Market Analysis
Phoenix Rental Market
Rental investment market data and analysis · Updated September 2026
Median Home Price
$419,500
Average Monthly Rent
$1,670
Estimated Cap Rate
4.8%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Market Trends
Phoenix metro area — % change since 2018
Home Prices
+85.4%
Rent Index
+55.0%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Multi-Family | $1,345/mo |
| Apartment | $1,470/mo |
| Condo | $1,701/mo |
| Townhouse | $1,909/mo |
| Single Family | $2,060/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$419,500
Down Payment (20%)$83,900
Monthly P&I$2,188
Monthly Rent$1,670
Est. NOI$12,024/yr
Est. Cash Flow-$1,186/mo
Cash on Cash-15.4%
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 $4,195/mo to pass
- 3Below-average rents keep entry costs low for new investors
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