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Cap Rate Analysis: Chandler, AZ

Investment metrics, interactive calculators, and data-driven analysis for Chandler rental properties.

Challenging for pure cash flow
Based on $440,000 median price and $1,750/mo median rent
Est. Cap Rate
3.13%
1% Rule
0.40%
Fails
GRM
21.0x
Price / Income
5.3x

Market Data

Median Home Price$440,000
Median Monthly Rent$1,750
Property Tax Rate0.61%
Population283,368
Population Growth1.8% / yr
Median Household Income$82,400
Vacancy Rate4.8%
Annual Appreciation3.1%

Cap Rate Calculator — Chandler

Pre-filled with Chandler medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.61% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.67%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,760
net operating income
Gross Rent Multiplier
21.0x
High (>15)
1% Rule
0.40%
✗ Fails
Monthly Cash Flow
$980
before debt service
Annual Breakdown
Gross Rental Income$21,000
Less Vacancy−$1,008
Effective Income$19,992
Less Operating Expenses−$8,232
Net Operating Income$11,760

Cash-on-Cash Return — Chandler

Factor in financing to see your actual return on invested capital in Chandler.

$
$110,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.07%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$123,200
$110,000 down + $13,200 closing
Monthly Mortgage
$2,151
on $330K loan
Monthly Cash Flow
$-1,136
after all expenses
Annual Cash Flow
$-13,636
before taxes
Cash Flow Breakdown
Monthly Rent$1,750
Less Expenses−$735
Less Mortgage−$2,151
Monthly Cash Flow$-1,136

Is Chandler a Good Place to Invest in Rental Property?

Chandler, AZ has a population of 283,368 and has been growing at 1.8% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $440,000 paired with median rents of $1,750/mo produces an estimated cap rate of 3.13%.

Property taxes at 0.61% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 5.3x, homes cost about 5.3 times the local median income of $82,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Chandler is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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