Is Bisbee, Arizona Good for Airbnb Investment?

To start an Airbnb in Bisbee, Arizona, begin by researching local regulations through the City of Bisbee Planning Department, as the city requires short-term rental permits and has specific zoning restrictions that limit STRs to certain residential areas while prohibiting them in historic districts without special approval. Obtain necessary permits including a business license from the city ($50-100 annually), a short-term rental permit (approximately $200-300), and ensure compliance with fire safety codes and occupancy limits typically set at 2 guests per bedroom plus 2 additional. Find property by focusing on areas outside the historic core or seek properties with existing STR approval, with average home prices ranging $150,000-400,000 depending on location and condition. Furnish the space with southwestern/mining town themed decor reflecting Bisbee's character, including essential amenities like WiFi, air conditioning (crucial for Arizona summers), and kitchen basics, budgeting $10,000-20,000 for a complete setup. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting Bisbee's unique charm and proximity to attractions like the Copper Queen Mine and Brewery Gulch, setting competitive rates around $80-150 per night based on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with older Bisbee homes, and consider hiring a local property management company (10-20% of revenue) if you're not local, while maintaining compliance with city reporting requirements and tax obligations including Arizona state and local lodging taxes.

To identify profitable short-term rental properties in Bisbee, Arizona, focus on properties within walking distance of historic downtown attractions like Brewery Gulch and the Copper Queen Mine, as these areas generate the highest tourist traffic year-round. Target 2-3 bedroom historic homes or casitas with authentic Southwestern character, original architectural details, and outdoor spaces that showcase the desert mountain views, as these features command premium rates of $120-180 per night compared to generic properties at $80-120. Analyze pricing using AirDNA and Mashvisor to track seasonal demand patterns, noting that Bisbee experiences peak occupancy during winter months (November-March) when snowbirds arrive and during special events like the Bisbee 1000 stair climb race. Research competition by monitoring established STR operators like those managing properties near the Shady Dell vintage trailer park and Queen Mine tours, identifying gaps in luxury amenities or unique themes like mining history or artist retreats. Utilize tools such as Rabbu for market analysis, STR Helper for performance tracking, and connect with local real estate agents familiar with Bisbee's zoning regulations and historic district restrictions, while monitoring the Cochise County permit requirements and building relationships with local property management companies that understand the area's seasonal tourism patterns and can provide insights into emerging neighborhoods like Warren or Lowell that may offer better investment opportunities.

To obtain an Airbnb/STR permit in Bisbee, Arizona, you must first contact the Bisbee Planning and Zoning Department at City Hall located at 118 Arizona Street to determine if short-term rentals are permitted in your specific zoning district, as the city has specific regulations for STRs. You'll need to submit a Conditional Use Permit application along with required documents including property deed or lease agreement, site plan showing parking and access, floor plan of the rental unit, proof of liability insurance (typically $1 million minimum), contact information for a local property manager if you're not local, and a good neighbor agreement outlining house rules. The application fee is approximately $300-500 for the Conditional Use Permit process. You must also obtain a business license from the City Clerk's office for around $50-100 annually and register with the Arizona Department of Revenue for state tax purposes. Bisbee requires STR properties to provide adequate off-street parking (typically 2 spaces), maintain quiet hours from 10 PM to 7 AM, post maximum occupancy limits, and have a local contact person available 24/7 for issues. The approval process typically takes 60-90 days and includes a public hearing before the Planning and Zoning Commission, during which neighbors can provide input, and you may need to address any concerns raised before final approval is granted.

Short-term rentals (STRs) are legal in Bisbee, Arizona, but operate under specific municipal regulations that were implemented around 2019-2020. The city requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to commercial and mixed-use zones, while prohibiting them in most residential neighborhoods to preserve community character. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators are required to provide 24-hour contact information for noise or disturbance complaints. The city has implemented occupancy limits based on property size and requires adequate parking for guests. Recent changes have included stricter enforcement of noise ordinances and enhanced penalties for non-compliance, with the city conducting periodic reviews of STR regulations to balance tourism revenue with neighborhood preservation concerns. Bisbee's historic district has additional considerations due to its designation as a National Historic Landmark, which may impose further restrictions on property modifications for STR use.

The most promising Airbnb investment areas in Bisbee, Arizona include the Historic District/Old Bisbee area, which attracts tourists year-round due to its Victorian-era architecture, mining heritage sites like the Copper Queen Mine tours, and proximity to attractions such as the Bisbee Mining & Historical Museum and Brewery Gulch. The Tombstone Canyon neighborhood offers excellent potential with its authentic mining town atmosphere and walkability to restaurants, art galleries, and the famous Copper Queen Hotel, drawing history enthusiasts and ghost tour participants. The Warren District presents opportunities for investors targeting visitors to the Lavender Pit overlook and those attending events at local venues, while also serving business travelers to nearby mining operations. Areas near the Bisbee 1000 stair climb route see increased demand during the annual October event, and properties close to the Bisbee Deportation Memorial attract educational tourists and researchers. The Lowell area, while more residential, offers value investments for budget-conscious travelers exploring the Sonoran Desert landscape and visiting nearby Coronado National Memorial, with additional appeal from its proximity to the Mexican border for international visitors exploring both sides of the region.

In Bisbee, Arizona, Airbnb hosts are subject to multiple lodging taxes including Arizona state Transaction Privilege Tax (TPT) at 5.6% on rental income, Cochise County bed tax at 3%, and Bisbee city lodging tax at approximately 2-4%. The Arizona Department of Revenue requires hosts to register for a TPT license and file monthly returns by the 20th of the following month, with taxes collected from guests and remitted to the state. Cochise County's bed tax must be collected from guests and remitted quarterly to the county treasurer's office, while Bisbee's municipal lodging tax is collected similarly and remitted to the city clerk's office on a monthly or quarterly basis depending on volume. Airbnb may collect and remit some of these taxes automatically through their platform for registered properties, but hosts remain ultimately responsible for compliance. Exemptions typically apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt rentals under certain dollar thresholds or for specific purposes like medical treatment, though hosts should verify current exemption criteria with each taxing authority as rates and procedures can change annually.

Starting an Airbnb in Bisbee, Arizona requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000 based on Bisbee's median home prices as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup expenses including professional photography, listing creation, and basic renovations run $2,000-3,000. Permits and fees in Cochise County include business license ($100), short-term rental permit ($200-500), and potential HOA approvals totaling $500-800. Insurance for short-term rentals costs $1,200-2,000 annually, with upfront payment of $1,500. Utility deposits and connections for electricity, water, gas, internet, and cable total approximately $800-1,200. First six months operating costs including utilities ($150/month), cleaning services ($75 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses ($100/month) amount to roughly $3,500-4,500. Additional considerations include potential property taxes ($1,200-2,000 annually) and emergency repair funds ($2,000-3,000 reserve).

Airbnb properties in Bisbee, Arizona typically generate annual revenues between $15,000-$35,000 for well-positioned properties, with average daily rates ranging from $75-$150 depending on property type and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-300 monthly), property management (10-20% of revenue), maintenance ($2,000-4,000 annually), and insurance ($800-1,500 yearly). Properties near historic downtown Bisbee or with unique mining-themed décor command premium rates, with some restored Victorian homes achieving 65-70% occupancy rates and net profit margins of 25-35%. Success factors include proximity to Bisbee's arts district, copper mine tours, and the Mexican border (30 minutes to Naco), with properties featuring period architecture, modern amenities, and strong photography performing best. The market benefits from Bisbee's growing reputation as an arts destination and its appeal to Phoenix/Tucson weekend visitors, though seasonality affects performance with stronger bookings October through April. Properties purchased under $150,000 and generating $25,000+ annually typically achieve 12-18% returns on investment, while higher-end properties ($200,000+) may see 8-12% returns but benefit from appreciation in Bisbee's gentrifying historic districts.

Airbnb investments in Bisbee, Arizona typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's growing appeal as an arts destination and proximity to the Mexican border attracting tourists. Properties in historic downtown areas near galleries and restaurants can achieve occupancy rates of 65-75% with average daily rates of $85-120, while investors should expect 18-24 months to reach profitability after accounting for initial renovation costs common in Bisbee's older housing stock. The market benefits from limited hotel inventory and increasing popularity among Phoenix and Tucson weekend visitors, though seasonal fluctuations occur with peak performance during fall and spring months when desert weather is most favorable.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking to enter the Airbnb market in Bisbee, Arizona. Local real estate agents like those at Bisbee Realty and Cochise County Properties have experience with investment properties in the historic mining town and understand the unique vacation rental market dynamics. National services including Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for Bisbee's emerging STR market. Regional companies such as Arizona Investment Properties and Desert Mountain Realty offer specialized services for out-of-state investors seeking Airbnb opportunities in southeastern Arizona. Additional platforms like Awning, Roofstock, and RedfinNow can help identify properties with strong rental potential in Bisbee's growing tourism sector, while local property management companies like Cochise Vacation Rentals and Bisbee Property Management provide ongoing operational support for investors who purchase vacation rental properties in this historic copper mining community.