Real Estate Investing in Sedona, Arizona (86351)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 86351 (Sedona, AZ)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 25.1% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 25.6 — hard to cash-flow at these prices.
What’s happening in Sedona, AZ (86351)?
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Market Analysis: 86351 Sedona
Put differently, ZIP 86351 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $793K median. It rewards specialists, not generalists.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $793K asset, 86351 is the wrong submarket. If the plan prices in friction, the yield can still work.
From a cash-flow lens, 86351 offers a low basis, the region around Sedona has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Demographically, 86351 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
Strategically, 86351 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Sedona:
Property Strategy for 86351
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $614,835 | $1,930 | 2.3% | +8.7% | $307,417 |
| 3BR | $830,871 | $2,680 | 2.3% | +8.2% | $276,957 |
| 4BR | $1,197,526 | $2,940 | 1.8% | +8.5% | $299,381 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 86351 Compare?
| Metric | 86351 | Sedona | Prescott Valley-Prescott, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $792,513 | $891,775 | N/A | $419,643 |
| 5-Year CAGR | 3.9% | 4.3% | N/A | 6.5% |
| Avg Rent | $2,583 | $2,566 | N/A | - |
| Cap Rate | 2.5% | 2.3% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 86351 (Sedona, AZ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $792,513 |
| Monthly Rent | $2,583 |
| Price-to-Rent | 25.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.5% |
| 5-Year IRR | 6.4% |
📈 Home Appreciation
| 1-Year | +0.2% ▲ |
| 3-Year CAGR | +0.2% ▲ |
| 5-Year CAGR | +3.9% ▲ |
| 10-Year CAGR | +6.9% ▲ |
🏠 Rent Trends
| 1-Year | +2.0% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.5%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 86351
Population: 6,560
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
Frequently Asked Questions
Are eviction rules reasonable in Sedona, AZ?
Sedona, AZ falls under AZ landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Are tenants stable in Sedona, AZ?
Sedona, AZ draws a even-keeled base of working renters. Demand at the $2,583/mo rent level is reasonable for standard single-family and small multi rentals.
Are homes affordable in Sedona, AZ?
Sedona, AZ home values average about $793K. That price point suits investors targeting rentals with $2,583/mo in monthly income.
Should investors consider Sedona, AZ?
The 3.0/5 investability rating in Sedona, AZ reflects its $793K prices and $2,583/mo rents. Investors generally consider it a solid option within AZ.
What investment strategy works best in Sedona, AZ?
Most investors in Sedona, AZ run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
You know 86351 now. You don’t know where it ranks.
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How 86351 ranks in Prescott Valley-Prescott, AZ
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