Sedona, Arizona Short-Term Rental Market Overview

Population: 10,303
Annual Visitors: 3,000,000
Total STRs: 3,814
ADR: $327.43

Visitor Profile

Sedona, Arizona attracts a diverse array of visitors, primarily nature lovers, outdoor enthusiasts, and spiritual seekers. Many come seeking breathtaking scenery and outdoor activities like hiking scenic mountain trails around iconic formations such as Bell Rock and Cathedral Rock. Wanderers looking for an immersive experience in the region’s natural beauty are drawn to the rugged landscapes, vortex sites, and ecological parks. Additionally, Sedona’s reputation for spiritual enrichment, wellness activities, and unique vortex energy appeals to those pursuing mental and emotional rejuvenation. A central resource for exploring the area’s top attractions and outdoor adventures is the Visit Sedona, which offers a comprehensive guide to the region’s natural wonders, hikes, and cultural sites. Understanding these visitor avatars helps hosts tailor their short-term rentals to guests seeking authentic outdoor experiences and spiritual renewal amidst the stunning red rocks of Sedona.

Top Attractions

Sedona, Arizona is famed for its stunning natural beauty, characterized by red rock formations, canyons, and vibrant scenery that captivates visitors at every turn. Key attractions include iconic sites like Cathedral Rock and Bell Rock, which offer breathtaking vistas and excellent hiking opportunities. The city is also renowned for its energy vortexes, which are believed to promote spiritual enrichment and wellness, making it a favorite destination for those seeking both adventure and spiritual connection.
Beyond its natural wonders, Sedona boasts a vibrant arts and culture scene, with numerous galleries, art installations, and cultural landmarks such as Native American petroglyphs and the Amitabha Stupa and Peace Park. Scenic drives like the Red Rock Scenic Byway and outdoor activities such as Jeep tours, mountain biking, and rock climbing provide dynamic ways to explore the area. Whether you’re drawn by its awe-inspiring landscapes or its reputation as a spiritual center, Sedona offers a unique blend of outdoor adventure, relaxation, and cultural richness that keeps visitors coming back.

Regulations

Sedona, Arizona, maintains a structured approach to short-term rental (STR) regulations to balance tourism benefits with community well-being. Hosts need to navigate a clear regulatory framework focusing on permits, zoning, and compliance with local standards. The city’s ordinances require adherence to licensing, occupancy, and safety protocols, reflecting a commitment to responsible hosting while ensuring the city’s unique environment and neighborhoods are preserved. This framework is designed to support hosts in operating legitimately and sustainably within Sedona’s popular vacation market.

Key Regulatory Considerations:

Licensing and Permits: Sedona requires STR hosts to obtain a permit before operating. The permit process includes an application submitted to the City of Sedona, with fees that may vary. Permits typically require renewal and compliance with certain standards to remain valid.
Primary Residence Requirements: Hosts may be required to confirm if the property is a primary residence to qualify for certain types of STR permits, though specific residency requirements or limitations on rental days should be checked directly with city guidelines.
Zoning and Location: STRs are subject to zoning restrictions to prevent disruptions in residential neighborhoods. Some zones may prohibit or limit STR activity, reflecting Sedona’s efforts to manage growth and preserve community character.
Occupancy, Health & Safety: The city enforces occupancy limits based on the property size and configuration. Safety requirements include installing smoke detectors, carbon monoxide alarms, and providing fire extinguishers to meet local building and health codes.
Tax Obligations: Hosts must collect and remit transient occupancy taxes (TOT) as mandated by Sedona’s municipal code, which contributes to tourism infrastructure and city services.
Operational Standards & Enforcement: Sedona monitors STR operations for compliance with noise ordinances, guest management policies, and accurate representation in advertising. Violations can lead to fines, permit suspension, or revocation.

For the most current and legally binding information, property owners should consult the City of Sedona’s Official Short-Term Rental Regulations Page. This resource provides detailed guidance on licensing, tax obligations, and city codes relevant to STR hosts.

Adhering closely to these regulations enables hosts to contribute positively to Sedona’s tourism economy while respecting community standards and legal requirements.

Sedona, Arizona Market Performance Trends

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

Sedona, Arizona Rental Market Insights

10-Year Market Growth

Booking Activity

  • 1-3 Months:64.3% Booked
  • 4-6 Months:63.6% Booked
  • 7-9 Months:59.1% Booked
  • 10-12 Months:19.2% 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

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

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