Arizona is one of the most investor friendly states in the country for short term rental investing, and two of its most popular markets sit just a couple hours apart. Scottsdale and Sedona both attract millions of visitors annually, but they serve very different guest profiles, generate different revenue numbers, and require different investment strategies.
If you are deciding between Scottsdale and Sedona for your next short term rental purchase, this guide breaks down everything you need to know: revenue potential, guest demographics, seasonality, purchase prices, and which market fits your specific investment goals.
Market Overview: Two Very Different Arizona Experiences
Scottsdale: Resort Golf and Desert Luxury
Scottsdale is Arizona’s premier resort destination. Known as the golf capital of the world, it boasts over 200 golf courses within a 30 minute drive. The city attracts a diverse crowd: snowbirds escaping northern winters from October through April, spring training baseball fans in February and March, bachelorette and bachelor parties year round, and corporate groups attending conferences and events.
The vibe is polished, upscale, and social. Old Town Scottsdale has a thriving nightlife and dining scene. The Scottsdale Fashion Square is one of the largest luxury malls in the Southwest. Guests come to Scottsdale to play golf, lounge by the pool, eat well, and enjoy the desert sun.
For a deeper look at Scottsdale’s investment potential, check out our guide on whether Scottsdale is a viable short term rental market.
Sedona: Red Rocks, Hiking, and Spiritual Tourism
Sedona is an entirely different experience. The stunning red rock formations, world class hiking trails, and reputation as a spiritual and wellness destination attract a guest profile that skews toward nature lovers, couples on romantic getaways, and wellness seekers. Sedona’s vortex sites draw visitors from around the world who are looking for a more contemplative, outdoor focused experience.
The town is significantly smaller than Scottsdale, with a population of roughly 10,000 compared to Scottsdale’s 250,000 plus. That smaller footprint means limited inventory, but also a more seasonal demand pattern.
Revenue Comparison
Scottsdale Revenue
Scottsdale short term rentals produce strong, relatively consistent revenue throughout much of the year. Based on current market data:
- 50th percentile: $45,000 annually
- 75th percentile: $68,000 annually
- 90th percentile: $98,000 annually
The revenue floor in Scottsdale is solid because demand comes from multiple sources: snowbirds, golf tourists, spring training, events, and corporate travel. For a detailed revenue breakdown, see our Scottsdale short term rental income page.
Sedona Revenue
Sedona short term rentals can perform well, particularly during peak seasons. Typical revenue ranges:
- 50th percentile: $35,000 to $40,000 annually
- 75th percentile: $55,000 to $65,000 annually
- 90th percentile: $80,000 to $90,000 annually
Sedona’s top performers do well, but the gap between average and top tier is narrower than in Scottsdale. The market’s smaller size and more concentrated seasonality create a lower ceiling for most properties.
Seasonality: Year Round vs Peak Driven
Scottsdale’s Extended Season
One of Scottsdale’s biggest advantages is its extended high season. Snowbird season runs from October through April, which covers roughly seven months of strong demand. Spring training in February and March creates a demand spike on top of an already busy period. Summer is slower due to extreme heat, but Scottsdale still captures weekend getaway traffic, pool parties, and budget conscious travelers looking for deals on luxury accommodations.
The result is a market with a long peak season and a manageable low season. Even in summer, occupancy rarely drops to zero because Scottsdale offers air conditioned resort style amenities that keep some demand flowing.
Sedona’s Seasonal Peaks
Sedona’s peak seasons are spring (March through May) and fall (September through November), when temperatures are ideal for hiking and outdoor activities. Summer brings intense heat, similar to Scottsdale, which reduces hiking traffic. Winter can be beautiful but cooler temperatures and occasional snow at higher elevations slow demand.
The result is a market with two strong peaks and two softer shoulders. Revenue is more concentrated into specific months, which means cash flow can be lumpy. Investors need to budget accordingly and ensure they can cover expenses during slower periods.
Purchase Prices and Entry Points
Scottsdale
Scottsdale offers a wide range of entry points depending on the neighborhood and property type:
- Condos and townhomes: $300,000 to $500,000
- Single family homes (good STR neighborhoods): $400,000 to $800,000
- Luxury properties: $800,000 to $1,500,000 and above
The best neighborhoods in Scottsdale for short term rental investing vary by price point and target guest. Old Town properties command premium nightly rates but come at higher purchase prices. Areas near golf courses attract a reliable snowbird demographic.
Sedona
Sedona’s limited inventory and high demand for residential properties push prices higher relative to revenue:
- Condos and smaller homes: $350,000 to $550,000
- Single family homes with views: $500,000 to $900,000
- Luxury properties with red rock views: $900,000 to $2,000,000 plus
Sedona’s price per dollar of revenue is generally higher than Scottsdale’s, meaning your return on investment may be lower even if absolute revenue numbers look attractive. The limited buildable land in Sedona also means appreciation potential could be strong, but that is a bet on the real estate market rather than a cash flow calculation.
Guest Profiles and What They Expect
Scottsdale Guests
Scottsdale guests tend to fall into a few clear categories:
- Snowbirds (Oct through Apr): Longer stays, 2 to 8 weeks. Want comfortable, well equipped homes with pools. Lower nightly rates but high occupancy.
- Golf groups: 3 to 5 night stays. Want proximity to courses, multiple bedrooms, game rooms or entertainment spaces.
- Bachelorette/bachelor parties: Weekend stays. Want Old Town proximity, pools, Instagram worthy spaces.
- Families: Spring break and holidays. Want pools, space, and kid friendly setups.
- Corporate travelers: Conference season stays. Want professional, clean, convenient locations.
This diversity of guest types is a major advantage. If one segment softens, others can fill the gap.
Sedona Guests
Sedona guests are more homogeneous:
- Couples on romantic getaways: 2 to 4 night stays. Want views, hot tubs, privacy, and charm.
- Hiking and outdoor enthusiasts: 3 to 5 night stays. Want proximity to trailheads and outdoor gear storage.
- Wellness and spiritual tourists: Variable stays. Want peaceful settings, meditation spaces, and unique design.
- Photographers and artists: Drawn by the landscape. Want properties with exceptional views and natural light.
The narrower guest profile means you are more dependent on a single type of tourism demand.
Regulations
Scottsdale
Arizona has been historically favorable for short term rental investors. State law preempts local municipalities from banning short term rentals outright, although cities can impose reasonable regulations around noise, parking, and safety. Scottsdale requires registration and compliance with local rules, but the regulatory environment is considerably more permissive than many other major markets.
For the full regulatory picture, see our Scottsdale short term rental regulations guide.
Sedona
Sedona and the surrounding Yavapai County area operate under the same Arizona state framework, so short term rentals cannot be banned outright. However, Sedona has implemented its own set of regulations including noise ordinances, parking requirements, and occupancy limits. The smaller community also means neighbors may be more vocal about short term rental activity, and local enforcement can feel more personal.
Expenses Comparison
Understanding your expense structure is critical in both markets. Scottsdale investors can reference our detailed Scottsdale short term rental expenses breakdown.
Key expense differences:
| Category | Scottsdale | Sedona |
|---|---|---|
| Property taxes | 0.6% to 0.8% (Maricopa County) | 0.6% to 0.8% (Yavapai County) |
| Insurance | Standard homeowners | Standard homeowners |
| Utilities | Higher summer (AC) | Moderate year round |
| Pool maintenance | Common expense ($100 to $200/mo) | Less common |
| Landscaping | Desert landscaping, lower cost | Variable, natural settings |
| Property management | 15% to 25% of gross | 20% to 30% of gross |
Both markets benefit from Arizona’s flat 2.5% state income tax rate, which is one of the lowest in the country.
Choose Scottsdale If…
- You want diversified demand from multiple guest types and seasons
- You prefer a longer peak season (October through April plus events)
- You want higher revenue ceilings at the 75th and 90th percentiles
- You are comfortable with a luxury market and higher purchase prices
- You value a more permissive regulatory environment with state level protections
- You want the largest selection of investment grade properties to choose from
- You plan to use the property yourself for golf, dining, or entertainment
Choose Sedona If…
- You are drawn to the unique red rock setting and believe it provides long term appreciation
- You prefer a smaller, more boutique market with limited competition
- Your target guest is the couples/romantic getaway segment
- You are comfortable with more pronounced seasonality and can budget for slower months
- You want a property in a tightly supply constrained market where new construction is limited
- You are willing to accept potentially lower returns in exchange for a unique property
The Bottom Line
Both markets can work for short term rental investors, but Scottsdale is generally the stronger pure investment play. Its diversified demand, longer peak season, and higher revenue percentiles make it a more predictable income producer. Sedona offers a compelling lifestyle component and potential appreciation story, but the tighter seasonality and higher price to revenue ratio make it a market where you need to be more selective about the specific property you purchase.
Whichever market you choose, working with an agent who specializes in short term rental investing is essential. Understanding revenue projections, neighborhood dynamics, and guest demographics is the difference between a property that performs and one that sits underbooked.
Ready to Invest in Arizona Short Term Rentals?
The Short Term Shop is the largest short term rental specialized real estate brokerage in the United States. Our agents understand the revenue data, the regulations, and the neighborhoods that actually perform for investors.
Whether you are leaning toward Scottsdale’s resort market or Sedona’s red rock charm, we can help you find the right property for your investment goals. Need financing? Our lending partner The Mortgage Shop specializes in investor friendly loan products for short term rental purchases.
Learn more about how to buy a short term rental or connect with our Scottsdale short term rental agents.
📞 800-898-1498 | 🌐 theshorttermshop.com
Disclaimer
The Short Term Shop is a real estate brokerage, not a certified public accounting firm, tax advisory firm, or financial planning service. Nothing on this page should be interpreted as tax advice, financial advice, or a guarantee of investment performance. Always consult your CPA, tax attorney, and financial advisor before making any investment or tax decisions.
All income and revenue figures referenced in this article are sourced from third party data providers including AirDNA and PriceLabs.co. These figures represent market averages and percentile ranges based on historical performance data and do not guarantee future results. Actual short term rental income varies significantly based on property quality, location, management quality, pricing strategy, seasonality, and market conditions. Your results may differ.