Phoenix, AZ Vacation Rental Market Analysis: What Investors Should Know Before Buying
Known as the Valley of the Sun, Phoenix is a sprawling desert metro where sunshine fuels year-round travel demand. From championship golf courses and luxury spa resorts to scenic desert hiking and major live sporting events, the city offers something for nearly every type of traveler.
That variety helps draw 20+ million visitors each year to the city proper and 46+ million annually to the metro area, making Phoenix one of the most visited urban destinations in the Southwest. With broad appeal for families, couples, sports fans, and seasonal snowbirds, the Phoenix vacation rental market presents strong investment potential for buyers seeking consistent demand.
To help you evaluate the opportunity, we created a free, downloadable Phoenix Vacation Rental Market Analysis. Inside the report, you’ll find:
- Rental income potential by property size
- Average occupancy by property size
- Average daily rate (ADR) by property size
- Booking lead times and length of stay
- Monthly occupancy rates
- Vacation rental inventory by property size across the Phoenix market
These insights are based on Evolve’s Phoenix market averages from the past year and provide a reliable baseline for evaluating performance when investing in the Phoenix rental market.
👉 Download the complete Phoenix Vacation Rental Investment Analysis.
Why Phoenix Is a Strong Market for Vacation Rental Owners
Phoenix’s scale and diversity are what set it apart. As one of the largest cities in the U.S., it attracts travelers for everything from weekend getaways to extended seasonal stays.
Broad, Year-Round Traveler Appeal
Visitors come to Phoenix for:
- Professional sports teams across all major leagues but the NHL
- Desert hiking and mountain preserves
- Cultural attractions, museums, and dining
- Family-friendly spots like the Desert Botanical Garden
Beyond the city center, nearby destinations such as Scottsdale add six major lakes, luxury shopping, and additional outdoor recreation, expanding Phoenix’s reach without diluting demand.
Two Clear Peak Travel Seasons
Because of its warm climate, Phoenix benefits from two primary demand surges:
- Spring (February–April):
- PGA Tour’s Phoenix Open
- MLB Spring Training and Arizona Fall League
- Spring break travel
- Late fall and winter (October–December):
- Snowbirds escaping colder climates
- Holiday travel and extended stays
This seasonality supports strong occupancy for large portions of the year, even as summer demand softens with rising temperatures.
Accessible Entry Compared to Nearby Markets
Despite its popularity, Phoenix remains relatively attainable for investors:
- Median home value: ~$400,000
- Slightly above the national average, but
- More affordable than nearby markets like Tempe, Mesa, and Flagstaff
For buyers seeking a large-market metro with strong tourism and a lower barrier to entry, Phoenix stands out.
How Much Can You Earn With a Phoenix Vacation Rental?
Phoenix’s long-standing popularity creates the opportunity for repeat bookings and consistent income, especially when properties are tailored to guest preferences.
1. Property Size: Larger Homes Earn More, Smaller Homes Stay Busy
Phoenix attracts:
- Spring break groups
- Multi-generational family vacations
- Event-driven travelers
As a result, larger, multi-bedroom homes tend to earn the most revenue. Properties with four bedrooms often maintain strong, steady occupancy
At the same time, one-bedroom properties lead in total nights booked. One-, two-, and three-bedroom homes make up similar portions of the local inventory, and smaller homes can offer a lower upfront cost while still delivering reliable returns.
2. Property Location: Balance Privacy With Proximity
According to our experts, ideal Phoenix locations offer:
- Residential privacy
- Easy access to entertainment and attractions
High-performing areas often include:
Neighborhoods within five miles of downtown
Midtown, Camelback East, Arcadia, and Biltmore
Communities near Phoenix Mountain Preserve or South Mountain Park
These areas provide convenient access to:
- Pro sports venues and live music
- Museums and theaters
- Sky Harbor International Airport and nearby East Valley cities like Tempe, Mesa, and Chandler
3. Property Amenities: Resort-Level Features Drive Demand
Phoenix competes with luxury resorts, so amenities that create five-star experiences matter.
High-impact indoor features include:
- Updated kitchens and appliances
- Smart TVs and streaming capabilities
- Comfortable bedding and open living spaces
Outdoor amenities are especially critical:
- Swimming pools (a top profit-driver)
- Pool heating for year-round use
- Updated outdoor spaces with shaded patios, grills, and al fresco dining
Family- and pet-friendly upgrades can further boost appeal:
- Pool safety fencing and baby gates
- High chairs and Pack ’n Plays
- Fenced yards and pet-friendly features
Properties that deliver a resort-like experience while still feeling like home are best positioned to stand out in the Phoenix market.
Download the Complete Phoenix, AZ Vacation Rental Market Analysis
As travelers continue seeking space, sunshine, and personalized stays, Phoenix remains a compelling market for short-term rental investment. Our free Phoenix Vacation Rental Market Analysis includes insights such as:
- Average daily rate (ADR) by property size
- Average high- and low-season length of stay
- Market inventory insights
- Demand seasonality
Whether you’re purchasing your first property or optimizing an existing rental, our market data can make your investment journey feel like a sunny day poolside.