Performance indicators for the Cottonwood short-term rental market based on reliable data.
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The highest-performing listings in Cottonwood.
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Very Investor friendly
Cottonwood explicitly allows short-term rentals in most zones under a straightforward, low‑cost registration (city fee $50 and TPT $12), with no stated caps, and the framework is business‑friendly. The primary burdens are basic tax filing, neighbor notification, and safety/insurance requirements, which are manageable for most investors.
Local STR Agent
STR specialist · Cottonwood, AZ
Cottonwood, Arizona, is a small city located in the Verde Valley region of Yavapai County. With a population of approximately 12,000 residents, it offers a unique blend of rural charm and modern amenities. The city is situated about 100 miles north of the major metropolitan area of Phoenix, making it an accessible destination for travelers seeking a serene escape from urban life.
Cottonwood is known for its historic Old Town district, which features a variety of attractions including unique shops, art galleries, and the Clemenceau Heritage Museum (Museum Link). The city is also a gateway to several outdoor activities, with locations like Dead Horse Ranch State Park (Park Link) providing opportunities for hiking, fishing, and camping.
Additionally, Cottonwood is just a short drive from the iconic red rock formations of Sedona, which is roughly 20 miles northeast. The Verde Valley Wine Trail (Wine Trail Link) is another major draw, featuring a range of local wineries and tasting rooms that highlight the region's burgeoning wine industry. These landmarks, along with the city's proximity to both nature and cultural sites, make Cottonwood an appealing destination for short-term rentals.