Phoenix Rental Yield Breakdown: Where to Buy for Best ROI
Jun 19, 2025
For solid reasons, Phoenix emerges as a top real estate market in the United States. Every year, the Valley of the Sun attracts more people due to its growing job opportunities, its business-friendly environment and family-friendly climate, so investors find multiple ways to grow their assets.
Not every area within Phoenix offers the same potential profits when investing in rental properties. Investors need to understand rental yield to achieve smart investment choices, as it measures property income against value. This guide analyses Phoenix's most profitable locations for rental yield so investors can select their ideal ROI locations.
Why Phoenix is a Prime Spot for Real Estate Investment
Here is why Phoenix is drawing so much interest from investors:
- Population Growth: The United States has recognised Phoenix as one of its fastest-expanding metropolitan areas, which creates ongoing demand for homes and business properties.
- Strong Rental Market: High demand for rental properties across Phoenix creates an excellent opportunity for investors who wish to hold properties as investments.
- Business-Friendly Environment: Phoenix draws startups and corporations to its market, which drives demand for both business premises and housing options for workers.
- Affordability Compared to Other Major Cities: The current market allows investors to purchase properties, offering reasonable price points and expecting solid investment growth.
Top Phoenix Neighbourhoods for High Rental Yield
1. Maryvale
- Average Home Price: ~$310,000
- Average Rent: $1,950/month
- Estimated Rental Yield: ~7.5%
Why Invest: Maryvale demonstrates stable performance through its affordable prices and strong rental market interest, particularly for single-family house purchases.
2. South Phoenix
- Average Home Price: ~$340,000
- Average Rent: $2,000/month
- Estimated Rental Yield: ~7.0%
Why Invest: Strategic development and infrastructure expansion with residential and retail initiatives increase the attractiveness of this specific area.
3. Alhambra
- Average Home Price: ~$365,000
- Average Rent: $2,100/month
- Estimated Rental Yield: ~6.9%
Why Invest: This neighbourhood features easy access to central areas with revitalisation developments, attracting young residents to rent homes.
4. Deer Valley
- Average Home Price: ~$390,000
- Average Rent: $2,250/month
- Estimated Rental Yield: ~6.9%
Why Invest: The residential market in Deer Valley caters to household and professional sectors due to its dependable rental market and modern property inventory.
Up-and-Coming Neighbourhoods to Watch
The metropolitan region of Laveen and Tolleson is currently undergoing significant housing development, while public infrastructure improves, leading to increasing rental expenses. Early real estate investors could gain rewarding rental cash flow and future value appreciation.
Final Thoughts: Rental yield and ultimately ROI in Phoenix depend on which neighbourhood you choose to invest in. If investors focus on high-yield areas such as Maryvale, South Phoenix and Glendale, they can achieve dependable cash flow with enduring growth prospects.
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