Real Estate Investing in Phoenix, Arizona (85040)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85040 (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 cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- Elevated poverty: 20.1% poverty rate — can affect rent collection.
What’s happening in Phoenix, AZ (85040)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 85040 Phoenix
Not every below-median market is a bargain. Phoenix's 85040 ZIP stands at signals that favor experienced operators who can absorb the risk $321K pricing implies.
The 85040 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
On balance, 85040 offers a low basis, the region around Phoenix has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Demographically, 85040 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 85040 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 85040
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $247,754 | $1,530 | 4.4% | +8.6% | $123,877 |
| 3BR | $335,044 | $2,070 | 4.4% | +7.8% | $111,681 |
| 4BR | $376,217 | $2,350 | 4.5% | +7.4% | $94,054 |
| 5BR | $432,356 | — | — | +6.9% | $86,471 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 85040 Compare?
| Metric | 85040 | Phoenix | Phoenix-Mesa-Chandler, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $320,643 | $448,314 | N/A | $419,643 |
| 5-Year CAGR | 2.8% | 2.8% | N/A | 6.5% |
| Avg Rent | $1,829 | $1,672 | N/A | - |
| Cap Rate | 4.5% | 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 85040 (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 | $320,643 |
| Monthly Rent | $1,829 |
| Price-to-Rent | 14.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.9% |
| Cap Rate | 4.5% |
| 5-Year IRR | 7.2% |
📈 Home Appreciation
| 1-Year | -0.1% ▼ |
| 3-Year CAGR | 0.0% ▼ |
| 5-Year CAGR | +2.8% ▲ |
| 10-Year CAGR | +9.0% ▲ |
🏠 Rent Trends
| 1-Year | +12.5% ▲ |
| 3-Year CAGR | +4.1% ▲ |
| 5-Year CAGR | +5.3% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.5%). 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 85040
Population: 33,325
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 85040
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 16,434 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Do landlords face vacancy issues in Phoenix, AZ?
Rental vacancy in Phoenix, AZ is elevated. Investors should budget normal turnover but not chronic empty units.
Does house hacking work in Phoenix, AZ?
House hacking in Phoenix, AZ is reasonable to execute. Prices around $321K and rents of $1,829/mo solid owner-occupant economics.
Does Phoenix, AZ make sense for an investment property?
The 3.0/5 investability rating in Phoenix, AZ reflects its $321K prices and $1,829/mo rents. Investors generally consider it a solid option within AZ.
What is the median home value in Phoenix, AZ?
Expect median prices around $321K in Phoenix, AZ. The market has run at a 0.0% 5-year CAGR, so entry costs have been predictable.
What monthly rent should investors expect in Phoenix, AZ?
Rental rates in Phoenix, AZ average $1,829/mo. Tenant demand and $321K home values make the yield look reasonable by investor standards.
You know 85040 now. You don’t know where it ranks.
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How 85040 ranks in Phoenix-Mesa-Chandler, AZ
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