Market Analysis
Phoenix Rental Market
Rental investment market data and analysis · Updated October 2026
Median Home Price
$425,000
Average Monthly Rent
$1,654
Estimated Cap Rate
4.7%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · October 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 85043 | $365,000 | $1,795 | 0.49% |
| 85032 | $450,000 | $1,725 | 0.38% |
| 85004 | $492,000 | $1,700 | 0.35% |
| 85008 | $399,999 | $1,395 | 0.35% |
Rent ÷ price over time
PacRent rent-to-price index · Phoenix
Context · FRED home price index
Market Trends
Phoenix metro area — % change since 2018
Home Prices
+85.4%
Rent Index
+55.0%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,392/mo |
| Condo | $1,487/mo |
| Multi-Family | $1,573/mo |
| Townhouse | $2,033/mo |
| Single Family | $2,210/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$425,000
Down Payment (20%)$85,000
Monthly P&I$2,217
Monthly Rent$1,654
Est. NOI$11,909/yr
Est. Cash Flow-$1,224/mo
Cash on Cash-15.7%
The Phoenix market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Phoenix
- 1Compressed cap rates below 5% — focus on appreciation or value-add deals
- 21% Rule fails at median prices — need rent of $4,250/mo to pass
- 3Below-average rents keep entry costs low for new investors
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