Real Estate Investing in Phoenix, Arizona (85027)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85027 (Phoenix, AZ)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Phoenix, AZ (85027)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 85027 Phoenix
Not every below-median market is a bargain. Phoenix's 85027 ZIP shows signals that favor experienced operators who can absorb the risk $381K pricing implies.
For an experienced owner, 85027 can be a a strong candidate for hunting ground — but the discount at $381K reflects genuine risk that outside investors often underestimate.
Regionally, 85027 sits on the difficult end of the AZ spectrum. The a credible choice for read — for disciplined operators — is that pricing reflects the difficulty.
Demographically, 85027 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.
The right play in 85027 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Phoenix:
Property Strategy for 85027
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $189,912 | $1,640 | 6.2% | +7.4% | $189,912 |
| 2BR | $265,553 | $1,900 | 5.2% | +7.0% | $132,776 |
| 3BR | $384,052 | $2,530 | 4.7% | +7.1% | $128,017 |
| 4BR | $446,751 | $2,810 | 4.5% | +6.9% | $111,688 |
| 5BR | $531,852 | — | — | +7.3% | $106,370 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 85027 Compare?
| Metric | 85027 | Phoenix | Phoenix-Mesa-Chandler, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $380,631 | $448,314 | N/A | $419,643 |
| 5-Year CAGR | 2.7% | 2.8% | N/A | 6.5% |
| Avg Rent | $1,454 | $1,672 | N/A | - |
| Cap Rate | 3.0% | 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 85027 (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 | $380,631 |
| Monthly Rent | $1,454 |
| Price-to-Rent | 21.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.6% |
| Cap Rate | 3.0% |
| 5-Year IRR | 5.7% |
📈 Home Appreciation
| 1-Year | +0.3% ▲ |
| 3-Year CAGR | +0.1% ▲ |
| 5-Year CAGR | +2.7% ▲ |
| 10-Year CAGR | +7.3% ▲ |
🏠 Rent Trends
| 1-Year | +1.1% ▲ |
| 3-Year CAGR | -1.3% ▼ |
| 5-Year CAGR | +0.5% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.0%). 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 85027
Population: 38,986
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 85027
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 2,199 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Should investors worry about vacancy in Phoenix, AZ?
Vacancy in Phoenix, AZ is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,454/mo.
What monthly rent should investors expect in Phoenix, AZ?
Average rent in Phoenix, AZ is approximately $1,454/mo per month. Against $381K home values that yields a reasonable rent-to-price ratio.
What strategy should investors use in Phoenix, AZ?
Investors usually favor careful cash-flow rentals with hands-on management in Phoenix, AZ. With home values at $381K and rents near $1,454/mo, other strategies can work but produce stable rather than outsized returns.
How viable is house hacking in Phoenix, AZ?
House hacking in Phoenix, AZ is a challenging. With home values around $381K and rents at $1,454/mo, owner-occupants can offset a meaningful share of PITI.
Should investors consider Phoenix, AZ?
The 3.0/5 investability rating in Phoenix, AZ reflects its $381K prices and $1,454/mo rents. Investors generally consider it a solid option within AZ.
You know 85027 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 85027 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 85027 ranks in Phoenix-Mesa-Chandler, AZ
Every ZIP in this metro, ranked. Free.
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