Investment metrics, interactive calculators, and data-driven analysis for Phoenix rental properties.
Pre-filled with Phoenix medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Phoenix.
Phoenix, AZ has a population of 1,644,409 and has been growing at 1.5% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $380,000 paired with median rents of $1,580/mo produces an estimated cap rate of 3.28%.
Property taxes at 0.62% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 6.1x, homes cost about 6.1 times the local median income of $62,000. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.9% 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, Phoenix 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.