Engine-derived ROI data from 5 representative Sedona-area properties. Methodology transparent below. CC-BY 4.0, journalists, CPAs, and researchers may cite this dataset with attribution.
Important framing: These are engine outputs for representative fixture scenarios, not predictions about any specific property. The cost segregation engine takes real property data (address, year built, square footage, renovation history, assessor records) and produces a study tailored to your actual property. The aggregate numbers shown here describe the Sedona market's general profile; your specific results will reflect your specific property.
Each fixture was run through the Cost Seg Smart engine, the same engine that produces real customer studies. Numbers below are reproducible from cities/sedona.json via scripts/run_city_stats.py.
| Property | Neighborhood | Price | Basis | Land % | 5-yr | 15-yr | Reclass % | Y1 fed savings @ 37% |
|---|---|---|---|---|---|---|---|---|
| Uptown Sedona Casita STR SFR · STR · Built 2008 |
Uptown Sedona | $1,185,000 | $921,100 | 22.3% | $171,136 | $59,753 | 25.5% | $87,050 |
| West Sedona Family STR SFR · STR · Built 2002 |
West Sedona | $825,000 | $646,635 | 21.6% | $127,042 | $39,157 | 26.3% | $62,856 |
| Village of Oak Creek Vacation Rental SFR · STR · Built 2010 |
Village of Oak Creek (Yavapai County) | $685,000 | $539,095 | 21.3% | $105,617 | $34,780 | 26.6% | $52,995 |
| Chapel Area Luxury Casita SFR · STR · Built 2014 |
Chapel area / Red Rock Loop Rd | $1,485,000 | $1,170,626 | 21.2% | $235,748 | $73,016 | 26.9% | $116,566 |
| Oak Creek Canyon LTR SFR · Built 2006 |
Oak Creek Canyon (north of Sedona) | $1,325,000 | $1,024,225 | 22.7% | $110,239 | $70,823 | 17.7% | $66,993 |
| Engine property type | Fixtures | Median reclass % | Min | Max |
|---|---|---|---|---|
| SFR | 5 | 26.3% | 17.7% | 26.9% |
"STR" denotes residential property operating as a short-term rental, the engine applies an FF&E density uplift not captured in the LTR (long-term rental) treatment.
| Neighborhood | Typical value | Typical land allocation | Profile note |
|---|---|---|---|
| Uptown Sedona | $1,185,000 | ~32% | Walkable resort-core sub-market near Sedona's primary commercial and tourism corridor. Higher land allocation due to walkability premium. Mix of resort condo and SFR. Active STR rental cadence. |
| West Sedona | $825,000 | ~26% | Residential SFR-dominant sub-market west of Highway 89A. Lower land allocation than Uptown. Mix of LTR and STR. Most affordable Sedona-proper entry point. |
| Village of Oak Creek (Yavapai County) | $685,000 | ~24% | Yavapai County jurisdiction south of Sedona proper. Lower entry pricing, lower land allocation. Mix of vacation rental and primary-residence stock. Lighter permit environment than City of Sedona. |
| Chapel area / Red Rock Loop Rd | $1,485,000 | ~36% | Iconic red-rock-view residential market near Chapel of the Holy Cross. Highest land allocation in our Sedona fixtures, view-premium scarcity dominates basis. Luxury SFR and casita product. |
| Oak Creek Canyon (north of Sedona) | $1,325,000 | ~28% | Forested mountain corridor along Oak Creek Canyon north of Sedona toward Flagstaff. Lower-density rural SFR. Mid-tier land allocation. Mix of vacation rental and primary residence. |
The "typical land allocation" column reflects baseline patterns for each sub-market based on county assessor records and statistical modeling. For specific properties where reconstruction cost (industry-standard 2026 component build-up adjusted for time and geography) exceeds 2.0× the implied depreciable basis after subtracting the baseline land, the engine applies a premium land floor (~50%) to keep the study within audit-defensible territory. This typically affects ultra-premium resort inventory (ski-in/ski-out, beachfront, view-premium properties), where land scarcity premium dominates the purchase price. The per-fixture table above shows the actual land_source used by the engine for each fixture, values of statistical_premium_floor indicate the premium-floor mechanism was applied.
The takeaway: typical neighborhood allocations describe the market baseline. Individual property results depend on specific reconstruction-cost-vs-purchase-price ratios, and ultra-premium product may show higher land allocation in the engine output than the neighborhood typical.
Arizona partially decouples from federal §168(k). AZ historically required specific addbacks for federal bonus depreciation, with the addback amount recovered over the regular MACRS schedule for state purposes. For 2025+ acquisitions under OBBBA's 100% federal bonus, the practical effect is that a portion of the accelerated reclassification dollars hit an AZ-side timing mismatch, at AZ's flat 2.5% rate, the absolute dollar impact is small. Federal §168(k) at 100% is unaffected; only the AZ-side acceleration is partially deferred.
Decoupling: Arizona's bonus depreciation conformity has been modified multiple times. Verify current-year treatment with your CPA. The federal deduction is unaffected; only the AZ Schedule X reconciliation is the variable.
State income tax structure: Flat single rate after 2023 reform (previously progressive)
Verify with your CPA. State tax conformity for federal §168(k) is adjusted frequently. Framing reflects our understanding as of May 2026, verify current-year treatment with a qualified tax professional.
Every figure on this page is reproducible. The pipeline:
cities/sedona.json under the engine_fixtures array, each with address, property type, purchase price, year built, square footage, and STR/LTR flag.scripts/run_city_stats.py instantiates a PropertyInput for each fixture and calls engine.run_study(), the same path that produces a real customer study.For full methodology details including QC validation, reconciliation logic, and audit-defense documentation, see costsegsmart.com/methodology.
This dataset is licensed under the Creative Commons Attribution 4.0 International License. You may republish, remix, or extend this data for any purpose with attribution. Suggested citation format:
Cost Seg Smart Research Team. (2026). "Sedona, AZ Cost Segregation Benchmarks 2026." Cost Seg Smart. 5 representative fixtures. Retrieved from https://sedonacostseg.com/data/sedona-cost-seg-stats/
For interview requests, additional data slices, or related questions: [email protected].