5 Hidden Gems: Lesser-Known Neighbourhoods for Buying Rental Property in Sedona

Sedona, Arizona, is widely known for its breath-taking red rock landscapes, vibrant arts community, and booming tourism. Many real estate investors are keen on Buying Rental Property in Sedona to capitalize on the area’s steady influx of visitors. While the popular neighbourhoods often get all the attention, there are some lesser-known communities that can offer excellent returns for investors. In this blog, we’ll explore five hidden gem neighbourhoods in Sedona that are perfect for rental property investments. These areas not only provide unique perks but also a distinct charm that may appeal to renters looking for a memorable experience.

1. Oak Creek Canyon

Oak Creek Canyon is a scenic and peaceful neighbourhood located just north of Sedona. Known for its lush greenery, towering canyon walls, and crystal-clear creeks, this area offers an entirely different vibe compared to Sedona's desert landscape. Buying rental property in Sedona's Oak Creek Canyon is ideal for investors looking to target nature lovers and outdoor enthusiasts.

Why Oak Creek Canyon?

• High Appeal for Tourists: Oak Creek Canyon attracts visitors interested in hiking, fishing, and swimming. Its natural beauty provides a perfect retreat from the hustle and bustle of Sedona’s busier areas.
  
  
• Year-Round Demand: The area’s cooler climate makes it a popular choice in the summer, providing steady rental demand throughout the year.
  
  
• Secluded Feel with Accessibility: Although it’s close to Sedona, Oak Creek Canyon feels remote, giving renters a secluded experience while keeping the town’s amenities within reach.

2. Village of Oak Creek (VOC)

Village of Oak Creek (VOC), situated just south of Sedona, is a charming neighbourhood that is often overlooked. With stunning views of Bell Rock and Courthouse Butte, VOC offers a small-town vibe while still being close to Sedona’s main attractions.

Why Village of Oak Creek?

• Affordable Investment Opportunities: Property prices in VOC tend to be lower than in Sedona’s central neighbourhoods, making it a more affordable option for buying rental property in Sedona.
  
  
• Popular with Long-Term Renters: Unlike the more transient visitors in central Sedona, VOC attracts longer-term renters, including retirees and young professionals who appreciate the quiet setting.
  
  
• Growing Amenities: VOC has its own dining, shopping, and entertainment options, which makes it a self-contained community appealing to both tourists and residents.

3. Chapel Area

The Chapel Area, named after the famous Chapel of the Holy Cross, is a unique neighbourhood located between central Sedona and VOC. This area is known for its stunning architecture and tranquil atmosphere, making it a hidden gem for buying rental property in Sedona.

Why Chapel Area?

• Iconic Landmark: The Chapel of the Holy Cross is a major attraction, drawing tourists from around the world. Properties in this area are highly appealing to those seeking unique views and proximity to a famous landmark.
  
  
• Quiet, Residential Feel: The Chapel Area is quieter and more residential than central Sedona, offering a peaceful retreat for vacationers and renters looking for a more laid-back experience.
  
  
• Spectacular Views: With properties nestled among red rock formations, the Chapel Area offers some of the most breath-taking views in Sedona, which adds to the rental appeal.

4. Red Rock Loop

The Red Rock Loop area offers unparalleled views of Sedona’s famous red rock formations while providing a more secluded and peaceful setting. Located southwest of Sedona, this area is known for its scenic driving route and natural beauty, which makes it an attractive location for vacation rentals.

Why Red Rock Loop?

• High Demand for Scenic Rentals: Tourists are drawn to Red Rock Loop for its scenic views and photo opportunities. Properties here have strong potential for short-term vacation rentals.
  
  
• Proximity to Red Rock State Park: Being close to Red Rock State Park provides renters with easy access to hiking trails, wildlife viewing, and outdoor activities, making it an excellent choice for nature-loving guests.
  
  
• Exclusive Vibe: Red Rock Loop feels more exclusive due to its remote location. This sense of privacy and tranquility can attract renters seeking a peaceful escape.

5. West Sedona

West Sedona is a vibrant community that blends the comfort of residential living with a hint of adventure. While it’s more popular than the other neighbourhoods listed, West Sedona is still less explored by many investors. This area is full of amenities, hiking trails, and beautiful views, making it ideal for buying rental property in Sedona.

Why West Sedona?

• Community and Convenience: West Sedona has everything from shopping centers and restaurants to schools and medical facilities, making it appealing for both vacationers and long-term renters.
  
  
• Recreational Activities: This area is close to popular hiking trails like Doe Mountain and Bear Mountain, offering plenty of outdoor activities that attract renters looking for adventure.
  
  
• Diverse Rental Market: West Sedona appeals to a variety of renter types, from tourists looking for short stays to locals who want to live in Sedona long-term. This diversity can help stabilize occupancy rates and provide a steady income.

Final Thoughts

When it comes to Buying Rental Property in Sedona, exploring lesser-known neighbourhoods can reveal great opportunities. Areas like Oak Creek Canyon, Village of Oak Creek, the Chapel Area, Red Rock Loop, and West Sedona each offer their unique appeal and can attract specific renter demographics. By considering these hidden gems, investors can find properties that offer both charm and high potential returns.

Each neighbourhood presents a different advantage, whether it’s the scenic beauty of Oak Creek Canyon, the affordability of VOC, or the diverse rental market of West Sedona. If you’re thinking about buying rental property in Sedona, these lesser-known neighbourhoods could be exactly what you need to maximize your investment potential.