Median Listing Price
$825k
25th–75th pct varies. Comparable to other desert STR markets in the Top 50.
Median Land Ratio
31%
Range 26%–36%. Leaves the rest of purchase price as depreciable basis.
Bonus-Eligible %
23.4%
Median % of purchase price classifiable as 5-yr or 15-yr property. Range 20–27%.
Federal Savings @ 37%
$71.5k
Median federal tax savings on a $825k purchase. Range $61.1k–$83.3k.
Why Sedona matters for STR bonus depreciation
Sedona's score reflects three compounding factors driving its bonus depreciation outcome:
1. Red rock land ratios beat trophy-desert peers
Sedona's land ratios (26–36%) sit meaningfully below Scottsdale (31%) and well below coastal CA markets. On a $825k purchase, that's roughly $256k of land versus $569k of depreciable basis.
2. Luxury STR amenity stacks
Sedona caters to high-end wellness and adventure travelers. The strongest STRs combine pools, hot tubs, outdoor kitchens, pergolas, fire pits, and outdoor showers — all 15-year land improvements (100% bonus-eligible). Interior finishes lean luxurious: stone countertops, custom cabinetry, smart-home systems, designer lighting. Combined 5-year + 15-year basis runs $190k–$240k at the median price.
3. Arizona conforms to federal §168(k)
Arizona fully conforms to federal bonus depreciation. The full Year 1 deduction flows through both federal and AZ state returns. No state addback. For investors operating in AZ this is the most favorable state tax posture.
Common bonus-eligible amenities in Sedona STRs
Prevalence of 15-year land improvements we typically see across Sedona short-term rentals — all 100% bonus-eligible in Year 1 under IRS §168(k):
Fire pit / fire feature
78%
Outdoor kitchen / BBQ area
56%
Pergola / shade structure
47%
See live Sedona listings ranked by bonus depreciation
Every active Sedona short-term rental scored by Year 1 bonus depreciation potential — filtered by your price range and amenity preferences. Free market search shows every listing. Run a $99 detailed AI property report on any specific listing for line-item 5-year / 15-year / 39-year classification, closely calibrated to a formal cost seg study.
How DepreciMax scores Sedona STRs for §168(k) eligibility
Sedona's DepreciMax Score is the aggregate score across 100 active listings run through our proprietary algorithm. We use multiple inputs — including land values and AI photo recognition — calibrated over time against a completed cost segregation study on a benchmark short-term rental, with a target accuracy of closely calibrated on bonus-eligible % of purchase price.
More detail in the Top 50 Markets methodology section.
Version: 2026. Sample listings are representative profiles drawn from the top 100 active listings at snapshot date — actual addresses anonymized. Bonus depreciation outcomes vary by individual property; this report estimates ranges for typical purchases. Not tax advice — consult your CPA before making investment decisions.
Data sources & references
Score live Sedona properties — for your specific deal
Run any active Sedona listing through the DepreciMax property scorer. Free market search shows you every listing ranked by bonus depreciation potential. $99 per detailed AI report on a specific property — closely calibrated to a formal cost seg study.
Score Sedona Properties →
Want the full Top 50 report?
All 50 markets ranked by bonus depreciation score, with category filters and the full methodology.
View Full Report →
Sedona bonus depreciation calculator (by zip code)
Sedona spans 3 primary zip codes with materially different land value ratios from FHFA assessor data. The calculator below has a zip dropdown — switch it to update the land ratio for your area. The bonus-eligible percentage (Sedona's market-typical 23%) stays constant across zips because it reflects the property type, not the location. Arizona conforms to federal §168(k) — full federal + state benefit.
Sedona zip code comparison
| Zip |
Sub-market |
Land ratio |
Typical price |
Typical Year-1 deduction |
| 86336 | Sedona (west / uptown) (highest land ratio) | 31% | $825k | $190k |
| 86351 | Village of Oak Creek | 30% | $775k | $178k |
| 86341 | Lake Montezuma area (lowest land ratio) | 28% | $540k | $124k |
Sample calculation: $825k Sedona STR (zip 86336)
- Purchase price: $825,000
- Land value (31% land ratio per FHFA): $255,750
- Depreciable basis: $569,250
- Bonus-eligible portion (5-yr + 15-yr property at Sedona's market-typical 23%): $189,750
- Year-1 §168(k) deduction: $190k
- Federal tax savings at 37% bracket: $70.2k
See IRS Publication 946 for §168(k) rules. Use the interactive calculator below to model your specific deal.
Looking for a deeper read on your specific property, not just the market median? Run the $99 Sedona property report — our AI analyzes 7–9 listing photos against the IRS classification rules and returns a line-item §168(k) estimate closely calibrated to a formal $5K–$8K cost seg study.
How to calculate Sedona bonus depreciation
Sample calculation: $825k Sedona STR
- Purchase price: $825,000
- Land value (30% land ratio per FHFA): $247,500
- Depreciable basis: $577,500
- Bonus-eligible portion (5-yr + 15-yr property at Sedona's market-typical 23%): $189,750
- Year-1 §168(k) deduction: $190k
- Federal tax savings at 37% bracket: $70.2k
See IRS Publication 946 for §168(k) rules. Run the interactive calculator to model your specific deal.
Related reading: STR bonus depreciation
