Market Analysis
Tucson Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$324,500
Average Monthly Rent
$1,181
Estimated Cap Rate
4.4%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 85705 | $145,000 | $995 | 0.69% |
| 85719 | $340,000 | $1,300 | 0.38% |
| 85711 | $309,000 | $1,028 | 0.33% |
| 85701 | $495,000 | $1,399 | 0.28% |
Context · FRED home price index
Market Trends
Tucson metro area — % change since 2018
Home Prices
+88.7%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,066/mo |
| Manufactured | $1,075/mo |
| Townhouse | $1,143/mo |
| Condo | $1,174/mo |
| Multi-Family | $1,284/mo |
| Single Family | $1,410/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$324,500
Down Payment (20%)$64,900
Monthly P&I$1,692
Monthly Rent$1,181
Est. NOI$8,503/yr
Est. Cash Flow-$984/mo
Cash on Cash-16.5%
The Tucson 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 Tucson
- 1Compressed cap rates below 5% — focus on appreciation or value-add deals
- 21% Rule fails at median prices — need rent of $3,245/mo to pass
- 3Below-average rents keep entry costs low for new investors
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