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View PropertiesAs of Apr, 27 2026
Rabbu ROI Score
Nogales appears higher risk based on current data and may require deeper, property-specific diligence to find compelling opportunities.
Nogales, AZ is a small border-town market with just 27 active Airbnb listings and an average annual revenue of $10,366 per property. With an ADR of $117 — well below Arizona's $434 state average — and occupancy sitting at 32%, the market presents a higher-risk profile that demands careful, property-level analysis before committing capital. That said, low supply and affordable home values averaging $347,085 could offer niche opportunities for investors willing to target cross-border travelers and seasonal visitors.
According to Rabbu market data, the Nogales short-term rental market shows:
| Metric | Context | Value |
|---|---|---|
| Active Airbnb Listings | As of Apr, 27 2026 | 27 |
| Average Daily Rate (ADR) | vs. $434 state avg. | $117 |
| Average Occupancy Rate | vs. 53% state avg. | 32% |
| RevPAN | ADR * Occupancy Rate | $37 |
| Average Monthly Revenue | Historical 12-month average | $863 |
| Average Annual Revenue | Historical 12-month average | $10,366 |
Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.
Investors may consider Nogales for its relatively affordable entry price and favorable supply/demand balance, though below-average occupancy and growth trends warrant caution.
Key investment factors
"Nogales registers limited investment potential with an ROI score of 34 out of 100, reflecting below-average occupancy stability and muted growth trends. Revenue is heavily seasonal — March leads at $1,318 per month while June dips to just $519 — creating a pronounced cash-flow swing that investors need to plan around. The market's above-average supply/demand balance is a bright spot, but the rapid 172% year-over-year listing growth could erode that advantage quickly. Investors who succeed here will likely need to differentiate through amenities, pricing strategy, and targeting the winter-season demand window."
— Rabbu Market Analysis Team
Nogales exhibits strong seasonality, with March peaking at $1,318 and June bottoming out at $519 — a spread of nearly $800. The November-through-March window accounts for the bulk of annual earnings, making winter-season marketing and pricing strategy critical for maximizing returns.
| Month | Trend | Revenue |
|---|---|---|
| January |
|
$969 |
| February |
|
$1,248 |
| March |
|
$1,318 |
| April |
|
$819 |
| May |
|
$640 |
| June |
|
$519 |
| July |
|
$580 |
| August |
|
$556 |
| September |
|
$573 |
| October |
|
$894 |
| November |
|
$1,089 |
| December |
|
$1,156 |
The market's supply skews small, with 14 one-bedroom listings making up the majority and only 6 two-bedroom properties tracked. Larger configurations (3+ bedrooms) appear absent or negligible, which could represent either a lack of demand for bigger units or an untested opportunity.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
14 |
| 2 bedrooms |
|
6 |
Two-bedroom listings command $139 per night compared to $79 for one-bedrooms, a 76% premium that may justify the incremental acquisition and furnishing costs. Both rates remain well below the Arizona state average, keeping this a budget-oriented market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$79 |
| 2 bedrooms |
|
$139 |
Two-bedroom properties deliver a RevPAN of $47 versus $26 for one-bedrooms, nearly doubling the revenue per available night. Given identical occupancy rates, the ADR premium on 2-bedroom units translates directly into stronger per-night earnings.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$26 |
| 2 bedrooms |
|
$47 |
Both 1-bedroom and 2-bedroom listings share the same 34% occupancy rate, indicating that property size has minimal impact on booking frequency in Nogales. This uniform occupancy suggests demand dynamics are market-wide rather than size-specific, so revenue differentiation comes down to nightly rate rather than fill rate.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
34% |
| 2 bedrooms |
|
34% |
Two-bedroom listings average $807 per month, more than double the $335 that one-bedroom units generate. For investors weighing property size, the 2-bedroom configuration offers meaningfully better monthly cash flow in this market.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$335 |
| 2 bedrooms |
|
$807 |
At $9,688 annually, 2-bedroom properties earn roughly 2.4 times the $4,024 generated by 1-bedroom listings. Given the modest overall revenue in Nogales, investors seeking viable returns should strongly consider 2-bedroom units as the more productive configuration.
| Size | Trend | Value |
|---|---|---|
| 1 bedroom |
|
$4,024 |
| 2 bedrooms |
|
$9,688 |
Parking dominates at 96%, followed by kitchens at 85% and self check-in at 67% — a lineup reflecting practical, self-service guest expectations rather than luxury amenities. Notably, 56% of listings welcome pets and 41% offer a pool, suggesting that outdoor space and pet-friendliness can be meaningful differentiators in this border-town market.
| Amenity | Trend | Value |
|---|---|---|
| Parking |
|
96% |
| Kitchen |
|
85% |
| Self Check-in |
|
67% |
| Outdoor Furniture |
|
56% |
| Pets |
|
56% |
| Workspace |
|
48% |
| Backyard |
|
44% |
| BBQ Grill |
|
41% |
| Patio or Balcony |
|
41% |
| Pool |
|
41% |
| Washer |
|
41% |
| Dryer |
|
37% |
| Gym |
|
11% |
| Hot Tub |
|
11% |
Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.
| Factor | Nogales Performance | Weight |
|---|---|---|
| Revenue-to-Price Ratio | Average | 40% |
| Occupancy Stability | Below average | 30% |
| Market Growth Trend | Below average | 15% |
| Supply/Demand Balance | Above average | 15% |
Nogales earns a Rabbu ROI Score of 34 out of 100, placing it in the 'Limited' investment potential band. The average revenue-to-price ratio is a relative strength, but below-average occupancy stability and market growth trends weigh the score down significantly; the above-average supply/demand balance offers some cushion but isn't enough to offset the softer fundamentals. Investors considering this market should pair this data with thorough local regulatory research and property-specific underwriting to identify whether niche opportunities exist beneath the headline numbers.
Understanding local STR regulations is essential before investing in Nogales. Here's the current regulatory landscape:
Short-term rental operators in Nogales, AZ should verify whether a local business license or STR registration is required by the City of Nogales. Arizona state law generally limits municipalities from outright banning STRs, but local permit or registration requirements may still apply — investors should confirm current rules with the city's planning or zoning department.
Common restrictions that may affect STR operators in Nogales include occupancy limits, noise ordinances, parking requirements, and rules imposed by homeowners' associations. Some jurisdictions also enforce minimum stay requirements or cap the number of permitted short-term rentals in certain zones, so it's important to review any applicable local ordinances before purchasing.
Arizona imposes a Transaction Privilege Tax (TPT) on short-term rental income, and Nogales may levy additional local lodging or tourism taxes. Platforms like Airbnb often collect and remit state-level taxes on behalf of hosts, but operators should verify that all local obligations are covered.
Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Nogales can provide current regulatory guidance.
Financing an Airbnb investment in Nogales requires lenders who understand STR income. Rabbu partner lenders offer:
"Over the next 12–18 months, Nogales is likely to remain a modest performer with occupancy estimates hovering in the 30–35% range. Seasonal peaks in February and March suggest winter visitors drive the strongest demand, and ADR could see incremental gains of 1–3% if supply growth stabilizes. However, the 172% year-over-year increase in active listings signals rapidly rising competition that may put further pressure on already-thin revenue figures unless demand keeps pace."
— Rabbu Market Analysis Team
Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.
Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing performance and market conditions as of April 2026; actual results may differ as conditions evolve. Local regulations, tax obligations, and permit requirements are subject to change — always verify with municipal authorities before investing.
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