Real Estate Investing in Payson, Arizona (85541)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85541 (Payson, 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: 30.2% of homes vacant — above national norms.
What’s happening in Payson, AZ (85541)?
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Market Analysis: 85541 Payson
ZIP 85541 inside Gila County looks affordable on the surface — median value of $449K — but the discount exists for reasons that a careful buyer should understand before committing.
For an experienced owner, 85541 can be a a strong candidate for hunting ground — but the discount at $449K reflects genuine risk that outside investors often underestimate.
Statewide comparisons place 85541 among AZ's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Employment concentration in 85541 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Experienced landlords with local relationships tend to find 85541 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Payson:
Property Strategy for 85541
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $344,756 | $1,650 | 3.4% | +8.2% | $172,378 |
| 3BR | $484,453 | $2,090 | 3.1% | +8.2% | $161,484 |
| 4BR | $695,417 | $2,420 | 2.5% | +8.8% | $173,854 |
| 5BR | $852,222 | — | — | +9.0% | $170,444 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 85541 Compare?
| Metric | 85541 | Payson | Payson, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $449,030 | $449,030 | N/A | $419,643 |
| 5-Year CAGR | 3.4% | 3.4% | N/A | 6.5% |
| Avg Rent | $1,888 | $1,888 | N/A | - |
| Cap Rate | 3.3% | 3.3% | - | - |
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 85541 (Payson, AZ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $449,030 |
| Monthly Rent | $1,888 |
| Price-to-Rent | 19.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 6.7% |
📈 Home Appreciation
| 1-Year | +0.1% ▲ |
| 3-Year CAGR | +1.1% ▲ |
| 5-Year CAGR | +3.4% ▲ |
| 10-Year CAGR | +6.6% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
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 85541
Population: 23,323
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 85541
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.
Frequently Asked Questions
What is the typical home price in Payson, AZ?
Homes in Payson, AZ typically sell near $449K. Prices have moved at a 0.0% 5-year CAGR, which stable long-term demand.
What is the typical rental rate in Payson, AZ?
The typical rental in Payson, AZ commands about $1,888/mo monthly. That rent profile consistent cash flow against the $449K purchase basis.
How qualified is the tenant pool in Payson, AZ?
Expect a solid tenant pool in Payson, AZ. The rental market absorbs $1,888/mo rents without meaningful friction.
Does Payson, AZ make sense for an investment property?
The 3.0/5 investability rating in Payson, AZ reflects its $449K prices and $1,888/mo rents. Investors generally consider it a solid option within AZ.
What type of investing works in Payson, AZ?
Investors usually favor careful cash-flow rentals with hands-on management in Payson, AZ. With home values at $449K and rents near $1,888/mo, other strategies can work but produce even-keeled rather than outsized returns.
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How 85541 ranks in Payson, AZ
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