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Arizona Cities Among Best Areas to Buy Rental Property

By December 29, 2021November 14th, 2022No Comments

By Plamedie Ifasso and Greg Barr, Phoenix Business Journal

The Phoenix metro is one of the best areas in the U.S. to invest in rental property, a new report shows.

The study conducted by Stessa identified the best areas to buy rental property by creating a composite index based on five factors real estate investors consider when looking at a market. The factors include gross rent multiplier, year-over-year home price growth, forecasted home price growth, effective property tax rates and population growth. The metropolitan areas were then divided into three categories based on population: small, midsize and large.

The Phoenix metro ranked eighth in the large metro area category, with a composite index score of 57.45.

The Valley’s median home price increased by 32.2.% and is now $410,028, and home prices in the metroplex are expected to increase by 23.8%. The median monthly rent in the city is $1,572.

The Phoenix metro has an 21.7 gross rent multiplier and had a 2.1% increase in population from 2019 to 2020.

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