Short-Term Rentals in Phoenix: Is Airbnb Still a Good Investment in 2025?
Thinking of turning a house into a money-making Airbnb in Phoenix? Before you dive in, let’s break it down—simple, fast, and fun.
🔥 The Dream: Big Profits from Short-Term Rentals
Everyone’s heard the buzz.
Phoenix is hot—literally and financially. People are moving in, tourists keep visiting, and platforms like Airbnb and VRBO are booming.
You’re probably thinking: “Let me get in, list a property, and start cashing checks.”
But here’s the real deal in 2025...
📉 The Reality Check
The short-term rental game is not as easy as it used to be.
Let’s talk numbers:
🛏️ Average Airbnb income: $32,567/year
💵 Daily rate: $241
📅 Occupancy rate: Only 46% (That’s less than half the year booked!)
💡 Translation: Your place might sit empty A LOT if you're not managing it like a pro.
🧾 The Rules Have Changed
Starting in 2025, Phoenix STR rules got tougher.
Here’s what you need just to start:
✅ STR permit ($250/year)
✅ $500,000 insurance
✅ Notify the neighbors by certified mail
✅ 24/7 emergency contact (yep, you—or someone—must be on call!)
✅ Follow noise rules, safety codes, and tax laws
✅ No big parties or shady events allowed
👉 Break the rules? Get fined. A lot. Like $500 to $3,500+ per violation.
This isn’t passive income. It’s a real business now.
💰 The Money Math: Does It Still Work?
STRs can make more per night than long-term rentals (LTRs), but...
They also cost a lot more to run:
🔧 Maintenance: higher wear & tear
🧹 Cleanings: every few days
📱 Management: bookings, messages, guest issues
📦 Supplies: toilet paper, coffee, soap, etc.
💻 Platform fees: Airbnb takes a cut
🔌 Utilities: all on you
When it’s all added up? You might keep only 50% (or less) of what you make.
Now compare that to long-term rentals where tenants pay utilities, fewer turnovers, and fewer headaches.
🧠 So… Is STR Still Smart?
Yes—but only if you do it the smart way:
✅ Choose the right neighborhood (Downtown Phoenix, Arcadia, near ASU, or by event venues like State Farm Stadium)
✅ Add must-haves like a pool or guest house (ADUs are now allowed!)
✅ Know the rules and play by them
✅ Be ready to hustle or hire help
✅ Plan for slow months (summer’s tough)
If you’re not up for it, long-term rentals might be the safer play.
🚦The Bottom Line
Phoenix STRs in 2025 = high risk, high reward
They’re not for everyone—but for savvy, hands-on investors who do their homework?
💥 They can still win big.
Just don’t expect easy money. This isn’t 2020 anymore.
📲 Thinking About Investing in STRs?
Let’s talk before you buy! I can help you find the best areas, avoid costly mistakes, and connect you with STR-friendly lenders, managers, and inspectors.
👇
Click here to schedule your free strategy session.
📩 Or DM me with “STR Help” and I’ll reach out.
