Sedona, AZ

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Sedona short-term rental market based on reliable data.

Listings

3153 / 4992

Reliable / Active

Cap Rate

5%

Middle-Earners Gross Yield

Revenue

$49,172

Middle-Earners Revenue

Occupancy

64%

Middle-Earners Occupancy

Home Value

$907,568

Median Home Sale Price

Top Earners

$130,923

Top-Earners Revenue

Sedona

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Sedona.

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C

Challenging to Investors

Sedona Regulations

Sedona permits STRs citywide and has no numeric caps, but operating one requires both a state TPT license and a city permit, with per‑unit permitting, background checks, insurance, posting/neighbor notification, and online advertising compliance. Enforcement is active (24/7 complaint line, fines, one‑year permit suspensions), and a strict ban on all special events reduces revenue potential, creating moderate‑to‑high compliance cost and investor risk.

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About Sedona

Sedona sits in northern Arizona, spanning Yavapai and Coconino counties, with a city population of roughly 10,000 residents. The community is renowned for its dramatic red sandstone formations, which have made it one of the most photographed landscapes in the American Southwest and a long-standing magnet for artists, wellness seekers, and outdoor enthusiasts. Often described as both a spiritual center and a creative village, Sedona serves as a gateway to Oak Creek Canyon, the Mogollon Rim country, and the broader high-desert plateau of northern Arizona. It lies about 120 miles north of Phoenix and roughly 30 miles south of Flagstaff, reached by a scenic drive up Interstate 17 through the Verde Valley.

Just outside the city, Red Rock State Park preserves 286 acres of iconic red rock country along Oak Creek, about a 10-minute drive from central Sedona. The park offers shaded riverside trails, a visitor center with exhibits on local geology, and unobstructed views of Cathedral Rock and Courthouse Butte, making it a popular stop for visitors who want an easy introduction to the area's landscape without the longer hikes.

A short drive through West Sedona brings travelers to the Chapel of the Holy Cross, a modernist Roman Catholic chapel built directly into the red rock buttes in the 1950s. The chapel is open to visitors of all backgrounds and is paired with a sweeping overlook of the Verde Valley, which has made it one of the most recognizable architectural landmarks in the region and a frequent stop on Sedona's self-guided red rock tours.

Up Oak Creek Canyon, about a 20-minute drive north of town, Slide Rock State Park occupies an old apple orchard where the creek cascades over smooth sandstone ledges. The natural water slides and swimming holes draw families in the warmer months, and the surrounding apple orchard and homestead buildings give the park a different feel from the desert vistas further south.

A little farther afield, Montezuma Castle National Monument, roughly 45 minutes south of Sedona near Camp Verde, preserves one of the best-preserved cliff dwellings in the American Southwest. The five-story limestone apartment built into a recess in the limestone cliff wall has been protected since the early 1900s, and a short, accessible trail lets visitors view the ruins and the adjacent museum exhibits on the Sinagua people who built them.

Sedona's combination of year-round visitor demand, a compact and walkable arts district, and a setting surrounded by some of the most recognizable scenery in Arizona makes it a strong market for short-term rentals. Guests are drawn by the red rocks themselves, the outdoor recreation, and the proximity to Grand Canyon country and the Verde Valley's wineries, archaeological sites, and small-town attractions, giving property owners a steady flow of visitors in nearly every season.

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