Can I Airbnb in Sedona, AZ? (2026)

Short-term rentals are legal throughout Sedona because Arizona state law (A.R.S. 9-500.39) bars cities from prohibiting them, but every rental unit must have an annual City of Sedona short-term rental permit ($210 per unit, plus new late fees since Jan 1, 2026) and a state TPT license before it is advertised or rented. The biggest restrictions are operational: each advertised unit (including casitas/ADUs) needs its own permit, special events like weddings and retreats are banned at STRs, and owners must carry $500,000 liability insurance, notify neighbors, and run sex-offender background checks on guests. Always confirm current requirements with the city before operating.

What’s required: a City of Sedona Short-Term Rental Permit ($210) is required; occupancy taxes apply; renew annual.