Prescott, AZ — Rental Investment Analysis

🔴POORnegative cash flow likely

Cap Rate

1.3%

Below average

Monthly Cash Flow

-$2,500

After all expenses

Price-to-Rent

27.7

Overpriced for rent

DSCR

0.20

Fails

📊 Key Metrics

Median Home Price
$585,160
Average Rent (3BR)
$1,760/mo
Price-to-Rent Ratio
27.7(high)
1% Rule
0.30%(fails — need 1%+)
Cash-on-Cash Return
-22.3%
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

Assumptions Used

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

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Property Tax Rate

0.62%

of assessed value (AZ avg)

Median Income

$65,913

household (AZ avg)

Rent-to-Income

32%

Moderate

Section 8 Max Rent

$1,760/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)

🏘️ Best Zip Codes in Prescott for Investors

86301
Cap Rate: 2.3%Cash Flow: -$1,839/mo$539,424
86303
Cap Rate: 1.3%Cash Flow: -$2,500/mo$585,160
86305
Cap Rate: 0.7%Cash Flow: -$3,400/mo$711,443

All Zip Codes in Prescott

ZipCap RateCash FlowHome PriceRent (3BR)DSCR
863012.3%-$1,839$539,424$2,190/mo0.36
863031.3%-$2,500$585,160$1,760/mo0.20
863050.7%-$3,400$711,443$1,700/mo0.10