Phoenix, AZ — Rental Investment Analysis

🟡MODERATEaverage returns

Cap Rate

4.5%

Below average

Monthly Cash Flow

-$50

After all expenses

Price-to-Rent

16.7

Overpriced for rent

DSCR

1.08

Tight

📊 Key Metrics

Median Home Price
$380,000
Average Rent (3BR)
$1,900/mo
Price-to-Rent Ratio
16.7(high)
1% Rule
0.50%(fails — need 1%+)
Cash-on-Cash Return
2.8%
Vacancy Rate
6.5%

📈 Market Strength

Job Growth
+2.8% YoY
Population Growth
+1.8% YoY
Home Price Appreciation (5yr)
+52%

Assumptions Used

20% down, 7.000000000000001% rate, 30yr, 8% vacancy, 10% maintenance

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🏘️ Best Zip Codes in Phoenix for Investors

85009
Cap Rate: 6.8%Cash Flow: +$240/mo$250,000
85008
Cap Rate: 5.9%Cash Flow: +$140/mo$295,000
85006
Cap Rate: 5.2%Cash Flow: +$60/mo$340,000