Real Estate Investing in Phoenix, Arizona (85006)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85006 (Phoenix, AZ)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 12.8% of homes vacant — above national norms.
- Flat appreciation: Values have barely moved over 5 years (1.4% CAGR).
- Elevated poverty: 20.3% poverty rate — can affect rent collection.
What’s happening in Phoenix, AZ (85006)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 85006 Phoenix
Not every below-median market is a bargain. Phoenix's 85006 ZIP posts signals that favor experienced operators who can absorb the risk $408K pricing implies.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 85006 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
In the broader AZ picture, 85006 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
A sturdy renter share of 61% in 85006 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The 85006 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Phoenix:
Property Strategy for 85006
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $294,083 | $1,300 | 3.2% | -6.4% | $294,083 |
| 2BR | $399,117 | $1,530 | 2.8% | +6.2% | $199,558 |
| 3BR | $472,071 | $2,070 | 3.2% | +5.9% | $157,357 |
| 4BR | $535,043 | $2,350 | 3.2% | +6.4% | $133,761 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 85006 Compare?
| Metric | 85006 | Phoenix | Phoenix-Mesa-Chandler, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $407,588 | $448,314 | N/A | $419,643 |
| 5-Year CAGR | 1.4% | 2.8% | N/A | 6.5% |
| Avg Rent | $1,539 | $1,672 | N/A | - |
| Cap Rate | 2.9% | 3.0% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 85006 (Phoenix, AZ). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 85006 (Phoenix, AZ)?
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Property managers serving Maricopa County
Manage rentals here? List your business →Active Renter Property Management offers rental property management services in Phoenix, Arizona, including a 6-month tenant guarantee. summary from their website
Arête Realty and Property Management, LLC offers property management services and real estate expertise in Glendale, Avondale, Chandler, Mesa, Gilbert, Sun City, Paradise Valley, Scottsdale, and Peori summary from their website
Arizona Community Management Services offers a comprehensive suite of services for Association leaders, including board training, financial management, and covenants enforcement, with decades of exper summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $407,588 |
| Monthly Rent | $1,539 |
| Price-to-Rent | 22.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.5% |
| Cap Rate | 2.9% |
| 5-Year IRR | 4.4% |
📈 Home Appreciation
| 1-Year | +0.1% ▲ |
| 3-Year CAGR | -0.4% ▼ |
| 5-Year CAGR | +1.4% ▲ |
| 10-Year CAGR | +8.1% ▲ |
🏠 Rent Trends
| 1-Year | +3.9% ▲ |
| 3-Year CAGR | +2.2% ▲ |
| 5-Year CAGR | +3.5% ▲ |
The current 30-yr mortgage rate (7.0%) exceeds the estimated cap rate (2.9%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 85006
Population: 22,081
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 85006
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 5,209 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is real estate in Phoenix, AZ a good investment right now?
Yes - Phoenix, AZ a 2.0/5 investability score. With $408K home prices against $1,539/mo monthly rent, the market delivers a reasonable entry point for new investors.
Do landlords face vacancy issues in Phoenix, AZ?
Vacancy in Phoenix, AZ is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,539/mo.
Is housing expensive in Phoenix, AZ?
Homes in Phoenix, AZ typically sell near $408K. Prices have moved at a 0.0% 5-year CAGR, which measured long-term demand.
Is Phoenix, AZ landlord-friendly?
Phoenix, AZ operates under AZ law, which is landlord-friendly overall for landlords. Expect stable treatment in typical lease and eviction cases.
Are rents high in Phoenix, AZ?
Investors in Phoenix, AZ typically see rents near $1,539/mo per month against $408K home values - a solid setup for rental cash flow.
You know 85006 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 85006 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 85006 ranks in Phoenix-Mesa-Chandler, AZ
Every ZIP in this metro, ranked. Free.
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