Sedona, Arizona Short-Term Rental Market Analysis

The short-term rental (STR) market in Sedona, Arizona, is thriving, characterized by 3,814 active rentals, an average daily rate (ADR) of $327.43, and an impressive occupancy rate of 89.47%. This vibrant market uniquely combines breathtaking natural beauty with a robust tourism sector, making it a prime location for STR investments.

Sedona, Arizona Short-Term Rental Market Overview

Population: 10,303
Annual Visitors: 3,700,000
Total STRs: 3,888
ADR: $277.25

Visitor Profile

Sedona, Arizona, attracts approximately 3 million visitors annually, drawn by its stunning red rock formations and vibrant arts scene. The primary demographic of these visitors includes couples aged 30 to 60, families, and outdoor enthusiasts, with a notable percentage of international travelers. Many visitors come for outdoor activities such as hiking, mountain biking, and spiritual retreats, while others are attracted to the area’s art galleries and wellness resorts. The economic impact of Sedona tourism is significant, contributing over $400 million to the local economy each year, supporting thousands of jobs in hospitality and retail.

Key visitor statistics reveal that Sedona’s tourism market is robust and diverse. The average length of stay for visitors is around 3.5 days, with peak seasons occurring in spring and fall when the weather is most favorable. According to the tourism bureau (https://www.visitsedona.com), a majority of visitors are from California, Arizona, and Texas, representing over 60% of the total tourist population. The main reasons for visiting include exploring the natural beauty, participating in wellness activities, and engaging in cultural experiences. Additionally, the visitor statistics report (https://www.visitsedona.com) indicates that about 40% of tourists are first-time visitors, highlighting the area’s appeal as a unique travel destination. This influx of tourists creates a high demand for short-term rentals and accommodations, making it essential for STR operators to cater to the needs of this diverse visitor demographic. Understanding these trends and behaviors can help enhance marketing strategies and improve visitor experiences in Sedona.

Top Attractions

Sedona, Arizona, is a breathtaking destination known for its stunning red rock formations, vibrant arts scene, and spiritual energy. Visitors flock to this picturesque town to explore its natural beauty and engage in a variety of activities. Among the top attractions are the iconic Cathedral Rock, a must-see for hikers and photographers, and the enchanting Chapel of the Holy Cross, which offers both architectural beauty and panoramic views. Whether you’re seeking outdoor adventures, cultural experiences, or family-friendly activities, Sedona has something for everyone, making it a perfect getaway for nature lovers and art enthusiasts alike.

One of the most popular Sedona attractions is the Red Rock State Park, a stunning natural preserve that showcases the area’s unique geology and diverse wildlife. Visitors can enjoy hiking, picnicking, and guided nature walks while soaking in the breathtaking scenery. For more information, check out the official website at https://azstateparks.com/red-rock. Another must-visit is the Chapel of the Holy Cross, a striking architectural marvel built into the red rocks. This spiritual site offers a serene atmosphere and stunning views of the surrounding landscape, making it a perfect spot for reflection. Learn more at https://www.chapeloftheholycross.com.

For those interested in the arts, the Sedona Arts Center is a cultural hub that features local artists and hosts various workshops and exhibitions throughout the year. It’s an excellent place to immerse yourself in the local art scene and even take home a unique piece. Visit their website at https://sedonaartscenter.org for details on current offerings. Finally, the Sedona Visitor Center is an invaluable resource for travelers, providing maps, brochures, and expert advice on all the best things to do in Sedona. Their website, https://visitsedona.com, is a great starting point for planning your adventure in this enchanting desert town.

Regulations

Sedona, Arizona, is a picturesque destination that attracts numerous visitors, making short-term rentals a popular option for property owners. However, navigating the Sedona short-term rental regulations is essential for compliance and success. Property owners must obtain a short-term rental permit, which requires adherence to specific zoning laws and safety standards. Additionally, owners are responsible for collecting and remitting a transaction privilege tax, which is currently set at 3.5% for lodging. Understanding these regulations is crucial to avoid penalties and ensure a smooth rental experience. For those looking to rent out their properties, staying informed about local laws will help maximize profitability while maintaining community standards.

Key requirements for short-term rentals in Sedona include obtaining a permit from the city, which is mandatory for all properties listed for short-term rental. The application process involves providing proof of insurance and compliance with safety regulations, including smoke detectors and fire extinguishers. Zoning restrictions are also in place, limiting short-term rentals to specific areas within the city. Property owners must ensure they are in compliance with these zoning laws to avoid fines. Furthermore, failure to comply with the regulations can result in penalties, including fines and revocation of the rental permit. For more detailed information on the regulations, property owners can visit the City of Sedona’s official website (https://www.sedonaaz.gov) and refer to the Sedona Municipal Code (https://library.municode.com/az/sedona/codes/code_of_ordinances). Understanding these Sedona short-term rental regulations is vital for a successful rental operation.

Vacation Rental Market Overview for Sedona

Sedona attracts visitors with its outdoor recreation and natural beauty and urban amenities and entertainment. 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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Sedona, Arizona Market Performance Trends

LTM Avg. Daily Rate$290.00
LTM Occupancy Rate70.0%
LTM Avg. Revenue$4,713

Short-Term Rental Market Performance Analysis for Sedona

The short-term rental market in Sedona 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: mature market with optimized pricing patterns

Market data updated daily. Professional-grade analytics trusted by thousands of property managers and real estate investors.

Sedona, Arizona Rental Market Insights

10-Year Market Growth

Booking Activity

  • 1-3 Months:64.5% Booked
  • 4-6 Months:63.5% Booked
  • 7-9 Months:59.3% Booked
  • 10-12 Months:18.9% Booked

Cancellation Policies

  • Flexible:13.2%
  • Moderate:26.9%
  • Strict:56.9%
  • Super Strict:56.9%
  • N/A:1.4%

Minimum Stay

  • 1 Day:416
  • 2 Days:1,204
  • 3 Days:232
  • 4-6 Days:57
  • 7-29 Days:40
  • 30+ Days:31

Short-Term Rental Regulations and Booking Patterns in Sedona

Sedona 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 balanced approach between flexibility and stability. 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.

Sedona, Arizona Housing Market Data

Home Value Trends

Market Overview

  • Typical Home Value:$894,222
  • Median Sale Price:$937,533
  • Median List Price:$1,143,500

Current Inventory

  • Homes For Sale:263
  • New Listings:50

Detailed Market Analysis

The average home value in Sedona, AZ is $894,223, down 3.3% over the past year. Learn more about the Sedona housing market and real estate trends.

Real Estate Market Analysis for Sedona, Arizona

The residential real estate market in Sedona, 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: established neighborhoods, community amenities, and transportation accessibility These factors contribute to the overall market performance and future growth potential.

Real estate investments in Sedona, Arizona benefit from diverse property options and stable neighborhood development. Prospective buyers and investors should consider both current market conditions and long-term growth indicators when evaluating opportunities in this market.

Sedona, Arizona Rental Market Composition

Entire Place by Beds

Common Rental Amenities

Guest Rating Highlights

  • Overall Rating:4.83 / 5
  • Cleanliness:4.91 / 5
  • Location:4.96 / 5
  • Value:4.80 / 5
  • Accuracy:4.89 / 5
  • Check-in:4.92 / 5
  • Communication:4.90 / 5

Vacation Rental Property Types in Sedona

The vacation rental market in Sedona 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 concentration in 2-3 bedroom properties ideal for small groups. 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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Explore 65 vacation rental markets within Arizona. Each location offers unique investment opportunities with distinct seasonal patterns, pricing dynamics, and traveler demographics.

StaySTRA’s comprehensive market coverage enables side-by-side comparison of rental performance, helping investors and property managers make data-driven location decisions.

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More Locations In Arizona

Related Short-Term Rental Markets

Explore 65 vacation rental markets within Arizona. Each location offers unique investment opportunities with distinct seasonal patterns, pricing dynamics, and traveler demographics.

StaySTRA’s comprehensive market coverage enables side-by-side comparison of rental performance, helping investors and property managers make data-driven location decisions.

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