Real Estate Investing in Tucson, Arizona (85706)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85706 (Tucson, 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.
- Elevated poverty: 24.6% poverty rate — can affect rent collection.
What’s happening in Tucson, AZ (85706)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 85706 Tucson
The 85706 ZIP in Tucson, AZ is a local-operator market. Outside capital chasing a $260K entry has to pair deep knowledge with the discount.
Distressed markets are won on execution, not on spreadsheets. ZIP 85706 reports the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Regionally, 85706 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, 85706 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.
Experienced landlords with local relationships tend to find 85706 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 Tucson:
Property Strategy for 85706
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $222,897 | $1,210 | 3.9% | +9.4% | $111,448 |
| 3BR | $275,763 | $1,680 | 4.4% | +8.3% | $91,921 |
| 4BR | $302,748 | $1,940 | 4.6% | +8.0% | $75,687 |
| 5BR | $335,611 | — | — | +7.5% | $67,122 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 85706 Compare?
| Metric | 85706 | Tucson | Tucson, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $260,324 | $199,626 | N/A | $419,643 |
| 5-Year CAGR | 3.5% | 3.2% | N/A | 6.5% |
| Avg Rent | $1,294 | $1,466 | N/A | - |
| Cap Rate | 3.9% | 3.4% | - | - |
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 85706 (Tucson, AZ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $260,324 |
| Monthly Rent | $1,294 |
| Price-to-Rent | 16.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.0% |
| Cap Rate | 3.9% |
| 5-Year IRR | 7.4% |
📈 Home Appreciation
| 1-Year | -1.9% ▼ |
| 3-Year CAGR | +0.3% ▲ |
| 5-Year CAGR | +3.5% ▲ |
| 10-Year CAGR | +7.9% ▲ |
🏠 Rent Trends
| 1-Year | -9.9% ▼ |
| 3-Year CAGR | -1.3% ▼ |
| 5-Year CAGR | +2.5% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.9%). 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 85706
Population: 56,022
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 85706
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 8,575 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What price range are homes in Tucson, AZ?
In Tucson, AZ the median home value sits at $260K. Against the broader AZ market, that reads as reasonable for most investors.
What is the typical renter like in Tucson, AZ?
The renter base in Tucson, AZ is reasonable for the $1,294/mo price point. Screening well and pricing to market typically yields even-keeled tenants.
Is Tucson, AZ a good market for buy-and-hold investors?
Tucson, AZ scores 3.0/5 for investability. Home values sit at $260K and rents near $1,294/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
Is vacancy a concern in Tucson, AZ?
Occupancy in Tucson, AZ runs predictable with elevated vacancy. Well-priced units at $1,294/mo lease on reasonable timelines.
Is rental property easy to operate in Tucson, AZ?
AZ ranks as a landlord-friendly state for landlord-tenant law. Tucson generally follows the statewide framework, so landlords face reasonable operating rules.
You know 85706 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 85706 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 85706 ranks in Tucson, AZ
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