Happy Jack, Arizona Short-Term Rental Market
Happy Jack, AZ STRs averaged $350/night at 61.7% occupancy in May 2026, yielding $216 RevPAR.
Quick Answer: Happy Jack, Arizona is an active short-term rental market. average occupancy is 62%. average monthly revenue is $6,001. average daily rate is $350.
Market Overview
Happy Jack is a small unincorporated community at roughly 7,500 feet elevation on the Mogollon Rim in Coconino County, Arizona, approximately 45 miles southeast of Flagstaff. The short-term rental market here is driven by seasonal outdoor recreation demand from Arizona travelers seeking relief from desert heat, making it a niche but consistent performer.
In May 2026, active listings in Happy Jack averaged $350 per night and posted 61.7% occupancy, generating $216 in revenue per available room (RevPAR). Monthly revenue per listing averaged $6,001. Year-over-year changes through May 2026 show occupancy up 1.8 percentage points, ADR up 0.5%, and revenue up 0.3%, indicating a stable market holding near its recent performance levels rather than posting sharp swings in either direction.
The longer-term trend tells a more interesting story. From 2017 through 2021, this market rode a strong growth wave, with annual average ADR climbing from $175 to $264 and average monthly revenue rising from $2,203 to $4,967. After a post-peak normalization in 2022 and 2023, ADR recovered and pushed higher, reaching $324 average in 2025 and $341 so far in 2026 (partial year). The 2026 partial-year average occupancy of 63.9% is the highest since 2021, suggesting renewed demand.
Because dimension-level data (bedroom mix, channel split, listing-type breakdown) is not available for this area, supply composition cannot be reported at the bucket level.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 47% | $235 | $3,252 |
| Feb | 63% | $247 | $3,813 |
| Mar | 76% | $291 | $6,005 |
| Apr | 69% | $284 | $5,352 |
| May | 63% | $276 | $4,787 |
| Jun | 56% | $254 | $3,900 |
| Jul | 54% | $235 | $3,472 |
| Aug | 51% | $232 | $3,163 |
| Sep | 57% | $245 | $3,569 |
| Oct | 67% | $260 | $4,709 |
| Nov | 61% | $260 | $4,171 |
| Dec | 56% | $259 | $3,960 |
Investment Analysis
Happy Jack presents an unconventional investment case: a micro-market with population of only 585 where short-term rental demand is almost entirely tourism-driven, tethered to the Coconino National Forest and Mogollon Rim recreation corridor.
At May 2026 metrics, a single listing generating $6,001 per month translates to roughly $72,012 in gross annual revenue at that pace. No housing price data is currently published for this area in our dataset, so entry-cost and gross yield calculations cannot be produced with specific figures. Investors should source current comparable sale prices independently before building a return model.
The historical ADR trajectory is a positive signal. Average nightly rates climbed from $175 in 2017 to $350 in May 2026, a 100% increase over roughly nine years. Occupancy, while not as uniformly positive, reached 70.5% in 2021 before normalizing in 2022 to 2024, and the 2026 partial-year figure of 63.9% average occupancy suggests demand is re-strengthening.
The regulatory environment adds no major barriers at present. Coconino County requires a $250 annual permit with no owner-occupancy or primary-residence requirement and no cap on nights per year, which means investment-owned properties can operate without residency constraints. The $250 annual permit cost is a minimal operating expense.
Tier-level ADR comparisons (entire home, luxury, professionally managed) are not available for this market, so premium-segment upside cannot be quantified from our data. Given the recreation-focused visitor base and high nightly rates, properties with stronger amenities (fireplace, proximity to trails or lakes, snow access) likely command meaningful rate premiums over the market average.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking lead time and length-of-stay data are not available for Happy Jack in the current dataset, so specific figures for advance booking windows or average stay duration cannot be reported.
From the seasonal pattern, the high-occupancy periods (March to April, October) combined with the market’s niche recreation-driven demand suggest that last-minute bookings are likely less common than in larger, more discoverable markets. Visitors planning Mogollon Rim hiking or fishing trips, or coordinating with specific hunting seasons, typically plan further in advance than urban leisure travelers.
Operators in this market should consider minimum stay policies tuned to season: longer minimums (3 to 5 nights) during peak March and October periods to reduce turnover cost, and shorter minimums or flexible cancellation during the summer trough (June through August) to capture demand that might otherwise go to competing options. The 25-point occupancy swing between peak and trough months makes dynamic minimum-stay rules more valuable here than in markets with flatter seasonality.
Short-Term Rental Regulations
Happy Jack is unincorporated territory governed by Coconino County, not by a municipality. Arizona state law (A.R.S. 9-500.39 and 11-269.17) prohibits outright bans on short-term rentals, so STR operation is permitted. Coconino County adopted Short-Term/Vacation Rental Ordinance No. 2023-22 on August 8, 2023, effective November 14, 2023, establishing the first formal permitting framework for the area.
Key requirements under the ordinance: operators must obtain a Coconino County short-term rental permit at $250 per year, renewed annually by filing a new application. To register, owners must provide an Arizona transaction privilege tax (TPT) license number, proof of liability insurance of at least $500,000 aggregate for the property, and a 24-hour emergency point of contact. Owners must notify adjacent neighbors at time of registration.
There is no owner-occupancy requirement, no primary-residence requirement, and no cap on nights rented per year. Only legally habitable, county-permitted dwellings may be rented; garages, sheds, tents, RVs, and travel trailers are not eligible. Special events or large gatherings that adversely affect a residential neighborhood are prohibited.
STR income is subject to Arizona’s state transient-lodging TPT at a state rate of 5.5%, plus applicable Coconino County excise. The exact combined unincorporated-county rate should be confirmed with the Arizona Department of Revenue, as the blended rate is not published in our dataset. Enforcement is rated moderate; registration and tax compliance are actively required. Unpermitted operation carries penalties.
Market Comparison
Happy Jack’s May 2026 ADR of $350 is approximately 59% above the US STR median ADR of roughly $220, reflecting the premium positioning of a remote high-elevation mountain destination rather than a commodity market. Occupancy at 61.7% is modestly above the US STR median occupancy of approximately 55%, indicating solid demand relative to available supply.
RevPAR of $216 in May 2026 reflects a market that combines above-median pricing with above-median occupancy, a combination that positions it favorably versus the national baseline for comparable outdoor-recreation micro-markets.
No top property manager data is available for Happy Jack in the current dataset, so operator concentration, platform presence, or professional management market share cannot be reported. Given the market’s small size (population 585) and niche recreation profile, it is likely that the supply consists predominantly of individual owner-operators rather than professionally managed portfolios, though this cannot be confirmed from available data.
Compared to larger Arizona mountain markets such as Flagstaff (45 miles north) or Pinetop-Lakeside, Happy Jack is a distinct micro-market with less inventory, less amenity infrastructure, and a more seasonal visitor base, but with ADR that reflects genuine scarcity premium for properties in this corridor.
Frequently Asked Questions About Happy Jack, Arizona
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