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 securing historic district approval, with typical 2-3 bedroom homes in suitable zones ranging $150,000-$300,000, considering proximity to downtown attractions and mining tour sites. Furnish the property with southwestern/mining town themed decor, essential amenities including high-speed internet, air conditioning (crucial for Arizona summers), and outdoor seating to capitalize on Bisbee's mild winters and mountain views, budgeting $15,000-$25,000 for complete furnishing. List your property on Airbnb, VRBO, and local tourism sites, highlighting Bisbee's unique attractions like the Copper Queen Mine, historic downtown, and arts scene, with competitive pricing typically ranging $80-$150 per night depending on size and amenities. Manage the property by establishing relationships with local cleaning services ($40-$60 per turnover), maintenance contractors familiar with older Bisbee homes, and consider hiring a local property management company (10-20% of revenue) if you're not residing locally, while maintaining compliance with quarterly reporting requirements to the city and collecting applicable taxes including Arizona state tax and local lodging taxes.

To identify profitable short-term rental properties in Bisbee, Arizona, focus on historic downtown areas within walking distance of Brewery Gulch and Main Street, as well as properties in the Warren District and near the Copper Queen Mine, since tourists are drawn to Bisbee's mining heritage and Victorian architecture. Target unique properties like historic homes built between 1880-1920, adobe structures, or quirky artistic spaces that reflect Bisbee's bohemian character, ensuring they have 2-3 bedrooms, updated kitchens and bathrooms, reliable WiFi, air conditioning, and outdoor spaces with mountain views. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for nightly rates between $80-150 depending on size and uniqueness, while calculating potential annual revenue of $25,000-45,000 for well-positioned properties. Research competition by studying existing Airbnb and VRBO listings within a 2-mile radius, identifying gaps in amenities or property types, and monitoring occupancy rates which typically peak during Bisbee's mild winter months (November-March) when snowbirds visit. Utilize tools like Rabbu, Awning, and local Facebook groups such as "Bisbee Real Estate" and "Bisbee Community Board" for market insights, while partnering with local property managers like Bisbee Vacation Rentals and consulting with Cochise County regarding STR regulations and licensing requirements that became effective in 2019.

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 $350-500, with additional fees for public notices and hearings if required. The process typically takes 60-90 days and includes a public hearing before the Planning and Zoning Commission. Bisbee requires STRs to have adequate off-street parking (minimum 2 spaces), maintain occupancy limits based on bedrooms and square footage, provide 24/7 local contact information to neighbors, display permit numbers in all advertising, and comply with noise ordinances and neighborhood compatibility standards. Once approved, you must also register with the Arizona Department of Revenue for transaction privilege tax collection and may need additional permits from Cochise County Health Department if providing food services.

Short-term rentals (STRs) are generally legal in Bisbee, Arizona, but operate under specific municipal regulations that the city has implemented to balance tourism revenue with neighborhood preservation. As of recent years, Bisbee requires STR operators to obtain a business license and comply with zoning restrictions that typically limit or prohibit STRs in certain residential areas, particularly R-1 single-family zones, while allowing them more freely in commercial and mixed-use districts. The city has implemented occupancy limits, parking requirements, noise ordinances, and mandates that operators provide 24-hour contact information for complaints. Recent legal changes around 2019-2021 included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental versus traditional lodging. Properties must also comply with safety standards including smoke detectors and emergency egress requirements, and the city maintains the right to revoke permits for repeated violations, with some historic district areas having additional preservation-related restrictions on modifications that might affect STR operations.

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, and proximity to attractions like the Copper Queen Mine and Bisbee Mining & Historical Museum. The Brewery Gulch neighborhood offers excellent potential with its authentic Old West atmosphere, historic saloons, and walkability to restaurants and art galleries, appealing to cultural tourists and weekend visitors from Tucson and Phoenix. The Warren District, originally a company town, provides opportunities for larger properties that can accommodate families visiting the area's outdoor attractions and those attending events at venues like the Historic Evergreen Cemetery tours. Areas near the Lavender Pit overlook offer unique accommodations with scenic mining views that attract photography enthusiasts and history buffs. Properties close to the Bisbee 1000 stair climb route see increased demand during the annual October event, while locations near the downtown arts district benefit from the monthly Art Walk events and the growing artist community that draws creative travelers seeking authentic experiences in this former copper mining town.

Airbnb properties in Bisbee, Arizona are subject to multiple lodging taxes including Arizona state Transaction Privilege Tax (TPT) at 5.6% on gross rental income, Cochise County bed tax at 3% on gross receipts, and potentially a City of Bisbee lodging tax estimated at 2-4% depending on local ordinances enacted around 2018-2020. The state TPT is collected by hosts and remitted monthly to the Arizona Department of Revenue if gross receipts exceed $1,000 annually, while county bed taxes are typically collected by hosts and remitted quarterly to Cochise County. Airbnb may collect and remit some taxes automatically depending on agreements with local jurisdictions, but hosts remain ultimately responsible for compliance. Properties rented for 30+ consecutive days to the same guest are generally exempt from transient lodging taxes, and some jurisdictions may exempt rentals under certain dollar thresholds or provide exemptions for properties with fewer than a specified number of units, though specific exemption details vary by jurisdiction and hosts should verify current requirements with each taxing authority.

Starting an Airbnb in Bisbee, Arizona requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $150,000 for a median 2-3 bedroom home suitable for short-term rental in this historic mining town. Furnishing costs range $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and décor that matches Bisbee's artistic character. Initial setup expenses total $2,000-3,000 covering professional photography, listing creation, welcome materials, and basic maintenance supplies. Permits and fees include a $200 business license, $150 short-term rental permit from Cochise County, and $300 in various municipal fees. Insurance costs $1,200-1,800 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-800 for electricity, water, gas, internet, and cable services. First six months operating costs total $6,000-8,000 including utilities ($200/month), cleaning services ($75 per turnover), Airbnb platform fees (3% host fee), property management software ($50/month), maintenance reserves ($300/month), and marketing expenses ($100/month).

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 (15-25% of revenue if outsourced), maintenance ($2,000-4,000 annually), insurance ($800-1,500 yearly), and local taxes. Net profit margins typically range from 15-35% for successful properties, with historic homes and unique properties near Old Bisbee's downtown core performing best due to the town's appeal as a quirky arts destination and proximity to Tombstone tourism. Success factors include authentic southwestern décor, reliable WiFi for remote workers, pet-friendly policies given the area's outdoor recreation appeal, and competitive pricing against the limited hotel inventory. Properties within walking distance of Brewery Gulch and the Bisbee Mining & Historical Museum command premium rates, while those requiring significant renovation or located in less desirable neighborhoods may struggle with occupancy rates below 40%, making profitability challenging in this small market of approximately 5,000 residents that relies heavily on weekend tourism and seasonal visitors.

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 command higher nightly rates of $80-120, while outlying properties average $60-90 per night with occupancy rates of 65-75% annually. Initial investment costs are relatively low with median property prices around $150,000-250,000, and investors can expect to reach profitability within 18-24 months after accounting for renovation costs, furnishing, and marketing expenses. The market benefits from year-round tourism due to mild winter weather and cultural events, though seasonal fluctuations occur with peak performance during fall and spring months when temperatures are most favorable for visitors exploring the historic mining town's attractions.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Bisbee, Arizona. Local real estate agents like those at Realty Executives and Coldwell Banker Landmark Properties in nearby Sierra Vista serve the Bisbee market and can assist with Airbnb investment properties. National services include AirDNA for market analysis, Mashvisor for property analytics, and BiggerPockets for investor networking and deal sourcing. RedAwning and Awning provide short-term rental market data and investment guidance for Arizona markets. Local property management companies like Arizona Vacation Rental Management and Desert Oasis Property Management can help investors manage their Airbnb properties in the Bisbee area. Roofstock and Arrived Homes are national platforms that sometimes feature Arizona investment properties suitable for short-term rentals. Real estate investment firms like HomeVestors and We Buy Ugly Houses occasionally work with investors looking for fixer-upper properties in smaller Arizona markets like Bisbee that could be converted to profitable Airbnb rentals.