How Much Do Short Term Rentals Make in Scottsdale, Arizona?

The median short term rental in Scottsdale, Arizona generates approximately $30,147 in annual gross revenue for a 3-bedroom property — the most common investment size in the market. That number comes from AirDNA’s analysis of 2,640 active short term rental listings across the Phoenix/Scottsdale metro area. Top-performing properties at the 75th percentile earn $44,510, and the top 10% of 3-bedroom Scottsdale STRs generate $61,548 or more annually.

Scottsdale has emerged as one of the premier short term rental markets in the Southwest. The combination of year-round sunshine, world-class golf, a thriving arts and dining scene, and proximity to Phoenix Sky Harbor International Airport makes it a magnet for travelers. For investors, Scottsdale offers something increasingly rare: strong vacation rental demand paired with a relatively business-friendly regulatory environment compared to other major Arizona cities.

Unlike purely seasonal beach markets, Scottsdale benefits from a long high season stretching from October through April, when snowbirds and winter escapees flood the Valley of the Sun. The shoulder seasons still perform well thanks to events like the Waste Management Phoenix Open, Barrett-Jackson auto auction, and spring training baseball. Even the slower summer months see occupancy from budget-conscious travelers willing to brave the heat for deeply discounted rates.

How Much Do Short Term Rentals Make in Scottsdale?

Based on AirDNA market data across 2,640 active listings in the Phoenix/Scottsdale metro, here’s what short term rentals actually earn — broken down by bedroom count with real percentile data:

Revenue by Bedroom Count (2026 Data)

Bedrooms	Median Revenue	75th Percentile	90th Percentile	Sample Size
1 BR	$19,281	$24,550	$31,750	70 listings
2 BR	$27,137	$40,656	$54,871	324 listings
3 BR	$30,147	$44,510	$61,548	1,073 listings
4 BR	$40,764	$59,441	$85,028	633 listings
5 BR	$50,445	$82,764	$110,600	296 listings
6+ BR	$63,430	$121,326	$201,462	206 listings

Source: AirDNA market data, trailing 12 months. Sample includes 2,640 active listings in the Phoenix/Scottsdale metro. Data sourced from AirDNA analysis of 2,640 active listings, trailing 12 months as of May 2026.

The percentile breakdown is what makes this data actionable. The median tells you what a typical property earns. The 75th percentile shows what well-managed, well-positioned properties earn — this is achievable with the right property selection, amenities, and management strategy. The 90th percentile represents what top-performing properties earn and should be your stretch target, not your baseline projection.

The sweet spot for most Scottsdale short term rental investors is the 3-bedroom property. With a median revenue of $30,147 and top performers clearing $61,548, the 3-bedroom segment balances acquisition cost against revenue potential, appeals to the largest segment of travelers (couples traveling together, small families, golf groups), and is easier to furnish and maintain than larger homes. The 1,073 listings in this category confirm it’s the dominant property size in the market.

Four-bedroom properties jump to a median of $40,764, with the 75th percentile reaching $59,441 — a significant step up. These come with higher purchase prices, often pushing into the $600K–$900K range.

Five-bedroom and larger luxury vacation rentals in Scottsdale deliver the biggest numbers — median revenue of $50,445 for 5-bedroom units, and $63,430 for 6+ bedroom homes. But the real story is at the top end: the 90th percentile for 6+ bedroom properties is a staggering $201,462. These properties require substantial capital (often $1M+) and furnishing to luxury standards, but the upside is enormous for investors who execute well.

Revenue by Property Type

Property Type	Average Annual Revenue	Average ADR	Occupancy
Single-Family Home	$52,400	$285	54%
Condo/Townhouse	$33,600	$195	50%
Casita/Guest House	$28,200	$175	48%

Single-family homes dominate the Scottsdale short term rental landscape and consistently outperform condos and townhomes. The reason is straightforward: travelers to Scottsdale are often looking for a private retreat with a pool, outdoor entertaining space, and room to spread out. A standalone home with a heated pool and mountain views commands premium rates that a condo simply cannot match.

That said, condos and townhomes in prime locations — particularly in Old Town Scottsdale near the entertainment district — can perform well on occupancy due to walkability. They attract a different guest profile: younger travelers, bachelorette parties, and couples who prioritize location over space.

Investors should also be aware that many Scottsdale HOAs restrict or prohibit short term rentals. Due diligence on HOA bylaws is critical before purchasing any condo or townhome as a vacation rental investment.

What Affects STR Revenue in Scottsdale?

Seasonality

Scottsdale’s revenue pattern is the inverse of most vacation markets. Peak season runs from October through April, when temperatures are mild and snowbirds arrive from the Midwest and Northeast. The highest-revenue months are typically January through March, coinciding with major events and peak snowbird season.

Summer (June–August) is the slow season due to extreme heat, with daily highs routinely exceeding 110°F. However, savvy operators don’t write off summer entirely — reduced rates attract budget travelers, and pools become the main amenity draw.

Season	Monthly Revenue (3BR avg)	Occupancy
Peak (Jan–Mar)	$5,800–$7,200	72%
Shoulder (Oct–Dec, Apr)	$4,200–$5,500	58%
Off-Peak (May–Sep)	$2,100–$3,400	38%

Location Within the Market

Not all Scottsdale neighborhoods perform equally for vacation rentals:

• Old Town Scottsdale — Highest occupancy, strong ADR, walkable to restaurants and nightlife. Best for 1–2 BR condos targeting younger travelers.
• North Scottsdale — Luxury market, highest ADR but lower occupancy. Best for 4+ BR homes with pools and mountain views.
• South Scottsdale — Lower acquisition costs, moderate performance. Good for investors seeking cash flow at a lower entry point.
• McCormick Ranch / Gainey Ranch — Mid-range, family-friendly, golf-adjacent. Solid 3 BR performers.

Amenities That Drive Revenue

In Scottsdale, certain amenities directly impact nightly rates and occupancy:

• Private pool (heated) — The single most important amenity. Can add 20–30% to nightly rate.
• Hot tub/spa — Strong incremental value, especially in winter months.
• Outdoor kitchen/BBQ — Appeals to the entertaining-focused guest profile.
• Mountain views — Camelback or McDowell Mountain views command premium pricing.
• Golf proximity — Access to courses like TPC Scottsdale, Troon North, or Grayhawk is a selling point.

Management Quality

Professional management in Scottsdale typically costs 20–25% of gross revenue. Self-managing owners can save this cost but need to be responsive — Scottsdale guests have high expectations. Dynamic pricing tools are essential; the difference between a static pricing strategy and an optimized one can be $8,000–$12,000 in annual revenue.

Expenses and Net Income

Understanding the gap between gross revenue and net income is critical for evaluating any Scottsdale vacation rental investment. Here’s what a typical 3-bedroom Scottsdale short term rental expense breakdown looks like:

Expense Category	Annual Cost	% of Gross Revenue
Property Management	$6,000–$7,500	20–25%
Cleaning & Turnover	$5,400	18%
Utilities (incl. pool)	$4,200	14%
Insurance (STR policy)	$2,400	8%
Supplies & Consumables	$1,800	6%
Maintenance & Repairs	$3,000	10%
Platform Fees (Airbnb/Vrbo)	$1,500	5%
Total Operating Expenses	$24,300–$25,800	81–86%

On a property grossing $30,147 (the 3BR median), you’re looking at approximately $4,347–$5,847 in net operating income before mortgage, property taxes, and depreciation. However, properties performing at the 75th percentile ($44,510) see meaningfully better margins — approximately $18,710–$20,210 in NOI — because expenses don’t scale proportionally with revenue. This is why property selection and management quality matter so much.

Property taxes in Scottsdale run approximately 0.6–0.8% of assessed value.

One significant advantage for short term rental investors: the short term rental tax loophole can allow you to offset W-2 or other active income with STR depreciation if you materially participate in the rental activity. This tax benefit can dramatically improve the after-tax return on a Scottsdale vacation rental investment.

Is Scottsdale a Good Place to Invest in Short Term Rentals?

Scottsdale is an excellent short term rental market for investors who understand its dynamics. Here’s the investment thesis:

Strengths:

• Long high season (7+ months of strong demand)
• Diverse traveler base (snowbirds, golfers, event attendees, corporate travelers)
• Strong appreciation market — Scottsdale real estate has historically appreciated well
• Relatively STR-friendly regulations compared to neighboring cities like Phoenix and Tempe
• Growing population and infrastructure investment in the greater Phoenix metro
• Deep market data: 2,640 active listings provide robust performance benchmarks

Considerations:

• Higher entry prices than many STR markets (median home price ~$650K)
• Summer slow season requires financial planning for lower-revenue months
• HOA restrictions can limit options in condo/townhome segments
• Competition is increasing as more investors discover the market
• Median revenue for 3BR ($30,147) requires careful expense management for cash flow

Who this market is for: Scottsdale works best for investors with moderate to higher budgets ($400K–$800K purchase range) who want a property that also serves as a personal-use retreat. It’s ideal for investors who value appreciation alongside cash flow, and who are comfortable with a seasonal revenue pattern. Targeting the 75th percentile ($44,510 for 3BR) through strong positioning and management is key to making the numbers work.

Avery Carl, founder of The Short Term Shop, has noted that Scottsdale is one of the markets where investors consistently underestimate the importance of property selection. The difference between a well-positioned 3-bedroom with a pool (potentially earning at the 75th percentile of $44,510) and a comparable property without one (earning at or below the median of $30,147) can be $15,000+ in annual revenue.

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Ready to invest in a Scottsdale short term rental? The Short Term Shop’s team of STR-specialized agents can help you find the right property in the right Scottsdale neighborhood. Visit theshorttermshop.com or contact us today to get started.