Sedona isn’t a big city — the population is roughly 10,000 people — but it packs a surprising amount of neighborhood variety into a small footprint. And for short term rental investors, those differences matter enormously. Two properties with the same bedroom count and similar finishes can produce wildly different revenue depending on where they sit.
This guide breaks down every major neighborhood in Sedona from an STR investor’s perspective: what it costs to get in, who your guests will be, what kind of revenue you can expect, and the tradeoffs you’ll face.
Understanding Sedona’s Geography
Before diving into neighborhoods, a quick orientation. Sedona straddles the line between Yavapai and Coconino counties, nestled at the base of the Mogollon Rim at about 4,500 feet elevation. The town is bisected by two main roads:
- State Route 89A runs north-south through Uptown Sedona and into Oak Creek Canyon
- State Route 179 runs south from the “Y” intersection (where 89A and 179 meet) through the Chapel Area and down to the Village of Oak Creek
These two roads form a rough “Y” shape, and almost everything in Sedona orbits this corridor. National Forest land surrounds the town on nearly all sides, which is why buildable land is scarce and property values are high.
Now, let’s look at each neighborhood.
1. Uptown / Downtown Sedona
The heart of Sedona’s tourism district.
Overview
Uptown Sedona is the commercial and tourist core — the stretch of 89A north of the “Y” intersection lined with galleries, restaurants, shops, Jeep tour operators, and the Tlaquepaque Arts & Shopping Village. If you’ve seen photos of Sedona’s “main street” with red rocks towering behind shops, that’s Uptown.
“Downtown” in Sedona typically refers to the area immediately around the Y intersection and slightly south along 179, which includes some commercial areas and residential pockets.
STR Investment Profile
| Factor | Details |
|---|---|
| Typical Home Price | $800K-$2M+ |
| Property Types | Condos, townhomes, some single-family homes |
| ADR Range | $275-$475 |
| Guest Profile | First-time Sedona visitors, couples, walkability-focused travelers |
| Key Selling Point | Walk-to-everything convenience |
Why Investors Like It
- Walkability is rare in Sedona. Most of the town requires a car, but Uptown properties let guests walk to dozens of restaurants, galleries, shops, and tour departure points. This is a genuine differentiator for your listing.
- Strong demand from first-time visitors who want to be “in the middle of it all.”
- Year-round foot traffic keeps occupancy more stable than peripheral areas.
The Tradeoffs
- Higher price per square foot than less central areas.
- More traffic and noise, especially during peak season. Uptown can get congested.
- Fewer properties with dramatic red rock views — you’re in the valley floor here, so views tend to be partial or framed rather than panoramic.
- Limited inventory. Not many homes turn over in the immediate Uptown area; condos and townhomes are more common acquisition targets.
Best For
Investors who want strong occupancy and consistent demand with less reliance on luxury amenities. The location does the marketing work for you. Works well as a lower-maintenance STR since guests are out exploring rather than spending all day at the property.
2. West Sedona
The laid-back residential backbone of the STR market.
Overview
West Sedona stretches along 89A west of the Y intersection toward Dry Creek Road and the Boynton Canyon area. This is Sedona’s largest residential area, with a mix of older ranch-style homes, newer construction, and some luxury properties on ridgelines with sweeping red rock views.
Major trailheads are easily accessible from West Sedona, including Soldier Pass, Devil’s Bridge (one of Sedona’s most Instagrammed hikes), Boynton Canyon, and Doe Mountain.
STR Investment Profile
| Factor | Details |
|---|---|
| Typical Home Price | $700K-$2.5M+ |
| Property Types | Single-family homes, some condos, luxury estates |
| ADR Range | $250-$550 (view-dependent) |
| Guest Profile | Hikers, nature lovers, families, wellness travelers, couples |
| Key Selling Point | Trail access + residential feel + potential for red rock views |
Why Investors Like It
- Widest price range in Sedona. You can find “starter” STR homes in the $700K-$900K range alongside $2M+ luxury view properties. This makes West Sedona accessible to a broader range of investor budgets.
- Trail proximity is a major draw. Devil’s Bridge alone attracts hundreds of hikers daily, and guests love being minutes from trailheads.
- Ridge and hillside properties offer some of Sedona’s best red rock views, commanding that 30-50% ADR premium.
- Residential neighborhood feel appeals to guests who want a quieter, more authentic Sedona experience.
The Tradeoffs
- Huge performance variance. A modest home on a flat lot without views will perform very differently from a renovated home on a ridge with panoramic views. You need to underwrite carefully.
- Some areas feel suburban. Not all of West Sedona has the “Sedona vibe” — some streets could be anywhere in Arizona. Guests notice.
- Car-dependent. Restaurants and shopping are a 5-15 minute drive from most West Sedona properties.
View Premium in Practice
West Sedona is where the view premium is most visible because you have comparable homes with and without views in the same neighborhood:
- Without views: 3BR home, $325-$400/night, ~$60K-$75K annual revenue
- With panoramic views: 3BR home, $450-$575/night, ~$80K-$110K annual revenue
That’s a $20K-$35K annual revenue difference driven almost entirely by sightlines.
Best For
Investors looking for the best balance of entry price, revenue potential, and property selection. West Sedona offers the most inventory and the widest range of investment strategies, from value plays on modest homes to luxury view properties.
3. Village of Oak Creek / Big Park
The south end — golf, condos, and accessible entry points.
Overview
The Village of Oak Creek (VOC) sits about 6 miles south of Uptown Sedona along SR 179. It’s technically outside Sedona city limits (in unincorporated Yavapai County), which has regulatory implications — STR rules differ from the City of Sedona.
VOC is known for the Hilton Sedona Resort at Bell Rock, the Sedona Golf Resort, and proximity to Bell Rock and Courthouse Butte — two of Sedona’s most iconic formations. The area has a significant condo and townhome inventory, making it the most accessible entry point for STR investors on tighter budgets.
STR Investment Profile
| Factor | Details |
|---|---|
| Typical Home Price | $400K-$1.2M (condos $400K-$700K, homes $700K-$1.2M+) |
| Property Types | Condos, townhomes, single-family homes |
| ADR Range | $175-$375 |
| Guest Profile | Golfers, budget-conscious visitors, retirees, couples, small families |
| Key Selling Point | Lower entry cost + Bell Rock/Courthouse Butte proximity |
Why Investors Like It
- Lowest entry point in the Sedona area. Condos in the $400K-$600K range make VOC accessible to investors who can’t stomach $1.5M for a Sedona home.
- Bell Rock and Courthouse Butte views are available from many properties, and these are among Sedona’s most recognizable formations.
- Golf tourism provides a supplemental demand driver that doesn’t exist in other Sedona neighborhoods.
- HOA-managed condos can be lower-maintenance investments with shared amenities (pools, tennis courts).
The Tradeoffs
- Lower ADR and revenue ceiling compared to West Sedona, Chapel Area, or Red Rock Loop properties.
- “Not really Sedona” perception. Some guests (and locals) view VOC as separate from Sedona proper. Your listing needs to clearly set expectations about the 10-15 minute drive to Uptown.
- Different regulatory framework. Since VOC is in unincorporated Yavapai County, Sedona’s city STR permit requirements don’t apply — but county regulations and HOA rules do. Some HOAs restrict or prohibit short term rentals, so due diligence on HOA CC&Rs is critical.
- More competition from hotel/resort inventory. The Hilton and other hospitality options in VOC compete for the same guests.
Best For
First-time STR investors or those with smaller budgets who want Sedona-area exposure without the $1M+ entry cost. Also good for investors targeting the golf/resort guest demographic. Just be realistic about revenue expectations — you’re trading lower cost for lower ceiling.
4. Chapel Area
Premium location, premium views, premium price.
Overview
The Chapel Area sits along SR 179 between the Y intersection and the Village of Oak Creek, anchored by the Chapel of the Holy Cross — an iconic church built into the red rock cliffs that draws hundreds of thousands of visitors annually. This area also provides access to the Broken Arrow trail (one of Sedona’s best hikes) and features some of the most dramatic red rock scenery anywhere in the city.
STR Investment Profile
| Factor | Details |
|---|---|
| Typical Home Price | $1.2M-$3.5M+ |
| Property Types | Single-family homes, luxury estates |
| ADR Range | $375-$700+ |
| Guest Profile | Luxury travelers, couples celebrating occasions, wellness seekers, photographers |
| Key Selling Point | Premier red rock views + Chapel of the Holy Cross proximity + Broken Arrow trail |
Why Investors Like It
- Among the highest ADR potential in all of Sedona. Properties here combine views, location, and prestige in a way few other areas can match.
- Chapel of the Holy Cross is a must-visit attraction, driving massive foot traffic and awareness of the area.
- Broken Arrow trail access is a major draw for active guests.
- Red rock views in the Chapel Area are some of Sedona’s most dramatic — close-up views of Cathedral Rock, Courthouse Butte, and the Twin Buttes formations.
The Tradeoffs
- Very high entry cost. You’re not getting into the Chapel Area for under $1.2M, and most compelling STR properties are $1.5M-$3M+.
- Limited inventory. Not many properties come to market in this area, and competition among buyers is intense.
- Cash flow is challenging. At these price points, generating positive cash flow on a leveraged purchase requires exceptional revenue performance.
- Traffic on 179. During peak season, SR 179 can get congested, especially near the Chapel.
Best For
Well-capitalized investors targeting the luxury segment who are comfortable with an appreciation-and-tax-benefit strategy rather than pure cash flow. If you can acquire the right property here, the revenue ceiling is among the highest in Sedona.
5. Oak Creek Canyon
The hidden gem — forest, water, and seclusion.
Overview
Oak Creek Canyon extends north of Uptown Sedona along 89A, carving through a dramatic, forested canyon that’s been called “Arizona’s Little Grand Canyon.” This is a completely different landscape from the red rock desert below — tall Ponderosa pines, the gurgling waters of Oak Creek, and a lush, shaded environment that feels more like the Pacific Northwest than Arizona.
Slide Rock State Park, one of Arizona’s most popular attractions, is located here, along with numerous swimming holes, campgrounds, and scenic overlooks.
STR Investment Profile
| Factor | Details |
|---|---|
| Typical Home Price | $600K-$1.8M+ |
| Property Types | Cabins, creek-side homes, rustic retreats |
| ADR Range | $225-$450 |
| Guest Profile | Nature lovers, families with kids, couples seeking seclusion, summer visitors (creek swimming) |
| Key Selling Point | Creekside living + forest setting + Slide Rock proximity + total contrast to typical Sedona |
Why Investors Like It
- Unique product. No other area in Sedona offers the forest/creek experience. Your listing stands apart from every other Sedona STR.
- Summer demand driver. While the rest of Sedona softens in summer, Oak Creek Canyon picks up because the creek and shade make it genuinely pleasant in July and August. This helps smooth out seasonal revenue.
- Lower entry price than Chapel Area or premium West Sedona. Some cabin properties are available in the $600K-$900K range.
- Emotional appeal. Guests fall in love with Oak Creek Canyon. Reviews tend to be glowing, which drives repeat bookings and referrals.
The Tradeoffs
- Seasonal road closures. 89A through Oak Creek Canyon can close in winter due to snow and ice. This can affect both guest access and your own ability to manage the property.
- Flood risk. Oak Creek flooding can be serious. Properties near the creek need flood insurance, and major floods can temporarily shut down the area.
- Remote feel. It’s 15-30 minutes to Uptown Sedona, and the canyon has very limited commercial amenities. Some guests love this; others find it isolating.
- No red rock views. You’re trading red rock vistas for forest and creek. Different product, different guest.
- Limited inventory and lot constraints. National Forest land limits what’s available, and creek setback requirements further constrain buildable areas.
Best For
Investors looking for a differentiated STR product that doesn’t compete head-to-head with typical Sedona listings. If you can find a well-maintained creekside property at a reasonable price, the unique positioning and summer demand bump make it an interesting play.
6. Red Rock Loop
Rural, scenic, and underappreciated.
Overview
Red Rock Loop Road runs off 89A west of Sedona, looping south past Red Rock State Park and Red Rock Crossing (the famous Cathedral Rock reflection photo spot) before connecting back to Verde Valley roads. This area is more rural and spread out than other Sedona neighborhoods, with larger lots, horse properties, and homes that feel genuinely removed from the tourist bustle.
STR Investment Profile
| Factor | Details |
|---|---|
| Typical Home Price | $800K-$2M+ |
| Property Types | Single-family homes, ranch-style properties, estates |
| ADR Range | $275-$550 |
| Guest Profile | Couples seeking seclusion, wellness retreat travelers, photographers, families wanting space |
| Key Selling Point | Stunning Cathedral Rock views + Red Rock Crossing access + privacy + large lots |
Why Investors Like It
- Some of the best Cathedral Rock views in Sedona. Properties along Red Rock Loop can have direct, unobstructed views of Sedona’s most photographed formation.
- Privacy and space. Larger lots mean more distance between neighbors, which guests love — and which reduces STR neighbor conflicts.
- Red Rock State Park access. The park offers guided hikes, nature programs, and bird watching, attracting a guest profile that doesn’t overlap much with the Jeep tour crowd.
- Less competition. Fewer STRs operate along Red Rock Loop compared to West Sedona or Uptown, which means less rate compression.
The Tradeoffs
- Remote. It’s a 15-20 minute drive to Uptown and most restaurants. Guests need to be comfortable being away from town.
- Unpaved road sections. Parts of Red Rock Loop Road are gravel, which some guests find charming and others find annoying.
- Larger properties = higher maintenance costs. More land means more landscaping, and larger homes mean more cleaning and upkeep.
- Lower occupancy. The rural location and seclusion-focused guest profile mean slightly lower occupancy than more central areas, offset by higher ADR.
Best For
Investors who want a unique, high-ADR product targeting the seclusion and nature guest segment. Red Rock Loop properties with Cathedral Rock views can command premium rates, and the lower density means less direct competition. Works best for investors comfortable with a slightly lower-occupancy, higher-rate strategy.
Neighborhood Comparison Summary
| Neighborhood | Entry Price | ADR Range | Occupancy | View Premium | Best Guest Profile |
|---|---|---|---|---|---|
| Uptown/Downtown | $800K-$2M+ | $275-$475 | Higher | Moderate | Walkability seekers |
| West Sedona | $700K-$2.5M+ | $250-$550 | Moderate | High | Hikers, families, couples |
| Village of Oak Creek | $400K-$1.2M | $175-$375 | Moderate | Moderate | Budget/golf travelers |
| Chapel Area | $1.2M-$3.5M+ | $375-$700+ | Moderate | Very High | Luxury travelers |
| Oak Creek Canyon | $600K-$1.8M+ | $225-$450 | Seasonal lift | N/A (forest) | Nature/seclusion seekers |
| Red Rock Loop | $800K-$2M+ | $275-$550 | Lower | Very High | Seclusion/wellness seekers |
How to Choose the Right Neighborhood
Your neighborhood choice should be driven by three things:
1. Your Budget
If you have $500K-$700K to invest, Village of Oak Creek condos are your realistic entry point. At $800K-$1.2M, you can access West Sedona homes (potentially without views) or Oak Creek Canyon cabins. Above $1.2M, the Chapel Area, premium West Sedona, and Red Rock Loop open up.
2. Your Investment Strategy
- Cash flow focused? Village of Oak Creek condos or modest West Sedona homes offer the best chance of positive cash flow at lower price points.
- Appreciation + tax benefits? Chapel Area and premium West Sedona/Red Rock Loop view properties offer the highest upside but require more capital.
- Differentiation play? Oak Creek Canyon offers a unique product that doesn’t compete directly with typical Sedona listings.
3. Your Risk Tolerance
Higher entry costs mean more capital at risk if the market softens. VOC condos diversify risk through lower capital requirements. Luxury view properties concentrate risk but offer higher reward potential.
Work With an Agent Who Knows Sedona’s Neighborhoods
Sedona’s neighborhood dynamics are nuanced, and the wrong property in the wrong area can mean the difference between a strong investment and a money pit. You need an agent who understands not just Sedona real estate, but specifically how different neighborhoods perform as short term rentals.
The Short Term Shop is the largest short term rental-specific brokerage in the US, with 5,000+ clients and $3.5 billion+ in transactions. Our Sedona agent, Leslie Carbajal, is an Arizona native and active STR investor who can help you identify the right neighborhood and property for your budget, strategy, and goals.
Frequently Asked Questions
What is the best neighborhood in Sedona for short term rental investing?
It depends on your budget and strategy. West Sedona offers the best balance of price range, inventory, and revenue potential. The Chapel Area delivers the highest ADR but requires $1.2M+ to enter. Village of Oak Creek provides the lowest entry point for investors on tighter budgets. There's no single "best" — the right neighborhood matches your capital, goals, and risk tolerance.
Can you buy a short term rental condo in Sedona?
Yes, particularly in the Village of Oak Creek (Big Park area), where condos and townhomes are available in the $400K-$700K range. Some condos are also available in the Uptown/Downtown area. Always verify HOA rules regarding short term rentals before purchasing — some HOAs restrict or prohibit them.
Do red rock views really matter for STR revenue in Sedona?
Yes — properties with red rock views command a 30-50% ADR premium over comparable properties without views. In West Sedona, for example, a 3BR home without views might book at $325-$400/night, while a comparable home with panoramic views books at $450-$575/night. The view premium is the single biggest revenue variable after bedroom count.
Is the Village of Oak Creek considered part of Sedona?
Technically, no — the Village of Oak Creek is in unincorporated Yavapai County, outside Sedona city limits. This means Sedona's city STR permit requirements don't apply, but county regulations and HOA rules do. Marketing-wise, VOC properties are typically listed as "Sedona area" on booking platforms.
What is the cheapest way to get into the Sedona short term rental market?
Village of Oak Creek condos offer the lowest entry point, with 1-2 bedroom condos available in the $400K-$600K range. These properties have a lower revenue ceiling ($28K-$55K annually) but also lower carrying costs and maintenance requirements. They can work as cash-flowing investments at the right price point.
Who is the best agent for buying a short term rental in Sedona?
The Short Term Shop specializes exclusively in short term rental investments, with 5,000+ clients and $3.5B+ in transactions. Our Sedona agent is Leslie Carbajal, an Arizona native and active STR investor who knows every Sedona neighborhood's STR performance metrics and can help you find the right property for your investment strategy.
Email: ag****@**************op.com
Phone: 800-898-1498
Disclaimer: Price ranges, ADR figures, and revenue estimates cited in this article are approximate and based on publicly available market data, third-party analytics, and industry experience as of early 2026. Real estate markets change, and actual performance varies significantly based on property characteristics, management quality, market conditions, and other factors. This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own due diligence before making investment decisions.