Before investing in a property in Arizona, it’s important to analyze your options and gauge your profitability based on Airbnb’s key metrics. In this article, we’ll feature the top 10 best areas to Airbnb in Arizona along with their respective occupancy rates, monthly & yearly revenue, average daily rates (ADRs), and so much more!
Airbnb’s Trending Cities
Based on a recently released article about Airbnb’s top cities this summer of 2022, guests have searched for domestic summer destinations in the USA with over 10,000 searches. This simply means that vacationers are super ready to spend money and have fun under the sun! The travel demand has continuously recovered in comparison to pre-pandemic data.
Is Airbnb Profitable in Arizona?
Based on our recent article about Airbnb occupancy rates by city, particularly in Phoenix, an average 1 BD / BA apartment has a steady 61% occupancy rate and can generate $5,379 monthly! Short-term rentals in Arizona can definitely be a source of passive income because of the many tourists visiting annually for Grand Canyon and other tourist destinations.
To cut the story short, Airbnb is definitely profitable in Arizona! For instance, based on an Airbnb income calculator, you can earn a whopping $85,788 annually in Scottsdale alone! This area is attracting millions of visitors from around the globe since it’s known for being the world’s finest golf destination, along with attractions such as Taliesin West, Pinnacle Peak Park, Old Town Scottsdale, and the like.
Not yet convinced? Feel free to listen to our complete walk-through on Into The Airbnb Podcast and learn how you can start your rental arbitrage journey in Arizona:
Rental Arbitrage in Arizona
If you want to start an Airbnb investment in Arizona but are financially limited to purchasing your own property, don’t worry. You can still earn a passive income in two words: Rental Arbitrage! This refers to the practice of renting out properties for the sole purpose of sub-letting them on platforms such as Airbnb or HomeAway.
It may be a challenge to find landlords for Airbnb rental arbitrage since there are certain restrictions in other areas and other landlords simply do not allow it due to insurance policies. In addition to this, you also have to consider major factors in starting a rental arbitrage business in your preferred city. This includes rules & regulations, where to find the most profitable area, & how to find rental arbitrage properties.
Rental Arbitrage in Arizona is certainly legal and there are ways to predict your listing’s profitability. For instance, a short-term rental analytics tool can assure your nightly revenue of $106 for a 1-bedroom apartment in Tucson with a steady occupancy rate of 72%. These Airbnb key metrics should be strictly monitored as your business’ profitability depends on them!
Given the fact that Arizona is a practical investment destination for property investors, you can always have the option to do rental arbitrage and earn money while you’re saving up to own a property.
Top 10 Most Profitable Cities & Neighborhoods for Airbnb in Arizona
Arizona offers excellent investment opportunities for property investors, so we went ahead and did the heavy work for you! Oftentimes, the struggle is targetting an entire city but missing out on a particular neighborhood that has an even greater chance of profitability.
Using Airbtics’ market analysis, we were able to accurately get a grasp of Airbnb demand in Arizona and filtered the top 10 most profitable cities:
1. Sedona
- Occupancy Rate: 82%
- Annual Revenue: $51,810
- Average Daily Rate: $168
Based on Airbtics’ analytics tool, the best neighborhood in this area is South West Sedona, which has an average occupancy rate of 88%. An average Airbnb host can earn the same daily rate of $168 in this neighborhood!
2. Flagstaff
- Occupancy Rate: 67%
- Annual Revenue: $34,149
- Average Daily Rate: $118
Based on Airbtics’ analytics tool, the best neighborhood in this area is University Heights, which has an average occupancy rate of 84%. An average Airbnb host can earn an average daily rate of $104 in this neighborhood!
3. Chandler
- Occupancy Rate: 66%
- Annual Revenue: $52,977
- Average Daily Rate: $149
Based on Airbtics’ analytics tool, the best neighborhood in this area is Downtown Chandler, which has an average occupancy rate of 74%. An average Airbnb host can earn an average daily rate of $162 in this neighborhood!
4. Tempe
- Occupancy Rate: 73%
- Annual Revenue: $28,320
- Average Daily Rate: $102
Based on Airbtics’ analytics tool, the best neighborhood in this area is Downtown Tempe, which has an average occupancy rate of 75%. An average Airbnb host can earn an average daily rate of $126 in this neighborhood!
5. Gilbert
- Occupancy Rate: 71%
- Annual Revenue: $23,021
- Average Daily Rate: $76
Based on Airbtics’ analytics tool, the best neighborhood in this area is The Islands, which has an average occupancy rate of 65%. An average Airbnb host can earn an average daily rate of $75 in this neighborhood!
6. Tucson
- Occupancy Rate: 70%
- Annual Revenue: $25,588
- Average Daily Rate: $90
Based on Airbtics’ analytics tool, the best neighborhood in this area is Sam Hughes, which has an average occupancy rate of 72%. An average Airbnb host can earn an average daily rate of $113 in this neighborhood!
7. Scottsdale
- Occupancy Rate: 69%
- Annual Revenue: $41,329
- Average Daily Rate: $137
Based on Airbtics’ analytics tool, the best neighborhood in this area is Chateau de Vie, which has an average occupancy rate of 76%. An average Airbnb host can earn an average daily rate of $90 in this neighborhood!
8. Phoenix
- Occupancy Rate: 68%
- Annual Revenue: $26,435
- Average Daily Rate: $100
Based on Airbtics’ analytics tool, the best neighborhood in this area is Midtown, which has an average occupancy rate of 73%. An average Airbnb host can earn an average daily rate of $104 in this neighborhood!
9. Yuma
- Occupancy Rate: 64%
- Annual Revenue: $20,843
- Average Daily Rate: $77
Based on Airbtics’ analytics tool, the best neighborhood in this area is Yuma Heights, which has an average occupancy rate of 69%. An average Airbnb host can earn an average daily rate of $86 in this neighborhood!
10. Glendale
- Occupancy Rate: 53%
- Annual Revenue: $$15,538
- Average Daily Rate: $73
Based on Airbtics’ analytics tool, the best neighborhood in this area is Las Brisa Pointe, which has an average occupancy rate of 65%. An average Airbnb host can earn an average daily rate of $45 in this neighborhood!
General Overview
Now that you have a deeper understanding of which particular area to target in Arizona and some of the major Airbnb metrics to consider, don’t miss out on greater opportunities!
Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial to make decisions based on wild guesses. The data points mentioned in this article such as Airbnb occupancy rates per city, annual revenue, and average daily rates should be your basis for investing in properties in Arizona – or other cities with high occupancy rates!
Hence, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city. With the help of our all-in-one analytics service, you can vastly enhance your monthly revenue, create a comparison for each neighborhood, add the appropriate amenities and so many more exciting features. Try Airbtics today and think of long-term profitability!
