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.
Top 100 Airbnb Rental Markets
Instantly compare top 100 short-term (Airbnb) rental markets in the US
Climate of Tucson
Tucson has a warm and sunny climate, with an average of 350 sunny days per year. The city experiences hot summers and mild winters, with temperatures ranging from the high 90s and low 100s in the summer to the mid-50s in the winter. Tucson’s unique location in the Sonoran Desert provides ample opportunities for outdoor activities, such as hiking, camping, and bird-watching.
Population Size
Tucson has a population of over 543,242 residents, making it the second-largest city in Arizona and one of the largest cities in the southwestern United States. The city is known for its diverse and vibrant community, with a rich mix of cultures, traditions, and backgrounds.
Guests
The majority of the guests come from inside of Arizona. 7.58% of all guests are from Tucson followed by Phoenix with 4.23%.
Sports Teams
Tucson is home to several amateur and semi-professional sports teams, including the Tucson Sugar Skulls of the Indoor Football League and the Tucson Roadrunners of the American Hockey League. The city also hosts several annual sporting events, such as the Tucson Marathon, the Tucson Triathlon, and the El Tour de Tucson.
Colleges and Universities
Tucson is home to several colleges and universities, including the University of Arizona, Pima Community College, and Northern Arizona. The city’s diverse and highly educated population makes it a hub of innovation, research, and technology.
Crime Rate
Tucson has a relatively low crime rate compared to other cities of its size. The city’s police department works tirelessly to maintain public safety and to ensure that residents and visitors alike can enjoy a safe and secure experience in the city.
Visitors to Tucson
Tucson is a popular tourist destination, with over 5.8 million visitors yearly, with the majority coming from within the United States. The city is also a popular destination for international travelers, with many visitors coming from Canada, Mexico, and Europe.
The city’s warm weather, natural beauty, and exciting outdoor activities make it an attractive destination for tourists worldwide.
Biggest Tourist Attractions
Tucson is home to several world-class tourist attractions, including:
- Saguaro National Park: a beautiful park filled with towering cacti and breathtaking scenery
- The Tucson Museum of Art: a world-renowned museum featuring art from around the world
- The Arizona-Sonora Desert Museum: a unique museum showcasing the flora and fauna of the Sonoran Desert
- The Pima Air and Space Museum: a fascinating museum showcasing the history of aviation and space travel.
Peak Season
Tucson’s peak season is during the winter months when visitors come to escape the cold weather in other parts of the country. The city is also a popular destination during the spring and fall when visitors come to enjoy the mild weather and breathtaking natural beauty.
Conclusion
In conclusion, Tucson, Arizona is a bustling city with a unique blend of natural beauty, cultural richness, and economic opportunities. With its warm, sunny weather, abundant outdoor recreation options, and thriving arts and cultural scene, Tucson is an ideal destination for visitors looking to experience the best of what the southwestern United States has to offer.
Whether you are interested in history, outdoor activities, or simply soaking up the sun, Tucson is sure to provide an unforgettable experience. With its friendly community, thriving economy, and high quality of life, Tucson is an excellent place to live, work, and play, and the city is poised to continue to grow and thrive in the years to come. Whether you are considering a short-term rental property, looking to relocate to the area, or simply interested in visiting, Tucson, Arizona, has something to offer everyone.
