Real Estate Investing in Tempe, Arizona (85281)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85281 (Tempe, AZ)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 11.6% vacancy may signal weakening demand.
What’s happening in Tempe, AZ (85281)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 85281 Tempe
Not every below-median market is a bargain. Tempe's 85281 ZIP stands at signals that favor experienced operators who can absorb the risk $397K pricing implies.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 85281 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within AZ, ZIP 85281 trails on several market indicators that neighboring Maricopa County submarkets outperform. The gap is real and durable enough to shape underwriting.
The 85281 ZIP's population of 70,726 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reflects the need for careful underwriting.
The 85281 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 Tempe:
Property Strategy for 85281
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $268,479 | $1,730 | 4.6% | +4.0% | $268,479 |
| 2BR | $345,882 | $2,010 | 4.2% | +6.9% | $172,941 |
| 3BR | $437,842 | $2,680 | 4.4% | +6.4% | $145,947 |
| 4BR | $500,855 | $2,970 | 4.3% | +6.3% | $125,214 |
| 5BR | $554,049 | — | — | +6.8% | $110,810 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 85281 Compare?
| Metric | 85281 | Tempe | Phoenix-Mesa-Chandler, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $396,722 | $507,710 | N/A | $419,643 |
| 5-Year CAGR | 2.0% | 2.6% | N/A | 6.5% |
| Avg Rent | $1,680 | $1,907 | N/A | - |
| Cap Rate | 3.3% | 2.9% | - | - |
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 85281 (Tempe, 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 | $396,722 |
| Monthly Rent | $1,680 |
| Price-to-Rent | 19.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 5.3% |
📈 Home Appreciation
| 1-Year | -1.8% ▼ |
| 3-Year CAGR | -0.8% ▼ |
| 5-Year CAGR | +2.0% ▲ |
| 10-Year CAGR | +6.5% ▲ |
🏠 Rent Trends
| 1-Year | -0.4% ▼ |
| 3-Year CAGR | -0.9% ▼ |
| 5-Year CAGR | +1.1% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.3%). 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 85281
Population: 70,726
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 85281
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 6,526 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much do tenants pay in Tempe, AZ?
Average rent in Tempe, AZ is approximately $1,680/mo per month. Against $397K home values that yields a reasonable rent-to-price ratio.
Can I live-in-and-rent in Tempe, AZ?
House hacking works a challenging in Tempe, AZ. Rents of $1,680/mo against $397K acquisition make the strategy solid for owner-occupants.
Should investors consider Tempe, AZ?
Investors tracking Tempe, AZ will find a 3.0/5 rating supported by $397K median home values and $1,680/mo rents. That profile suits long-term holders targeting steady returns.
Is vacancy a concern in Tempe, AZ?
Vacancy in Tempe, AZ is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,680/mo.
How do experienced investors play Tempe, AZ?
In Tempe, AZ the durable play is typically careful cash-flow rentals with hands-on management. The combination of $397K prices and $1,680/mo rents suits that approach.
You know 85281 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 85281 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 85281 ranks in Phoenix-Mesa-Chandler, AZ
Every ZIP in this metro, ranked. Free.
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