Airbnb City Guide: The Best Places To Invest in Tucson, Arizona

Airbnb Rules and Regulations in Tucson, Arizona

Tucson has implemented several regulations for short-term rentals as of 2024. Hosts are required to obtain a business license and pay a business license tax to legally operate. Additionally, vacation rental owners must register their property with Pima County, providing essential information such as emergency contact details and proof of liability insurance. Zoning restrictions apply in certain areas of the city, with some zones prohibiting short-term rentals altogether, while others necessitate a vacation rental permit.

Hosts must also adhere to building and housing standards, ensuring their properties meet minimum requirements for habitability, health, and safety. Furthermore, a transaction privilege and transient occupancy tax are levied on short-term rental stays. It is crucial for hosts to familiarize themselves with these regulations and comply with all applicable laws to avoid penalties and maintain a thriving Airbnb business in Tucson.

Tucson Airbnb Market Data:

• Average Revenue – $20.5K per year
• Average Daily Rate – $139.9 per night
• Average Occupancy Rate – 55%
• Average RevPAR – $77.7
• Average Home Prices – $327,123

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

Downtown Tucson, the city's vibrant heart, has undergone a remarkable transformation in recent years. With its thriving arts scene, diverse culinary offerings, and rich history, this area has become an attractive destination for both residents and visitors alike.

Downtown Tucson Airbnb Market Data:

• Average Revenue – $25K per year
• Average Daily Rate – $174.1 per night
• Average Occupancy Rate – 49%
• Average RevPAR – $89.1

Convenience - 8/10

Downtown Tucson offers unparalleled convenience, with numerous amenities within walking distance. Everything you need, from grocery stores to pharmacies, banks to post offices, is just a short stroll away. The area's walkability and bike-friendly streets make it easy to navigate without relying on a car.

Tourist Attractions - 7/10

The downtown area boasts a variety of tourist attractions, including the Tucson Museum of Art, the Historic Fox Theatre, and the colorful 4th Avenue shopping district. Visitors can explore the city's rich history at the Presidio San Agustín del Tucson Museum or enjoy a leisurely walk through the charming El Presidio Historic District.

Things to Do - 9/10

Downtown Tucson is a hub of activity, offering an array of entertainment options. Catch a live performance at the Rialto Theatre, savor delicious cuisine at one of the many restaurants, or sip on a craft cocktail at a trendy bar. The weekly farmers market and frequent local festivals add to the area's vibrant atmosphere.

Average Home Prices - 6/10

According to Zillow, the median home value in Downtown Tucson as of 2024 is $325,000, representing a 3.2% appreciation over the past year. While prices have increased, they remain relatively affordable compared to other major cities. However, the limited inventory of single-family homes in the area may pose a challenge for investors.

Proximity to Work-Related Travel - 9/10

Downtown Tucson is ideally situated for work-related travel, with the Tucson Convention Center just a short walk away. The area is also home to several major employers, including Pima County offices and the University of Arizona. Tucson International Airport is a mere 15-minute drive from downtown, making it convenient for business travelers.

X-Factor - 8/10

What sets Downtown Tucson apart is its unique blend of history and modernity. The area's stunning architecture, featuring a mix of Spanish Colonial, Art Deco, and Mid-Century Modern styles, creates a captivating visual landscape. The thriving arts community, with numerous galleries and public art installations, adds to the area's cultural appeal.

2. Top Place to Invest in Tucson, Arizona - Catalina Foothills

Nestled at the Santa Catalina Mountains base, the Catalina Foothills offer a unique blend of natural beauty, upscale amenities, and proximity to the heart of Tucson. Thanks to its stunning views, top-rated schools, and diverse real estate options, this prestigious neighborhood has become a sought-after destination for starting an Airbnb.

Catalina Foothills Airbnb Market Data:

• Average Revenue – $20.9K per year
• Average Daily Rate – $174.7 per night
• Average Occupancy Rate – 53%
• Average RevPAR – $96.6

Convenience - 8/10

The Catalina Foothills provide a perfect balance of suburban tranquility and urban convenience. With easy access to major highways and a mere 16-minute average commute time, residents can quickly reach downtown Tucson and other parts of the city. The area boasts a variety of grocery stores, pharmacies, and other essential services, ensuring that daily needs are met with ease.

Tourist Attractions - 7/10

While primarily a residential area, the Catalina Foothills offer several notable attractions for visitors. The DeGrazia Gallery in the Sun showcases the works of renowned Arizona artist Ted DeGrazia, while the nearby Sabino Canyon provides a stunning natural setting for hiking, picnicking, and wildlife spotting. The Mount Lemmon Scenic Byway winds through the Santa Catalina Mountains and offers breathtaking views and recreational opportunities.

Things to Do - 8/10

Residents of the Catalina Foothills enjoy a wide range of activities and amenities. The area is home to seven top-notch golf courses, catering to golf enthusiasts of all skill levels. Outdoor lovers can explore the numerous hiking trails in the nearby mountains or take a scenic tram ride through Sabino Canyon. The neighborhood also features a thriving dining scene, with creative chefs offering globally-inspired menus and innovative takes on classic dishes.

Average Home Prices - 6/10

As of 2024, the average home value in the Catalina Foothills is $716,158, representing a 5.3% appreciation over the past year. While this may seem steep compared to other areas of Tucson, the Foothills offer a premium living experience with larger lot sizes, stunning views, and high-end finishes. Investors can find a mix of single-family homes, townhouses, and condos to suit various budgets and preferences.

Proximity to Work-Related Travel - 7/10

The Catalina Foothills are conveniently located near several major employers and business hubs. The University of Arizona, one of the city's largest employers, is just a short drive away. The neighborhood also offers easy access to Tucson Medical Center and Northwest Medical Center, making it an attractive option for healthcare professionals. While not as close to the Tucson Convention Center as downtown, the Foothills are still within a reasonable distance for business travelers.

X-Factor - 9/10

What sets the Catalina Foothills apart is its unparalleled natural beauty and upscale atmosphere. The area's stunning mountain views, desert landscapes, and lush vegetation create a serene and picturesque setting that is hard to find elsewhere in Tucson. The neighborhood's rich history, showcased through its unique architecture and historic districts, adds to its charm and character. Additionally, the Catalina Foothills School District is consistently ranked among the best in the state, making it a top choice for families with school-aged children.

3. Top Place to Invest in Tucson, Arizona - Dunbar Spring

Dunbar Spring, a historic neighborhood just north of downtown Tucson, has recently experienced remarkable revitalization. With its strong sense of community, commitment to sustainability, and proximity to the city's core, this area has become an attractive option for both residents and investors seeking a unique urban living experience.

Dunbar Spring Airbnb Market Data:

• Average Revenue – $20.9K per year
• Average Daily Rate – $144.7 per night
• Average Occupancy Rate – 53%
• Average RevPAR – $80

Convenience - 8/10

One of Dunbar Spring's greatest assets is its convenient location. Located within walking distance of downtown Tucson, residents have easy access to many amenities, including grocery stores, restaurants, and entertainment venues. The neighborhood's grid-like layout and well-maintained sidewalks make it a highly walkable and bike-friendly area.

Tourist Attractions - 6/10

While Dunbar Spring itself is not a major tourist destination, its proximity to downtown Tucson means that visitors are just a short walk or bike ride away from popular attractions such as the Tucson Museum of Art, the Historic Fox Theatre, and the vibrant 4th Avenue shopping district. The neighborhood's unique murals and community gardens also add to its visual appeal.

Things to Do - 7/10

Dunbar Spring offers a variety of activities for residents and visitors alike. The neighborhood is home to several parks, including the Dunbar Spring Community Garden, which hosts regular events and workshops focused on sustainable living. The nearby Whistle Stop Depot is a popular gathering spot featuring a weekly farmers market and occasional live music performances.

Average Home Prices - 7/10

According to Zillow, the median home value in Dunbar Spring as of 2024 is $285,000, representing a 4.2% appreciation over the past year. This relatively affordable price point and the neighborhood's growing popularity make it an attractive option for investors. The area offers a mix of historic bungalows, modern infill developments, and multi-family properties.

Proximity to Work-Related Travel - 8/10

Dunbar Spring's location just north of downtown Tucson makes it an ideal spot for those who need to travel for work. The Tucson Convention Center is just a 5-minute drive away, while the University of Arizona and several major employers are within a 10-15-minute commute. The neighborhood's proximity to I-10 also provides easy access to other parts of the city and beyond.

X-Factor - 9/10

Dunbar Spring's strong sense of community and commitment to sustainability sets it apart. The neighborhood has been at the forefront of Tucson's urban agriculture movement, with numerous community gardens, chicken coops, and rainwater harvesting systems throughout the area. This focus on green living, combined with the neighborhood's diverse population and engaged residents, creates a unique and vibrant atmosphere that is hard to find elsewhere in the city.

4. Top Place to Invest in Tucson, Arizona - Blenman-Elm

Blenman-Elm, a historic midtown neighborhood in Tucson, Arizona, has emerged as a prime location for real estate investment. With its convenient location, charming architecture, and strong sense of community, this area offers a unique opportunity for those looking to establish their own short-term rental.

Blenman-Elm Airbnb Market Data:

• Average Revenue – $19.4K per year
• Average Daily Rate – $131.1 per night
• Average Occupancy Rate – 58%
• Average RevPAR – $75.9

Convenience - 9/10

One of Blenman-Elm's greatest strengths is its unbeatable location. Situated just minutes from the University of Arizona and the bustling downtown area, residents enjoy easy access to a wide range of amenities. The neighborhood's walkable streets and proximity to public transportation make it an ideal choice for those seeking a car-optional lifestyle.

Tourist Attractions - 7/10

While Blenman-Elm itself is primarily residential, its central location puts visitors within reach of Tucson's top attractions. The Arizona-Sonora Desert Museum, Tucson Botanical Gardens, and Pima Air & Space Museum are all just a short drive away. The neighborhood's historic homes and lush gardens also provide a charming backdrop for a leisurely stroll.

Things to Do - 8/10

Blenman-Elm offers a variety of activities for residents and visitors alike. The nearby Reid Park Zoo and Randolph Park provide ample opportunities for outdoor recreation, while the neighborhood's annual home and garden tour showcases its unique architectural heritage. There's never a dull moment in this vibrant community with a thriving dining and shopping scene just minutes away.

Average Home Prices - 7/10

As of 2024, the median home value in Blenman-Elm is $385,000, representing a 4.8% appreciation over the past year. While prices are higher than in some other areas of Tucson, the neighborhood's prime location and historic charm justify the premium. Investors can find a mix of single-family homes, townhouses, and apartments to suit various budgets and preferences.

Proximity to Work-Related Travel - 9/10

Blenman-Elm's location near the University of Arizona and downtown Tucson makes it an ideal spot for those who need to travel for work. The University Medical Center is just a short walk away, while the Tucson Convention Center and other major employers are easily accessible by car or public transit. The neighborhood's central location also provides quick access to major highways and the Tucson International Airport. This makes it a great location for a corporate rental, catering primarily to businessmen and traveling employees.

X-Factor - 8/10

What sets Blenman-Elm apart is its unique blend of history and community. The neighborhood's diverse architecture, ranging from 1920s bungalows to mid-century modern gems, creates a visually stunning streetscape. The active neighborhood association and tight-knit community foster a sense of belonging that is hard to find in newer developments. Blenman-Elm is hard to beat for investors seeking a property with character and charm.

5. Top Place to Invest in Tucson, Arizona - Rincon Heights

Rincon Heights, a historic neighborhood nestled near the University of Arizona and downtown Tucson, has emerged as a prime location for real estate investment. With its diverse architecture, strong sense of community, and proximity to the city's core, this area offers a unique opportunity for those looking to invest in creating their own short-term rental.

Rincon Heights Airbnb Market Data:

• Average Revenue – $20.9K per year
• Average Daily Rate – $140.4 per night
• Average Occupancy Rate – 54%
• Average RevPAR – $77.7

Convenience - 9/10

One of Rincon Heights' greatest strengths is its unbeatable location. Situated just minutes from the University of Arizona and the vibrant downtown area, residents enjoy easy access to a wide range of amenities, from grocery stores and restaurants to entertainment venues and public transportation. The neighborhood's walkable streets and bike-friendly infrastructure make it an ideal choice for those seeking a car-optional lifestyle.

Tourist Attractions - 7/10

While Rincon Heights itself is primarily residential, its central location puts visitors within reach of Tucson's top attractions. The Arizona-Sonora Desert Museum, Sabino Canyon, and Saguaro National Park are all just a short drive away. The neighborhood's historic homes and lush gardens also provide a charming backdrop for a leisurely stroll.

Things to Do - 8/10

Rincon Heights offers a variety of activities for residents and visitors alike. The nearby Reid Park Zoo and Randolph Park provide ample opportunities for outdoor recreation, while the neighborhood's annual home and garden tour showcases its unique architectural heritage. There's never a dull moment in this vibrant community with a thriving dining and shopping scene just minutes away.

Average Home Prices - 7/10

As of 2024, the median home value in Rincon Heights is $398,600, representing a modest 2.2% appreciation over the past year. While prices are higher than in some other areas of Tucson, the neighborhood's prime location and historic charm justify the premium. Investors can find a mix of single-family homes, townhouses, and apartments to suit various budgets and preferences.

Proximity to Work-Related Travel - 9/10

Rincon Heights' location near the University of Arizona and downtown Tucson makes it an ideal spot for those who need to travel for work. The University Medical Center is just a short walk away, while the Tucson Convention Center and other major employers are easily accessible by car or public transit. The neighborhood's central location also provides quick access to major highways and the Tucson International Airport.

X-Factor - 8/10

What sets Rincon Heights apart is its unique blend of history, architecture, and community. The neighborhood boasts some of the most diverse architecture in Tucson, ranging from 19th-century adobe homes to mid-century modern gems. The active neighborhood association and tight-knit community foster a sense of belonging that is hard to find in newer developments. For investors seeking a property with character and charm in a location poised for continued growth, Rincon Heights is hard to beat.