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Short-term rentals (STRs) in Tucson, referred to as "transient rentals," are legal and operate without stringent regulations as of now. The primary requirement for hosts is to obtain a Transaction Privilege Tax (TPT) license through the Arizona Department of Revenue, which also includes ensuring compliance with any necessary local permits if applicable. STRs predominantly thrive in urban settings, with apartments being particularly popular due to their location and accessibility, while vacation homes and cabins in nearby rural areas also find a niche market. The demand is notably driven by tourism, given Tucson's attractions and events, making it favorable for vacationers. Additionally, Tucson caters to business travelers, further boosting occupancy rates which average around 53% to 56%, along with an average daily rental rate of about $186. With over 5,000 active STR listings, the market appears robust, presenting a viable opportunity for property owners. The City of Tucson serves as the regulatory authority overseeing these rentals. For more information on regulations, visit the official site Tucson Short-Term Rental Regulations and Airbnb Help Center Tucson.
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