Real Estate Investing in Vernon, Arizona (85940)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 85940 (Vernon, 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.
- High vacancy: 35.1% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 25.6 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Vernon, AZ (85940)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 85940 Vernon
The 85940 ZIP in Vernon, AZ is a local-operator market. Outside capital chasing a $393K entry has to pair deep knowledge with the discount.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 85940 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within AZ, ZIP 85940 trails on several market indicators that neighboring Apache County submarkets outperform. The gap is real and durable enough to shape underwriting.
Put differently, 1,278 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
Experienced landlords with local relationships tend to find 85940 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 Vernon:
Market Trends
Home Value History (with trend line)
📊 How Does 85940 Compare?
| Metric | 85940 | Vernon | Arizona |
|---|---|---|---|
| Home Value | $392,671 | $392,671 | $419,643 |
| 5-Year CAGR | 5.9% | 5.9% | 6.5% |
| Avg Rent | $1,278 | $1,278 | - |
| Cap Rate | 2.5% | 2.5% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 85940 (Vernon, AZ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $392,671 |
| Monthly Rent | $1,278 |
| Price-to-Rent | 25.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.5% |
| 5-Year IRR | 8.4% |
📈 Home Appreciation
| 1-Year | +4.7% ▲ |
| 3-Year CAGR | +1.2% ▲ |
| 5-Year CAGR | +5.9% ▲ |
| 10-Year CAGR | +7.9% ▲ |
🏠 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 (2.5%). 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 85940
Population: 1,278
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 85940
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
Does Vernon, AZ make sense for an investment property?
Yes - Vernon, AZ a 3.0/5 investability score. With $393K home prices against $1,278/mo monthly rent, the market delivers a reasonable entry point for new investors.
How tight is the rental market in Vernon, AZ?
Vernon, AZ sees elevated vacancy, which is reasonable relative to the broader AZ rental market.
Is AZ a landlord-friendly state?
AZ ranks as a landlord-friendly state for landlord-tenant law. Vernon generally follows the statewide framework, so landlords face reasonable operating rules.
Does house hacking make sense in Vernon, AZ?
For house hackers, Vernon, AZ is a challenging. The $1,278/mo rent on a unit helps defray the mortgage on a $393K property.
How much is rent in Vernon, AZ?
Rental rates in Vernon, AZ average $1,278/mo. Tenant demand and $393K home values make the yield look reasonable by investor standards.
You know 85940 now. You don’t know where it ranks.
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