Is Dragoon, Arizona Good for Airbnb Investment?

To start an Airbnb in Dragoon, Arizona, begin by researching Cochise County's short-term rental regulations and zoning requirements, as Dragoon is an unincorporated community that falls under county jurisdiction rather than municipal control. Contact Cochise County Planning and Zoning Department to determine if your intended property allows short-term rentals and obtain necessary permits, which typically include a business license and may require a conditional use permit depending on zoning. Find a suitable property by searching rural listings in the Dragoon area, considering proximity to attractions like the Amerind Museum and Dragoon Mountains, ensuring reliable internet and utilities access which can be challenging in this remote desert location. Furnish the property with durable, southwestern-style furniture suitable for the high desert climate, including air conditioning for summer temperatures exceeding 100°F and heating for winter nights that can drop below freezing. Create your Airbnb listing emphasizing the unique desert experience, stargazing opportunities, and proximity to Tombstone (30 minutes) and Bisbee (45 minutes), using high-quality photos showcasing mountain views and desert landscapes. For management, establish relationships with local cleaning services in nearby Benson or Willcox since Dragoon has limited service providers, install keyless entry systems due to the remote location, and consider hiring a property management company from Tucson (90 minutes away) or managing remotely through smart home technology and local contacts for emergency situations.

To identify profitable short-term rental properties in Dragoon, Arizona, focus on properties within 10-15 miles of Tombstone and Bisbee tourist attractions, as Dragoon's rural location benefits from proximity to these historic destinations. Target 2-4 bedroom homes with outdoor amenities like patios, fire pits, or mountain views that capitalize on the area's desert landscape and dark sky viewing opportunities. Analyze pricing by researching comparable STRs in Cochise County, aiming for properties under $200,000 that can command $80-150 nightly rates during peak tourist seasons (October-April). Competition research should examine listings in nearby Tombstone, Bisbee, and Sierra Vista to identify gaps in amenities or property types, as Dragoon has limited existing STR inventory. Utilize AirDNA for market analysis, Zillow and Realtor.com for property searches, STR-specific calculators like Mashvisor, and local resources including the Cochise County Assessor's office for property data and the Arizona Office of Tourism for visitor trend information, while considering the area's appeal to astronomy enthusiasts visiting nearby observatories and Old West history buffs exploring the Dragoon Mountains where Cochise once lived.

To obtain an Airbnb/STR permit in Dragoon, Arizona, you must first contact Cochise County Planning and Zoning Department since Dragoon is an unincorporated community, typically requiring a Conditional Use Permit or Special Use Permit application which can be submitted at 1415 Melody Lane, Building G, Bisbee, AZ 85603 or online through their permitting portal. Required documents include a completed application form, site plan showing the property layout, proof of property ownership or lease agreement, floor plan of the rental unit, parking plan demonstrating adequate spaces, septic system inspection if applicable, and neighbor notification affidavits within 300 feet of the property. The application fee is approximately $350-500 plus additional costs for public hearing notices estimated at $200-300, and you may need a business license from Arizona Department of Revenue costing around $50 annually. The timeline typically spans 60-90 days including a mandatory public hearing before the Planning and Zoning Commission, during which neighbors can voice concerns or support. Specific Dragoon requirements include compliance with rural zoning regulations, adequate septic system capacity for increased occupancy, sufficient parking spaces (typically 2 per unit), fire safety compliance including smoke detectors and fire extinguishers, maximum occupancy limits based on septic capacity and square footage, and maintaining the rural character of the area without commercial signage, with final approval contingent on meeting all county health, safety, and zoning standards.

Short-term rentals (STRs) are generally legal in Dragoon, Arizona, as this small unincorporated community in Cochise County falls under county jurisdiction rather than municipal regulations. Cochise County does not have specific STR prohibitions, though operators must comply with standard zoning requirements, health and safety codes, and obtain necessary business licenses. Properties must meet basic habitability standards and fire safety requirements, and hosts are responsible for collecting and remitting state and local taxes including Arizona's Transaction Privilege Tax. Since Dragoon is primarily zoned for residential and agricultural use, STRs in residential areas are typically permitted as accessory uses, though commercial zoning may have different requirements. Recent changes at the state level include Arizona's 2016 legislation (HB 2672) that limited local governments' ability to ban STRs outright, generally favoring property owners' rights to rent their homes short-term. However, the rural nature of Dragoon means fewer regulatory constraints compared to urban areas, and enforcement tends to be complaint-driven rather than proactive, making it a relatively permissive environment for short-term rental operations.

The best areas for Airbnb investment in Dragoon, Arizona include the historic downtown district near the Dragoon Mountains, which attracts tourists interested in Wild West history and the legendary Cochise Stronghold area. The foothills region offers scenic mountain views and appeals to outdoor enthusiasts visiting Coronado National Forest for hiking and rock climbing. Properties near the Amerind Museum area benefit from cultural tourism and educational travel. The ranch lands surrounding the town center attract guests seeking authentic Western experiences and agritourism activities. Areas with easy access to Highway 191 are ideal for business travelers and those visiting nearby Willcox for wine tourism or continuing to Chiricahua National Monument. Properties offering dark sky viewing opportunities capitalize on astronomy tourism, as the region's low light pollution makes it attractive for stargazing enthusiasts. The proximity to historic sites like the Dragoon Cemetery and connections to Apache history create demand from heritage tourists and history buffs exploring southeastern Arizona's frontier past.

Airbnb properties in Dragoon, Arizona are subject to Arizona state transaction privilege tax at a rate of 5.6% on gross rental receipts, which hosts must collect from guests and remit monthly to the Arizona Department of Revenue if gross receipts exceed $1,000 annually. Cochise County imposes an additional transient lodging tax of approximately 2-3% on short-term rentals under 30 days, collected by hosts and remitted quarterly to the county treasurer. The City of Dragoon, being a small unincorporated community, does not impose separate municipal lodging taxes. Hosts register with Arizona TPT online, collect taxes at booking, and file returns by the 20th of the following month, with penalties for late filing ranging from 10-25% of tax due. Properties rented for 30 days or longer are generally exempt from transient lodging taxes but may still be subject to standard TPT, and hosts with annual gross receipts under $1,000 are exempt from TPT registration requirements.

The total cost to start an Airbnb in Dragoon, Arizona would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Cochise County areas. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, transient occupancy permits, and potential HOA approvals would cost $500-$1,200. Insurance including landlord and short-term rental coverage would be $1,800-$2,400 annually. Utilities setup and deposits for electricity, water, internet, and cable would cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance reserves ($200/month), platform fees (3% of bookings), and marketing would total approximately $4,500-$6,000, assuming moderate occupancy rates of 40-60% in this rural Arizona market.

Airbnb properties in Dragoon, Arizona show moderate profitability potential with average daily rates ranging from $75-120 for typical 2-3 bedroom properties, generating monthly revenues of $1,800-3,200 during peak seasons (October-April) when snowbirds and tourists visit the area. Operating expenses typically include 25-30% for Airbnb fees and taxes, $200-400 monthly for utilities, $150-300 for cleaning and maintenance, and $100-200 for insurance, resulting in net profit margins of 35-45% for well-managed properties. Success factors in this rural Cochise County location include proximity to Tombstone (20 miles), Bisbee attractions, and the Dragoon Mountains hiking opportunities, with properties featuring desert views, hot tubs, and stargazing amenities commanding premium rates. A typical 3-bedroom ranch-style home purchased for $180,000-250,000 can generate $15,000-25,000 annual net profit after expenses, though occupancy rates average 50-65% annually due to the remote location and seasonal demand patterns. Properties within 30 minutes of Tombstone or featuring unique amenities like horse facilities perform significantly better, with some hosts reporting 70%+ occupancy and $30,000+ annual profits, while basic properties without distinctive features struggle with 35-45% occupancy rates.

Based on Dragoon, Arizona market conditions, Airbnb investments in this rural southeastern Arizona community typically generate annual ROI of 8-12% due to limited tourism infrastructure and remote location approximately 100 miles from Tucson. Cash-on-cash returns generally range from 6-10% annually, with properties averaging $150-250 per night during peak winter months when snowbirds visit the area, though occupancy rates remain modest at 35-45% year-round given the town's small size and limited attractions beyond historic mining sites and desert landscapes. Initial profitability typically occurs within 18-24 months for properties purchased under $200,000, with investors benefiting from lower acquisition costs but facing challenges with property management distance from major metropolitan areas, limited local amenities, and seasonal demand fluctuations that heavily favor October through March when temperatures are more favorable for desert tourism activities.

STRSearch leads the market in Airbnb investment property analysis nationwide including Dragoon, Arizona, followed by national services like Awning, RedAwning, and Mashvisor that provide market analytics and property sourcing. Local Arizona real estate agents specializing in short-term rental investments include Keller Williams Realty agents in nearby Tucson and Benson who cover the Dragoon area, RE/MAX agents with vacation rental expertise, and Coldwell Banker professionals familiar with rural Arizona markets. AirDNA and Rabbu offer comprehensive market data and property identification services for the region, while companies like Vacasa and AvantStay provide full-service property management that can help identify profitable acquisition opportunities. Local services include Arizona Short Term Rental Association members, Tucson-based investment property specialists, and regional property management companies like Arizona Vacation Rental Managers who understand the Cochise County market dynamics and can assist with property identification and acquisition strategies for investors targeting the growing Southern Arizona tourism market.