Also known as the copper state, Arizona is one of the main face states of the USA. Copper is very abundant in this state and is a great asset for many manufacturing departments of the whole United States. However, Copper is not the only thing that is present here in abundance. Arizona short term rental properties are very popular and high in number. These properties reflect that Arizona has a bright future in the real estate market.
As you are looking for a complete guide, only a high number of properties could not satisfy you to invest in the Arizona short term rental market. You must know about the rental data of the whole of Arizona and its top places to find a suitable place for investment. You also need to know the reasons that will make your investment in Arizona rental properties worth it.
Reasons Why You Should Buy a Rental Property in Arizona
High Employment Rates
The employment rate is pretty higher in Arizona as compared to other states of the USA. Therefore, people from other states come to Arizona for jobs and start their professional careers. All of them don’t have private or personal residences in Arizona. They have to live in rental houses during their jobs. It means the Arizona short term rental market will be the best place to invest your money. Therefore, you must buy rental properties in Arizona.
Landlord Friendly Laws
In some states, laws always go in the favor of tenants instead of landlords. This does not encourage people to invest in rental properties. However, things are not that way in Arizona. Here landlord-friendly laws are present to ensure a healthy business setup. Therefore you must buy and invest in Arizona rental properties and earn big profits in peak seasons.
Incredible Growth of Population
The population of Arizona keeps on increasing over the past few years. This rise is mainly due to the movement of people from other states to Arizona. Most of them come in search of jobs and start residing there. This has been increasing the rates of properties. Common people cannot afford to buy a property in some regions of Arizona. Therefore, investing in the Arizona will be beneficial for you. People who don’t own a home in Arizona will opt for a rental home, and some of them will rent your home as well.
Rental Data Analysis of Arizona and its Top Places
To find if the above reasons will actually work for you to generate bug profits upon investing in the Arizona market, you must go through the rental data analysis of Arizona.
- The average occupancy rate is 65-70%.
- The Cap rate is pretty low at only 2.4%.
- The average monthly rental income is about $3205.
- The average daily rate is about $170.
The above data is for the whole state. It does not show where you can get a loss and what places are best for investing in the Arizona short term rental market. For that purpose, we have to explore the rental data analysis of some regions of Arizona. So, let’s move towards them.
1. Phoenix
The capital of Arizona has a very well-developed real estate market. The Phoenix data analysis shows that the rental business is a profitable option there.
- Total occupancy rate in Phoenix is about 70%.
- Rental demand is 80 and 87% of it is only for entire homes.
- Total rental properties here are higher than 5500, reflecting it’s a popular real estate market.
- About 44% of all homes in Arizona are occupied by paying residents.
2. Tucson
The Tucson is very profitable due to the presence of the University of Arizona. Students and other visitors chose to live in rental homes making the investment beneficial for you.
- The total occupancy rate is 75% which is at a staggering percentage of 93% in February.
- The average daily rate is $150-160.
- Almost 4000 active rentals are present there.
- Rental demand is 81, with the most part of it being for entire homes.
- The average rent in Arizona is about $1250.
3. Scottsdale
Despite being a desert city, Scottsdale is one of the major parts of the Arizona market. Following is the analysis of the Scottsdale data.
- The average occupancy rate is about 65% which will be higher up to 83% in March and April.
- Average daily rate is $318.
- Rental demand is more than 70 and is almost for entire homes only.
- There is a 41% annual increase in rents of 3-bedroom homes due to high demand.
- The average rent is more than $2100.
4. Flagstaff
This gateway to San Francisco is not only famous for the mountains and pine forests surrounding this city. The Flagstaff rental market is also a reason behind the popularity of this land.
- The average daily rate is $215.
- The average occupancy rate is 71%.
- When you talk about rental growth, this city shows 12% quarterly growth.
- Total rental demand is above 81.
- More than 2000 active rentals are present there.
5. Santa Cruz
Santa Cruz is a county in Arizona. Santa Cruz rental properties could be the best option to invest in.
- The average monthly rental price in Santa Cruz is about $2200.
- 42,000+ homes in Santa Cruz are listed for sale. So you have a big opportunity to invest there.
- The average occupancy rate is slightly higher than 76%.
- The price to rent is sizzling high at 19%.
- The rent occupied rate is about 34%.
6. Coconino
Coconino is a county in Arizona. The Walnut Creek market is one of the major places in Coconino for investing. Following is a rental data analysis of this county.
- Median rate of rental property is $261,300.
- Median gross rent is about $1137.
- 60 percent of people in Coconino have been living in their personal homes.
- The remaining 40% of people have to live in rental homes.
- The occupancy rate is about 67% which will be higher in the touring season.
7. Gila
Gila is one of the prime counties of Arizona. It is the central part of the state and has a solid real estate market. Miami is a town in Gila and the Miami properties are of prime importance due to the high return on investment ratio.
- The median property rate in Gila is about $179,900.
- The average rental income is about $1130.
- The return on investment ratio is 3.3%.
- The occupancy rate is pretty good as it is somewhere around 73-79%. You will experience a sudden rise in occupancy rate when tourists visit this county.
Bottom Line
As promised we have delivered the complete guide on investing in the Arizona market. You know the places that suit you well for investing in short term rental markets. You also know the logical reasons that are going to make your investment in the Arizona short term rental market successful.
Go ahead, take a peak in the online app!
