Phoenix STR market holds 52% occupancy with ADR climbing to $373 across 6,359 active listings.
Market Overview
Phoenix is one of the largest short-term rental markets in the Southwest, with 6,359 active listings as of February 2026. The market has undergone significant normalization since its post-pandemic peak. In 2021, average occupancy reached 68.9% with an average daily rate of $218. By 2023, a wave of new supply pushed active listings to a high of approximately 7,381, compressing average occupancy to 56.9%. Since then, supply has rationalized and ADR has climbed steadily, reaching $343 on a full-year 2025 basis and $373 in February 2026.
The market is bifurcated. Top-quartile performers (p75) earn $6,721 per month while bottom-quartile properties (p25) bring in $1,604. That spread signals meaningful quality differentiation: location, amenity set, and pricing strategy separate high earners from underperformers. RevPAR (revenue per available room) averaged $194 in February 2026, with a median of $125, reinforcing the skew toward top performers.
With 44.8 million annual visitors drawn to desert recreation, spring training baseball, major conventions, and winter sun-seeking travel, Phoenix generates consistent demand across multiple traveler segments. That demand diversity is a meaningful hedge against single-segment softness.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 55% | $268 | $4,486 | 6,522 |
| Feb | 63% | $317 | $5,671 | 6,536 |
| Mar | 72% | $281 | $6,836 | 6,040 |
| Apr | 62% | $248 | $4,922 | 5,941 |
| May | 56% | $228 | $4,211 | 5,523 |
| Jun | 54% | $217 | $3,994 | 6,175 |
| Jul | 52% | $212 | $3,962 | 6,534 |
| Aug | 53% | $206 | $3,907 | 6,563 |
| Sep | 52% | $222 | $3,865 | 6,585 |
| Oct | 57% | $240 | $4,393 | 6,239 |
| Nov | 57% | $259 | $4,477 | 6,332 |
| Dec | 54% | $266 | $4,450 | 6,449 |
Phoenix has a pronounced inverse season compared to most U.S. Sun Belt markets. Demand peaks in winter and spring, not summer, driven by winter visitors escaping cold climates and the spring training baseball circuit that runs February through March.
March is the strongest month by every metric: 71.6% average occupancy, $281 ADR, and $6,836 average monthly revenue. February is the second-best month at 62.8% occupancy and $317 ADR. January holds at 54.8% occupancy and $268 ADR. This three-month window (January through March) is when Phoenix STR operators lock in their highest revenues.
April marks the transition. Occupancy drops to 61.6% and ADR falls to $248 as spring training ends and temperatures begin climbing. By June, occupancy settles to 54.4% and ADR to $217, levels that hold roughly steady through September.
September is the weakest month: 52.2% occupancy, $222 ADR, and $3,865 average revenue, approximately 43% below March performance. The combination of extreme summer heat (Phoenix regularly exceeds 110 degrees in July and August) and the end of major event calendars creates a sustained soft period from June through September.
October begins the recovery. Occupancy rises to 57.4% and ADR climbs back to $240 as temperatures moderate and snowbird season begins warming up. November and December perform similarly to October, setting up the strong winter cycle again.
Operators should plan pricing and availability strategy around this pattern: maximize rates January through March, hold firm in April, accept moderate rates in shoulder months (May, October-December), and focus on occupancy maintenance in the June-September trough.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $1,604 | $3,504 | $6,721 | $12,231 |
| ADR | $148 | $252 | $449 | $742 |
| Occupancy | 28% | 53% | 76% | 88% |
The February 2026 data shows a wide spread across the Phoenix market’s 6,359 active listings. At the 25th percentile, properties earned $1,604 per month, likely reflecting low-demand locations, under-furnished units, or poor pricing strategy. The median property (50th percentile) earned $3,504 per month. Moving to the 75th percentile, revenue jumps to $6,721, and top-decile properties (90th percentile) earned $12,231 per month.
The average revenue of $5,435 sits above the median of $3,504, indicating that high-performing outliers pull the mean up. Investors targeting average-or-better outcomes should model for the $3,504 to $6,721 range as a realistic operating envelope depending on property quality, location, and management execution.
On a per-night basis, ADR tells a similar story: p25 ADR was $148, median ADR was $252, p75 was $449, and p90 reached $742. Properties charging $449 or more per night are likely larger homes, pool properties, or units in high-demand zip codes near event venues and resort corridors.
RevPAR (revenue per available room) averaged $194 with a median of $125, confirming that strong revenue outcomes require both price discipline and consistent occupancy management.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $6,435 | $208 | $228 |
| Apr 2021 | $5,946 | $198 | $225 |
| May 2021 | $5,632 | $182 | $217 |
| Jun 2021 | $5,396 | $180 | $210 |
| Jul 2021 | $5,395 | $174 | $213 |
| Aug 2021 | $5,299 | $171 | $211 |
| Sep 2021 | $5,051 | $168 | $211 |
| Oct 2021 | $5,343 | $172 | $225 |
| Nov 2021 | $5,008 | $167 | $222 |
| Dec 2021 | $4,732 | $153 | $222 |
| Jan 2022 | $4,903 | $158 | $221 |
| Feb 2022 | $5,709 | $204 | $258 |
| Mar 2022 | $6,943 | $224 | $260 |
| Apr 2022 | $5,375 | $179 | $240 |
| May 2022 | $4,443 | $143 | $229 |
| Jun 2022 | $5,305 | $177 | $230 |
| Jul 2022 | $5,111 | $165 | $224 |
| Aug 2022 | $4,859 | $157 | $211 |
| Sep 2022 | $5,028 | $168 | $223 |
| Oct 2022 | $5,238 | $169 | $225 |
| Nov 2022 | $5,212 | $174 | $234 |
| Dec 2022 | $4,646 | $150 | $226 |
| Jan 2023 | $4,542 | $147 | $236 |
| Feb 2023 | $5,979 | $214 | $306 |
| Mar 2023 | $7,011 | $226 | $279 |
| Apr 2023 | $4,440 | $148 | $227 |
| May 2023 | $3,704 | $120 | $205 |
| Jun 2023 | $3,344 | $112 | $187 |
| Jul 2023 | $3,526 | $114 | $192 |
| Aug 2023 | $3,605 | $116 | $185 |
| Sep 2023 | $3,544 | $118 | $213 |
| Oct 2023 | $3,420 | $110 | $220 |
| Nov 2023 | $3,888 | $130 | $270 |
| Dec 2023 | $4,032 | $130 | $292 |
| Jan 2024 | $4,236 | $137 | $292 |
| Feb 2024 | $5,242 | $181 | $314 |
| Mar 2024 | $6,592 | $213 | $315 |
| Apr 2024 | $4,306 | $144 | $272 |
| May 2024 | $3,652 | $118 | $244 |
| Jun 2024 | $2,883 | $96 | $229 |
| Jul 2024 | $2,780 | $90 | $207 |
| Aug 2024 | $2,792 | $90 | $199 |
| Sep 2024 | $2,798 | $93 | $216 |
| Oct 2024 | $3,803 | $123 | $245 |
| Nov 2024 | $3,748 | $125 | $262 |
| Dec 2024 | $4,201 | $136 | $276 |
| Jan 2025 | $4,155 | $134 | $279 |
| Feb 2025 | $5,992 | $214 | $336 |
| Mar 2025 | $7,198 | $232 | $325 |
| Apr 2025 | $4,543 | $151 | $279 |
| May 2025 | $3,624 | $117 | $244 |
| Jun 2025 | $3,042 | $101 | $232 |
| Jul 2025 | $2,995 | $97 | $222 |
| Aug 2025 | $2,981 | $96 | $223 |
| Sep 2025 | $2,903 | $97 | $244 |
| Oct 2025 | $4,162 | $134 | $288 |
| Nov 2025 | $4,528 | $151 | $306 |
| Dec 2025 | $4,637 | $150 | $315 |
| Jan 2026 | $4,596 | $148 | $312 |
| Feb 2026 | $5,435 | $194 | $373 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 75% | 4,356 |
| Jun 2021 | 70% | 4,608 |
| Sep 2021 | 69% | 4,765 |
| Dec 2021 | 66% | 4,871 |
| Mar 2022 | 75% | 4,983 |
| Jun 2022 | 59% | 7,692 |
| Sep 2022 | 58% | 7,752 |
| Dec 2022 | 56% | 7,755 |
| Mar 2023 | 73% | 7,793 |
| Jun 2023 | 55% | 7,518 |
| Sep 2023 | 49% | 7,529 |
| Dec 2023 | 48% | 6,460 |
| Mar 2024 | 66% | 5,787 |
| Jun 2024 | 44% | 3,874 |
| Sep 2024 | 44% | 5,938 |
| Dec 2024 | 50% | 6,792 |
| Mar 2025 | 69% | 7,282 |
| Jun 2025 | 44% | 7,185 |
| Sep 2025 | 41% | 6,941 |
| Dec 2025 | 48% | 6,367 |
At a median home value of $407,665 and a median sale price of $412,333, Phoenix STR entry costs are mid-range by Sun Belt standards. The market’s 98.4% sale-to-list ratio and 33-day median time to pending indicate moderate competition for properties, giving buyers reasonable negotiating room compared to hotter 2021-2022 conditions.
At the median revenue level of $3,504 per month (p50, February 2026), a $412,000 purchase financed at a 20% down payment generates roughly $42,000 in gross annual revenue at median performance. After platform fees (typically 15-20%), property management (20-30% if outsourced), insurance, maintenance, and HOA costs, net operating income depends heavily on whether you outperform the median. Properties at the 75th percentile generate $6,721 per month, or approximately $80,650 annually before expenses, materially improving the return profile.
The ADR trajectory is a positive signal. Average daily rate has risen from $218 in 2021 to $343 in 2025, a 57% increase over four years, while occupancy has compressed from 69% to 50%. That trade-off reflects a market that has repriced upward even as supply grew. For operators who price well and deliver quality, the ADR tailwind partially offsets occupancy normalization.
Key risks: the 2022-2023 supply surge demonstrated how quickly new listings can dilute occupancy. Phoenix has no hard cap on STR permits, so supply can expand again during favorable cycles. The mandatory permit requirement (November 2023) adds an annual compliance cost but also creates a modest barrier to casual operators.
Unlock Revenue & Investment Data
Get full revenue percentiles, ROI analysis, and market trend charts for every STR market.
Start Free TrialHome Value Trends
| Date | Typical Home Value |
|---|---|
| Mar 2021 | $336,717 |
| Dec 2021 | $410,472 |
| Sep 2022 | $459,175 |
| Jun 2023 | $419,821 |
| Mar 2024 | $438,038 |
| Dec 2024 | $435,780 |
| Sep 2025 | $418,589 |
Booking Insights
In February 2026, the average booking lead time in Phoenix was 62.1 days, with a median of 44 days. That gap between average and median suggests a meaningful share of bookings are placed well in advance (60 or more days out), pulling the average up, while roughly half of all bookings come in within six weeks of the stay.
This dual pattern has direct pricing implications. Operators should set firm rates for peak-season dates (January through March) at least 60 days in advance and resist deep last-minute discounting during this period, as late bookings still occur even during high-demand months. During the summer trough (June through September), a more aggressive last-minute pricing strategy may be appropriate to maintain occupancy above 50%.
Average length of stay was 7.1 nights, with a median of 3.0 nights. The spread indicates a market that supports both short weekend stays and extended weekly bookings. The average being more than double the median points to a meaningful segment of guests staying one to two weeks, particularly winter visitors and snowbirds. Operators who accommodate longer stays with appropriate weekly and monthly rate structures can capture this higher-value segment while reducing turnover costs.
Short-Term Rental Regulations
Phoenix enacted a mandatory short-term rental permit ordinance effective November 6, 2023, replacing the previous passive registration system. All STR operators must obtain a permit from the Planning and Development Department, and this permit requires annual renewal.
Before applying for the Phoenix STR permit, operators must first secure a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue. The TPT license is a prerequisite, not an optional step. Operators collect and remit a combined state and local TPT on rental income, with specific reporting requirements tied to each rental period.
Additional requirements include: registering with the Maricopa County Assessor’s Office, maintaining liability insurance with a minimum aggregate coverage of $500,000, and completing a criminal background check. Owners or designees must submit a notarized attestation confirming they are not registered sex offenders and have no disqualifying felony convictions within the past five years. Safety standards require smoke detectors and fire extinguishers meeting local codes. The permit number must appear on all advertisements and listing platforms.
Enforcement falls under the Neighborhood Services Department. Penalty structure: first violation carries a minimum of $500 or one night’s rental fee (whichever is greater), second violation minimum $1,000 or two nights’ rental fee, third violation minimum $3,500 or three nights’ rental fee for court-adjudicated incidents. Repeated violations can result in permit revocation.
For permit applications and current requirements, visit the City of Phoenix STR Registry or contact STR staff at [email protected] or 602-534-9723.
Market Comparison
Compared to national short-term rental benchmarks, Phoenix sits in a competitive but manageable position. U.S. STR markets broadly averaged occupancy in the 50-55% range in late 2025 and early 2026, placing Phoenix at the lower bound of that range at 52.2% in February 2026. However, Phoenix’s ADR of $373 in February 2026 is notably higher than the U.S. median for comparable Sun Belt markets, reflecting the premium that winter visitors and event-driven demand are willing to pay during peak season.
Within Arizona, Phoenix is the largest STR market by listing count, giving it depth and demand diversity that smaller desert markets like Sedona or Scottsdale cannot match. Sedona and Scottsdale tend to carry higher ADRs but with smaller listing pools and more concentrated seasonal dependency.
Compared to other large Sun Belt markets, Phoenix’s occupancy normalization from 68.9% (2021) to 50% (2025) mirrors patterns seen in Austin, Nashville, and other markets that experienced supply surges post-2021. The difference is that Phoenix has sustained ADR growth throughout this period, with rates rising 57% from 2021 to 2025. Markets that saw both occupancy and ADR compression represent harder operating environments. Phoenix investors benefit from that ADR resilience.
Frequently Asked Questions About Phoenix, Arizona
What is the average monthly revenue for a short-term rental in Phoenix?
What is the occupancy rate for Airbnb and short-term rentals in Phoenix?
Do I need a permit to operate a short-term rental in Phoenix?
What is the average daily rate (ADR) for short-term rentals in Phoenix?
How many short-term rental listings are active in Phoenix?
What are the best and worst months to operate a short-term rental in Phoenix?
What is the typical home price for a short-term rental investment property in Phoenix?
Analyze Phoenix Rentals
Use our free calculator to estimate Airbnb revenue for any property in Phoenix.
Free Phoenix STR Calculator →
