Investors ask us this more than any other question. We are biased in one way: all five of our own rentals are in Cottonwood. But we help clients buy in both, and the right answer depends on your goals.
The numbers side by side
| Sedona | Cottonwood | |
|---|---|---|
| Average annual STR revenue (AirDNA, TTM Sept 2026) | ~$63.3K | ~$38.2K |
| Occupancy | 57% | 57% |
| Average daily rate | $337 | $202 |
| Active listings | 3,729 (broader market) | 282 |
| Median home sale price | ~$1.08M (Redfin) | Turnkey STRs listed ~$515K–$995K |
| Combined lodging tax | ~13.3% (Yavapai side) | ~8–9% |
| Local permit | $210/unit permit, insurance, background checks | Annual city registration (Ord. 731) |
When Sedona makes sense
- You want a premium, view-driven property and can carry a $1M+ purchase.
- Personal use and long-term appreciation matter as much as cash flow.
- You are comfortable with stricter compliance.
When Cottonwood makes sense
- You want a lower entry price and a stronger chance of positive cash flow.
- You like small units, casitas, or multi-unit parcels.
- You want lighter compliance and a lower lodging tax.
What we have learned running five rentals in Cottonwood
Guests use Cottonwood as a base for the whole valley. Strong design and one standout amenity (a hot tub, a view, a trail) do much of the work. Our five units have earned 554 Airbnb guest reviews at a 4.92-star average, and 4 of 5 rank in Airbnb’s Top 5% or better, including one in the Top 1%. See the track record.
Run your own numbers
Use the STR return calculator and switch between the Sedona and Cottonwood presets, or read the full Sedona vs Cottonwood comparison.
Market figures are third-party estimates for context, not guarantees of any property’s performance.
Frequently asked questions
Does a Sedona Airbnb earn more than a Cottonwood Airbnb?
On average, yes. AirDNA shows about $63.3K average annual revenue in the broader Sedona market versus about $38.2K in Cottonwood. But Sedona homes cost far more to buy, so return on investment depends on the purchase price and setup.
Is it easier to run an Airbnb in Cottonwood than Sedona?
Cottonwood's registration process and lower lodging tax are lighter than Sedona's permit, insurance, and background-check requirements. Both still require an Arizona TPT license and county assessor registration.