Real Estate Investing in Phoenix, Arizona (85042)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85042 (Phoenix, AZ)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
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 (85042)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 85042 Phoenix
Turning to rents, ZIP 85042 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $386K median. It rewards specialists, not generalists.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $386K asset, 85042 is the wrong submarket. If the plan prices in friction, the yield can still work.
Nearby ZIPs in Phoenix have seen price recovery that 85042 has not matched. Maricopa County data supports the view that the spread is structural rather than temporary.
Employment concentration in 85042 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Strategically, 85042 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 85042
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $288,145 | $1,780 | 4.4% | +7.0% | $144,073 |
| 3BR | $388,610 | $2,370 | 4.4% | +6.8% | $129,537 |
| 4BR | $451,822 | $2,630 | 4.2% | +6.7% | $112,956 |
| 5BR | $552,925 | — | — | +6.9% | $110,585 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 85042 Compare?
| Metric | 85042 | Phoenix | Phoenix-Mesa-Chandler, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $386,461 | $448,314 | N/A | $419,643 |
| 5-Year CAGR | 2.2% | 2.8% | N/A | 6.5% |
| Avg Rent | $1,747 | $1,672 | N/A | - |
| Cap Rate | 3.5% | 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 85042 (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 | $386,461 |
| Monthly Rent | $1,747 |
| Price-to-Rent | 18.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 5.7% |
📈 Home Appreciation
| 1-Year | -0.2% ▼ |
| 3-Year CAGR | -0.4% ▼ |
| 5-Year CAGR | +2.2% ▲ |
| 10-Year CAGR | +7.5% ▲ |
🏠 Rent Trends
| 1-Year | +2.1% ▲ |
| 3-Year CAGR | +1.2% ▲ |
| 5-Year CAGR | +4.0% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.5%). 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 85042
Population: 45,575
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 85042
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 1,473 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Which real estate strategy fits Phoenix, AZ?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Phoenix, AZ. The numbers - $386K homes against $1,747/mo rents - support that play.
What is the average home sale price in Phoenix, AZ?
Expect median prices around $386K in Phoenix, AZ. The market has run at a 0.0% 5-year CAGR, so entry costs have been reliable.
Are rents high in Phoenix, AZ?
Phoenix, AZ rentals go for roughly $1,747/mo a month. That puts gross yield in solid territory relative to $386K acquisition costs.
Is Phoenix, AZ landlord-friendly?
AZ ranks as a landlord-friendly state for landlord-tenant law. Phoenix generally follows the statewide framework, so landlords face reasonable operating rules.
Is vacancy a concern in Phoenix, AZ?
Rental vacancy in Phoenix, AZ is elevated. Investors should budget normal turnover but not chronic empty units.
You know 85042 now. You don’t know where it ranks.
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How 85042 ranks in Phoenix-Mesa-Chandler, AZ
Every ZIP in this metro, ranked. Free.
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