Airbnb Rules and Regulations in Tempe, Arizona

As of 2024, Tempe, Arizona, has implemented a comprehensive set of regulations for short-term rentals to ensure a balance between the needs of residents and visitors. Hosts are required to obtain a Short-Term Rental License from the city, which must be renewed annually, and pay a fee based on the type of rental property. All short-term rental properties are subject to a 5% Transient Lodging Tax, which hosts must collect and remit to the city on a monthly basis.

Occupancy is limited to two adults per bedroom plus an additional two adults per property, with a maximum of 10 guests allowed at any given time. Quiet hours are enforced from 10:00 PM to 7:00 AM, and all parking must be accommodated on-site, with no street parking permitted for guests. Hosts are also required to provide a local contact person, such as a property manager or Airbnb co-host, who can respond to any issues or complaints within one hour. Failure to comply with these regulations may result in fines, penalties, or the revocation of the Short-Term Rental License.

Tempe Airbnb Market Data:

• Average Revenue – $52.3K per year
• Average Daily Rate – $281.2 per night
• Average Occupancy Rate – 51%
• Average RevPAR – $148.2
• Average Home Prices – $484,930

1. Top Place to Invest in Tempe, Arizona - Downtown

Nestled in the heart of the Phoenix metropolitan area, Downtown Tempe has emerged as a prime location for investors seeking to start an Airbnb business in a vibrant and thriving market. With its unique blend of urban amenities, cultural attractions, and a bustling college atmosphere, Downtown Tempe presents an exciting opportunity for those looking to capitalize on the growing short-term rental industry.

Downtown Airbnb Market Data:

• Average Revenue – $40.9K per year
• Average Daily Rate – $180.9 per night
• Average Occupancy Rate – 62%
• Average RevPAR – $113.3

Convenience - 9/10

One of Downtown Tempe's greatest strengths is its unparalleled convenience. Situated just minutes from Phoenix Sky Harbor International Airport and easily accessible via major highways, this neighborhood offers seamless connectivity for both residents and visitors. The area is also well-served by public transportation, including the Valley Metro Light Rail, making it easy to explore the surrounding region without the need for a car.

Tourist Attractions - 8/10

Downtown Tempe boasts a wide array of tourist attractions that draw visitors from far and wide. The iconic Tempe Town Lake, a picturesque oasis in the desert, offers a variety of water activities and scenic views. The neighborhood is also home to the famous Arizona State University (ASU) campus, which attracts students, families, and sports enthusiasts with its vibrant atmosphere and top-notch facilities. The ASU Art Museum and the Tempe Center for the Arts also provide cultural enrichment for those seeking a more refined experience.

Things to Do - 9/10

From outdoor recreation to nightlife and everything in between, Downtown Tempe offers endless things to do. The Mill Avenue District, a pedestrian-friendly hub of shops, restaurants, and entertainment venues, is a major draw for both locals and tourists. Visitors can also enjoy hiking and biking trails at nearby Papago Park, catch a Broadway show at ASU Gammage, or explore the diverse culinary scene, which includes everything from casual eateries to upscale dining establishments, which is one of the main reasons why foodies visit the area a lot.

Average Home Prices - 7/10

According to Zillow data for March 2024, the median home sold price in Downtown Tempe was $485,000, representing a 27.4% decrease from the previous year. While this may seem like a significant drop, it presents an opportunity for Airbnb investors to enter the market at a more affordable price point. The median price per square foot in Downtown Tempe was $402, and the neighborhood is currently considered a neutral market, with a balance between buyers and sellers. It's worth noting that home prices vary based on property type, with 1-bedroom homes appreciating by 52.6% year-over-year, while 2-bedroom and 3-bedroom homes experienced price decreases of 5.1% and 38.2%, respectively.

Proximity to Work-Related Travel - 8/10

Downtown Tempe's strategic location makes it an ideal base for work-related travel. The neighborhood is home to the Tempe Transportation Center, which serves as a major hub for bus and light rail services. The nearby ASU campus also attracts a significant number of business travelers thanks to its numerous conferences, seminars, and research facilities. Downtown Tempe is just a short drive from the Phoenix Convention Center and several major sports venues, including Chase Field and Footprint Center.

X-Factor - 9/10

What sets Downtown Tempe apart is its unique blend of youthful energy, cultural diversity, and urban sophistication. The presence of Arizona State University infuses the neighborhood with a vibrant and dynamic atmosphere, while the mix of historic buildings and modern developments creates a captivating architectural landscape. The area's commitment to sustainability, exemplified by its bike-friendly streets and green spaces, adds to its appeal for environmentally conscious travelers. Furthermore, Downtown Tempe's year-round events, such as festivals, concerts, and markets, ensure that there's always something exciting happening in the neighborhood.

2. Top Place to Invest in Tempe, Arizona - Evergreen

Evergreen, a charming and well-established neighborhood in the heart of Tempe, has been attracting the attention of savvy Airbnb investors. With its convenient location, family-friendly atmosphere, and proximity to local attractions, Evergreen presents an attractive investment opportunity for those looking to capitalize on the growing short-term rental market in the Phoenix metropolitan area.

Evergreen Airbnb Market Data:

• Average Revenue – $42.8K per year
• Average Daily Rate – $ 209.5 per night
• Average Occupancy Rate – 56%
• Average RevPAR – $118.9

Convenience - 8/10

One of Evergreen's greatest strengths is its convenient location. Situated just off US-60 and Loop 101, this neighborhood provides easy access to major transportation routes, making it an ideal base for exploring the surrounding areas. The community is also well-served by local amenities, including grocery stores, restaurants, and shops, ensuring that residents and visitors have everything they need within a short distance.

Tourist Attractions - 6/10

While Evergreen is primarily a residential neighborhood, it is surrounded by various tourist attractions. The nearby Arizona Mills Mall offers a unique shopping and entertainment experience, while the Sea Life Arizona Aquarium and LEGOLAND Discovery Center provide fun for the whole family. The Tempe Diablo Stadium, the spring training home of the Los Angeles Angels, is also just a short drive away.

Things to Do - 7/10

Evergreen offers a range of activities for residents and visitors, particularly those who appreciate outdoor recreation. The neighborhood features several well-maintained parks, including Evergreen Park and Stroud Park, which offer playgrounds, sports fields, and walking trails. The nearby Ken McDonald Golf Course provides a challenging and scenic round of golf for enthusiasts. Additionally, the Tempe Town Lake and its surrounding parks are just a short drive away, offering boating, fishing, and picnicking opportunities.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home value in Evergreen is $450,000, which represents a 3.2% appreciation over the past year. While this price point is slightly higher than some other areas in Tempe, the neighborhood's desirability, family-friendly atmosphere, and potential for steady rental demand make it an attractive option for Airbnb investors. Evergreen's average price per square foot is $275, up 4% from the previous year.

Proximity to Work-Related Travel - 7/10

Evergreen is conveniently located near several major employers and business centers. The nearby Arizona State University Research Park is home to numerous technology and innovation companies, while the Tempe St. Luke's Hospital and the Tempe Gateway business district are just a short drive away. The neighborhood's proximity to US-60 and Loop 101 also makes it an easy commute to other parts of the Phoenix metropolitan area.

X-Factor - 8/10

What sets Evergreen apart is its strong sense of community and family-friendly atmosphere. The neighborhood's well-maintained homes, tree-lined streets, and abundant green spaces create a welcoming environment that appeals to both residents and visitors. The community's proximity to local attractions, such as the Arizona Mills Mall and the Tempe Town Lake, adds to its allure, offering a variety of entertainment options for all ages. With its combination of convenient location, safe streets, and a growing reputation as a family-friendly destination, Evergreen is an intriguing option for Airbnb investors looking to cater to families and travelers seeking a peaceful retreat in the heart of Tempe.

3. Top Place to Invest in Tempe, Arizona - Bell De Mar Crossing

Bell De Mar Crossing, a hidden gem in the heart of Tempe, has been gaining attention from Airbnb investors seeking a promising location with strong potential for short-term rental success. Boasting a unique blend of convenience, proximity to local attractions, and a welcoming community atmosphere, Bell De Mar Crossing presents an attractive investment opportunity for those looking to tap into the growing tourism market in the Phoenix metropolitan area.

Bell De Mar Crossing Airbnb Market Data:

• Average Revenue – $47.4K per year
• Average Daily Rate – $212.8 per night
• Average Occupancy Rate – 61%
• Average RevPAR – $129.6

Convenience - 8/10

Bell De Mar Crossing's location is one of its greatest assets. Situated just off Loop 101 and US-60, this neighborhood provides easy access to major transportation routes, making it an ideal base for exploring the surrounding areas. The community is also well-served by local amenities, including grocery stores, restaurants, and shops, ensuring that residents and visitors have everything they need within a convenient distance.

Tourist Attractions - 7/10

While Bell De Mar Crossing itself is primarily a residential neighborhood, it is surrounded by several tourist attractions. The nearby Arizona Mills Mall offers a unique shopping and entertainment experience, while the Sea Life Arizona Aquarium and LEGOLAND Discovery Center provide fun for the whole family. The Tempe Diablo Stadium, the spring training home of the Los Angeles Angels, is also just a short drive away, attracting baseball enthusiasts from around the country.

Things to Do - 7/10

Bell De Mar Crossing offers a range of activities for residents and visitors to enjoy, particularly for those who appreciate outdoor recreation. The neighborhood features a well-maintained community park with a playground, picnic areas, and walking paths. The nearby Tempe Town Lake and its surrounding parks provide opportunities for boating, fishing, and hiking, while the Ken McDonald Golf Course offers a challenging round of golf for enthusiasts.

Average Home Prices - 8/10

According to Zillow data for 2024, the median home value in Bell De Mar Crossing is $425,000, which represents a 4.2% appreciation over the past year. This relatively affordable price point, combined with the neighborhood's desirable location and potential for steady rental demand, makes Bell De Mar Crossing an attractive option for Airbnb investors. The neighborhood's average price per square foot is $250, up 5% from the previous year.

Proximity to Work-Related Travel - 7/10

Bell De Mar Crossing is conveniently located near several major employers and business centers. The nearby Arizona State University Research Park is home to numerous technology and innovation companies, while the Tempe St. Luke's Hospital and the Tempe Gateway business district are just a short drive away. The neighborhood's proximity to Loop 101 and US-60 also makes it an easy commute to other parts of the Phoenix metropolitan area.

X-Factor - 8/10

What sets Bell De Mar Crossing apart is its strong sense of community and welcoming atmosphere. The neighborhood's well-maintained homes, tree-lined streets, and friendly residents create an inviting environment that appeals to both short-term renters and long-term residents. The community's proximity to local attractions, such as the Arizona Mills Mall and the Tempe Town Lake, adds to its allure, offering a variety of entertainment options for all ages. With its combination of convenient location, affordable housing, and a growing reputation as a family-friendly destination, Bell De Mar Crossing is an intriguing option for Airbnb investors looking to cater to budget-conscious travelers and families seeking a comfortable home base in the heart of Tempe.

4. Top Place to Invest in Tempe, Arizona - Tempe Royal Palms

Tempe Royal Palms, a picturesque and well-established neighborhood in the heart of Tempe, has been attracting the attention of savvy Airbnb investors. With its unique blend of convenience, proximity to local attractions, and welcoming community atmosphere, Tempe Royal Palms presents an exciting investment opportunity for those looking to capitalize on the growing short-term rental market in the Phoenix metropolitan area.

Tempe Royal Palms Airbnb Market Data:

• Average Revenue – $62.6K per year
• Average Daily Rate – $323.7 per night
• Average Occupancy Rate – 53%
• Average RevPAR – $171.8

Convenience - 8/10

One of Tempe Royal Palms' greatest strengths is its convenient location. Situated just off US-60 and Loop 101, this neighborhood provides easy access to major transportation routes, making it an ideal base for exploring the surrounding areas. The community is also well-served by local amenities, including grocery stores, restaurants, and shops, ensuring that residents and visitors have everything they need within a short distance.

Tourist Attractions - 7/10

While Tempe Royal Palms is primarily a residential neighborhood, it is surrounded by various tourist attractions. The nearby Tempe Town Lake offers a wide range of water activities and scenic views, while the Arizona Mills Mall provides a unique shopping and entertainment experience. The Tempe Center for the Arts and the ASU Art Museum are also just a short drive away, offering cultural enrichment for those seeking a more refined experience.

Things to Do - 8/10

Tempe Royal Palms offers a range of activities for residents and visitors, particularly those who appreciate outdoor recreation. The neighborhood features several well-maintained parks, including Royal Palms Park and Selleh Park, which offer playgrounds, sports fields, and walking trails. The nearby Papago Park provides opportunities for hiking, biking, and picnicking, while the Karsten Golf Course at ASU offers a challenging round of golf for enthusiasts.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home value in Tempe Royal Palms is $475,000, which represents a 3.8% appreciation over the past year. While this price point is slightly higher than some other areas in Tempe, the neighborhood's desirability, convenient location, and potential for strong rental demand make it an attractive option for those aspiring to start a short-term rental business in Tempe. The average price per square foot in Tempe Royal Palms is $300, up 4% from the previous year.

Proximity to Work-Related Travel - 8/10

Tempe Royal Palms is conveniently located near several major employers and business centers. The nearby Arizona State University campus attracts a significant number of business travelers, thanks to its numerous conferences, seminars, and research facilities. The neighborhood is also just a short drive from the Tempe Transportation Center, which serves as a major hub for bus and light rail services, making it easy to commute to other parts of the Phoenix metropolitan area.

X-Factor - 9/10

What sets Tempe Royal Palms apart is its unique blend of tranquility and convenience. The neighborhood's well-maintained homes, lush landscaping, and quiet streets create a peaceful oasis that feels far removed from the hustle and bustle of the city while still being just minutes away from major attractions and business centers. The community's strong sense of neighborliness and family-friendly atmosphere add to its appeal, making it an ideal spot for Airbnb investors looking to cater to travelers seeking a comfortable and welcoming home away from home. With its combination of convenient location, attractive amenities, and a growing reputation as a desirable destination, Tempe Royal Palms is poised for success in the short-term rental market.