Median Listing Price
$600k
Sample of ~50 active STR-suitable listings analyzed.
Median Land Ratio
21%
Lower is better — leaves 79% of purchase price as depreciable basis.
Bonus-Eligible %
23.9%
Median % of purchase price classifiable as 5-yr or 15-yr property under §168(k).
Federal Savings @ 37%
$53k
Median federal tax savings on a $600k purchase. Range $45k–$61k.
Why Prescott ranks #33
Cooler-elevation Arizona STR market above the desert floor. AZ full conformity plus surprisingly low central-highland land ratios. Prescott inventory carries the outdoor amenity stacks typical of AZ vacation markets (patios, fire features, pergolas) without the price premium of Sedona or Scottsdale — a strong dollar-for-dollar entry in the Top 50.
1. Land ratio drives the math
Mountain and forested terrain is assessed cheaply by county tax authorities. Prescott's land ratio runs ~21%, well below the 35–55% typical of coastal or urban markets. On a $600k purchase, that's roughly $126k of land vs. $474k of depreciable basis.
2. Full state conformity stacks federal and state benefits
AZ conforms fully to federal §168(k), so Prescott investors get both the federal AND state deduction. The Total Tax Benefit column in the DepreciMax Top 50 reflects this stacking — federal savings at the 37% top marginal rate plus state savings at AZ's top marginal rate. Same property in a decoupled state would produce the same federal deduction but no state add-on.
See live Prescott listings
Every active Prescott short-term rental listing, ranked by estimated bonus depreciation potential. Sort by price, beds, or DepreciMax medal tier. Free — no signup.
How the score is calculated
Prescott's DepreciMax Score is the aggregate score across ~50 active listings run through our proprietary algorithm. We use multiple inputs — including land values and AI photo recognition — closely calibrated over time against a completed cost segregation study on a benchmark short-term rental.
More detail in the Top 50 Markets methodology section.
Snapshot date: May 2026. Sample listings are real active listings from Realtor.com — actual addresses shown. Bonus depreciation outcomes vary by individual property; this report estimates ranges for typical purchases. Not tax advice — consult your CPA before making investment decisions.
Score live Prescott properties — for your specific deal
Run any active Prescott 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 segregation study.
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All 50 markets ranked by bonus depreciation score, with category filters and the full methodology.
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