Is St. David, Arizona Good for Airbnb Investment?

To start an Airbnb in St. David, Arizona, begin by researching Cochise County's short-term rental regulations and zoning requirements, as St. David falls under county jurisdiction and may require a business license and transient occupancy tax registration. Contact Cochise County Planning and Zoning Department to obtain necessary permits, which typically include a conditional use permit for short-term rentals and may cost $200-500 depending on property type. Find a suitable property by searching local real estate listings, considering proximity to attractions like Kartchner Caverns State Park (20 minutes away) and ensuring the property meets county health and safety standards. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, air conditioning (crucial for Arizona climate), and outdoor seating to capitalize on the desert setting. Create your Airbnb listing with professional photos highlighting unique desert views and proximity to Benson, Tombstone, and other southeastern Arizona attractions, setting competitive rates around $75-120 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges (consider a lockbox system), maintaining the property's exterior desert landscaping, and ensuring compliance with Arizona's innkeeper laws and any HOA restrictions if applicable.

To identify profitable short-term rental properties in St. David, Arizona, focus on properties within 30 minutes of major attractions like Kartchner Caverns State Park and Tombstone, as this small rural community benefits from tourism overflow from these destinations. Target 2-4 bedroom single-family homes or manufactured homes with outdoor spaces, pools, or unique desert features that appeal to families and groups seeking authentic Arizona experiences away from crowded tourist areas. Analyze pricing by researching comparable STRs in nearby Benson and Sierra Vista, aiming for properties under $200,000 that can command $80-150 nightly rates during peak seasons (October-April), while accounting for Cochise County's lower property taxes and utility costs. Competition research should examine listings within a 20-mile radius using AirDNA and Mashvisor to identify gaps in amenities or property types, as St. David has limited STR inventory compared to larger Arizona markets. Utilize tools like BiggerPockets for market analysis, STR Helper for revenue projections, and local resources including the Cochise County Assessor's office for property values, while connecting with Benson-area real estate agents familiar with rural investment properties and ensuring compliance with any county short-term rental regulations.

To obtain an Airbnb/STR permit in St. David, Arizona, you must first contact the Cochise County Planning and Zoning Department since St. David is an unincorporated community, then submit a Conditional Use Permit application which typically costs between $300-500, provide required documents including property deed, site plan, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), septic system inspection if applicable, and a good neighbor agreement outlining house rules. You'll need to attend a public hearing scheduled approximately 30-45 days after application submission, comply with specific requirements such as maintaining maximum occupancy limits (typically 2 people per bedroom plus 2 additional), providing adequate parking (usually 1 space per bedroom), ensuring 24/7 local contact availability, posting emergency contact information visibly, and meeting all fire safety codes including smoke detectors and fire extinguishers. The entire process typically takes 60-90 days from application to approval, and you must renew the permit annually for approximately $150-250, with the county conducting periodic inspections to ensure ongoing compliance with zoning regulations and neighbor compatibility standards.

Short-term rentals (STRs) are generally legal in St. David, Arizona, as the small unincorporated community in Cochise County falls under Arizona state law which permits STRs, though specific local regulations may apply through Cochise County ordinances. Arizona passed legislation in 2016 (SB 1350) that largely prohibited municipalities from banning STRs outright, though local governments can still impose reasonable regulations regarding health, safety, and welfare. Since St. David is unincorporated, it would be subject to Cochise County's regulations rather than municipal ordinances, and the county has not implemented blanket prohibitions on STRs. However, operators must comply with state requirements including transaction privilege tax registration, and properties may need to meet basic safety and zoning requirements. The rural nature of St. David and its location outside incorporated city limits means fewer restrictions typically apply compared to urban areas, though specific zoning designations and any homeowners association rules could still impact STR operations in certain neighborhoods or developments within the community.

The best areas for Airbnb investment in St. David, Arizona are primarily concentrated around the historic downtown district near the San Pedro River corridor, which attracts visitors interested in birding tourism and historical sites related to the Mormon settlement established in 1877. The agricultural areas on the outskirts of town offer unique agritourism opportunities, particularly during harvest seasons and for guests seeking rural retreat experiences. Properties near the Dragoon Mountains foothills provide access to hiking and outdoor recreation, drawing adventure tourists year-round. The area around the St. David Museum and Heritage Foundation sees steady visitor traffic from history enthusiasts and genealogy researchers. Investment opportunities also exist near the San Pedro Riparian National Conservation Area boundary, as this location serves as a gateway for eco-tourists and bird watchers visiting one of Arizona's premier birding destinations, with peak seasons during spring and fall migrations generating consistent rental demand from nature photographers and wildlife enthusiasts.

Airbnb properties in St. David, 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 St. David does not appear to have a separate municipal lodging tax as of 2023, but hosts should verify current local ordinances. Arizona requires hosts to obtain a Transaction Privilege Tax license and file returns by the 20th of each month following the reporting period, with online filing available through AZTaxes.gov. Rentals of 30 days or longer are typically exempt from transient lodging taxes but may still be subject to standard transaction privilege tax. Hosts earning less than $1,000 annually may be exempt from state tax collection requirements, and certain properties used for medical treatment or extended stays may qualify for additional exemptions under specific circumstances.

Starting an Airbnb in St. David, Arizona requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in rural southeastern Arizona communities. Furnishing a 2-3 bedroom property typically costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup expenses including professional photography, listing creation, and basic renovations total approximately $2,000-3,000. Permits and fees in Cochise County include business license ($100-200), short-term rental permit if required ($200-500), and potential HOA approvals. Insurance costs roughly $1,200-1,800 annually for short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable run about $500-800 initially. First six months operating costs including utilities ($300-400/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-300/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-5,000, assuming moderate occupancy rates of 40-60% in this rural Arizona market near the Dragoon Mountains.

Airbnb properties in St. David, Arizona show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual revenue based on 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-200 monthly), property management (15-25% of revenue), maintenance ($2,000-3,500 annually), and insurance ($800-1,200 yearly). Net profit margins generally fall between 25-35% for well-managed properties, with successful hosts like those operating renovated ranch-style homes near the Dragoon Mountains achieving higher margins through strategic pricing during peak seasons (October-April) when snowbirds and outdoor enthusiasts visit. Key success factors include proximity to Chiricahua National Monument (30 minutes away), offering unique desert experiences, maintaining high cleanliness standards, and targeting niche markets such as astronomy enthusiasts drawn to the area's dark skies. Properties within walking distance of historic sites or offering horse boarding facilities command premium rates, with some hosts reporting annual profits of $8,000-12,000 on properties valued at $200,000-300,000, representing solid 3-4% returns before considering property appreciation in this growing rural Arizona market.

Based on St. David, Arizona market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and initial investment. Properties in this rural Cochise County area, approximately 45 minutes from Tombstone and near the Dragoon Mountains, generally achieve profitability within 18-24 months due to lower property acquisition costs ($150,000-$300,000 range) and moderate seasonal demand from tourists visiting nearby attractions like Kartchner Caverns State Park and historic mining towns. The market benefits from limited local accommodation options, allowing well-positioned properties to maintain 45-65% occupancy rates with average daily rates of $85-$120, though investors should expect seasonal fluctuations with peak performance during fall and spring months when Arizona's desert climate is most favorable for outdoor activities and regional tourism.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in St. David, Arizona and surrounding areas. Local real estate agents serving the Cochise County area include Keller Williams Southern Arizona, Coldwell Banker Trails & Paths, and Century 21 Arizona Foothills who have experience with investment properties in rural Arizona markets. National services like Awning, Mashvisor, and AirDNA provide market analysis and property identification tools for the St. David area, while companies such as RedAwning and Vacasa offer property management services for investors. Local property management companies including Arizona Vacation Rentals and Desert Oasis Property Management can assist with day-to-day operations. Investment-focused platforms like BiggerPockets and Roofstock occasionally feature properties in southeastern Arizona markets, and specialized STR consultants such as STR Wealth and The STR Show provide market analysis for emerging markets like St. David. Regional real estate investment groups and local property scouts familiar with Cochise County's tourism patterns near the Dragoon Mountains and Chiricahua National Monument can also provide valuable insights for identifying profitable Airbnb opportunities in this rural Arizona community.