Is Sierra Vista, Arizona Good for Airbnb Investment?

To start an Airbnb in Sierra Vista, Arizona, begin by researching local regulations through the City of Sierra Vista Planning Department, as the city requires short-term rental permits and compliance with zoning ordinances that typically allow STRs in residential areas with proper licensing. Obtain a business license from the city clerk's office, apply for a short-term rental permit (approximately $200-300 annually), and register for Arizona Transaction Privilege Tax with the Department of Revenue since you'll need to collect and remit state and local taxes (around 10-12% total). Find a suitable property by focusing on areas near Fort Huachuca, downtown, or neighborhoods with good access to attractions like Coronado National Memorial, considering that median home prices in Sierra Vista range from $180,000-250,000 as of 2023. Furnish the property with essential amenities including reliable Wi-Fi, air conditioning (crucial for Arizona summers), comfortable bedding, kitchen supplies, and military-friendly features since many guests will be visiting Fort Huachuca personnel. Create your listing on Airbnb, VRBO, and Booking.com with professional photos highlighting mountain views and proximity to military base and outdoor activities, pricing competitively at $80-150 per night depending on size and amenities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and considering hiring local cleaning services like those found through Sierra Vista area Facebook groups or Thumbtack, while staying compliant with ongoing permit renewals and tax obligations to ensure successful operation in this military-adjacent market.

To identify profitable short-term rental properties in Sierra Vista, Arizona, focus on locations within 10-15 minutes of Fort Huachuca military base, as military families and contractors represent a consistent demand source, along with properties near Coronado National Memorial and the Ramsey Canyon Preserve for nature tourism. Target 2-4 bedroom single-family homes or townhomes built after 1990 with amenities like pools, mountain views, pet-friendly features, and reliable internet for remote workers, as these command premium rates of $80-150 per night compared to basic properties at $50-80. Analyze comparable properties using AirDNA and Mashvisor to identify the sweet spot of $150,000-300,000 purchase prices that can generate 15-25% annual returns, while researching competition through Airbnb and VRBO searches to find underserved niches like military-friendly accommodations or eco-tourism focused properties. Utilize local resources including the Sierra Vista Chamber of Commerce for tourism data, Cochise County property records for ownership costs, and connect with local property management companies like Arizona Vacation Rentals who understand seasonal patterns driven by winter visitors escaping colder climates and spring/fall outdoor enthusiasts, while monitoring occupancy rates that typically peak at 70-85% during October through April.

To obtain an Airbnb/STR permit in Sierra Vista, Arizona, you must first contact the Sierra Vista Planning and Zoning Department at City Hall located at 1011 N Coronado Drive to determine if short-term rentals are permitted in your specific zoning district, as the city requires a Conditional Use Permit for STRs in most residential areas. Submit an application for a Conditional Use Permit along with required documents including a site plan, floor plan, parking plan, neighborhood notification list, proof of property ownership or authorization letter, and a detailed operational plan describing guest capacity, noise control measures, and property management procedures. The application fee is approximately $500-800 plus additional costs for public notices and mailings to neighboring properties within 300 feet. You must also obtain a business license from the City Clerk's office for around $50-100 annually and register for Arizona Transaction Privilege Tax with the Arizona Department of Revenue. The approval process typically takes 60-90 days and includes a public hearing before the Planning and Zoning Commission, where neighbors can provide input. Sierra Vista specifically requires adequate off-street parking (typically 2 spaces minimum), compliance with occupancy limits based on bedrooms and square footage, 24/7 local contact person availability, and adherence to noise ordinances with quiet hours from 10 PM to 7 AM. Once approved, you must display permit numbers in all advertising and maintain compliance with ongoing reporting requirements and annual renewals.

Short-term rentals (STRs) are legal in Sierra Vista, Arizona, but operate under specific municipal regulations that require property owners to obtain a business license and comply with zoning restrictions. The city allows STRs in most residential zones but prohibits them in certain areas near military installations and requires operators to maintain a 24-hour contact person for noise complaints and property management issues. Sierra Vista implemented these regulations around 2018-2019 following concerns about neighborhood impacts and the proximity to Fort Huachuca, with requirements including annual licensing fees, occupancy limits based on property size, and mandatory posting of house rules regarding noise, parking, and guest behavior. Properties must also meet fire safety standards and maintain liability insurance, while the city reserves the right to revoke licenses for repeated violations or complaints from neighbors.

The best Airbnb investment areas in Sierra Vista, Arizona include the neighborhoods near Fort Huachuca military base, particularly the areas around Fry Boulevard and Highway 92, which attract consistent business travelers, military families, and contractors visiting the base. The historic downtown district along Fry Boulevard offers charm for tourists exploring the area's Wild West heritage and provides easy access to restaurants and shops. Neighborhoods near the Coronado National Memorial and close to Highway 92 toward Bisbee are attractive for nature tourists and birdwatchers visiting the Sky Islands region. The residential areas around Buena High School and Veterans Park appeal to families relocating to or visiting the military community, while properties near the Sierra Vista Regional Health Center attract medical travelers and visiting healthcare professionals. The foothills areas with mountain views, particularly those with easy access to hiking trails in the Huachuca Mountains, draw outdoor enthusiasts and retirees exploring the region, making them premium locations for short-term rentals.

In Sierra Vista, Arizona, Airbnb hosts are subject to multiple lodging taxes including the Arizona state Transaction Privilege Tax (TPT) at 5.6% on rental income, Cochise County bed tax at 3%, and Sierra Vista city lodging tax at approximately 2-3%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions, though hosts may need to manually collect and remit certain local taxes depending on agreements between Airbnb and local authorities. Hosts must register with the Arizona Department of Revenue for TPT licensing and may need separate registration with Cochise County and Sierra Vista for local taxes, with remittance typically required monthly or quarterly depending on volume. Tax returns and payments are generally due by the 20th of the month following the reporting period, with online filing available through Arizona's AZTaxes system and local jurisdiction portals. Exemptions may apply for stays exceeding 30 consecutive days, which are often considered residential rather than transient lodging, and some jurisdictions may have minimum stay requirements before taxes apply, though most short-term rentals under 30 days are subject to all applicable lodging taxes.

The total cost to start an Airbnb in Sierra Vista, Arizona is approximately $285,000-$320,000. Property purchase costs around $220,000-$250,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing total $1,500-$2,500. Permits and fees vary but typically include business license ($100-$300), short-term rental permit if required ($200-$500), and potential HOA approval fees ($100-$400). Insurance for short-term rentals costs $2,000-$3,500 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, gas, internet, and cable total $800-$1,200. First six months operating costs including utilities ($900/month), cleaning services ($150 per turnover, estimated 8 turnovers), maintenance and supplies ($200/month), platform fees (3% of estimated $3,000 monthly revenue), and property management software ($50/month) total approximately $8,000-$12,000. Additional considerations include potential property improvements ($5,000-$10,000) and a cash reserve for unexpected expenses and vacancy periods.

Airbnb properties in Sierra Vista, Arizona typically generate annual revenues between $18,000-$35,000 for entire homes, with average daily rates ranging from $65-$120 depending on property size and amenities, while expenses including mortgage, utilities, cleaning, maintenance, and Airbnb fees typically consume 60-75% of gross revenue, resulting in net profit margins of 25-40% for well-managed properties. Success factors in this market include proximity to Fort Huachuca military base which drives consistent demand from visiting families and temporary duty personnel, competitive pricing against limited hotel options, and properties featuring military-friendly amenities like extended stay discounts and pet accommodations. A typical 3-bedroom home purchased for $180,000 in 2022 with a $1,200 monthly mortgage can achieve 65% occupancy at $95 average daily rate, generating $22,600 annual revenue against $16,800 in total expenses for a $5,800 annual profit, though properties closer to the base or with unique features like pools or mountain views can achieve higher occupancy rates of 75-80% and premium pricing up to $140 per night, significantly improving profitability in this emerging short-term rental market that benefits from limited competition and steady military-related demand.

Airbnb investments in Sierra Vista, Arizona typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to Fort Huachuca military base which creates consistent demand from military personnel and their families seeking temporary housing. Properties in desirable neighborhoods near the base or with mountain views can achieve occupancy rates of 65-75% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically seeing positive cash flow after accounting for mortgage payments, property management fees of 15-25%, cleaning costs, and maintenance expenses. The market benefits from year-round demand due to military rotations and training schedules, though seasonal variations occur with slightly higher rates during winter months when visitors escape colder climates, and properties purchased in the $180,000-280,000 range tend to perform best for short-term rental investments in this market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Sierra Vista, Arizona. Local real estate agents like Keller Williams Sierra Vista and Realty Executives Tucson Elite have agents experienced in investment properties and vacation rentals in the area. BiggerPockets, founded in 2004, offers nationwide networking and deal-finding services for real estate investors including Airbnb properties. Mashvisor provides data analytics and property search tools specifically for short-term rental investments in Arizona markets including Sierra Vista. Local property management companies like Arizona Vacation Rental Management and Sierra Vista Property Solutions offer services to help investors identify and manage profitable Airbnb properties. RedAwning and Awning.com are national platforms that help investors find vacation rental properties and provide market analysis for areas like Sierra Vista. RE/MAX and Coldwell Banker offices in Sierra Vista have agents who specialize in investment properties and can assist with finding properties suitable for short-term rentals near Fort Huachuca and other local attractions.