Cave Creek, Arizona Short-Term Rental Market
Cave Creek, AZ STRs averaged $228/night at 56.4% occupancy in May 2026, anchored by Old West tourism and desert outdoor recreation.
Quick Answer: Cave Creek, Arizona is an active short-term rental market. average occupancy is 57%. average monthly revenue is $2,947. average daily rate is $188.
Market data reflects the Phoenix/Scottsdale regional market, which includes Cave Creek. Regulations, taxes, and permit details below are specific to Cave Creek.
Market Overview
Cave Creek is a small Old West-themed town in the Sonoran Desert foothills north of Phoenix and Scottsdale, with a permanent population of approximately 5,108 residents. The town’s permanent population swells significantly during the cooler peak season from fall through spring as snowbirds, outdoor recreationists, motorcyclists, and Phoenix-metro residents visit for Western heritage, live rodeo at the Buffalo Chip Saloon, Southwestern art galleries, horseback riding, hiking, and mountain biking. Spur Cross Ranch Conservation Area (2,154 acres of desert preserve) and Cave Creek Regional Park anchor the outdoor recreation draw.
As of May 2026, the market posted an average daily rate of $228, occupancy of 56.4%, and average monthly revenue of $3,645. RevPAR stands at $128.51. Year-over-year through May 2026, occupancy rose 0.8%, ADR increased 1.1%, and revenue is essentially flat at -0.1%.
Annual averages show consistent improvement in recent years: 62.4% occupancy and $226 ADR ($3,924 monthly revenue) in 2025, and 62.2% occupancy at $226 ADR ($3,849 monthly revenue) in 2024. Revenue in 2025 was up 11.1% from the 2023 base of $3,530 per month. The 2021 peak reached 68.7% occupancy and $201 ADR ($3,618 monthly revenue).
Dimension-level data (bedroom mix, listing-type breakdown, and channel split) was not available in the current snapshot. No property management company data or housing price data were available for this market.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 65% | $199 | $3,377 |
| Feb | 74% | $250 | $4,356 |
| Mar | 76% | $274 | $5,551 |
| Apr | 57% | $228 | $3,719 |
| May | 56% | $196 | $3,082 |
| Jun | 58% | $171 | $2,669 |
| Jul | 60% | $151 | $2,464 |
| Aug | 60% | $151 | $2,452 |
| Sep | 59% | $161 | $2,469 |
| Oct | 63% | $183 | $2,993 |
| Nov | 63% | $197 | $3,164 |
| Dec | 58% | $200 | $3,157 |
What Kind of STR Should I Buy in Cave Creek?
Revenue and pricing by property type, tier, and bedroom count.
ADR by Property Tier
| Entire Home | $202 |
| Luxury | $416 |
| Professionally Managed | $239 |
Revenue by Dwelling Type
| Apartment | $1,901 |
| Entire Place | $3,140 |
| House | $3,436 |
Investment Analysis
Cave Creek offers STR investors a Western-character desert destination with a moderate regulatory framework and year-round demand driven by both outdoor recreation and cultural tourism. The May 2026 monthly revenue of $3,645 annualizes to approximately $43,740. Annual revenue averages have improved from $3,530 per month in 2023 to $3,924 in 2025, a 11.1% gain over two years.
Tier-specific ADR data (luxury tier, professionally managed tier, entire-home tier) was not available in the current snapshot. No housing price data was available, preventing a gross yield calculation. Investors should obtain current Cave Creek residential property valuations to model returns against the approximately $43,740 annualized revenue figure.
The regulatory structure introduces compliance costs that are notably higher on the tax side following recent changes. Effective February 1, 2026, Cave Creek raised its combined city lodging tax on short-term rentals to 10% under Ordinance O2025-16 (5% Hotels classification rate plus 5% Additional Tax on Transient Lodging), up from a prior combined 7%. This stacks on top of Arizona state TPT at 5.5% and Maricopa County excise taxes, bringing the total combined rate to approximately 15 to 16%. Annual licensing costs are $300 total per property ($250 Town STR License plus $50 Business License), plus the requirement for $500,000 minimum liability insurance.
Enforcement severity is rated moderate. Arizona state law (A.R.S. 9-500.39) preempts the town from banning STRs or imposing nightly caps, so there is no max-nights limit and no owner-occupancy or primary-residence requirement (except for newer ADU properties). The cooler-months demand spike from October through March, driven by snowbirds and Phoenix-area day-trippers, provides a reliable seasonal revenue window.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Booking lead time and average length-of-stay data were not available in the current snapshot for Cave Creek. The market’s character as a day-trip and weekend destination for the Phoenix metro, combined with a snowbird winter season, suggests a bimodal booking profile.
Winter and spring bookings (November through March) from snowbirds and planned desert recreationists likely arrive one to four weeks in advance, as visitors plan multi-night stays around ideal weather windows. The data confirms that this period commands the highest rates ($250 to $274 ADR in February and March), indicating operators can hold firm pricing during the peak window.
Summer bookings, if any, tend to arrive on very short lead times from last-minute seekers who may be attracted by lower summer pricing. The revenue data (August $2,453 average) confirms that even short-lead discounting is needed to sustain occupancy when temperatures make outdoor activity uncomfortable.
Cave Creek’s Western-character attractions, particularly rodeo events at the Buffalo Chip Saloon and seasonal festivals, generate concentrated weekend demand that may book earlier than background lodging. Operators near Frontier Town and the Buffalo Chip Saloon may benefit from event-calendar alignment in their pricing and minimum-stay settings.
Short-Term Rental Regulations
Cave Creek regulates short-term rentals under Ordinance O2023-02 (adopted July 17, 2023). Operators must complete a four-step process before listing: (1) obtain an Arizona Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue; (2) register the property with the Maricopa County Assessor under A.R.S. 33-1902 (renting before county registration is prohibited); (3) obtain a Town Business License ($50 per year); and (4) obtain a Town Short-Term Rental License ($250 per year) through the town’s online registration portal. Total annual licensing cost is $300 per property.
Operators must carry at least $500,000 in general liability insurance, or list through a marketplace platform (such as Airbnb or VRBO) that provides equivalent or greater coverage. Neighbor notification is required. There is no owner-occupancy requirement, no primary-residence requirement, and no maximum-nights cap. Arizona state law (A.R.S. 9-500.39) prevents the town from banning STRs or imposing nightly caps, except for ADU properties that received a certificate of occupancy on or after September 14, 2024.
Tax obligations are multi-layered and changed significantly in early 2026. Effective February 1, 2026, Cave Creek raised its combined city lodging tax on short-term rentals to 10% under Ordinance O2025-16: the Hotels classification rate (Section 9-444) was raised from 3% to 5%, and the Additional Tax upon Transient Lodging (Section 9-447) was raised from 4% to 5%. This 10% city rate stacks on top of Arizona state TPT at 5.5% and Maricopa County excise taxes, bringing the total combined rate to approximately 15 to 16%. Operators should confirm current rates with the Arizona Department of Revenue. Enforcement severity is rated moderate.
Market Comparison
Cave Creek’s May 2026 occupancy of 56.4% is slightly above the U.S. STR median of approximately 55%, while its $228 ADR is modestly above the national median near $220. The market occupies a niche within the Phoenix metro as a Western heritage and outdoor recreation alternative to the more resort-focused Scottsdale and the wellness focus of adjacent Carefree.
Cave Creek and Carefree together serve a combined visitor base in the North Valley that tends toward older, higher-income leisure travelers and outdoor enthusiasts. Cave Creek’s Western heritage and working saloon-and-rodeo culture gives it a distinct positioning from neighboring communities, potentially attracting a visitor segment that pays for authenticity and experience rather than resort amenities.
No property management company data was available in the current snapshot. With a permanent population of approximately 5,108, Cave Creek’s STR market is likely dominated by individual owner-operators, with some access to Scottsdale-based management networks extending into the area.
Revenue performance has improved from $3,530 per month in 2023 to $3,924 in 2025, an 11.1% gain over two years. The February 2026 lodging tax increase (to a combined 10% city rate) added meaningful operating cost that operators should model into their proforma. Against the approximately $43,740 annualized revenue at May 2026 rates, the estimated tax obligation on gross receipts represents a significant cost of doing business in this market.
Frequently Asked Questions About Cave Creek, Arizona
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