Is Jerome, Arizona Good for Airbnb Investment?

To start an Airbnb in Jerome, Arizona, begin by researching local regulations through the Town of Jerome Planning and Zoning Department, as this historic mining town requires short-term rental permits and compliance with zoning ordinances that may restrict rentals in certain residential areas. Contact Jerome Town Hall at (928) 634-7943 to obtain the necessary business license and short-term rental permit, which typically costs around $100-200 annually and requires proof of insurance, fire safety compliance, and neighbor notification. Find a suitable property by working with local real estate agents familiar with Jerome's unique Victorian-era homes and mining structures, with purchase prices ranging from $200,000-500,000 depending on location and condition. Furnish the property with period-appropriate décor that reflects Jerome's historic character while ensuring modern amenities like reliable Wi-Fi, heating/cooling systems suitable for the high desert climate at 5,200 feet elevation, and comfortable bedding for 2-6 guests depending on property size. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting Jerome's artistic community and ghost town atmosphere, setting competitive rates of $80-200 per night based on seasonality and local events like the Jerome Home Tour. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with historic buildings, and consider hiring a property management company like Arizona Short Term Rental Management or similar local services, while maintaining 24/7 guest communication and ensuring compliance with Jerome's noise ordinances and parking restrictions in this small mountain community of approximately 450 residents.

To identify profitable short-term rental properties in Jerome, Arizona, focus on properties within walking distance of the historic town center and main tourist attractions like the Jerome State Historic Park and mining museums, as the town's compact 0.3-square-mile area makes proximity crucial for guest convenience. Target properties built between 1900-1930 that retain original character features like exposed brick, wooden beams, and period details, while ensuring they have 2-3 bedrooms, updated kitchens and bathrooms, reliable WiFi, and parking spaces, as Jerome's steep terrain and narrow streets make parking a premium amenity. Analyze pricing using AirDNA and Mashvisor to benchmark against the 15-20 existing STRs in Jerome, noting that properties typically command $150-300 per night depending on size and views, with higher rates during Sedona spillover periods and special events like the Jerome Artists Cooperative Studio Tour. Research competition by studying occupancy rates of properties listed on Airbnb and VRBO, particularly those operated by established hosts like Jerome Grand Hotel's vacation rental arm and local property management companies such as Sedona Red Rock Realty, while monitoring seasonal demand patterns that peak during fall foliage season and winter months when Sedona accommodations are at capacity. Utilize tools like STR Helper for Jerome-specific market data, partner with local real estate agents familiar with Yavapai County STR regulations, and leverage the Jerome Chamber of Commerce resources to understand tourism trends and upcoming developments that could impact the market.

To obtain an Airbnb/STR permit in Jerome, Arizona, you must first contact the Jerome Town Clerk's office at 600 Clark Street or call (928) 634-7943 to submit a short-term rental application, which typically requires a completed application form, proof of property ownership or lease agreement, a site plan showing parking areas and emergency exits, proof of liability insurance (minimum $1 million coverage), a fire safety inspection certificate from the Jerome Fire Department, and a business license from the Town of Jerome. The application fee is approximately $150-200 with an annual renewal fee of $100-125, and you must also obtain a state transaction privilege tax license from the Arizona Department of Revenue. Required documents include a floor plan, occupancy limits based on bedrooms (typically 2 guests per bedroom plus 2 additional), designated parking spaces (minimum 1 space per unit), and compliance with Jerome's historic district guidelines since most properties fall within historic zones. The approval process typically takes 4-6 weeks after submitting a complete application, and you must schedule inspections with both the building department and fire department before final approval. Jerome requires STR operators to maintain a local contact person available 24/7, display the permit number in all advertisements, collect and remit local bed taxes (approximately 3-5%), and comply with noise ordinances and occupancy limits, with properties subject to annual inspections and complaint-based enforcement.

Short-term rentals (STRs) are legal in Jerome, Arizona, but the town has implemented specific regulations to manage their operation within this historic mining community of approximately 450 residents. Jerome requires STR operators to obtain a business license and comply with zoning restrictions, with most rentals concentrated in the town's residential and mixed-use areas rather than in purely commercial zones. The town has established occupancy limits, parking requirements, and noise restrictions to address concerns from permanent residents about the impact of tourism on the small community's character and infrastructure. Recent changes around 2019-2021 included stricter enforcement of existing regulations and enhanced permit requirements, though Jerome has generally been more accommodating to STRs than some other Arizona municipalities due to its tourism-dependent economy. Property owners must ensure compliance with fire safety codes, maintain adequate parking for guests, and provide local contact information for any issues that arise during rentals.

The best areas for Airbnb investment in Jerome, Arizona are the Historic District along Main Street and Hull Avenue, which attracts tourists year-round due to Jerome's designation as a National Historic Landmark and its reputation as America's largest ghost town, offering proximity to art galleries, restaurants, and mining museums. The Cleopatra Hill area provides stunning panoramic views of the Verde Valley and Sedona's red rocks, appealing to photographers and nature enthusiasts, while properties near the Jerome State Historic Park capture visitors interested in the Douglas Mansion and copper mining history. The upper residential areas around Clark Street and School Street offer quieter accommodations for families and groups seeking authentic small-town experiences while remaining walkable to attractions. Jerome benefits from consistent tourism driven by its arts community with over 40 galleries and studios, annual events like the Jerome Home Tour and Spook Hall, proximity to Sedona (30 minutes) and Flagstaff (1 hour), and business travelers visiting nearby Clarkdale's industrial facilities, making properties with parking and scenic views particularly valuable given the town's steep terrain and limited lodging options.

Airbnb properties in Jerome, Arizona are subject to multiple lodging taxes including Arizona state transaction privilege tax at 5.6%, Yavapai County bed tax at 3%, and Jerome city lodging tax at approximately 2-4%. The Arizona Department of Revenue collects state taxes through monthly remittance requirements for hosts earning over $1,000 annually, while county and city taxes are typically collected by their respective tax departments with quarterly filing deadlines. Airbnb may collect and remit some taxes automatically through their platform depending on local agreements, but hosts remain ultimately responsible for compliance and should register with the Arizona Department of Revenue, Yavapai County, and Jerome city tax offices. Exemptions generally apply to stays exceeding 30 consecutive days which are considered long-term rentals rather than transient lodging, and some jurisdictions may exempt stays for certain government or medical purposes, though hosts should verify current exemption criteria as tax rates and collection procedures can change annually.

To start an Airbnb in Jerome, Arizona, expect total costs around $425,000-$475,000. Property purchase represents the largest expense at approximately $350,000-$400,000 for a median-priced home in this historic mining town. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, and decor appropriate for the rustic mountain setting. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Yavapai County include business license ($100-$300), short-term rental permit ($200-$500), and potential HOA approvals. Insurance costs run $2,000-$3,500 annually for short-term rental coverage. Utility deposits and connections total approximately $500-$1,000, with monthly utilities averaging $150-$250 in this mountain climate. First six months operating costs including utilities ($900-$1,500), cleaning supplies and services ($1,200-$2,000), maintenance reserves ($1,000-$2,000), marketing ($500-$1,000), and platform fees average $4,000-$7,000. Additional considerations include higher heating costs during winter months and potential seasonal income fluctuations in this tourist-dependent market.

Airbnb properties in Jerome, Arizona demonstrate strong profitability potential with average nightly rates ranging from $150-$300 due to the town's unique historic mining character and tourist appeal. Properties typically achieve 60-70% occupancy rates annually, generating gross revenues of $35,000-$65,000 per year for well-positioned listings. Operating expenses including cleaning fees ($50-75 per turnover), utilities ($200-300 monthly), property management (20-25% of revenue), insurance ($1,500-2,500 annually), and maintenance ($3,000-5,000 yearly) typically consume 40-50% of gross revenue. Net profit margins commonly range from 25-35% for owner-operated properties, with successful hosts like those managing restored miners' cottages near the historic district reporting annual profits of $15,000-$25,000 per property. Key success factors include authentic historic character, proximity to Main Street attractions, professional photography showcasing Jerome's dramatic hillside views, responsive guest communication, and partnerships with local tour operators. Properties featuring period furnishings, ghost town theming, or panoramic Verde Valley views command premium rates, while those offering amenities like hot tubs or fire pits see booking rates increase by 15-20% above comparable listings.

Airbnb investments in Jerome, Arizona typically generate annual ROI of 12-18% due to the town's popularity as a historic mining destination and artist community attracting tourists year-round. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak seasons and $80-120 during off-peak periods. Most investors achieve profitability within 18-24 months, particularly for well-located properties near the historic downtown area or with scenic views of the Verde Valley. The market benefits from Jerome's proximity to Sedona (30 minutes) and limited hotel inventory, creating strong demand for short-term rentals, though investors should factor in higher maintenance costs due to the town's elevation and older building stock, with typical investment properties ranging from $200,000-400,000 and generating gross rental yields of 15-22% before expenses.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Jerome, Arizona, providing market analysis and property recommendations. Local real estate agents specializing in Airbnb investments in Jerome include Verde Valley Realty Group, Sedona Red Rock Realty, and Cottonwood Real Estate Partners, who understand the unique vacation rental market dynamics in this historic mining town. National services like AirDNA (founded 2015), Mashvisor, and BiggerPockets offer market data and investment analysis tools for Jerome's short-term rental market. RedAwning and Vacasa provide property management services for Airbnb investors in the area, while companies like Roofstock and Awning (launched 2020) specialize in turnkey vacation rental property investments. Local property management companies such as Verde Valley Vacation Rentals and Jerome Ghost Town Rentals offer specialized services for investors looking to maximize their Airbnb returns in this popular tourist destination known for its historic charm and proximity to Sedona.