Cap Rate & Rental Yield in Phoenix
Housing market dossier for Phoenix, Arizona: Average condo prices around $351.36/sqft and single-family homes at $278.67/sqft with average yields of 5.2%.
📈Cap Rate & Rental Yield Calculator
Gross rental yield, capitalization rate (Cap Rate), cash-on-cash return, and net monthly operating cashflow.
Monthly Cashflow Breakdown
Rental income (blue) minus operating costs and loan payments (grey) = net cashflow (green)
Cap Rate & Yield Curve
Sensitivity of gross yield (blue) and net cap rate (green) as property price scales
📍Housing Market Overview for Phoenix
In Phoenix, residential condo values average approx. $351.36/sqft, while single-family homes trade at $278.67/sqft.
With an average gross rental yield of approx. 5.2%, the area provides attractive fundamental margins for both primary owner-occupiers and residential investors.
🏛️Closing Costs & State Standards (Arizona)
Property Tax (No State Transfer Tax): Arizona has NO real estate transfer tax ($2 flat affidavit of property value fee). Property tax averages a very low ~0.60%.
State Down Payment Programs (HFA): Home Plus: Arizona Department of Housing down payment assistance grant providing up to 5% of loan value.
Settlement & Title Fees: Closing costs average 1.8% to 2.5%, handled through title and escrow companies.
Building Codes & State Statutes: Statutory 100-year water adequacy disclosures in active management areas (AMA).
Cap Rate & Rental Yield near Phoenix
Compare property price trends, purchase costs, and rental yields across nearby communities around Phoenix.
Frequently Asked Questions about Cap Rate & Rental Yield in Phoenix
Key guidelines on property purchase, mortgage calculations, and yields in Phoenix:
?What Cap Rates are investors achieving in Phoenix??
?How much do property managers in Phoenix typically charge??
?Are short-term rentals strictly regulated in Phoenix??
?What is the average rent-to-price ratio in Phoenix??
?What are healthy vacancy rate assumptions for Phoenix??
?How do property tax reassessments impact cash flow in Phoenix??
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