Investing in a short-term rental in Sedona and the Verde Valley
The complete guide for investors: where to buy, what it costs, the rules in each town, how to estimate returns, and how we take you from search to first booking.
Why Sedona and the Verde Valley
Sedona is one of the most-visited destinations in the Southwest, and its guests spill into the whole Verde Valley: Cottonwood's Old Town and wineries, Jerome's hillside galleries, Clarkdale's railroad, and the creeks of Cornville and Rimrock. AirDNA reports about 57% occupancy and a $337 average nightly rate for the broader Sedona market, with average revenue up about 30% year over year as weaker listings dropped out.
Peak months are March (about 76% occupancy) and October (about 67%), with softer January and August, according to StaySTRA. A good investment plan accounts for those seasons.
Where to buy
The luxury Sedona market, with homes at $1M and up, is crowded with high-end STR agents. We focus on where our experience gives you an edge:
- Cottonwood: our home market, with lower entry prices and lighter rules
- Village of Oak Creek: red rocks at historically lower prices per square foot, newly open after the 2026 HOA ruling
- Cornville, Clarkdale, Jerome, Camp Verde, and Rimrock: character, space, and value
- Sedona and Flagstaff for buyers who want a premium or four-season market
Not sure? Start with Sedona vs Cottonwood.
The rules
Arizona law prevents towns from banning short-term rentals, but they can require permits, insurance, and more. Every operator needs a state TPT license and county assessor registration. Sedona adds a $210-per-unit permit, insurance, and guest background checks; Cottonwood requires annual registration; and HOAs can still restrict rentals. See the full STR rules hub.
Estimating returns
We estimate revenue from comparable local rentals and what we see in our own five rentals, then subtract lodging tax, platform fees, cleaning, utilities, insurance, maintenance, and financing. Try it yourself with our STR return calculator, which has each town's tax rate built in.
Estimates are not guarantees. Actual results depend on the property, pricing, management, seasonality, regulations, and the market.
Our buy box
- $400K to $900K in the Verde Valley, or premium Sedona for the right buyer
- Parcels that allow a casita, cabin, or second unit where zoning and permits allow
- A standout feature to design around: views, trail access, creek, dark skies, or room for a hot tub
- No HOA restrictions on stays under 30 days
- Guest-friendly access and parking
How we work
- Analyze: goals, budget, and a free pre-purchase review of listings you like.
- Buy: full buyer representation, with permits, HOA, and zoning checked before you offer.
- Build and design: remodel, furnishing, and amenities planned around your guests.
- Launch: photos, listing, pricing, permits, and a local team.
- Operate: self-host with our systems, or hand off to a manager.
Details on Turnkey Services and Pricing & Process.
STR investing FAQ
What is a good budget for an Airbnb investment near Sedona?
Turnkey STRs in Cottonwood have listed around $515K to $995K, while Sedona turnkey STRs start around $1M and the city median sale price is about $1.08M. Our sweet spot is $400K to $900K properties in the Verde Valley, where small, well-designed units can compete on reviews and returns.
Is Sedona still a good Airbnb market in 2026?
Demand is strong: AirDNA reports average revenue up about 30% year over year while listings fell about 21%. But high prices and strict permits mean the specific property and setup matter. Many investors get better value in the surrounding Verde Valley towns.
Can I use a 1031 exchange or cost segregation on a short-term rental?
Often, yes, but it depends on your situation. We work alongside your CPA and lender and can introduce local professionals. Nothing on this site is tax advice.
What financing works for short-term rentals?
Common options include conventional second-home loans, DSCR loans based on projected rental income, and cash. We can connect you with lenders who understand STRs in Arizona.
Thinking about an Airbnb in Sedona or the Verde Valley?
Book a free consult. We will talk through your budget, timeline, and goals, and give you a straight answer about whether a short-term rental here fits.