Tempe, AZ — Rental Investment Analysis

🟡MODERATEaverage returns

Cap Rate

4.1%

Below average

Monthly Cash Flow

-$895

After all expenses

Price-to-Rent

14.2

Investor-friendly

DSCR

0.64

Fails

📊 Key Metrics

Median Home Price
$460,848
Average Rent (3BR)
$2,740/mo
Price-to-Rent Ratio
14.2(good)
1% Rule
0.58%(fails — need 1%+)
Cash-on-Cash Return
-10.1%
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

Customize these numbers →

Property Tax Rate

0.62%

of assessed value (AZ avg)

Median Income

$65,913

household (AZ avg)

Rent-to-Income

49.9%

Stretched

Section 8 Max Rent

$2,740/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 Tempe for Investors

85281
Cap Rate: 5.0%Cash Flow: -$457/mo$401,277
85283
Cap Rate: 4.2%Cash Flow: -$813/mo$454,091
85282
Cap Rate: 3.9%Cash Flow: -$978/mo$467,606

All Zip Codes in Tempe

ZipCap RateCash FlowHome PriceRent (3BR)DSCR
852815.0%-$457$401,277$2,740/mo0.79
852834.2%-$813$454,091$2,740/mo0.66
852823.9%-$978$467,606$2,650/mo0.61
852843.5%-$1,734$717,223$3,780/mo0.55