Market Analysis

Phoenix, AZ Multifamily Market

Cap rates, rent trends, and underwriting benchmarks for Phoenix apartment investors.

5.5%
Avg Cap Rate
4.5% – 6.5%
Cap Rate Range
1.35x
Avg DSCR
$180,000
Price / Unit
$1,250
Avg Rent / Unit
6.0%
Vacancy Rate
+3.2%
YoY Rent Growth
1,680,000
Population

Market Trend

Steady growth with strong in-migration from coastal markets. Landlord-friendly regulatory environment supports investor confidence. Scottsdale and Tempe command premium rents. The West Valley (Goodyear, Buckeye) is the fastest-growing submarket.

Lender Notes

Most local lenders require 1.25x DSCR minimum. Bridge lending available for value-add plays. TSMC semiconductor plant driving housing demand in North Phoenix.

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