What a Flagstaff Short-Term Rental Really Earns in 2026

How much does a short-term rental make in Flagstaff?
Public data sources put the typical Flagstaff STR at roughly $36,000 to $51,000 a year in average or median revenue, in 12-month periods ending between January and August 2026, at occupancy anywhere from 35% to 63% depending on who's counting. Bedroom count makes a big difference. What you keep after platform fees, lodging tax, management and operating costs is a much smaller number.

Data and tax rates last verified September 2026

This is the part of STR investing we geek out on. We love a good spreadsheet, and we've learned the hard way that the number on a data site and the number that lands in your bank account are two very different things.

We own and run two short-term rentals in the Phoenix area, and we own a rental home here in Flagstaff that we lease to Capstone Homes as one of their model homes. We've also helped dozens of Flagstaff clients run the numbers on investment properties and STRs, buy them, and coach them on optimal self-management (so they can maximize profit). This guide walks through what the public data says, why it disagrees with itself, and what comes out of gross revenue before you see a dime.

It's part of our complete Flagstaff short-term rental guide.

What the data sources say

Four public STR data providers published Flagstaff figures in 2026. Here they are side by side, each with its own time period.

A few other data points from AirROI help paint the picture of how Flagstaff guests book: an average stay of 4.2 nights, an average booking lead time of 50 days, and about 31 bookings per listing per year.

Why the numbers disagree

None of these sources is wrong, exactly. They're measuring different things.

• Which listings count. Listing counts run from 1,016 to 1,884. AirDNA's average revenue divides by listings that got at least one booking in a month. AirROI bases its figures on active listings, and each source defines those a little differently.
• Average vs. median. Airbtics reports a median. A few high earners pull an average up, and a lot of part-time listings pull it down.
• What's in "revenue." AirDNA's revenue includes nightly rates and cleaning fees, before Airbnb's host fee. It isn't what an owner is paid.
• How occupancy is measured. AirDNA uses booked nights out of available nights, not calendar nights. An owner who blocks off a month for personal use doesn't drag that number down.

Revenue by bedroom count

Bedroom count moves the needle a lot. Rabbu publishes Flagstaff figures by size.

Two things jump out to us. Five and six-bedroom homes book at a higher occupancy than smaller ones, and there are far fewer of them. Groups traveling together have fewer choices, so the big homes that deliver on space tend to do well. The flip side is that they cost more to buy, furnish, clean and heat, and in Flagstaff every one of those guests needs a parking spot all winter.

The longer trend

The RRC Associates study pulled AirDNA data for the City of Flagstaff from 2018 through mid-2025. Average nightly rates rose from $174 in 2018 to $258 in the first half of 2025. Occupancy peaked at 52% in 2021 and settled in the mid-40s after that, at 46% in 2024.

That's the most important context for any buyer. The homes that booked on location alone in 2021 face more competition now. Today, the property, the design and the pricing have to earn it. We've got the full chart in the main guide, and the month-by-month picture in Flagstaff STR seasonality.

What comes out of gross revenue

This is where most online projections stop, and where we start. Here's what gets subtracted before an owner gets paid.

Platform fees

Airbnb is moving all hosts to a single 15.5% host service fee, with a September 15, 2026 deadline for hosts outside the European Economic Area. The fee applies to your nightly price plus fees you add, like cleaning, and doesn't apply to taxes. Airbnb's own example: price a night at $100 and you earn $84.50.

Vrbo is changing too. It's moving hosts to a flat 12% commission starting October 29, 2026, according to Skift, and Vrbo's help center already shows the 12% rate. We cover both in more detail in management options and what they cost.

Management

AirDNA says most Airbnb management companies charge 15% to 25% of rental income nationally, and 20% to 30% in some cases. BiggerPockets cites a wider 10% to 50% range. What's included varies a lot from company to company, so compare what you get, not just the percentage.

Operating costs

• Maintenance. BiggerPockets recommends reserving at least 10% of revenue.
• Insurance. NerdWallet puts the average Flagstaff homeowners policy at $3,980 a year. That's a standard homeowners figure, and the National Association of Insurance Commissioners warns most homeowners policies aren't designed to cover short-term rental accidents, so expect to price a policy built for short-term rentals and get real quotes.
• Utilities. Owners of STRs usually pay all of them, and winter heating is real here. The City's five-year rate schedule, reported by Signals AZ, raised water rates 8.5% and wastewater rates 18.5% in 2026, with more increases scheduled through 2029.
• Cleaning and supplies. Guests often pay a cleaning fee, but it's taxable income and your cleaner still has to be paid.
• Snow removal, internet, software and furnishing replacement. We cover these in setting up for Flagstaff guests and management options and what they cost.

An illustration, not a projection

To show how fast gross revenue shrinks, here's a simple example with round numbers. This isn't a forecast for any home.

From what's left, you still pay the mortgage, property tax, insurance, utilities, cleaning, supplies, snow removal, internet and software. Lodging tax isn't in this table. Airbnb and Vrbo collect it from guests on top of your price. On direct bookings, you owe it whether or not you charge guests, so build it into your pricing.

Lodging tax and your TPT license

Arizona treats stays under 30 days as short-term lodging, taxed like a hotel. Inside Flagstaff city limits, the combined rate is 11.386%.

The BBB (Bed, Board and Beverage) tax is 2% on lodging, restaurants and bars, and Proposition 487, which renews it through 2043, had 71% support in November 2024 initial results. The tax has been around since 1988, and the City's 2026 to 2027 budget splits it among tourism, parks and recreation, beautification, economic development, and arts and science.

What's taxable

According to the Arizona Department of Revenue, "all income received in conjunction with the rental of the property is considered taxable income." That includes cleaning fees, cancellation fees and any security deposit you keep.

When Airbnb collects it for you

Airbnb and Vrbo collect and remit lodging tax on bookings made through them. You still need your own TPT license, you still file, and you deduct the platform-remitted income (code 775 for short-term lodging). Direct bookings are entirely on you. And you're ultimately responsible either way.

How often you file

You file even when the return is $0. The license costs $12 per location for the state plus $20 for the City of Flagstaff, and the City portion renews each year by January 1.

One more change worth knowing. As of January 1, 2025, Arizona cities can no longer tax long-term residential rentals of 30 days or more. Short-term lodging is still taxed.

Property tax on an STR

Arizona assesses both a primary residence (Class 3) and a rental (Class 4) at 10% of the property's value. The difference is the homeowner rebate. Under A.R.S. 15-972, the state pays 50% of a qualifying portion of the primary property tax for an owner-occupied primary residence, capped at $600 a year. A rental or STR doesn't get it, so plan on a property tax bill up to $600 higher than a primary resident would pay on the same home.

We're also watching Mohave County, where the assessor reclassified more than 900 STRs as commercial in July 2026. The state is reviewing that, and we haven't seen Coconino County do the same.

Federal income tax rules to ask your CPA about

We're not CPAs, and this is the section where a good one pays for themselves many times over. These are the rules we make sure every STR buyer asks about.

The 14-day rule

If you use a home as a residence and rent it for fewer than 15 days in a year, you generally don't report that rental income, and you don't deduct rental expenses (IRS Topic 415). You're treated as using it as a residence if your personal use is more than the greater of 14 days or 10% of the days you rent it at a fair price, which limits deductions.

The 7-day rule and material participation

Under Treasury Regulation 1.469-1T, an activity isn't a "rental activity" for passive loss purposes when the average guest stay is seven days or less. AirROI's market average in Flagstaff is 4.2 nights, though what counts is your own property's average.

If the activity isn't a rental activity and you materially participate, losses (including depreciation) may be able to offset other income. That's what people mean by the "STR loophole." Material participation means meeting one of seven tests in Treasury Regulation 1.469-5T. Three of them, in plain English:

1. More than 500 hours in the activity during the year.
2. Substantially all of the participation by anyone in the activity.
3. More than 100 hours, and not less than any other individual, including your cleaner or manager.

Your spouse's hours count toward yours. Hiring a full-service manager can make the 100-hour test hard to meet, which is a trade-off worth talking through with your CPA before you choose how to manage.

Depreciation

Bonus depreciation is back to 100%, permanently, for qualifying property acquired after January 19, 2025, according to the IRS. That's why cost segregation studies come up so often in STR conversations.

Schedule E or Schedule C

Most rental income goes on Schedule E. IRS Publication 527 notes that if you provide substantial services with the rental, you may be able to report it on Schedule C instead, and the tax treatment changes. Where the line falls for your STR is a CPA question.

How we run the numbers on a specific home

1. Pull comparable STRs, same bedroom count, similar location and quality, and look at their real calendars and rates, not just a market average.
2. Use the lower end of the occupancy range and today's rates, with a quiet first quarter built in.
3. Subtract platform fees, management and the maintenance reserve as percentages of revenue.
4. Get real quotes for STR insurance, utilities, cleaning and snow removal on that specific home.
5. Add the carrying costs: mortgage, property tax without the homeowner rebate, and HOA dues.
6. Look at the backup plan. What would this home earn as a mid-term or long-term rental if the STR plan changed?

Frequently asked questions

What is the average occupancy rate for Airbnb in Flagstaff?

It depends on the source. In 2026, AirDNA reported 55%, Airbtics 63%, AirROI 42.4% and Rabbu 35%. The RRC Associates study found 46% for City of Flagstaff STRs in 2024.

How much does a 3-bedroom Airbnb make in Flagstaff?

Rabbu reported an average of $40,203 a year for three-bedroom Flagstaff listings over the 12 months to April 2026, at a $235 average nightly rate and 33% occupancy. Individual homes vary widely.

How much is Airbnb's host fee in 2026?

Airbnb is moving hosts to a single 15.5% host-only service fee, applied to the nightly price plus cleaning and other host fees, with a September 15, 2026 deadline outside the European Economic Area.

What is the lodging tax on a Flagstaff short-term rental?

11.386% inside city limits and 6.9% in unincorporated Coconino County. Cleaning and other fees tied to the stay are taxable.

Do I need a TPT license if Airbnb collects the tax?

Yes. Arizona requires every STR owner to hold a TPT license and file returns, even when a platform remits the tax on your behalf.