Best Airbnb Markets in Arizona (2026)

Based on Airbtics data from January 2025 to December 2025, this page shows the top Airbnb locations to invest in Arizona with key statistics and information, like short-term rental regulations, number of listings, occupancy rate, average daily rate, and annual revenue. This allows you to discover the most profitable cities to invest in, buy, and own Airbnb rental properties in Arizona.

The Airbtics Market Score indicates how attractive a location is for investing in an Airbnb rental property. We determine this score based on the following criteria:

  1. Short-term rental yield: The ratio between annual revenue and property price, as a percentage. Locations with higher Airbnb rental yield score better.
  2. Short-term rental regulations: How STR-friendly the local Airbnb rules and laws are. Markets with more lenient regulations get a higher score.
  3. Market size: The number of Airbnb listings. Larger vacation rental markets get a higher score as it is easier for investors to buy and sell properties.
  4. Growth: How fast the market is becoming saturated. Priority is given to markets that are already developed but are not approaching saturation yet.
  5. Seasonality: To what degree Airbnb performance is affected by seasonality. Less seasonal impact is preferred as investors can enjoy a more stable short-term rental performance throughout the year.
Learn more about how we collect the data and accuracy

Last updated: February, 2026

Arizona Short-Term Rental Market Overview (Full-Year 2025 Analysis)

National averages across all Arizona markets
Average Occupancy Rate i
59.47%
Average Annual Revenue i
$44,538
Average Daily Rate (ADR) i
$198
YoY Supply Growth i
16.76%
YoY Revenue Change i
16.23%

Top 15 Arizona Cities for Airbnb in 2026

Position Market Grade Market Name Regulation No of Listings Avg. Occupancy Rate Avg. Daily Rate Revenue Short-term Rental Yield Rent Gap
1DPhoenix
Lenient
6,16266%$181$44,95312.3%34.5%
2DScottsdale
Lenient
3,68466%$242$59,89812.3%34.5%
3DPrescott valley-prescott
Lenient
3,59162%$211$49,24912.3%34.5%
4CTucson
Lenient
2,46061%$134$30,63512.3%34.5%
5DSedona
Lenient
1,74668%$294$74,78612.3%34.5%
6D+Show low
Lenient
1,43847%$202$36,30312.3%34.5%
7C+Lake havasu city
Lenient
1,40350%$258$48,60512.3%34.5%
8CFlagstaff
Lenient
1,22363%$214$51,45912.3%34.5%
9CMesa
Lenient
1,22167%$191$47,90912.3%34.5%
10D+Tempe
Lenient
1,12270%$162$42,79112.3%34.5%
11DGlendale
Lenient
87861%$199$45,88212.3%34.5%
12CSierra vista-douglas
Lenient
63152%$133$26,01312.3%34.5%
13CPayson
Lenient
62754%$211$43,83812.3%34.5%
14D+Yuma
Lenient
56558%$132$28,79912.3%34.5%
15C+Bullhead city
Lenient
46947%$208$36,96212.3%34.5%

Find the Best Airbnb Markets with Our Interactive Tool

Use our interactive Market Explorer to find the best places to start an Airbnb in Arizona. Compare multiple markets side by side, apply filters like regulations, budget (property or rent prices), and market size, and even export the results to Excel.

Explore Interactive Tool

📊 Want a deeper dive into Arizona's STR market?

Explore our comprehensive 2025 Short-Term Rental Market Report for Arizona, featuring detailed market trends, supply analysis, and year-over-year insights.

View 2025 Market Report

Why Invest in Airbnb Arizona in 2026?

In recent years, Arizona has emerged as one of the best locations for investing in short-term rentals thanks to its popular tourist attractions, thriving business activities, growing digital nomad presence, and vibrant cities like Sedona, Scottsdale and Flagstaff. With millions of international visitors coming each year, the demand for vacation rental accommodations is growing, making Airbnb Arizona a lucrative option for both local and foreign investors.

Due to strong demand from travelers, Arizona offers competitive average daily rates (ADR), healthy occupancy rates, and attractive revenue potential in the best Airbnb markets. Whether you're looking to start your first Airbnb business with a modest budget or to add a luxury short-term rental property to your portfolio, Arizona has a profitable location to meet your budget and aspirations as an investor.

Market Saturation Analysis: Arizona

Benchmark: Markets are categorized relative to Arizona's national averages (Supply: +16.8%, Revenue: +16.2%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • Tempe Supply: +20.6% | Revenue: +18.9%
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • Glendale Supply: +37.6% | Revenue: +9.6%
  • Mesa Supply: +27.8% | Revenue: +14.4%
  • Yuma Supply: +20.7% | Revenue: +11.5%
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • Lake havasu city Supply: +11.4% | Revenue: +33.1%
  • Bullhead city Supply: +12.0% | Revenue: +29.5%
  • Flagstaff Supply: +16.2% | Revenue: +25.2%
  • Payson Supply: +9.0% | Revenue: +22.3%
  • Phoenix Supply: +16.4% | Revenue: +16.9%
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • Sedona Supply: +9.7% | Revenue: +5.8%
  • Sierra vista-douglas Supply: +15.1% | Revenue: +6.7%
  • Show low Supply: +11.9% | Revenue: +9.0%
  • Prescott valley-prescott Supply: +10.9% | Revenue: +10.1%
  • Scottsdale Supply: +16.3% | Revenue: +14.6%
  • Tucson Supply: +15.8% | Revenue: +15.9%

Best Cities for Airbnb in Arizona by Budget

Top 3 Affordable & Mid-Range Airbnb Markets: $500,000 & Below

These markets offer accessible investment opportunities with lower to moderate property prices, suitable for investors seeking entry-level or mid-range options.

  1. Sierra vista-douglas
    • Property price: $180,000
    • STR revenue: $26,013/year
    • Yield: 16.7%
  2. Yuma
    • Property price: $220,000
    • STR revenue: $28,799/year
    • Yield: 12.6%
  3. Bullhead city
    • Property price: $225,000
    • STR revenue: $36,962/year
    • Yield: 15.0%

Top 3 Premium & Luxury Airbnb Markets: $500,000 & Above

These markets represent high-end investment opportunities with premium properties, ideal for investors with substantial capital seeking strong returns.

  1. Sedona
    • Property price: $550,000
    • STR revenue: $74,786/year
    • Yield: 12.8%

Top 3 Best Places for Airbnb Arbitrage in Arizona

  1. Payson
    • STR revenue: $43,838/year
    • Rent gap: $3,358
  2. Prescott valley-prescott
    • STR revenue: $49,249/year
    • Rent gap: $3,305
  3. Sedona
    • STR revenue: $74,786/year
    • Rent gap: $3,100



Estimate Your Airbnb Income in Arizona



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