Are you interested in investing in a Airbnb rental property? If you’re looking for a city with a strong short-term rental market, Flagstaff, AZ, may be worth considering.
In this blog post, we’ll take a closer look at the short-term rental market in Flagstaff and provide some data points to help you make an informed decision.
Market Overview
To understand the dynamics of the short-term rental market in Flagstaff, AZ, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 30.89% of inventory. This is followed by 2 and 1-bedroom homes at 21.98% and 19.14% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Flagstaff experienced an appreciation of 3.63%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in Flagstaff have appreciated by 3.63%. The median home value in Flagstaff is $655,400 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Flagstaff boasts a significant Airbnb rental market, with approximately 1,715 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $259. The Average Daily Rate is the highest for 5-bedroom homes ($377) followed by 4-bedrooms and 3 bedrooms at $330 and $287 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 72% for Airbnb rentals in Flagstaff. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Flagstaff ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.71% in Flagstaff. This figure suggests that short-term rentals in the city offer a favorable return on investment. Flagstaff is ranked #68 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Flagstaff earn an average of $36,084 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Flagstaff is 0.55%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Regulations
Flagstaff’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
Hosts
The market is dominated by property management firms. The largest host is Evolve with 4.85% of the total inventory and an average review of 4.88 ⭐️s .
Other Considerations
In addition to the financial and regulatory factors, there are a few other considerations to consider when investing in a Airbnb rental property in Flagstaff. One of these is the median household income, an important factor to consider when determining the potential demand for short-term rental properties. According to the US Census Bureau, the median household income in Flagstaff is $61,026.
Another consideration is the climate. Flagstaff has a semi-arid climate, with hot summers and cold winters. The city receives an average of 100 inches of snowfall each year, which could impact the demand for short-term rentals during the winter months.
Guests
The majority of the guests come from inside of Arizona. 13.00% of all guests are from Phoenix followed by Scottsdale with 4.53%.
Population
Flagstaff is a medium-sized city with a population of approximately 77,000 people. The city is located at an elevation of 7,000 feet, making it an ideal destination for those seeking to escape the heat and enjoy cooler temperatures. Various natural landscapes, including the San Francisco Peaks and the Coconino National Forest, surround the city.
Sports, Education, and Crime
Flagstaff is home to a number of sports teams, including the Northern Arizona University Lumberjacks. This university is also one of the main colleges located in Flagstaff, along with Coconino Community College.
In terms of crime, Flagstaff’s crime rate is slightly higher than the national average. However, the city’s crime rate has been decreasing in recent years, making it a safer place to live and visit.
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Tourism
One of the main industries in Flagstaff is tourism, and the city receives visitors from all over the world. According to Visit Flagstaff, the city receives approximately 5 million visitors per year. The majority of these visitors come from nearby states like California and Nevada, but visitors also come from as far away as Europe and Asia.
When it comes to tourist attractions, Flagstaff has plenty to offer. Some of the city’s most popular attractions include the Lowell Observatory, which is famous for its discovery of Pluto, and the Museum of Northern Arizona, which showcases the region’s natural and cultural history. Flagstaff is also a gateway to the Grand Canyon, making it a popular destination for those looking to explore this natural wonder.
Peak Seasons
The peak season in Flagstaff varies depending on the time of year. The summer months are a popular time for outdoor activities like hiking, mountain biking, and camping. In the winter months, the city becomes a hub for skiing and snowboarding. In addition, the fall season is a popular time to visit Flagstaff to see the changing colors of the leaves.
Conclusion
The Airbnb rental market in Flagstaff, AZ, is thriving, with high demand and increasing supply. The average daily rate and occupancy rate are both impressive, and the average gross yield for short-term rentals is above the national average.
Overall, Flagstaff, AZ, offers a strong short-term rental market that has been performing well in recent years
