Tempe, AZ

  • Overview
  • Performance
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Key Performance Metrics

Market snapshot

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

Listings

911 / 2053

Reliable / Active

Cap Rate

8%

Middle-Earners Gross Yield

Revenue

$35,593

Middle-Earners Revenue

Occupancy

76%

Middle-Earners Occupancy

Home Value

$469,844

Median Home Sale Price

Top Earners

$69,559

Top-Earners Revenue

Tempe

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Tempe.

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B

Generally Investor friendly

Tempe Regulations

Tempe explicitly allows STRs citywide and provides a clear, four‑step registration path (state TPT license, neighbor notice, county rental registration, city STR permit) without hard caps. Compliance costs are moderate: a $1,000 county registration penalty exists, monthly TPT filings are required, and typical occupancy/code rules apply, but licensing is straightforward and the process is predictable.

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About Tempe

Tempe, Arizona sits in the heart of Maricopa County in the central part of the state, just southeast of Phoenix. With a population of roughly 180,000 residents, the city carries the energetic, youthful character of a major college town thanks to the sprawling campus of Arizona State University, one of the largest public universities in the United States. Tempe is best known as a hub for Sun Devils athletics, lakeside recreation, and a lively dining and nightlife scene, and it serves as an easy gateway to the broader Phoenix metropolitan area, the surrounding Sonoran Desert, and the red-rock country further north. It lies only about ten miles east of downtown Phoenix, with Scottsdale just a few miles to the north and Phoenix Sky Harbor International Airport practically on its western edge.

A defining feature of the city is Tempe Town Lake, a roughly two-mile-long reservoir created along a section of the usually dry Salt River. The lake and its surrounding parks draw cyclists, joggers, paddleboarders, and kayakers, and they host community events throughout the year. It sits within minutes of nearly every neighborhood in the city and functions as both a recreational anchor and a scenic centerpiece.

Just a few miles west of Tempe, on the border with Phoenix, Papago Park offers a quick escape into classic Sonoran Desert scenery, with red sandstone buttes, short hiking trails, and iconic geological formations. The park is also home to two of the metro area's most-visited attractions, the Desert Botanical Garden and the Phoenix Zoo, both within roughly a fifteen-minute drive of central Tempe and a natural pairing for families and outdoor enthusiasts.

For visitors interested in regional character and Western history, Old Town Scottsdale lies only about ten minutes north and features a dense grid of adobe-style storefronts, art galleries, restaurants, and a well-preserved early-twentieth-century historic district. To the south of Tempe, South Mountain Park and Preserve, often cited as one of the largest municipal parks in the country, offers more than fifty miles of trails for hiking, mountain biking, and horseback riding, all within a short drive of the city.

Tempe's blend of walkable urban districts, a major university, professional and collegiate sports venues, and immediate access to desert recreation makes it a versatile base for short-term rental guests. Visitors can spend mornings on the trail, afternoons at the zoo or botanical garden, and evenings sampling restaurants and bars along Mill Avenue, with Phoenix Sky Harbor International Airport just minutes away for easy arrivals and departures.

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