code 85023, which has the highest gross yield at 10% and an annual revenue of $44,186. In contrast, ZIP code 85032 offers more extensive opportunities with 504 full-time listings, but a lower gross yield of 8%.
