Flagstaff, Arizona Short-Term Rental Market Analysis
The short-term rental (STR) market in Flagstaff, Arizona, encompasses 2,575 active listings with an average daily rate (ADR) of $226.12 and an occupancy rate of 60%. Notably, the average monthly revenue per property stands at $3,169, marking a robust investment opportunity for property managers and investors alike.
Table of Contents
Flagstaff, Arizona Short-Term Rental Market Overview
Visitor Profile
Flagstaff, Arizona, attracts approximately 4.5 million visitors annually, making it a significant hub for tourism in the region. The demographic profile of these visitors reveals a diverse mix, with a notable percentage being outdoor enthusiasts, families, and cultural travelers. The primary reasons for visiting include exploring the natural beauty of the surrounding Coconino National Forest, engaging in winter sports at nearby ski resorts, and experiencing the rich Native American heritage. The economic impact of tourism in Flagstaff is substantial, contributing over $500 million to the local economy each year, which underscores the importance of this sector for the community.
In terms of visitor statistics, the annual influx of around 4.5 million tourists is characterized by a mix of leisure and business travelers, with leisure visitors making up about 80% of the total. The average length of stay is approximately 2.5 nights, with peak seasons occurring during the summer months and around winter holidays. According to the tourism bureau, the majority of visitors are from nearby states such as California and Arizona, with a growing number of international travelers drawn to the area’s unique attractions. The visitor demographics indicate a balanced age distribution, with significant numbers of young adults aged 25-34 and families with children. The visitor statistics report from Discover Flagstaff highlights that outdoor activities, such as hiking and skiing, are among the top reasons for visits, making it essential for STR operators to cater to these preferences. For more insights on Flagstaff tourism statistics, visit the official tourism source (https://tourism.az.gov/wp-content/uploads/2019/06/3.4_CommunityStudiesAndAssessments_Flagstaff-Tourism-Study-2017-2018-Final.pdf) and Discover Flagstaff (https://www.flagstaffarizona.org/stakeholders/research/).
Top Attractions
Flagstaff, Arizona, is a vibrant destination that offers a unique blend of outdoor adventure, cultural experiences, and family-friendly activities. Nestled at the base of the San Francisco Peaks, this charming city is known for its stunning natural landscapes, historic downtown, and rich Native American heritage. Visitors can explore the wonders of the Lowell Observatory, where groundbreaking astronomical discoveries have been made, or take a scenic drive through the Coconino National Forest, home to breathtaking views and diverse wildlife. With a variety of attractions to suit every interest, Flagstaff is a must-visit location for those seeking both relaxation and adventure.
One of the top attractions in Flagstaff is the Lowell Observatory, a historic site where visitors can gaze at the stars through powerful telescopes and learn about the universe’s mysteries. The observatory offers engaging exhibits and public programs that make astronomy accessible to everyone. For more information, visit their official website. Another highlight is the Museum of Northern Arizona, which showcases the region’s rich cultural history and natural sciences through captivating exhibits and artifacts. Families will enjoy the Arizona Snowbowl, a year-round destination for outdoor activities, including hiking and skiing, depending on the season. For a comprehensive list of things to do, check out the Best Things to Do in Flagstaff (https://www.flagstaffarizona.org/things-to-do/) and the Top 30 Things to Do in Flagstaff, AZ (https://www.flagstaffarizona.org/things-to-do/discover-flagstaffs-top-21-must-dos/). Lastly, the official tourism guide (https://www.flagstaffarizona.org/) provides detailed information on attractions, dining, and accommodations, ensuring a memorable visit to this enchanting city. With so much to explore, Flagstaff truly has something for everyone.
Regulations
Flagstaff short-term rental regulations are essential for property owners looking to rent their homes on platforms like Airbnb or Vrbo. In Flagstaff, Arizona, short-term rentals require a specific permit and adherence to local laws to ensure compliance and community well-being. Property owners must obtain a short-term rental permit from the city, which involves submitting an application and paying a fee. Additionally, owners are responsible for collecting and remitting a transaction privilege tax, which currently stands at 3.5%. Zoning restrictions may apply, particularly in residential areas, and properties must meet safety standards, including smoke detectors and fire extinguishers. Understanding these regulations is crucial for avoiding penalties and ensuring a successful rental experience.
To operate a short-term rental in Flagstaff, property owners must first secure a short-term rental permit, which is detailed on the City of Flagstaff’s official website (https://www.flagstaff.az.gov/4535/Short-Term-Rentals). This permit is mandatory and must be renewed annually. Owners are also required to comply with local zoning laws, which may restrict rentals in certain neighborhoods. Safety requirements include ensuring that the property meets health and safety codes, such as having working smoke detectors and fire extinguishers. Failure to comply with these regulations can result in fines and potential revocation of the rental permit. For further information, including frequently asked questions, visit the City of Flagstaff’s resources for STR property owners (https://www.flagstaff.az.gov/4537/STR-Property-Owners) and the STR FAQs page (https://www.flagstaff.az.gov/4539/STR-Frequently-Asked-Questions). Understanding and adhering to Flagstaff’s short-term rental regulations is vital for a successful rental operation.
Vacation Rental Market Overview for Flagstaff
Flagstaff attracts visitors with its cultural attractions and historic sites and adventure sports and activities. The short-term rental market here serves diverse traveler demographics, from business professionals to family vacationers.
This destination’s rental market offers unique opportunities for property investors, with comprehensive data revealing seasonal patterns and demand drivers.
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Flagstaff, Arizona Market Performance Trends
Short-Term Rental Market Performance Analysis for Flagstaff
The short-term rental market in Flagstaff demonstrates dynamic pricing patterns and occupancy trends that savvy property investors and managers monitor closely. This comprehensive 12-month analysis reveals seasonal variations and revenue optimization opportunities.
Market Trend Summary
Current market indicators show: year-round stability with consistent occupancy
Market data updated daily. Professional-grade analytics trusted by thousands of property managers and real estate investors.
Flagstaff, Arizona Rental Market Insights
10-Year Market Growth
Booking Activity
- 1-3 Months:63.4% Booked
- 4-6 Months:68.3% Booked
- 7-9 Months:53.5% Booked
- 10-12 Months:13.8% Booked
Cancellation Policies
- Flexible:0%
- Moderate:0%
- Strict:0%
- Super Strict:0%
Minimum Stay
- 1 Day:0
- 2 Days:0
- 3 Days:0
- 4-6 Days:0
- 7-29 Days:0
- 30+ Days:0
Short-Term Rental Regulations and Booking Patterns in Flagstaff
Flagstaff vacation rental operators navigate specific local regulations and booking patterns that shape market dynamics. Understanding minimum stay requirements, cancellation policies, and booking windows is essential for successful property management.
Market analysis reveals structured minimum stays optimizing for weekly rentals. These insights help property managers optimize their listing strategies and maximize occupancy.
Local regulations and platform policies influence rental operations. StaySTRA provides comprehensive policy tracking and compliance insights.
Flagstaff, Arizona Housing Market Data
Home Value Trends
Market Overview
- Typical Home Value:$662,703
- Median Sale Price:$668,500
- Median List Price:$757,166
Current Inventory
- Homes For Sale:475
- New Listings:147
Detailed Market Analysis
Real Estate Market Analysis for Flagstaff, Arizona
The residential real estate market in Flagstaff, Arizona presents unique opportunities for investors and homebuyers alike. Current market dynamics show strong appreciation trends in a premium market segment with inventory levels and pricing trends that reflect broader economic conditions and local demand factors.
Key Market Factors
Important considerations for this market include: market stability, reasonable property taxes, and strong rental demand These factors contribute to the overall market performance and future growth potential.
Real estate investments in Flagstaff, Arizona benefit from balanced supply-demand dynamics and reasonable price points. Prospective buyers and investors should consider both current market conditions and long-term growth indicators when evaluating opportunities in this market.
Flagstaff, Arizona Rental Market Composition
Entire Place by Beds
Common Rental Amenities
Amenity data is not available for this location.
Vacation Rental Property Types in Flagstaff
The vacation rental market in Flagstaff features a diverse mix of property types, from cozy studios to spacious family homes. Understanding the property composition helps investors identify market gaps and opportunities.
Market characteristics include predominantly entire home rentals catering to families. This distribution reflects local demand patterns and traveler preferences.
Premium amenities and guest ratings play a crucial role in rental performance, with data showing clear correlations between specific features and booking rates.
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Related Short-Term Rental Markets
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Flagstaff's STR market is characterized by its scenic landscapes, rich cultural history, and proximity to outdoor attractions, making it a lucrative destination for short-term rentals. With a population of approximately 76,831 and annual visitors exceeding 5 million, Flagstaff's STR market offers investors a unique blend of local and tourist demand.
Compared to state and national averages, Flagstaff's ADR is competitive, and its occupancy rate reflects a healthy demand environment. The market's unique charm, driven by attractions such as the Grand Canyon and local events, enhances its appeal to potential guests.
Key Market Characteristics
- Total STRs: 2,575
- Average Daily Rate (ADR): $226.12
- Occupancy Rate: 60%
- Average Monthly Revenue per Property: $3,169
For a more detailed market summary data, visit our market summary data page.
Key Performance Indicators
In assessing the performance of the STR market in Flagstaff, several key indicators highlight the market's potential:
- Current ADR: The average daily rate of $226.12 indicates a premium pricing structure, attractive for investors looking to maximize revenue.
- Occupancy Trends: The current occupancy rate of 60% suggests a consistent demand, although seasonal fluctuations should be monitored closely.
- Revenue Per Property: With an average monthly revenue of $3,169, property owners can expect a steady cash flow.
- Rental Demand Score: The rental demand score of 65.02 reflects a favorable market environment, suggesting robust interest from travelers.
To explore monthly performance data, refer to our monthly performance data page.
10-Year Growth Analysis
The STR market in Flagstaff has experienced substantial growth over the past decade. A historical growth chart reveals a compound annual growth rate (CAGR) that underscores the market's resilience and expansion. Significant inflection points, such as the increase in listings and revenue post-pandemic, demonstrate a recovery trajectory that outpaces many other markets in Arizona.
Comparative Growth
- CAGR: The STR market in Flagstaff has achieved a CAGR of approximately 12% over the last ten years, significantly higher than the state average.
- Inflection Points: Key moments include a surge in listings from 2018 to 2019 and a subsequent stabilization during 2021, followed by renewed growth in 2022.
Refer to our historical growth chart for visual insights into this trend.
Investment Potential & ROI
Investing in Flagstaff's STR market can yield impressive returns. The average property value in the area, combined with the current ADR and occupancy rates, allows for a calculated ROI that appeals to both seasoned and new investors.
ROI Breakdown
- Typical ROI: Based on an average property value of $500,000, an investor could expect an ROI of approximately 7% annually.
- Cash Flow Projections: With an average monthly revenue of $3,169, investors can anticipate a cash flow of around $38,028 annually.
- Comparison to Traditional Rentals: STRs in Flagstaff significantly outperform traditional rental yields, which average around 4% in the region.
For further details on bedroom distribution and investment opportunities, check out our bedroom distribution data page.
Seasonal Market Patterns
Understanding seasonal market patterns is essential for optimizing booking strategies. Flagstaff experiences clear peaks and troughs throughout the year, influenced by local events and natural attractions.
Seasonal Performance Insights
- Peak Seasons: Summer and winter months see the highest occupancy rates, often exceeding 75% during peak tourist seasons.
- Monthly Performance Variations: A detailed analysis of monthly performance variations illustrates how specific events, such as the annual Flagstaff Festival of Science, drive demand.
Calculating seasonal revenue multipliers can help investors maximize their income during peak periods. For a visual representation of monthly performance, refer to our monthly performance chart.
Property Type Performance
Diversity in property types contributes to varied performance metrics across Flagstaff's STR market. Understanding these nuances can guide investors in selecting the optimal property for their investment strategy.
Performance Metrics by Property Size
- Entire Place vs. Private Room: Entire place listings dominate, comprising approximately 82% of total rentals, while private rooms remain a smaller segment.
- Bedroom Distribution: STRs listed as two and three-bedroom properties consistently perform well, reflecting guest preferences for family and group accommodations.
Explore our property distribution by bedrooms for a deeper understanding of market dynamics.
Guest Preferences & Amenities
To attract discerning travelers, STR hosts must align their offerings with guest preferences. Analyzing amenities can reveal insights into pricing premiums and guest satisfaction.
Key Insights into Guest Preferences
- Popular Amenities: Listings featuring kitchens, parking, and internet access tend to receive higher guest ratings and command better prices.
- Guest Ratings: Recent data shows high average ratings across categories, with cleanliness and location being the top-rated factors.
For a closer look at amenity percentages and how they influence pricing, visit our amenities data page.
Regulatory Environment
Flagstaff has established a regulatory framework for STRs that balances community interests with market dynamics. Investors must familiarize themselves with these regulations to ensure compliance and sustainability.
Key Regulatory Considerations
- Licensing and Permits: Hosts are required to obtain a short-term rental permit, which involves an application process and adherence to specified criteria.
- Zoning and Location Restrictions: STR operators must navigate zoning ordinances that restrict where rentals can operate, crucial for maintaining neighborhood harmony.
- Occupancy and Safety Standards: Compliance with occupancy limits and safety codes is mandatory to protect both guests and property owners.
For the latest regulations, refer to the City of Flagstaff's Official Short-Term Rental Program page.
Neighborhood Analysis
Flagstaff's diverse neighborhoods offer various investment opportunities, each with unique characteristics and performance metrics.
Top Performing Areas
- Proximity to Attractions: Neighborhoods close to popular sites such as the Lowell Observatory and local parks tend to outperform others due to high tourist traffic.
- Emerging Neighborhoods: Areas undergoing revitalization or development present potential for increased rental demand and higher ROI.
For more detailed insights into specific neighborhoods, refer to our neighborhood analysis page.
Market Outlook & Trends
The future of the STR market in Flagstaff looks promising, driven by both local economic developments and global tourism trends.
Key Projections
- Growth Opportunities: Continued investment in local attractions and infrastructure is expected to enhance the market's appeal.
- Risk Factors: Investors should remain aware of potential regulatory changes and market saturation as the STR landscape evolves.
For comprehensive insights into market trends, visit our market outlook and trends page.
Frequently Asked Questions
What is the average ROI for STRs in Flagstaff?
- The average ROI is approximately 7%, depending on property type and location.
When is the best time to visit Flagstaff?
- The peak seasons are summer and winter, offering various attractions and events.
What are the STR regulations in Flagstaff?
- STR hosts must comply with licensing, zoning, and safety standards. For more information, visit the City of Flagstaff's STR page.
Which property type performs best?
- Entire place listings, especially two and three-bedroom properties, typically show the best performance metrics.
How does Flagstaff compare to other Arizona markets?
- Flagstaff's STR market has a competitive ADR and occupancy rate compared to other major cities in Arizona, making it an attractive investment destination.
