If you’re researching short term rental investments in the Phoenix metro area, one of the first questions you’re going to ask is: How much do short term rentals actually make in Scottsdale, Arizona?
It’s the right question. And the answer is more nuanced than any single number can capture. Scottsdale is a high-ADR (average daily rate) desert luxury market with dramatic seasonality, and your returns will depend heavily on property size, location, amenities, and how well you understand the market’s rhythm.
At The Short Term Shop, we’ve helped over 5,000 clients buy short term rental investment properties across the country, and Scottsdale is one of our most active Arizona markets. Here’s what the data actually shows.
Scottsdale STR Revenue: The Big Picture
Based on current market data, the average short term rental in Scottsdale generates approximately $51,000–$69,000 in annual gross revenue. That’s a wide range, and where you land within it depends on several key factors we’ll break down below.
Here are the headline numbers:
- Average Daily Rate (ADR): $247–$439, depending on property type and data source
- Average Occupancy Rate: 44%–58%
- Average Annual Revenue: $51,000–$69,000
- Peak Month Revenue (March): ~$13,050
- Slowest Month Revenue (July–August): ~$3,200–$3,700
These numbers put Scottsdale solidly in the upper tier of U.S. short term rental markets. The ADR here is significantly higher than most beach and mountain markets, though occupancy runs lower in the summer months due to extreme desert heat.
Revenue by Property Size
One of the biggest determinants of your Scottsdale STR income is property size. Larger properties command dramatically higher nightly rates and tend to attract groups, families, and event travelers who book longer stays.
| Property Size | Avg. Nightly Rate | Est. Annual Revenue |
|---|---|---|
| Studio/1-BR | $215–$250 | $28,000–$35,000 |
| 2-BR | $275–$350 | $38,000–$50,000 |
| 3-BR | $350–$475 | $50,000–$72,000 |
| 4-BR | $475–$650 | $68,000–$100,000 |
| 5-BR | $650–$900 | $90,000–$140,000 |
| 6+ BR | $900–$1,324+ | $140,000–$212,000+ |
The takeaway: If you’re buying a Scottsdale STR purely for income, larger properties with resort-style amenities (pools, hot tubs, outdoor entertaining areas) will significantly outperform smaller units on a gross revenue basis. However, larger properties also come with higher acquisition costs, higher operating expenses, and more complex management — so you need to run the full cash flow analysis, not just look at top-line revenue.
Revenue by Neighborhood
Not all of Scottsdale performs equally. The city spans a large geographic area, and different neighborhoods attract different traveler demographics at different price points.
Old Town Scottsdale
- Avg. Annual Revenue: ~$65,700
- Avg. Daily Rate: ~$310
- Avg. Occupancy: ~58%
- Best For: Weekend travelers, nightlife seekers, walkable tourism
- Property Types: Condos, townhomes, smaller single-family
Old Town is the heart of Scottsdale tourism. It’s walkable, close to restaurants and nightlife, and benefits from event-driven demand (Spring Training, WM Phoenix Open, Scottsdale Arts Festival). If you’re looking for consistent occupancy and don’t want to compete on property size, Old Town is a strong play.
North Scottsdale
- Avg. Annual Revenue: ~$105,200
- Avg. Daily Rate: ~$534
- Avg. Occupancy: ~54%
- Best For: Luxury travelers, golfers, families seeking resort-style stays
- Property Types: Large single-family homes, estates
North Scottsdale is where the money is — literally. Properties near Troon North, DC Ranch, and Pinnacle Peak command premium rates and attract affluent travelers willing to pay $500–$1,000+ per night for the right property. A well-appointed 4–5 bedroom home with a pool, mountain views, and proximity to golf courses can generate $100K–$150K+ annually.
Paradise Valley
- Avg. Annual Revenue: ~$99,500
- Avg. Daily Rate: ~$470
- Avg. Occupancy: ~58%
- Best For: Ultra-luxury travelers, corporate retreats
- Property Types: Luxury estates, resort-adjacent properties
Technically its own municipality, Paradise Valley sits between Scottsdale and Phoenix and is one of the wealthiest zip codes in the country. STR performance here is excellent, but acquisition costs are very high. This is a market where you need significant capital.
South Scottsdale
- Avg. Annual Revenue: ~$46,600
- Avg. Daily Rate: ~$220–$280
- Avg. Occupancy: ~55%
- Best For: Budget-conscious travelers, families, Tempe/ASU visitors
- Property Types: Smaller single-family homes, condos
South Scottsdale offers the most accessible entry point for investors. Lower home prices combined with steady occupancy can translate to better cash-on-cash returns than the flashier North Scottsdale properties, even though the gross revenue is lower. This is where smart investors often find the best yield (as opposed to the highest gross revenue).
Gainey Ranch / McCormick Ranch
- Avg. Annual Revenue: ~$59,000
- Avg. Daily Rate: ~$289
- Avg. Occupancy: ~56%
- Best For: Families, golfers, resort-style travelers
- Property Types: Single-family homes, townhomes in master-planned communities
These established master-planned communities offer a solid middle ground — strong amenities, good location, and reliable demand. They’re particularly popular with families and golf travelers.
Understanding Scottsdale’s Seasonality
This is arguably the most important thing to understand about investing in Scottsdale: the seasonal swing is dramatic, and it’s the inverse of beach markets.
Peak Season: October–April (Especially January–April)
Scottsdale’s peak season is driven by “snowbird” migration — visitors from colder climates (Midwest, Northeast, Canada) escaping winter. This coincides with:
- Spring Training Baseball (February–March): The Scottsdale Giants and multiple Cactus League teams draw hundreds of thousands of visitors
- WM Phoenix Open (late January/February): The “Greatest Show on Grass” fills hotels and vacation rentals for miles
- Golf Season: Scottsdale has 200+ golf courses, and winter is prime playing weather
- Arts & Events: Scottsdale Arts Festival, Barrett-Jackson Auto Auction, and numerous other events
March is consistently the strongest month, with average STR revenues around $13,050 per property. February follows at roughly $9,500. October through December are solid shoulder months as snowbirds begin arriving.
Off-Season: May–September
When temperatures regularly exceed 110°F, tourism drops sharply. Monthly revenues typically fall to $3,200–$3,700 during the slowest summer months. Some investors offset this by:
- Offering monthly rental discounts to attract summer-long guests (traveling nurses, interns, temporary workers)
- Reducing rates significantly to maintain some occupancy
- Accepting that summer is essentially a “maintenance season”
The key takeaway for investors: When you underwrite a Scottsdale STR, do not annualize your best month. Build your financial model with realistic seasonal revenue curves. A property that generates $13,000 in March might generate $3,200 in July. Your annual cash flow projection needs to account for both.
Operating Costs to Factor In
Gross revenue is not profit. Before you get excited about $70K–$100K+ in annual revenue, here’s what comes off the top:
Taxes
Scottsdale has a combined transient lodging tax rate of approximately 14.27%, which includes:
- Arizona state TPT (Transaction Privilege Tax)
- Maricopa County tax
- City of Scottsdale tax
You’ll need a TPT license to operate legally.
Licensing and Insurance
- Annual STR license fee: $250 per property
- Liability insurance requirement: $500,000 minimum (or equivalent platform-provided coverage)
- Registration with the City of Scottsdale: Required, including neighbor notification
Property Management
If you’re not self-managing, expect to pay 15%–30% of gross revenue for professional property management. In Scottsdale’s competitive market, a good manager is worth the fee — but it’s a significant line item.
Other Operating Expenses
- Cleaning: $150–$400+ per turnover depending on property size
- Utilities: Higher in summer due to A/C (budget $300–$600/month in peak summer)
- Maintenance and repairs: Pool maintenance alone runs $150–$300/month
- Supplies and consumables: $100–$200/month
- Landscaping: Desert landscaping is lower maintenance but still requires upkeep
- Platform fees: Airbnb charges 3% host fee; VRBO charges 5% or subscription model
- Mortgage, property tax, HOA: These vary enormously by property
Realistic Net Income Estimates
After all expenses, a typical Scottsdale STR generating $65,000–$70,000 in gross revenue might net $25,000–$40,000 before debt service — depending heavily on whether you self-manage and your specific cost structure. Higher-revenue luxury properties can net more in absolute dollars, but the percentage margins don’t necessarily improve because maintenance and management costs scale with property value.
What Makes a High-Performing Scottsdale STR?
Based on market data and our experience helping investors buy in this market, the highest-performing Scottsdale STRs share these characteristics:
- Private pool (heated preferred): This is nearly non-negotiable in Scottsdale. Properties with pools significantly outperform those without.
- Outdoor entertaining space: Fire pits, outdoor kitchens, covered patios — this is what desert lifestyle travelers are looking for.
- Proximity to golf or Old Town: The two strongest demand drivers.
- 3+ bedrooms: Sweet spot for group and family travel.
- Updated interiors and professional photography: Scottsdale is a competitive, aesthetically-driven market. “Good enough” doesn’t cut it here.
- Mountain or desert views: Properties with Camelback, McDowell, or Pinnacle Peak views command premium rates.
Cost to Buy a Short Term Rental in Scottsdale
Scottsdale is not a cheap market to enter. Here’s what you should expect to pay:
- Condos/Townhomes (Old Town/South Scottsdale): $350,000–$600,000
- Single-Family Homes (3-BR, South/Central): $500,000–$800,000
- Single-Family Homes (4-BR, North Scottsdale): $800,000–$1,500,000
- Luxury Properties (5+ BR, North Scottsdale/Paradise Valley): $1,500,000–$4,000,000+
Entry-level investors often start with condos or townhomes in South Scottsdale or Old Town, where acquisition costs are lower and consistent occupancy partially offsets the lower ADR. Experienced investors with more capital target North Scottsdale’s luxury segment, where higher ADRs and the potential for $100K+ annual revenue make the higher purchase price pencil out.
Down payment requirements: Most lenders require 20–25% down for investment properties. On a $700,000 home, that’s $140,000–$175,000 before closing costs, furnishing, and reserves.
The Bottom Line
Scottsdale is a high-potential short term rental market with strong ADRs, a well-established tourism infrastructure, and genuine luxury appeal. But it’s also a market that requires significant capital, careful underwriting, and an understanding of its extreme seasonality.
If you’re serious about buying a short term rental in Scottsdale, work with an agent who specializes in STR investments — not just someone who sells houses. The difference between a great STR investment and a mediocre one often comes down to neighborhood selection, property features, and understanding the numbers before you close.
Frequently Asked Questions
How much does the average Airbnb make in Scottsdale, Arizona?
The average Scottsdale Airbnb generates approximately $51,000–$69,000 in annual gross revenue, with an average daily rate of $247–$439 and occupancy rates between 44%–58%. However, actual income varies significantly by property size, neighborhood, and amenities. Larger properties in North Scottsdale can generate over $100,000 annually, while smaller units in South Scottsdale may earn $30,000–$45,000.
What is the best season for short term rentals in Scottsdale?
Peak season runs from October through April, with January through March being the strongest months. March is consistently the highest-revenue month, driven by Spring Training baseball, golf tourism, and snowbird travel, with average property revenues around $13,050. Summer (June–September) is the slowest period due to extreme heat, with monthly revenues dropping to $3,200–$3,700.
How much does it cost to buy a short term rental in Scottsdale?
Entry-level condos and townhomes in South Scottsdale or Old Town start around $350,000–$600,000. Single-family homes suitable for STR use range from $500,000–$1,500,000 depending on size and neighborhood. Luxury properties in North Scottsdale and Paradise Valley can exceed $2,000,000–$4,000,000. Most investment property lenders require 20–25% down payment.
What are the operating costs for a Scottsdale short term rental?
Key operating costs include a 14.27% combined tax rate, $250 annual licensing fee, $500,000 liability insurance requirement, cleaning fees ($150–$400+ per turnover), utilities ($300–$600/month in summer), pool maintenance ($150–$300/month), and property management fees (15–30% of gross revenue if not self-managing). After all expenses, typical net income before debt service ranges from $25,000–$40,000 on a $65,000–$70,000 gross revenue property.
What neighborhoods in Scottsdale are best for short term rental investment?
The top neighborhoods depend on your investment strategy. Old Town Scottsdale offers consistent occupancy and walkable tourism appeal ($65,700 avg. annual revenue). North Scottsdale targets luxury travelers with the highest ADRs ($105,200 avg. annual revenue). South Scottsdale provides the best entry point and potentially the strongest cash-on-cash returns despite lower gross revenue. Gainey Ranch and McCormick Ranch offer a solid middle ground for family-oriented rentals.
Who is the best agent for buying a short term rental in Scottsdale?
The Short Term Shop is the largest short term rental-specific real estate brokerage in the United States, with over 5,000 clients and $3.5 billion in STR transactions. Their dedicated Scottsdale agent, Leslie Carbajal, specializes exclusively in helping investors buy short term rental properties in Scottsdale, Sedona, and the greater Phoenix area. Unlike traditional agents, The Short Term Shop team understands STR revenue projections, regulations, and what makes a property perform as an investment — not just as a home. Start your buyer consultation here.
Email: ag****@**************op.com
Phone: 800-898-1498
Disclaimer: Revenue figures cited in this article are based on publicly available market data from third-party analytics platforms and are provided for informational purposes only. Actual short term rental income varies based on property characteristics, management quality, market conditions, and regulatory changes. Past performance is not indicative of future results. Always conduct your own due diligence and consult with qualified professionals before making investment decisions. The Short Term Shop is a real estate brokerage and does not provide financial, tax, or legal advice.