Real Estate Investing in Phoenix, Arizona (85016)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85016 (Phoenix, AZ)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 13.8% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 25.5 — hard to cash-flow at these prices.
What’s happening in Phoenix, AZ (85016)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 85016 Phoenix
ZIP 85016 inside Maricopa County looks affordable on the surface — median value of $522K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 85016 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Nearby ZIPs in Phoenix have seen price recovery that 85016 has not matched. Maricopa County data supports the view that the spread is structural rather than temporary.
Demographically, 85016 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
Strategically, 85016 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Phoenix:
Property Strategy for 85016
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $245,387 | $1,830 | 5.4% | +6.3% | $245,387 |
| 2BR | $384,209 | $2,120 | 4.0% | +5.6% | $192,104 |
| 3BR | $595,760 | $2,830 | 3.4% | +6.7% | $198,587 |
| 4BR | $881,967 | $3,140 | 2.6% | +7.7% | $220,492 |
| 5BR | $1,653,221 | — | — | +9.8% | $330,644 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 85016 Compare?
| Metric | 85016 | Phoenix | Phoenix-Mesa-Chandler, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $521,611 | $448,314 | N/A | $419,643 |
| 5-Year CAGR | 2.5% | 2.8% | N/A | 6.5% |
| Avg Rent | $1,704 | $1,672 | N/A | - |
| Cap Rate | 2.6% | 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 85016 (Phoenix, AZ). Anonymous, moderated, never written by AI.
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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 | $521,611 |
| Monthly Rent | $1,704 |
| Price-to-Rent | 25.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.6% |
| 5-Year IRR | 5.0% |
📈 Home Appreciation
| 1-Year | +1.2% ▲ |
| 3-Year CAGR | +0.4% ▲ |
| 5-Year CAGR | +2.5% ▲ |
| 10-Year CAGR | +6.2% ▲ |
🏠 Rent Trends
| 1-Year | +2.3% ▲ |
| 3-Year CAGR | +1.4% ▲ |
| 5-Year CAGR | +2.5% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). 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 85016
Population: 36,857
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 85016
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Tavan Elementary School
Phoenix Coding Academy
Phoenix Educator Preparatory
Biltmore Preparatory Academy
Hopi Elementary School
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 4,937 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What are home prices like in Phoenix, AZ?
The median home value in Phoenix, AZ is roughly $522K. That puts it reasonable relative to the AZ statewide average.
What is it like being a landlord in Phoenix, AZ?
AZ ranks as a landlord-friendly state for landlord-tenant law. Phoenix generally follows the statewide framework, so landlords face reasonable operating rules.
Is it easy to find good tenants in Phoenix, AZ?
Tenant demand in Phoenix, AZ is solid. The local workforce $1,704/mo rents across most rental classes.
What is the best play in Phoenix, AZ?
For Phoenix, AZ, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
How does Phoenix, AZ stack up for property investment?
Yes - Phoenix, AZ a 3.0/5 investability score. With $522K home prices against $1,704/mo monthly rent, the market delivers a reasonable entry point for new investors.
You know 85016 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 85016 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 85016 ranks in Phoenix-Mesa-Chandler, AZ
Every ZIP in this metro, ranked. Free.
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