Ajo, AZ — Rental Investment Analysis
🟢STRONG— excellent cash flow marketData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Ajo, AZ has a median cap rate of 13.7%, making it one of the top cash-flowing rental markets in the United States.
Ajo is one of the strongest cash flow markets in the data. With a median home price of $137,703, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $2,150/month, the 13.7% cap rate tells the story. A typical rental here cash flows +$835/month after all expenses — strong passive income from day one.
The market passes the 1% rule (1.56%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 2.14 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Ajo is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
13.7%
Above average
Monthly Cash Flow
+$835
After all expenses
Price-to-Rent
5.3
Investor-friendly
DSCR
2.14
Passes lender test
Key Metrics
- Median Home Price
- $137,703
- Average Rent (3BR)
- $2,150/mo
- Price-to-Rent Ratio
- 5.3(good)
- 1% Rule
- 1.56%(passes)
- Cash-on-Cash Return
- 31.6%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 4.7%(+0.4% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +2.3% YoY
Property Tax Rate
0.62%
of assessed value (AZ avg)
Median Income
$65,913
household (AZ avg)
Rent-to-Income
39.1%
Stretched
Section 8 Max Rent
$2,150/mo
3BR voucher payment
AZ Investor Climate
Landlord Friendly
8/10
State Income Tax
Has state tax
Property Tax
0.62% effective
Population Trend
+2.3% (3yr)