Is San Simon, Arizona Good for Airbnb Investment?

To start an Airbnb in San Simon, Arizona, begin by researching Cochise County's short-term rental regulations and zoning requirements, as San Simon falls under county jurisdiction rather than having its own municipal codes. 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 areas along Interstate 10 or historic ranch properties, considering that San Simon is a small unincorporated community with limited housing stock, so properties may range from $50,000-$150,000 for modest homes. Furnish the property with southwestern-themed decor, essential amenities like Wi-Fi, air conditioning, and kitchen basics, targeting travelers seeking authentic desert experiences or convenient I-10 stops. List your property on Airbnb, Vrbo, and other platforms with competitive pricing around $60-$120 per night, highlighting proximity to Chiricahua National Monument, historic sites, and stargazing opportunities. Manage the property by establishing cleaning protocols, coordinating with local service providers in nearby Willcox or Benson for maintenance, installing keyless entry systems for remote check-ins, and maintaining responsive communication with guests while emphasizing the rural, off-grid experience that attracts visitors to this remote Arizona location.

To identify profitable short-term rental properties in San Simon, Arizona, focus on properties within 30 miles of major attractions like Chiricahua National Monument and along Interstate 10 corridors for traveler convenience, as San Simon's remote location requires strategic positioning near natural attractions and highway access points. Target 2-4 bedroom single-family homes or manufactured homes with outdoor spaces, pools, and scenic desert views that can accommodate families and groups exploring southeastern Arizona's wilderness areas, with properties built after 1990 typically performing better due to modern amenities expectations. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties in Willcox, Benson, and Tombstone (typically $75-150/night range), while accounting for San Simon's lower baseline given its smaller population of approximately 165 residents. Research competition by analyzing existing STRs within a 25-mile radius on Airbnb and VRBO, noting that limited inventory creates opportunity but also indicates smaller demand, with successful properties often marketing to astronomy enthusiasts, hikers, and cross-country travelers seeking quiet desert retreats. Utilize tools like Rabbu, AirDNA, and local Cochise County tourism data, while connecting with Willcox Chamber of Commerce and monitoring seasonal patterns around Chiricahua National Monument visitation, Fort Bowie historic site traffic, and winter snowbird migration patterns to southeastern Arizona, ensuring properties can generate estimated annual revenues of $15,000-35,000 depending on size and amenities.

To obtain an Airbnb/STR permit in San Simon, Arizona, you must first contact the Cochise County Planning and Zoning Department since San Simon is an unincorporated community, typically requiring a Conditional Use Permit (CUP) for short-term rentals. Submit your application to Cochise County at 1415 Melody Lane, Building G, Bisbee, AZ 85603, including a completed CUP 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 guest parking, septic system inspection if applicable, and contact information for a local property manager if you're an absentee owner. The application fee is approximately $500-800 for the CUP process, with additional fees for required inspections ranging from $100-300. You must also register with the Arizona Department of Revenue for Transaction Privilege Tax (TPT) and obtain a business license, which costs around $12-50 annually. The timeline typically takes 60-90 days for county review and approval, including a public hearing process where neighboring property owners are notified. San Simon-specific requirements include maintaining the rural character of the area, ensuring adequate water supply and waste management systems, providing emergency contact information to the county, and complying with any homeowner association rules if applicable. Once approved, you must display your permit number in all rental listings and maintain compliance with ongoing reporting requirements to Cochise County and the state of Arizona.

Short-term rentals (STRs) are generally legal in San Simon, Arizona, as this small unincorporated community in Cochise County operates under Arizona state law and county regulations rather than municipal ordinances. Cochise County typically allows STRs but may require business licenses and compliance with health and safety standards, zoning requirements, and tax collection obligations including state and local transaction privilege taxes. Since San Simon is primarily rural with limited residential development along Interstate 10, there are few specific restrictions beyond standard property use regulations, though operators must ensure compliance with septic system requirements and well water regulations common in rural Arizona areas. Recent changes in Arizona law since 2016 have generally favored property owners' rights to operate STRs, with state legislation limiting local governments' ability to prohibit them outright, though counties can still impose reasonable regulations regarding safety, noise, and parking. Property owners in San Simon should verify current Cochise County business license requirements and ensure compliance with state tax obligations, but face relatively few barriers compared to more densely populated Arizona municipalities that have enacted stricter STR regulations.

The best areas for Airbnb investment in San Simon, Arizona are concentrated around the historic downtown district near the railroad heritage sites, which attracts visitors interested in the area's Wild West history and proximity to the Chiricahua Mountains. The residential areas along Highway 186 offer good investment potential due to their accessibility for travelers heading to nearby attractions like the Chiricahua National Monument (30 miles southeast) and Willcox wine country. Properties near the San Simon River corridor are attractive for nature enthusiasts and bird watchers, particularly during migration seasons. The northern section of town benefits from business travelers and truckers using Interstate 10, making it ideal for short-term stays. Areas close to the Dos Cabezas Mountains provide appeal for hiking and outdoor recreation visitors, while properties with views of the Dragoon Mountains to the south attract photographers and geology enthusiasts exploring the region's unique rock formations and desert landscapes.

San Simon, Arizona does not impose specific local lodging or occupancy taxes on Airbnb rentals as it is an unincorporated community in Cochise County with minimal municipal services. However, Airbnb hosts in San Simon are subject to Arizona state Transaction Privilege Tax (TPT) at a rate of 5.6% on rental income, which must be collected from guests and remitted monthly to the Arizona Department of Revenue if gross receipts exceed $1,000 annually. Cochise County may impose a county-level transient lodging tax of approximately 2-3% depending on the specific location within the county, though enforcement in unincorporated areas like San Simon is limited. Airbnb automatically collects and remits state taxes in Arizona as of 2019, but hosts remain responsible for registering with the state, obtaining a TPT license, and ensuring compliance with any applicable county taxes. There are no standard exemptions for short-term rentals, though stays exceeding 30 consecutive days may be exempt from transient lodging taxes and certain low-income housing situations may qualify for TPT exemptions under specific circumstances.

The total cost to start an Airbnb in San Simon, Arizona would be approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on the median home price in this rural southeastern Arizona area. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including beds, living room furniture, kitchen essentials, linens, and décor. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations would total $500-$1,200. Insurance including landlord and short-term rental coverage would cost $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, internet, and cable would be $800-$1,500. First six months operating costs including utilities ($600/month), cleaning supplies ($200/month), maintenance reserves ($300/month), platform fees on estimated $2,000 monthly revenue ($300/month), and marketing would total approximately $8,400-$10,000, bringing the complete startup investment to around $185,000-$220,000.

Airbnb properties in San Simon, Arizona, face challenging profitability conditions due to the town's remote location along I-10 with a population under 200 residents, resulting in extremely limited demand and occupancy rates typically below 15-20% annually. Revenue potential is constrained to approximately $2,000-4,000 per year for a modest 2-bedroom property with nightly rates of $60-80, while expenses including property taxes ($800-1,200), utilities ($1,800-2,400), cleaning ($600-900), insurance ($1,200-1,500), and maintenance ($1,000-1,500) often total $5,400-7,500 annually, creating negative profit margins of -50% to -80%. The primary guest demographic consists of interstate travelers seeking budget overnight stops, truck drivers, and occasional visitors to nearby Chiricahua National Monument, but the lack of local attractions, dining, or entertainment severely limits booking frequency. Success factors for the few viable properties include strategic pricing 20-30% below regional averages, targeting long-term stays from temporary workers or travelers, minimal property investment focusing on basic cleanliness and Wi-Fi reliability, and potentially pivoting to monthly rentals for remote workers seeking ultra-low cost living, though even these strategies rarely achieve sustainable profitability given the market's fundamental limitations.

Based on San Simon, Arizona market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in this rural Arizona market, located near the New Mexico border, generally achieve profitability within 18-24 months due to lower property acquisition costs ($150,000-$250,000 average) and moderate seasonal demand from travelers visiting nearby attractions like the Chiricahua National Monument and those seeking desert retreat experiences. The market benefits from limited local accommodation options, allowing well-positioned properties to maintain 45-60% annual occupancy rates at $80-$120 average daily rates, though investors should account for higher marketing costs and potential seasonal fluctuations that can impact cash flow during slower winter months.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including markets like San Simon, Arizona. In the local Arizona market, companies like Arizona Real Estate Investments and Desert Property Advisors have experience with vacation rental properties in rural Arizona communities. National services such as Mashvisor, AirDNA, and RedAwning provide market analysis and property identification tools for Airbnb investments in smaller Arizona markets. Local real estate agents like those at Realty Executives and Coldwell Banker in nearby Willcox and Benson often work with investors seeking properties in the San Simon area for short-term rental conversion. Additional services include BiggerPockets for networking with local investors, Awning for property management, and local property management companies like Arizona Vacation Rentals that can assist with the operational aspects of Airbnb properties in southeastern Arizona's rural markets.