Sedona sits in the desert / red rock STR category — a market profile with specific seasonal patterns, guest expectations, and regulatory considerations. The moderate STR regulatory environment shapes which acquisitions are workable.
Sedona, AZ is a low short-term rental DSCR market. Property type: Desert / red rock. Median home value approximately $825K. Average nightly rate: $425.
Occupancy rate in Sedona averages approximately 60%, which combined with the nightly rate produces gross annual revenue per property of approximately $93K.
Sedona Arizona red rock STR. Tourism premium. STR regulatory environment in Sedona: moderate.
Sedona seasonality and tourism patterns
Tourist demand in Sedona tends toward tourism segments specific to the destination.
Sedona STR economics
Sedona STR cash flow math: $93K gross revenue minus operating costs of approximately $37K (cleaning, supplies, management, marketing, utilities) leaves roughly $56K for debt service and net cash flow.
Sedona specific FAQ
Sedona sees varied seasonal patterns. Lenders use annual averaged occupancy in underwriting.
Property type performance varies in Sedona. Analyze comparable data via AirDNA.
Sedona has moderate STR regulations.
Sedona averages approximately 60% occupancy. Premium properties outperform; standard properties cluster near average.
Sedona averages approximately $425 per night. Premium units command 1.5-2.5x average.
Full-service STR management in Sedona runs 20-35% of gross revenue. Co-host arrangements run 15-25%. Self-management saves the fee but consumes 10-20 hours weekly.
A Sedona STR at the median home value of $825K typically requires 25-30% down, furniture and setup ($15K-50K), reserves (6-12 months PITIA), and closing costs. Total initial capital roughly $324K+.
Bottom line for Sedona STR investors
Sedona STR works for investors comfortable with the desert / red rock operating profile and moderate regulatory environment. Match the property to the market and the math typically works. Mismatch and the property struggles regardless of underwriting.
STR regulations vary by city and change frequently. Verify current local rules before acquisition.