Current permit-cap status, minimum-stay requirements, owner-occupancy rules, and jurisdiction breakdown for short-term rentals in Sedona. Every field is cited to a primary source below. Always verify the specific parcel with the operating jurisdiction before writing an offer.
Sedona requires an annual $210 STR permit under City Code Chapter 5.25 (enabled by Arizona SB 1168, 2022) with mandatory $500K liability insurance, sex-offender background checks on booking guests, neighbor notification, and a 24-hour local emergency contact; Arizona Revised Statutes 9-500.39 preempts caps or outright bans.
Have a specific property in mind? Analyze it with a $99 report →Sedona is functionally accessible under Chapter 5.25 but administratively heavy. Every operator needs: (1) annual $210 city STR permit (late fees $50 / $100 depending on lateness under Ord. 2025-10.10), (2) $500,000 liability insurance policy, (3) written neighbor notification, (4) a designated 24-hour emergency point of contact (owner or designee) responsive to complaints, and (5) documented sex-offender background check on the booking guest 24+ hours before check-in - either self-conducted or via evidence the online marketplace performed one (Sec. 5.25.100). Owners must retain background-check records for 12 months. AZ Transaction Privilege Tax at the city rate applies on gross rental revenue; Coconino/Yavapai county occupancy tax also applies depending on the parcel side of the city limits. The Arizona Court of Appeals reinforced state preemption in Oak Creek Hospitality LLC v. City of Sedona (2025), so Sedona cannot categorically ban dwelling types - but the compliance overhead is real and permits can be suspended for building-code violations. Verify Yavapai vs Coconino county location for the correct county tax rate.
Short-term rentals in Sedona are classified as restricted as of 2026-08-16. Sedona requires an annual $210 STR permit under City Code Chapter 5.25 (enabled by Arizona SB 1168, 2022) with mandatory $500K liability insurance, sex-offender background checks on booking guests, neighbor notification, and a 24-hour local emergency contact; Arizona Revised Statutes 9-500.39 preempts caps or outright bans.
No, Sedona does not enforce a numeric permit cap based on primary sources reviewed. Arizona Revised Statutes 9-500.39 preempts local STR caps and outright bans statewide. Sedona's Chapter 5.25 uses a permit-plus-compliance model - $210 annual fee, permit suspension for land-development/building code violations under Ord. 2025-10.10, and one-time late-fee structure ($50 for 2-90 days late, $100 for 90+ days late) effective January 1, 2026.
The primary source does not specify a minimum stay for short-term rentals in Sedona.
Sedona does not require owner-occupancy for short-term rental operators as of 2026-08-16. Verify the specific parcel with the operating jurisdiction before offering, as owner-occupancy rules interact with zoning overlays.
Contact the operating jurisdiction directly using the primary-source links published on this page. Zoning, HOA restrictions, and pending regulatory changes are parcel-specific and can override the citywide profile above. DepreciMax's $99 property report separately sizes the Year-1 §168(k) bonus depreciation deduction for a specific address, once regulatory clearance is confirmed.
Once you've verified the regulatory profile of a listing you're considering, run a $99 DepreciMax property report to size the actual Year-1 §168(k) bonus depreciation deduction. The report analyzes the listing photos to classify finishes as 5-year personal property, 15-year land improvements, or 39-year structural — producing a line-item estimate closely calibrated to a formal cost seg study.
Use the DepreciMax STR Regulations Database for the full top-50 market fleet — every market cited to a primary jurisdiction source, updated quarterly.
Not legal or tax advice. Short-term rental regulations change frequently and vary by parcel, zone, and HOA. The information on this page is a summary of publicly available primary sources as of 2026-08-16. Before acting — buying, listing, or operating a short-term rental in Sedona — verify current rules with the operating jurisdiction and consult a local attorney and CPA.