Does Sedona cap the number of short-term rentals?

Per the City's FAQ read on 2026-09-19, no Arizona city or town is currently permitted to cap the number of short-term rentals operating within city limits, and the City says that based on current information an owner will be able to rent later in the year. That is a statement of current state law as the City describes it, so recheck before relying on it.

My property has a casita. Is that one permit or two?

The City states that as of December 2024 each advertised unit must have its own permit, and gives a main house plus a casita as an example of two units. Count the units you intend to advertise separately.

Do I need a permit if I rent only a few weeks a year?

Inside City limits, yes. The City FAQ says an owner renting for even one day per year must have a TPT license and a Sedona short-term rental permit before advertising and renting, and that renting an individual room is treated the same way.

What happens if my permit is suspended?

The City FAQ states that a suspension lasts one year, that permit fees are non-refundable, and that all advertising and operation must cease immediately for the entire year. Owners may re-apply after the suspension ends, penalties may be assessed alongside it, and there is an appeal process in the City Code.

Is the City rule the same in Oak Creek Canyon?

No. Oak Creek Canyon outside City limits is unincorporated Coconino County, which has its own ordinance, permit application, fee, neighbor-notification requirement and annual renewal. Village of Oak Creek outside City limits is unincorporated Yavapai County, with its own rules again. Do not transplant the City checklist to either.

Sedona Short-Term Rental Rules and Regulation Watch

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Sedona Short-Term Rental Rules and Regulation Watch | Casago By Acme

Which authority applies to my property?Match the parcel first. If the address is inside the incorporated City of Sedona, City rules apply whether the parcel falls in the Yavapai or the Coconino portion of the city. If it is outside City limits, the parcel answers to unincorporated Coconino County or unincorporated Yavapai County instead, and those programs are not the same. Private governing documents apply on top of whichever one you land in.

Jurisdiction table

One row per authority, with the source and the date.

Authority	What to check	Official source
City of SedonaIncorporated city, both counties	The City defines a short-term rental as the rental of part or all of a legally permitted dwelling unit for fewer than 30 consecutive days, citing A.R.S. 9-500.39. An Arizona TPT license must be obtained from the Department of Revenue before applying for the City permit. As of December 2024 each advertised unit must have its own permit, so a main house plus a casita is two. City Code 5.25.050 prohibits advertising or hosting a special event of any size that requires a special event permit or license. A permit expires one year from its active date, and the City's vendor emails a 60-day notice. Single-family houses, one-to-four-unit houses, condominiums, townhouses, cooperatives, individual rooms and guest houses or casitas may be used; structures not approved as dwelling units, apartment complexes of five or more units, RVs, travel trailers and tents may not. Per the City FAQ checked 2026-09-19, no Arizona city or town is currently permitted to cap the number of short-term rentals within its limits.	Short-Term Rentals Short-Term Rentals FAQ Checked 2026-09-19
Unincorporated Coconino CountyCounty, including Oak Creek Canyon outside City limits	The County states that following Arizona legislation giving local jurisdictions more control, the Board of Supervisors adopted an ordinance requiring a permit application and fee for short-term rentals. Owners or operators must also notify neighbors of the operation, meet building codes, prevent rentals for special events and verify that the owner has not been convicted of particular felonies, with permit suspension and fines for verified violations. Renewal requires a new application to be filled out and, per the County page checked 2026-09-19, an annual fee of $250. The County publishes a map of short-term rentals registered with it. Code Enforcement and short-term rental permitting is reachable at (928) 679-8856.	Short Term Rental Information Coconino County GIS Checked 2026-09-19 · GIS checked 2026-09-17
Unincorporated Yavapai CountyCounty, including Village of Oak Creek outside City limits	The County's development FAQ states that as of January 1, 2017 Yavapai County allows the short-term rental of permitted habitable structures, meaning only structures permitted as habitable space for overnight occupancy may be used. It lists single-family residences, guest houses, apartments and condominiums as included, and excludes travel trailers, recreational vehicles, tents, yurts, gazebos, teepees, sheds, garages, barns, caves, offices and any other structure not permitted for overnight occupancy. It also states that short-term rentals do not allow events such as weddings, parties, specialized retreats or any commercial activities, and directs bed-and-breakfast questions to the Planning Unit.	Development FAQ Checked 2026-09-19
State of ArizonaArizona Department of Revenue	ADOR describes the transaction privilege tax as a tax on the vendor for the privilege of doing business in the state, and notes that a business is likely to need both an ADOR license and a city license. Per the ADOR page checked 2026-09-19, the cost is $12 per license per location. From January 1, 2025, residential rental owners no longer collect and remit city TPT on stays of 30 days or more, but ADOR states that hotel, motel or other transient lodging businesses booking stays of fewer than 30 days must still collect and remit TPT under the transient lodging or hotel classification.	Transaction Privilege Tax Checked 2026-09-19
Private governing documentsHOA, CC&Rs, condominium, deed, lease	No public authority decides this one. The City FAQ tells owners to check whether HOA rules allow rentals of fewer than 30 days and states that the City does not enforce or have copies of HOA rules. Read the current documents yourself and get a written interpretation where the language is unclear. A government permit does not override a private restriction, and a private restriction can be stricter than any code.	Further verification needed

Steps in order

The sequence that keeps a launch from stalling.

Confirm the jurisdiction
Establish from the parcel record whether the address is inside City limits or in unincorporated Coconino or Yavapai County. Everything below changes with the answer.
Register for state tax
Obtain the Arizona TPT license. Inside the City this is not optional and not last: the City says the TPT license must be in hand before the permit application, and renewals need a valid, unexpired one.
Apply for the local permit
City addresses apply through the City's short-term rental program, one permit per advertised unit. Unincorporated parcels apply to their county instead, which in Coconino County includes notifying neighbors.
Read the private documents
HOA rules, CC&Rs, condominium rules, leases and deed restrictions are separate from any permit and can be stricter. Get a written interpretation where the wording is ambiguous.
Set up notices, contacts and the listing
Line up the emergency contact, posted information, guest conduct rules and the advertised minimum stay. Inside the City, a listing showing less than a 30-day minimum triggers the permit requirement.
Calendar the renewal
Permits expire annually. The City advises renewing one to two weeks early because it has up to seven business days to approve, and late renewals now carry a fee.

Open items

What still needs address-level confirmation.

The subject parcel has not been identified. City boundary, county jurisdiction, zoning and permitted-use status, access, construction approvals and property condition all have to be verified for the actual address.
Coconino County's page confirms an ordinance, a permit application, a fee and a registered-rental map, but it does not set out a complete address-level operating checklist for an Oak Creek Canyon parcel. Get current County direction before launch.
Yavapai County's FAQ establishes the permitted-habitable-structure limit and the prohibition on events and commercial activity, but the parcel's own permitted use still has to be confirmed with the County.
Fee amounts, tax rates and forms change. Every figure on this page was read on the date shown next to its source and should be re-read before you rely on it.
HOA, CC&R, deed and other private restrictions are not held or enforced by the City of Sedona. Obtain the current documents for the specific property.

Applicability

These source-linked summaries are educational. They are not legal, tax or insurance advice, not a determination that a particular property may rent, and not Casago business approval.
Every row cites the official page it came from and the date that page was read. Rules change between readings; recheck the responsible authority immediately before launch, renewal or a material listing change.
Grouped area labels such as Oak Creek Canyon or Village of Oak Creek are marketing geography, not permit boundaries. Only the parcel record settles jurisdiction.
Related: Sedona owner playbook · market pulse · amenity intelligence · rules, permits and HOA guide · Owner Answer Center.

Short-term rental rules around Sedona, by jurisdiction

One row per authority, with the source and the date.

Three City changes with effective dates on them.

One permit per advertised unit

Incomplete applications are denied

Late renewal fees

The sequence that keeps a launch from stalling.

Confirm the jurisdiction

Register for state tax

Apply for the local permit

Read the private documents

Set up notices, contacts and the listing

Calendar the renewal

What still needs address-level confirmation.

Applicability

Sedona regulation questions

See what your Sedona home could do.