13 Jan January 2026 Rental Market Update: Northern Arizona
We’re pleased to share our January rental market update for Flagstaff, Prescott, Sedona, and Lake Havasu City. This month, we explore the latest market data and what it means for your investment strategy in 2026.
Flagstaff
Flagstaff’s rental market has stabilized, with average rent at $2,100, a $200 year-over-year decrease and no month-over-month change, reflecting equilibrium. With 220 available rentals, demand is consistent, offering a promising outlook for property owners. In 2026, slower rent growth and greater tenant selectivity are expected, signaling a broader market correction in Coconino County.
Prescott
Prescott’s rental market shows resilience, with average rent at $1,811, a $32 month-over-month decrease but an $11 year-over-year increase, indicating balance. With 219 available rentals, supply meets demand. Property owners can offer incentives to attract renters. The 2026 forecast expects further stabilization before modest, sustainable growth as tenant selectivity rises.
Sedona
Sedona’s luxury rental market has seen an upswing, with average rent rising to $3,595. The $235 month-over-month increase and $295 year-over-year surge indicate a thriving luxury rental scene. With 111 available rentals, Sedona remains a premium destination. Property owners should leverage this growth by highlighting the unique experiences their properties offer to luxury travelers. However, the 2026 forecast suggests a potential cooling in the luxury segment as tenant budget constraints become more pronounced.
Lake Havasu City
Lake Havasu City’s rental market has remained stable, with average rent decreasing to $1,875. The $25 month-over-month change and $125 year-over-year drop suggest a market in equilibrium. With 361 available rentals, the area offers ample supply. As the new year begins, the area remains attractive for both short-term and long-term rentals, with visitors enjoying the festive atmosphere and warm winter weather. The 2026 outlook is shaped by the area’s cyclical nature, with seasonal fluctuations playing a significant role in rental trends.
Looking to invest, rent out, or learn more about these markets? Contact Unlimited RE Property Management for your free property analysis today. Happy New Year!
Data sourced from Zillow Rental Market Trends as of January 11, 2026.