Estimated Rental Rates in the Phoenix Real Estate Market

One question that comes up quite often, especially with the Canadian dollar hovering near parity (though not quite there) is how much properties might rent for in different areas of the Valley.

There are many, many variables to the question as rents can vary from one neighborhood to the next within a city much less from city to city and a four-bedroom property will collect more than a three-bedroom.

Having said that, if you try and even things out by looking at what I would say is a basic rental – 3 bedrooms, 1.75 or 2 baths, around 1,450 to 1,600 square feet, you should be able to get a sense of rents in different areas.

Major disclaimer – the data listed below is from the Arizona Regional MLS and is deemed reliable but not guaranteed. The rents below were the rents for these particular homes and do not guarantee, imply or otherwise promise that similar rent rates can be generated from a different property in the same city, neighborhood or block.

Also, I’ll mention in advance for the house in Scottsdale, there were several upgrades – maple cabinets, granite counters, etc. which you don’t normally find in basic rentals elsewhere.

 

CITY

STREET

RENT

Arizona City W. Mazatlan $650
Avondale W. Sheridan $800
Buckeye W. Centre $795
Chandler W. El Alba Way $895
El Mirage W. Scotts Dr. $845
Florence N. Shelton Way $650
Gilbert E. Waterman St. $975
Glendale W. Pasadena $850
Glendale (Arrowhead) N. 77th Drive $995
Goodyear W. Moreland $850
Laveen S. 44th Ave. $900
Maricopa W. Michaels Dr. $750
Mesa W. Peralta $850
Peoria W. Vogel $950
Peoria (Fletcher Hgts) W. Via Montoya $1,195
Phoenix W. Oregon $850
N. Phoenix W. Running Deer $1,100
Queen Creek E. Omega $750
San Tan Valley W. Desert Seasons $850
S. Scottsdale E Wilshire $1,050
N. Scottsdale E. Taro Way $1,700
Surprise N. Larkspur $775
Tempe W. Sesame Street $895
Tolleson W. Sonora Street $895

The corresponding question is what would it cost to buy a place in one of these areas, and that will come next.

One last thought … if you’re Canadian it’s a must, but even locally it’s usually worth getting a property manager, so you’ll need to figure in a cost there. And if you’re Canadian, there also are taxes to be paid on the rental income.

Just some things to remember.

About Jonathan

Jonathan Dalton is a 30-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

  • The million dollar question is — Can E. Taro Way be bought for around $170K?

    Seems the Canadian investor can do fairly well here.

  • Jonathan Dalton

    And the million dollar answer is – not even close. 🙂

    A home similar to that in North Scottsdale in that subdivision will run just north of $300K. There’s a short sale in there at $315K and an upgraded home with a pool for $342K.

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  • Jerry

    I am presuming your rental rate is just your gut feeling. True? I’d say, from some personal experience, that Larkspur will rent for more than $775. I’d be surprised (no pun intended) if it wouldn’t rent for $900.

    And your second last paragraph warning Canadians not to forget PM fees and taxes, while good that you offer that warning, seems to imply that Americans don’t need to pay taxes on rental incomes (income as in funds in excess of expenses). I suspect they do too pay taxes. 🙂

    Cheers,
    Jerry

  • Jonathan Dalton

    Hey, Jerry … true, we do get to pay taxes but it’s not usually as much of a surprise as what I run into as folks are determining what they’re going to clear.

    On the rental rates, the numbers are from the MLS … in the interest of conservatism, I chose the lowest rental rate that was listed for an area for a closed rental this month. So, it’s possible it could rent for more but I didn’t want to set that expectation just in case.

    Thanks, as always, for keeping me on my toes!

  • Michael Denis

    As a Canadian owning a house in Goodyear I have learned alot about renting out a house in the USA. A couple things to remember. If you do not live in it and are renting it out you cannot act as your own property manager. Unless you have a Work Visa you cannot interview potential renters or do any repairs to the property yourself. Do so and get caught you could be barred from entering the USA. Also you will need to file US Federal and State taxes along with Canadian taxes. To do that you need to acquire an Individual Taxpayer Identification Number (ITIN) prior to filing any taxes. I paid an accountant in Calgary that specializes in non-resident alien, yes we are considered alien, taxes to acquire my ITIN and do my first years taxes which was fairly costly. I now do them myself without much of an issue, I hope.

  • Jonathan Dalton

    Thanks for that, Michael … in getting the ITIN, does that end up saving you from the larger withholding we’d talked about?

    P.S. – Got your e-mail the other day as well, just hadn’t had a chance to respond yet.