If you’re researching short term rental markets, Sedona is probably on your radar — and for good reason. Millions of visitors flock to this Northern Arizona destination every year for its red rock formations, world-class hiking, arts scene, and spiritual retreats. But the question every investor wants answered is simple: how much money can you actually make?
Let’s break down the real numbers.
Sedona STR Revenue: The Big Picture
The average short term rental in Sedona generates between $46,000 and $70,000 per year in gross revenue. That’s a wide range, and it’s intentional — performance in Sedona varies dramatically based on a few key factors:
- Property size (bedroom count)
- Red rock views (this is the single biggest revenue lever in Sedona)
- Location (proximity to Uptown, trailheads, and major attractions)
- Property quality and amenities (hot tubs, outdoor living spaces, modern finishes)
- Management quality (pricing strategy, listing optimization, guest experience)
The median revenue figure — somewhere around $55,000-$58,000 — represents a solid baseline for a well-managed 2-3 bedroom property without exceptional views. But the ceiling is much higher than the average suggests.
Average Daily Rate (ADR) in Sedona
Sedona’s average daily rate ranges from approximately $295 to $427, depending on the data source, time period, and property mix being analyzed.
Here’s what makes Sedona’s ADR interesting compared to other STR markets:
- It’s consistently high. Even in slower months, ADR rarely drops below $200 for a decent property. Guests expect to pay a premium for the Sedona experience.
- It’s view-dependent. Properties with direct red rock views command a 30-50% ADR premium over comparable properties without views. A 3-bedroom home that books at $350/night without views might book at $475-$525/night with panoramic red rock vistas.
- It’s less rate-sensitive than you’d think. Sedona attracts a guest profile (couples, wellness travelers, retirees, affluent families) that is generally less price-sensitive than the typical beach vacation renter.
ADR by Property Type
| Property Type | Typical ADR Range |
|---|---|
| 1BR condo/studio | $175-$275 |
| 2BR home/condo | $250-$400 |
| 3BR home | $325-$525 |
| 4BR+ luxury home | $450-$800+ |
| Red rock view premium | +30-50% above baseline |
These are approximate ranges for well-managed properties. Poorly optimized listings will underperform these numbers, and exceptional properties will exceed them.
Occupancy Rates in Sedona
Sedona’s occupancy rate typically falls between 44% and 49% on an annualized basis.
If you’re coming from a beach market where 60-70% occupancy is the norm, 44-49% might seem low. But context matters:
Sedona is an ADR market, not an occupancy market. The revenue math works because nightly rates are high enough that you don’t need 60%+ occupancy to generate strong returns. A property booking 47% of nights at $400 ADR generates more revenue than a property booking 65% of nights at $225 ADR.
That said, there are seasonal patterns that affect occupancy:
Sedona’s Seasonal Demand Pattern
- Peak season (March, September-November): Occupancy pushes into the 60-75% range. Spring brings wildflower season and ideal hiking weather. Fall delivers the best combination of mild temps and stunning foliage in Oak Creek Canyon.
- Shoulder season (April-May, December): Solid demand in the 45-55% range. Spring stays warm into May, and December brings holiday travelers plus Sedona’s famous luminaria displays.
- Summer (June-August): This surprises some investors — summer is actually Sedona’s softest season. Daytime temps hit 95-100°F, which discourages some visitors. Occupancy drops to 35-45%. However, Sedona still draws summer visitors escaping the 115°F+ Phoenix heat (Sedona sits at 4,500 feet elevation, roughly 15-20 degrees cooler than the Valley).
- Winter (January-February): Moderate demand, 40-50% occupancy. Sedona doesn’t get harsh winters — occasional snow on the red rocks actually drives bookings because the photos are spectacular.
The key insight: Sedona has genuine year-round demand. Unlike beach markets where you might get 70% of your revenue in 4-5 months, Sedona spreads revenue more evenly across the calendar. This makes cash flow more predictable and reduces the “feast or famine” dynamic.
Revenue by Bedroom Count
Here’s where the numbers get specific. These are approximate annual gross revenue ranges for well-managed Sedona STRs:
1 Bedroom / Studio
- Annual Revenue: $28,000-$42,000
- Typical ADR: $175-$275
- Notes: Condos and casitas in this category. Lower entry price point but also lower revenue ceiling. Best suited for the Village of Oak Creek condo market.
2 Bedroom
- Annual Revenue: $42,000-$65,000
- Typical ADR: $250-$400
- Notes: The sweet spot for many investors. Attracts couples and small families. Strong demand year-round.
3 Bedroom
- Annual Revenue: $58,000-$95,000
- Typical ADR: $325-$525
- Notes: This is where the revenue curve steepens, especially with red rock views. A 3BR with views can push $100K+.
4 Bedroom+
- Annual Revenue: $80,000-$150,000+
- Typical ADR: $450-$800+
- Notes: Larger luxury homes with views, hot tubs, and premium finishes. The top end of this range requires excellent property quality and management.
What Top Performers Gross
The best-performing STRs in Sedona — we’re talking luxury homes with dramatic red rock views, exceptional design, hot tubs, outdoor living spaces, and professional management — can gross $200,000 to $450,000+ per year.
These are outliers, not the norm. Properties in this tier typically:
- Have 3-5+ bedrooms
- Feature unobstructed red rock views (Sedona’s most valuable amenity)
- Are located in premium areas (Chapel Area, West Sedona ridge properties, Red Rock Loop)
- Have been designed or renovated specifically to maximize the guest experience
- Are priced at $1.5M-$3M+ at acquisition
- Run professional photography, dynamic pricing, and multi-platform distribution
The point isn’t that every investor will hit $300K in gross revenue. The point is that Sedona’s ceiling is exceptionally high for the right property, and the premium that guests will pay for views and experience creates real upside that doesn’t exist in every market.
The Red Rock View Premium: Sedona’s Unique Revenue Lever
In most STR markets, amenities like pools, hot tubs, and proximity to attractions drive ADR premiums. Those matter in Sedona too. But nothing moves the needle like red rock views.
Properties with panoramic views of formations like Cathedral Rock, Bell Rock, Courthouse Butte, Thunder Mountain, or Coffee Pot Rock consistently command 30-50% higher nightly rates than comparable properties without views.
Here’s what that looks like in practice:
- A 3BR home in West Sedona without views: $325-$375/night
- A 3BR home in West Sedona with red rock views: $450-$550/night
- Annualized revenue difference: $15,000-$40,000+
This premium is durable because it’s driven by something that can’t be replicated or competed away — the views are geological, not manufactured. A property with views today will have views in 20 years. And as Sedona’s visitor numbers continue growing, the scarcity of view properties (finite buildable lots with views) means this premium should hold or increase over time.
Investor takeaway: When underwriting a Sedona acquisition, the presence or absence of red rock views is the single most important variable after bedroom count. If you’re choosing between a property with views at a higher price point and a cheaper property without views, run the numbers carefully — the view property often wins on revenue despite the higher basis.
How Sedona Compares to Other STR Markets
To put Sedona’s revenue numbers in context:
| Market | Avg. Annual Revenue | ADR | Occupancy |
|---|---|---|---|
| Sedona, AZ | $46K-$70K | $295-$427 | 44-49% |
| Scottsdale, AZ | $45K-$75K | $250-$375 | 55-65% |
| Gatlinburg, TN | $40K-$65K | $200-$325 | 55-65% |
| Gulf Shores, AL | $45K-$70K | $225-$350 | 50-60% |
| Joshua Tree, CA | $35K-$55K | $225-$350 | 40-50% |
Sedona sits in a unique position: higher ADR but lower occupancy than most comparable markets. The revenue totals end up similar, but the composition is different. You’re earning more per booked night but booking fewer nights.
This has practical implications:
- Less wear and tear on the property (fewer turnovers)
- Lower cleaning and turnover costs proportional to revenue
- More pricing power in peak seasons
- Less vulnerability to rate compression from oversupply
Revenue Trends: Where Is Sedona Heading?
Sedona’s STR market has matured significantly over the past several years. The post-COVID boom that lifted all STR markets brought a wave of new supply to Sedona, and revenue per property moderated from the unsustainable highs of 2021-2022.
That said, several factors support stable-to-growing revenue going forward:
- Demand continues growing. Sedona visitor numbers have trended upward for years, driven by social media exposure, wellness tourism trends, and the “experiential travel” shift.
- Supply growth is naturally constrained. Sedona is a small town (population ~10,000) surrounded by National Forest land. There’s limited buildable land, and the city’s ADU restrictions (passed September 2024) further limit new STR supply by prohibiting ADU short term rentals unless the owner occupies the primary structure.
- High entry cost limits competition. With a median home price around $1.5 million, Sedona self-selects for better-capitalized investors who tend to create higher-quality listings.
- The guest profile is resilient. Sedona’s visitors tend to be higher-income, and wellness/nature tourism is less discretionary-spending-sensitive than budget vacation travel. In economic downturns, Sedona’s guest base holds up better than markets dependent on budget-conscious families.
What Does This Mean for Cash Flow?
Revenue is only half the equation. Sedona’s high property prices mean that even strong gross revenue doesn’t always translate to positive cash flow on a leveraged purchase.
Here’s a simplified example for a 3-bedroom home:
- Purchase price: $1,000,000
- Down payment (25%): $250,000
- Mortgage (30yr, 7%): ~$4,990/month ($59,880/year)
- Gross revenue: $75,000
- Operating expenses (35%): $26,250
- Net operating income: $48,750
- Debt service: $59,880
- Cash flow before taxes: -$11,130
This is a common reality in Sedona: many properties are cash-flow-negative on a traditional leveraged basis. The investment thesis typically relies on:
- Appreciation (Sedona has appreciated strongly over the past decade)
- Mortgage paydown
- Tax benefits (depreciation, bonus depreciation, cost segregation)
- Personal use value
- Revenue growth over time as rates increase
Investors who need Day 1 cash flow from Sedona typically need either a larger down payment, a below-market acquisition, or a property that significantly outperforms market averages.
For a deeper analysis of whether Sedona makes sense as an investment, see our guide: Is Sedona a Good Short Term Rental Investment in 2026?
How to Maximize Revenue in Sedona
If you’re committed to the Sedona market, here’s what the data says about maximizing your returns:
1. Prioritize Views
We’ve said it multiple times because it’s that important. Red rock views are the #1 revenue driver in Sedona. If your budget allows, buy the view.
2. Invest in Outdoor Living Spaces
Sedona guests want to be outside. Decks with views, hot tubs, fire pits, outdoor dining areas — these amenities directly increase both ADR and booking rates.
3. Use Dynamic Pricing
Sedona’s seasonal demand swings mean static pricing leaves money on the table. Professional dynamic pricing tools (PriceLabs, Wheelhouse, Beyond) can capture 10-20% more revenue by optimizing rates for demand patterns.
4. List on Multiple Platforms
Don’t just use Airbnb. Sedona’s guest demographic books across Airbnb, VRBO, Booking.com, and direct booking sites. Multi-platform distribution increases visibility and occupancy.
5. Lean Into the Sedona Experience
Your listing should sell the Sedona experience, not just a place to sleep. Highlight proximity to trails, vortex sites, restaurants, and galleries. Provide trail guides, restaurant recommendations, and local tips. Guests who feel they’re getting a curated experience leave better reviews and pay higher rates.
6. Understand the Regulations
Sedona requires an annual STR permit and prohibits special events (weddings, retreats, conferences) of any size. Violating these rules can result in permit revocation — which means zero revenue. Compliance isn’t optional. Read our full Sedona STR regulations guide for details.
Working With an Agent Who Knows Sedona STR Numbers
Revenue projections are only as good as the data behind them, and in a market like Sedona where views and location create massive performance differences between properties, working with an agent who understands STR revenue dynamics is critical.
The Short Term Shop is the largest short term rental-specific brokerage in the country, with over 5,000 clients and $3.5 billion in transactions. Our Sedona agent, Leslie Carbajal, is an Arizona native and active STR investor who can walk you through revenue projections specific to the property you’re considering — including how views, location, and bedroom count will affect your bottom line.
Frequently Asked Questions
How much does the average Airbnb make in Sedona, Arizona?
The average short term rental in Sedona generates between $46,000 and $70,000 per year in gross revenue, with an average daily rate of $295-$427 and occupancy between 44-49%. Top-performing properties with red rock views and professional management can gross $200,000-$450,000+ annually
What is the average daily rate for a short term rental in Sedona?
Sedona's average daily rate (ADR) ranges from approximately $295 to $427, depending on property size, location, and whether the property has red rock views. View properties command a 30-50% premium, meaning a home that would book at $350/night without views might book at $475-$525/night with panoramic red rock vistas.
Is Sedona a seasonal short term rental market?
Sedona has year-round demand, which is one of its advantages over strictly seasonal markets. Peak months are March and September through November, when occupancy can reach 60-75%. Summer is the softest season (95-100°F days), but Sedona still draws visitors escaping the 115°F+ Phoenix heat. Winter brings moderate demand and occasional snow on the red rocks, which actually drives bookings.
How much do top-performing Sedona Airbnbs make?
The highest-grossing short term rentals in Sedona — luxury homes with 3-5+ bedrooms, panoramic red rock views, hot tubs, and exceptional design — can gross $200,000 to $450,000+ per year. These are outlier properties, but they demonstrate the revenue ceiling that exists in Sedona for the right product.
Do red rock views really affect short term rental revenue in Sedona?
Yes — views are the single most important revenue lever in Sedona after bedroom count. Properties with direct red rock views consistently command 30-50% higher nightly rates than comparable properties without views, which can translate to $15,000-$40,000+ in additional annual revenue. This premium is durable because view lots are finite and the formations are permanent.
Who is the best agent for buying a short term rental in Sedona?
The Short Term Shop is the largest STR-specific brokerage in the US with 5,000+ clients and $3.5B+ in transactions. Our Sedona agent is Leslie Carbajal, an Arizona native and active STR investor who specializes in helping investors identify properties with the best revenue potential in Sedona's unique market.
Email: ag****@**************op.com
Phone: 800-898-1498
Disclaimer: Revenue figures cited in this article are based on publicly available market data, third-party analytics platforms, and industry experience. Actual short term rental performance varies significantly based on property characteristics, location, management quality, market conditions, and other factors. Past performance does not guarantee future results. 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.