Tempe, AZ Airbnb Market Data, Statistics, and Occupancy Rates

Tempe Short-Term Rental Market Overview

Tempe's short-term rental market presents an attractive opportunity for investors, powered by a university-town dynamic, proximity to Phoenix, and strong seasonal demand that peaks during the spring events and tourism corridor. With 587 active Airbnb listings, an average daily rate of $209, and annual revenue averaging $29,443, the market sits below Arizona's state ADR average but compensates with above-average occupancy stability. Investors will find a market where revenue scales meaningfully with property size, and where spring months can deliver more than triple the income of the summer lull.

Key Market Statistics

According to Rabbu market data, the Tempe short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Tempe

Tempe draws investor interest thanks to its year-round demand drivers—anchored by Arizona State University, spring training baseball, and spillover tourism from the greater Phoenix metro—combined with relatively stable occupancy and meaningful revenue upside for larger properties.

Expert Market Assessment

"Tempe registers as an attractive opportunity with a 62 out of 100 ROI score, reflecting a healthy balance between revenue potential and property costs. The market's seasonality is pronounced—March leads all months at $5,542 in average revenue, while June dips to just $1,361—so investors should build cash reserves to weather the summer months comfortably. Occupancy stability stands out as a genuine strength, rated above average among the ROI calculation factors, which helps offset the average revenue-to-price ratio. For investors who price competitively during off-peak months and capitalize on spring demand, Tempe offers a solid foundation for STR returns without the extreme competition of nearby Scottsdale or central Phoenix."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Tempe

Average revenue by month in Tempe

Revenue in Tempe follows a sharp seasonal curve, peaking in March at $5,542 and bottoming out in June at $1,361—a roughly 4x spread that underscores how critical the February–March window is to annual performance. Investors should plan for five consecutive softer months from June through October, with revenue gradually recovering into the holiday season.

Active Airbnb listings by property size in Tempe

One-bedroom units dominate Tempe's supply at 188 listings, followed by 3-bedrooms (142) and 2-bedrooms (111), while 5-bedroom and 6+ bedroom properties remain scarce at just 17 and 8 listings respectively. The limited supply of larger homes could signal opportunity, particularly given their significantly higher revenue potential.

Average daily rate (ADR) by property size in Tempe

ADR climbs steeply with property size in Tempe, from $95 for 1-bedroom units to $530 for 6+ bedroom homes—a more than 5x premium. The jump from 2-bedrooms ($192) to 3-bedrooms ($265) represents a particularly notable step up, suggesting strong group-travel pricing power once a property crosses the 2-bedroom threshold.

Average RevPAN by property size in Tempe

Revenue per available night increases consistently with size, ranging from $48 for 1-bedrooms to $196 for 6+ bedroom properties. Even after factoring in lower occupancy rates for larger homes, the RevPAN premium remains substantial—4-bedroom properties at $149 and 5-bedrooms at $164 outperform smaller units by a wide margin.

Average occupancy rates by property size in Tempe

Mid-sized properties lead occupancy in Tempe, with 2- and 3-bedroom units both hitting 54%, while studios and 4-bedrooms come in at 45% and larger homes (5-bedroom and 6+) drop to 36–37%. This pattern suggests that investors targeting occupancy stability should focus on 2–3 bedroom configurations, though larger properties compensate with significantly higher nightly rates.

Average monthly revenue by property size in Tempe

Monthly revenue scales dramatically with size: 1-bedroom listings average $1,183 per month while 6+ bedroom homes bring in $6,348—more than five times as much. The 3-bedroom sweet spot at $3,169 per month offers a meaningful step up from 2-bedrooms ($2,171) without the lower occupancy rates seen in 5+ bedroom properties.

Average annual revenue by property size in Tempe

Annual revenue ranges from $14,206 for 1-bedroom units to $76,177 for 6+ bedroom properties, with 4-bedrooms earning a strong $49,397 annually. For investors weighing return potential against acquisition cost, the 3-bedroom tier at $38,038 per year offers a compelling balance of revenue and likely lower purchase prices compared to larger homes.

Most common amenities for Airbnb listings in Tempe

Kitchens (99%), parking (97%), and in-unit laundry (93%) are near-universal in Tempe listings, setting a high baseline for guest expectations. Outdoor amenities are also prominent—pools appear in 63% of listings and BBQ grills in 60%—reflecting the desert lifestyle and signaling that properties without outdoor living spaces may struggle to compete.

Understanding Tempe's ROI Score: 62/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Tempe's ROI score of 62 out of 100 places it in the 'Attractive Opportunity' band, indicating a market where demand fundamentals and revenue potential align reasonably well with property costs. The strongest factor is occupancy stability, rated above average, while revenue-to-price ratio, market growth, and supply/demand balance all register as average—suggesting the market is competitive but not overheated. Investors should pair this score with local regulatory research and property-level underwriting to confirm that specific deals pencil out, especially given the pronounced seasonal revenue swing.

Short-Term Rental Regulations in Tempe

Understanding local STR regulations is essential before investing in Tempe. Here's the current regulatory landscape:

Permit Requirements

Arizona state law generally preempts local restrictions on short-term rentals, but the City of Tempe may still require hosts to register their property and obtain applicable permits or licenses. Investors should verify current registration requirements directly with the City of Tempe and Maricopa County before listing.

Key Restrictions

Common restrictions that may apply include occupancy limits based on property size, noise and nuisance ordinances, parking requirements for guests, and rules around advertising and signage. Properties within HOA-governed communities may face additional covenants that restrict or prohibit short-term rentals entirely, so reviewing CC&Rs is essential before purchasing.

Tax Obligations

STR operators in Tempe are typically subject to Arizona Transaction Privilege Tax (TPT) and any applicable local lodging or tourism taxes. Many booking platforms collect and remit state-level taxes on behalf of hosts, but investors should confirm they are meeting all city and county obligations as well.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Tempe can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Tempe's STR market is expected to maintain its strong seasonal rhythm, with February and March continuing to drive the lion's share of annual revenue. We estimate ADR could see modest increases in the 1–3% range as supply absorbs the recent 139% year-over-year listing growth, while occupancy rates should stabilize around 48–52% market-wide. Investors entering now should plan conservatively for summer soft months (June through September) but can expect peak-season earnings to anchor overall annual returns. The above-average occupancy stability noted in the ROI analysis suggests the market has resilient demand fundamentals even as new supply enters."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Tempe, AZ

What is the average Airbnb occupancy rate in Tempe?

The average occupancy rate for Airbnb listings in Tempe is currently 50%, which sits just slightly below the Arizona state average of 53%. Occupancy varies by property size, with 2- and 3-bedroom units performing best at 54%, while larger 5-bedroom and 6+ bedroom properties see lower occupancy around 36–37%. Seasonal demand plays a major role, with spring months driving the highest booking activity.

How much do Airbnb hosts make in Tempe?

On average, Airbnb hosts in Tempe earn approximately $2,453 per month or $29,443 per year based on trailing 12-month booking data. Earnings vary significantly by property size—1-bedroom listings average around $14,206 annually, while 6+ bedroom properties can bring in roughly $76,177 per year. Peak months like March can generate over $5,500 in revenue, while summer months may dip below $1,500.

Is Tempe a good market for Airbnb investment?

Tempe earns a 62 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market benefits from above-average occupancy stability and consistent demand driven by Arizona State University, spring training events, and Phoenix metro tourism. Investors should be aware of pronounced seasonality—revenue peaks in February and March but softens considerably in summer—so budgeting for off-peak months is essential. Larger properties tend to deliver the strongest returns relative to their daily rates.

What is the average daily rate (ADR) for Airbnb in Tempe?

The average daily rate for Airbnb listings in Tempe is $209, which is well below the Arizona state average of $434. ADR scales significantly with property size: studios and 1-bedrooms average $95–$116 per night, while 4-bedroom homes command $329 and 6+ bedroom properties reach $530 per night. This pricing structure makes Tempe competitive for budget-conscious travelers while still rewarding investors in larger properties.

Are short-term rentals legal in Tempe?

Yes, short-term rentals are legal in Tempe. Arizona state law broadly protects homeowners' rights to operate short-term rentals, though the City of Tempe may require registration or licensing. Hosts should also check for HOA restrictions that could limit or prohibit STR activity in specific neighborhoods. It's always recommended to verify current local requirements with the City of Tempe before listing a property.

When is peak season for Airbnb in Tempe?

Peak season for Airbnb in Tempe runs from February through March, coinciding with spring training baseball, ideal weather, and major events in the Phoenix metro area. March is the top-earning month with average revenue of $5,542, followed by February at $4,035. The off-peak season spans June through September, when summer heat reduces tourism and average monthly revenue drops to the $1,361–$1,564 range.

How many Airbnbs are there in Tempe?

As of April 2026, there are 587 active Airbnb listings in Tempe. The supply is led by 1-bedroom units (188 listings) and 3-bedroom properties (142 listings), with smaller counts of studios (29), 5-bedroom homes (17), and 6+ bedroom properties (8). The market has seen significant growth, with a 139% year-over-year increase in active listings.

How is Airbnb revenue calculated in Tempe?

The annual and monthly revenue figures shown for Tempe are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remaining data up to a market-level historical average. Because each month uses its own historical performance data, seasonal peaks (like March) and slower months (like June) are naturally reflected in the figures. Individual results can vary based on property quality, pricing strategy, location within Tempe, and how actively the listing is managed.

About Rabbu Market Data

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.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Tempe market
• Average daily rates, occupancy rates, and RevPAN metrics across property sizes
• Monthly and annual revenue trends based on trailing 12-month booking data
• Property value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Supply distribution and popular amenity data across active listings

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing performance as of April 2026 and may not capture very recent market shifts or regulatory changes. Individual property results will vary based on location, condition, management quality, and pricing strategy.