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Arizona Cap Rate Calculator

Calculate cap rates using Arizona market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current Arizona averages. Net Operating Income ÷ Property Price

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Property Details

Operating Expenses(Arizona defaults)

Total Annual Expenses$11,993

Arizona Market Context

Avg Cap Rate

5.5%

Median Price

$455K

Property Tax

0.43%

Vacancy Rate

8.8%

Local Factors

  • -Phoenix metro is a major Sun Belt migration destination with strong population growth
  • -Rising insurance costs due to monsoon and wildfire risk
  • -New construction supply in Phoenix suburbs may moderate rent growth

Sources

World Population Review – Median Home PriceFL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance RatesiPropertyManagement – Vacancy Rates

Cap Rate

1.5%

Low
Net Operating Income$6,751
Gross Income$18,744
Total Expenses$11,993
Arizona Avg Cap Rate5.5%
CAP RATE1.5%
NOI$6,751
Property Tax$1,957
Insurance$2,337
Maintenance$4,550
Management$1,500
Vacancy$1,649

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with Arizona rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

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NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

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Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

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