Best Places To Buy Rental Property In Arizona For 2025

Investing in rental properties is one of the smartest ways to build long-term wealth, but knowing where to buy can make all the difference between a cash cow and a money pit. If you’re searching for the best places to buy rental property in Arizona, you’re in luck—The Grand Canyon State is packed with opportunities for real estate investors.

With booming cities, a steady influx of new residents, and no shortage of snowbirds looking for a winter escape, Arizona is a landlord’s dream. From the rapidly growing Phoenix metro area to high-yield vacation markets like Sedona, rental properties in Arizona offer a mix of cash flow and appreciation potential. Whether you're after long-term tenants or short-term rental income, the Arizona rental property market presents prime investment opportunities for those ready to make a move.

In this guide, we’ll break down why Arizona is one of the best states for rental property investing, explore top markets for profitability, and answer key questions to help you maximize your returns. Let’s get started with the following:

• Why Arizona Is One of The Best Places To Buy Rental Property
• Top 15 Best Places To Buy Rental Property In Arizona
• The Best Places To Buy Rental Property In Arizona: FAQ 

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Read Also: How To Buy A Rental Property With No Money

Why Arizona Is One of The Best Places To Buy Rental Property

Arizona isn’t just home to breathtaking desert landscapes and world-famous sunsets—it’s also one of the hottest real estate markets in the country (and we’re not just talking about the temperature). If you’re looking for the best places to buy rental property in Arizona, you’ll find no shortage of opportunities. With affordable home prices compared to neighboring states, rapid population growth, and a business-friendly economy, Arizona is a prime destination for real estate investors looking to maximize both cash flow and appreciation.

What makes Arizona such a goldmine for landlords? For starters, people are moving here in droves—whether it’s retirees looking to soak up the sun, remote workers escaping high-cost states, or students flocking to booming college towns. High rental demand and low vacancy rates mean investors can count on strong occupancy and stable income. Add in landlord-friendly laws, an expanding job market, and plenty of short-term rental potential, and Arizona starts looking like a no-brainer for real estate investment.

If you’re serious about building wealth through real estate, Arizona should be at the top of your list. Here’s why:

• Explosive Population Growth & High Rental Demand
• Affordable Home Prices with Strong ROI Potential
• Booming Job Market & Business-Friendly Economy
• Landlord-Friendly Laws & Favorable Tax Policies

Let’s dive into each reason why Arizona is one of the best places to own rental property and what it means for your investment strategy.

Explosive Population Growth & High Rental Demand

Arizona's rapid population growth is a compelling reason to invest in rental properties within the state. According to the U.S. Census Bureau, Arizona's population reached 7,151,502 in 2020, reflecting a 12% increase since 2010. Today, there are 7,582,384 people that call Arizona home. This surge is particularly evident in metropolitan areas like Phoenix, which experienced significant growth over the past decade. ​

This population boom has led to heightened demand for housing, especially in rental markets. The influx of new residents, including professionals relocating for job opportunities and retirees seeking warmer climates, has intensified competition for available rental units. Consequently, vacancy rates have declined, and rental prices have risen, offering property investors the potential for steady cash flow and appreciation.​

Investing in Arizona's rental property market allows investors to capitalize on these favorable dynamics, making it one of the best places to buy rental property in Arizona. The state's ongoing growth trajectory suggests sustained demand for rental housing, positioning investors for long-term success in this thriving market.

Affordable Home Prices with Strong ROI Potential

Arizona presents a lucrative opportunity for real estate investors thanks to its affordable home prices relative to other high-growth states. According to Zillow, the median home value in Arizona is approximately $426,237, which is still significantly lower than housing prices in states like California or Washington. This affordability makes Arizona real estate investment opportunities more accessible to first-time and experienced investors alike.

One of the biggest advantages of Arizona’s housing market is its strong return on investment (ROI). With average monthly rents exceeding $2,047 in many parts of the state, rental income potential is high, especially in fast-growing cities like Phoenix, Tucson, and Mesa. The combination of steady appreciation and high rental yields makes Arizona a prime market for buy-and-hold investors looking for passive income.

Additionally, Arizona's landlord-friendly policies, low property tax rates, and strong job market growth further solidify its position as one of the best places to buy rental property in Arizona. As demand for rentals continues to climb, investors can expect strong cash flow and long-term appreciation, making the state an ideal destination for real estate investment.

Booming Job Market & Business-Friendly Economy

Arizona’s booming job market and business-friendly economy make it one of the best places to buy rental property in Arizona. With major companies like Intel, Amazon, and Taiwan Semiconductor Manufacturing Co. expanding their presence, the state is attracting a steady influx of skilled workers. 

Arizona’s unemployment rate of 3.8% is below the national average, and its economy continues to thrive, particularly in tech, healthcare, and manufacturing. This economic strength fuels demand for rental properties, especially in high-growth areas like Phoenix, Scottsdale, and Chandler.

One of Arizona’s biggest advantages is its pro-business environment. With low corporate tax rates and minimal regulations, the state fosters economic growth and job creation, ensuring a strong tenant pool for rental property owners. Additionally, Arizona expects its job growth rate to reach 2.3% this year, further solidifying its position as a magnet for new residents and renters.

For investors, this means consistent demand, lower vacancy rates, and high rental income potential. With strong employment opportunities and continued migration, Arizona’s economy supports long-term rental property investment success. Whether you’re investing in luxury rentals in Scottsdale or affordable workforce housing in Tucson, the state’s economic resilience ensures strong returns and stability.

Landlord-Friendly Laws & Favorable Tax Policies

Arizona is one of the most landlord-friendly states in the country, making it an ideal choice for investors looking for long-term rental property success. With favorable tax policies and strong legal protections for landlords, the state minimizes risk and maximizes profitability. Compared to states with complex tenant laws, Arizona’s streamlined eviction process and strong property rights make it easier for landlords to manage their investments effectively. This makes it one of the best places to buy rental property in Arizona, especially for those who want minimal legal hassles.

One major advantage for rental property owners is Arizona’s relatively low property tax rates, which average 0.45%, compared to the national average of 0.99% (Tax Foundation). Lower taxes mean higher cash flow and better long-term returns for real estate investors. Additionally, there’s no rent control, giving landlords full authority to adjust rental rates according to market demand.

With fewer restrictions on lease agreements and tenant screening, Arizona provides a business-friendly environment for rental property investors. Whether you’re renting out single-family homes in Gilbert or multifamily properties in Phoenix, the state’s legal and tax benefits create an ideal landscape for building a profitable rental portfolio.

Read Also: How To Buy Your First Rental Property: A Step By Step Guide

Top 15 Best Places To Buy Rental Property In Arizona

Arizona offers some of the most promising real estate markets in the country, thanks to strong population growth, high rental demand, and business-friendly policies. Whether you’re looking for cash-flowing rental properties, short-term vacation rentals, or high-appreciation markets, Arizona has plenty of options to fit your investment goals. From booming metro areas like Phoenix and Tucson to fast-growing suburban and vacation hotspots, the Grand Canyon State offers diverse opportunities for real estate investors.

Here are the 15 best places to buy rental property in Arizona, each offering unique benefits for investors:

1. Phoenix, AZ: High appreciation potential and year-round rental demand.
2. Tucson, AZ: Affordable entry prices with strong student housing demand.
3. Mesa, AZ: Rapid population growth and a booming job market.
4. Scottsdale, AZ: Luxury rentals and strong short-term rental potential.
5. Chandler, AZ: Tech-driven economy with high-income renters.
6. Glendale, AZ: Sports, entertainment, and short-term rental opportunities.
7. Gilbert, AZ: Low crime rates and strong demand for family rentals.
8. Tempe, AZ: Major college town with consistent rental demand.
9. Flagstaff, AZ: Strong Airbnb market with year-round tourism.
10. Peoria, AZ: Affordable suburban market with high rental yields.
11. Surprise, AZ: Emerging rental market with affordable investment properties.
12. Goodyear, AZ: Rapid growth and rising home values.
13. Prescott, AZ: Retirement and vacation rental hotspot.
14. Yuma, AZ: Military presence and agricultural job stability.
15. Lake Havasu City, AZ: Popular vacation rental destination with high occupancy.

Phoenix, AZ

Phoenix is the crown jewel of Arizona's rental property market, offering high appreciation rates and a red-hot rental demand. As one of the fastest-growing cities in the country, Phoenix is constantly attracting new residents, businesses, and investors. The city's affordability compared to other major metros, combined with its strong job market, makes it a great place for long-term buy-and-hold strategies. Rents have been steadily increasing, allowing investors to capitalize on rising demand from professionals, students, and retirees alike.

Another major advantage of investing in Phoenix is its short-term rental potential. With its year-round sunshine, thriving tourism scene, and major events like the Phoenix Open, Airbnb properties can perform exceptionally well in high-traffic areas. Whether you're looking for high cash flow rental properties or long-term appreciation, Phoenix checks all the boxes for a top-tier real estate investment location.

Tucson, AZ

For investors looking for affordable properties with strong rental yields, Tucson offers incredible opportunities. Home to the University of Arizona, the city benefits from a consistent stream of student renters, keeping rental demand strong year-round. With a growing economy and an increasing number of retirees choosing Tucson for its lower cost of living, the rental market remains stable and diverse.

Tucson’s affordability is a key factor that makes it a prime rental investment location. The cost of entry is lower than in Phoenix and Scottsdale, making it an ideal market for new investors looking to break into Arizona real estate investing. With a strong Airbnb market in areas near downtown and university hotspots, Tucson also presents opportunities for short-term rentals. For investors seeking high cash-on-cash returns, Tucson is a top contender.

Mesa, AZ

Mesa has quietly become one of Arizona’s strongest rental markets, attracting families, professionals, and retirees looking for affordability and quality of life. Its rapidly growing population and lower home prices (compared to neighboring Phoenix and Scottsdale) create strong cash flow opportunities for investors. The city boasts a diverse economy, including aerospace, healthcare, and tech industries, driving a stable tenant base.

A key advantage of Mesa is its renter-friendly suburban appeal. Investors can find single-family homes, condos, and multi-unit properties that cater to long-term tenants. Rising home values and increasing rents make Mesa an attractive location for buy-and-hold investors looking for passive income and long-term appreciation. Plus, with major development projects underway, property values are expected to continue rising. Mesa is a must-consider city for real estate investors in Arizona.

Scottsdale, AZ

Scottsdale is Arizona’s premier luxury rental market, known for its high-income renters, tourism-driven economy, and upscale lifestyle. This city is a hotbed for high-end rental properties, from modern apartments to luxury vacation rentals. With some of the highest rental rates in Arizona, investors can achieve strong cash flow, particularly in short-term rentals catering to business travelers, golf enthusiasts, and tourists visiting Old Town Scottsdale.

What sets Scottsdale apart is its high property appreciation and wealthier tenant base. The city attracts tech professionals, executives, and retirees, ensuring high rental demand for both long-term and short-term stays. Investors looking for Airbnb-friendly cities in Arizona will find Scottsdale’s regulations favorable compared to other parts of the state. For those seeking high-end real estate investments with strong returns, Scottsdale is the place to be.

Chandler, AZ

Chandler has emerged as one of the best places to buy rental property in Arizona, thanks to its booming tech industry and high-income workforce. Home to major employers like Intel, Microchip Technology, and PayPal, Chandler offers a strong tenant base of well-paid professionals who prefer high-quality rental properties. This demand translates into higher rental rates and lower vacancy rates, making it a highly profitable market for real estate investors.

Investors in Chandler can capitalize on new developments, a growing economy, and a strong rental market. The city is known for its low crime rates, excellent schools, and suburban appeal, attracting families and young professionals alike. Whether you’re investing in single-family homes or luxury apartments, Chandler offers strong appreciation potential and steady rental income. With its business-friendly environment and economic growth, Chandler is a top-tier market for rental property investors.

Glendale, AZ

Glendale is one of the best places to buy rental property in Arizona, offering a perfect balance of affordability and strong rental demand. Known for its sports, entertainment, and proximity to Phoenix, Glendale attracts a diverse tenant base, including professionals, students, and families. Home prices are lower than in nearby Scottsdale and Phoenix, making it easier for investors to generate positive cash flow.

A major draw for Glendale is its tourism and event-driven economy. With State Farm Stadium hosting the Arizona Cardinals and major concerts, short-term rentals are a lucrative option in this market. Long-term investors can also benefit from the city’s rising home values and increasing rental rates, making Glendale an ideal location for both traditional and Airbnb investment properties.

Gilbert, AZ

Gilbert has transformed from a quiet farming town into a highly desirable suburb for families and professionals. With top-rated schools, a strong economy, and a high quality of life, it’s no surprise that Gilbert consistently ranks as one of the best places to buy rental property in Arizona. High home values and rental rates mean investors can expect strong appreciation and stable returns.

One of Gilbert’s strongest investment advantages is its high-income renter demographic. Many professionals working in Chandler’s tech hub or Phoenix’s business district prefer to rent in Gilbert due to its safe neighborhoods and modern amenities. With low vacancy rates and steady demand, real estate investors can count on Gilbert as a reliable long-term investment.

Tempe, AZ

Tempe is home to Arizona State University (ASU), one of the largest universities in the country, making it a prime location for student housing investments. The constant influx of students ensures consistent rental demand, and with Tempe’s growing economy, the city is also attracting young professionals who want to stay after graduation.

Beyond student housing, Tempe offers Airbnb potential and high rental yields. The city’s vibrant nightlife, business hubs, and proximity to Phoenix Sky Harbor Airport make it a top destination for short-term and long-term rentals. With home values rising but still lower than Scottsdale and Phoenix, now is the perfect time to invest in Tempe’s fast-growing rental market.

Flagstaff, AZ

Flagstaff is one of Arizona’s most unique rental markets, offering investors a mix of college town demand, outdoor tourism, and high appreciation potential. Home to Northern Arizona University (NAU), the city sees a steady flow of students needing rental housing. Additionally, Flagstaff’s booming tourism industry, fueled by nearby Grand Canyon National Park and winter sports, makes it an attractive market for Airbnb and short-term rental investors.

Despite its smaller population, Flagstaff’s high rental demand and strong appreciation create excellent long-term investment opportunities. The city’s limited housing supply keeps rents competitive, while its status as one of Arizona’s most desirable places to live ensures property values continue to rise. For investors looking to diversify with both long-term and vacation rentals, Flagstaff is an ideal market.

Peoria, AZ

Peoria is a rising star in Arizona real estate, offering investors affordable home prices, strong appreciation, and an increasing population. With its new master-planned communities, great schools, and expanding job market, Peoria is attracting families and professionals looking for high-quality rentals.

Peoria’s location near Phoenix and Glendale gives investors access to a rapidly growing rental market without the high price tags of bigger cities. Single-family homes and townhouses perform exceptionally well in Peoria, offering stable cash flow and long-term property value appreciation. For those looking to invest in Arizona’s suburban markets, Peoria is one of the best options available.

Surprise, AZ

Surprise, AZ, is one of the fastest-growing cities in the Phoenix metro area, attracting families, professionals, and retirees looking for affordability without sacrificing amenities. The city’s booming job market and expanding infrastructure have created a strong rental demand, particularly for single-family homes in newly developed communities. With major employers like Lockheed Martin and a thriving healthcare sector, Surprise offers stable, long-term tenants and rising home values. Investors can benefit from relatively affordable property prices compared to other Phoenix suburbs while securing a steady stream of rental income in one of Arizona’s top real estate markets.

Goodyear, AZ

Goodyear is quickly becoming one of the most desirable Phoenix suburbs for both residents and real estate investors. The city has seen rapid population growth due to its proximity to major employment hubs, including the aerospace, logistics, and healthcare industries. Newly built rental homes and townhouses are particularly popular as the city continues expanding. Investors looking for strong appreciation potential and reliable rental income will find Goodyear an ideal market, as demand continues to outpace supply. With a high quality of life and plenty of job opportunities, Goodyear is one of the best areas in Arizona to buy investment property.

Prescott, AZ

For those looking outside of the Phoenix metro area, Prescott offers a unique investment opportunity. As a historic city with a strong retiree population and a growing college student base from Embry-Riddle Aeronautical University, rental demand is diverse. Investors can take advantage of both long-term rental opportunities and vacation rentals, particularly in areas near downtown and Prescott National Forest. The city’s mild climate and scenic beauty continue to attract new residents, making it a great location for buy-and-hold real estate investors looking for a mix of appreciation and rental cash flow.

Yuma, AZ

Yuma is one of Arizona’s most affordable real estate markets, making it attractive to investors looking for high cash flow rental properties. The city has a large military presence with Marine Corps Air Station Yuma, as well as a strong seasonal agricultural workforce, ensuring consistent rental demand year-round. Multifamily properties and single-family rentals are particularly profitable here, as they cater to both permanent residents and temporary workers. Yuma offers one of the best rental yields in Arizona, making it an excellent choice for investors seeking steady passive income and lower acquisition costs.

Lake Havasu City, AZ

Lake Havasu City is a hot spot for short-term rentals and vacation properties, thanks to its reputation as a premier destination for boating, fishing, and outdoor recreation. With year-round tourism and a growing retiree population, investors can capitalize on high nightly rental rates and strong seasonal demand. Properties near the lake or downtown tend to perform the best, offering investors the opportunity to generate high cash flow with Airbnb and VRBO rentals. With steady property appreciation and strong tourism appeal, Lake Havasu City remains one of the best places to buy rental property in Arizona for those interested in short-term and vacation rental investments.

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Read Also: Best Places To Buy Rental Property In 2025 For Investors

The Best Places To Buy Rental Property In Arizona: FAQ

Investing in Arizona’s rental market can be a smart move, but knowing where to buy and what to expect is crucial for long-term success. From high-growth cities to strong rental yields, this FAQ covers key insights to help you make an informed decision. Below are answers to some of the most common questions investors have about the best places to buy rental property in Arizona.

What are the best places to buy rental property in Arizona?

The best cities for rental property investment in Arizona include Phoenix, Tucson, Mesa, Scottsdale, and Chandler due to their population growth, strong rental demand, and job opportunities. Other emerging markets like Flagstaff, Prescott, and Lake Havasu City also offer excellent investment potential.

Is Arizona a good state for rental property investment?

Yes, Arizona is considered a landlord-friendly state with strong job growth, no rent control laws, and high rental demand due to its booming economy and rapid population increase. The state's low property taxes and steady home appreciation rates make it attractive to real estate investors.

What type of rental properties perform best in Arizona?

Single-family homes and multifamily properties are the most popular due to high demand from families and professionals. Short-term rentals in tourist-heavy areas like Scottsdale and Lake Havasu City also perform well with strong seasonal income.

What Arizona cities have the highest rental yields?

Cities like Yuma, Tucson, and Goodyear offer some of the highest rental yields due to their lower home prices and strong rental demand. Investors looking for high cash flow opportunities often target these markets.

How much does it cost to buy a rental property in Arizona?

The median home price in Arizona is approximately $436,918, but prices vary widely by city. Investors can find affordable homes under $300,000 in cities like Yuma, Surprise, and Prescott, while luxury markets like Scottsdale command much higher prices.

Is Arizona a landlord-friendly state?

Yes, Arizona has landlord-friendly laws, including fast eviction processes and no statewide rent control policies. This makes it easier for property owners to manage tenants and maintain control over their investments.

What Arizona cities are best for Airbnb investments?

Scottsdale, Sedona, and Lake Havasu City are top locations for short-term rental investments due to their high tourist traffic. Investors in these cities can benefit from high nightly rates and strong seasonal demand.

What is the average rent in Arizona?

The average rent in Arizona is around $1,850 per month, but it varies by location. Metro areas like Phoenix and Tucson have slightly lower rents, while Scottsdale and Tempe command higher rental prices due to demand.

Is now a good time to invest in Arizona rental properties?

Yes, with rising home values and high demand for rentals, Arizona remains a strong market for real estate investors. The state's continued economic growth and population influx suggest long-term stability for rental property owners.

What are the risks of investing in Arizona real estate?

Potential risks include rising property prices, competition from other investors, and seasonal fluctuations in short-term rental markets. However, choosing high-demand cities with strong job markets can help mitigate these risks and maximize returns.

Final Thoughts On The Best Places To Buy Rental Property In Arizona

Arizona isn’t just about stunning desert landscapes and year-round sunshine—it’s also a goldmine for rental property investors. Whether you’re eyeing the booming Phoenix metro area, the thriving college towns, or short-term rental hotspots like Scottsdale and Sedona, the state offers high demand, appreciation potential, and landlord-friendly laws. With strong job growth, affordable property taxes, and a rapidly growing population, now is the perfect time to stake your claim. Don’t wait—Arizona’s rental market is heating up, and the best deals won’t last forever.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.