City of Sedona incentivizing homeowners to rent to locals instead of tourists

A proposed incentive would give $10,000 to out-of-state owners of short-term rentals in Sedona if they rent to locals instead of tourists.
Published: Feb. 18, 2025 at 5:45 PM MST
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SEDONA, AZ (AZFamily) — The City of Sedona is looking into creative ways to fix the housing crisis by offering incentives to short-term rental owners.

One of the biggest issues the city says they’re facing is too many short-term rentals and not enough affordable housing.

Rent Local is a program that will pay short-term rental owners if they rent their property out to Sedona residents instead of tourists.

Sedona has less than 10,000 residents, but nearly 20% of the houses and apartments in town are short-term rentals. The number has tripled over the last four years with more than 1,200 rentals in the city.

Housing director Jeanne Blum said the housing crisis has continued to grow over the years.

“Housing in Sedona is at a premium,” Blum said. “This does impact our community by taking rental and home-buying opportunities for families who would like to come and live here.”

Blum said not only does this create problems for people who work in the $1 billion a year tourism industry but also affects other workers like nurses and teachers.

“Many people cobble together, two, three, four jobs sometimes to be able to afford to live here,” she said.

To combat the housing shortage the city created the Sedona Rent Local Program.

Blum said this is a good opportunity for those who are tired of the revolving door and looking to get out of the short-term rental game.

She said the city is also working on other housing solutions like affordable housing complexes and restricting short-term rentals, but those solutions can’t help now.

Blum said the new program has already helped 20 people. While the number isn’t huge, she said it still made a difference in these people’s lives.

“Housing can be life-changing,” Blum said. “Life becomes so much easier when you are able to have secure, stable housing.”

With Rent Local, property owners can rent out just a room or a three-bedroom home for a year and receive up to $10,000.

Rent Local price breakdown

  • For a full property or a separate living space with private entry, private bath, private kitchen and available outdoor space:
    • $6,000 per year for a Studio
    • $7,000 per year for a 1-bedroom
    • $8,500 per year for a 2-bedroom
    • $10,000 per year for a 3-bedroom
  • For rooms rented in a home with shared entry, bath, kitchen, or no outdoor space:
    • $3,000 per year for a 1-bedroom
    • $4,000 per year for a 2-bedroom
    • $5,000 per year for a 3-bedroom

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