San Luis is home to the best residential real estate investment market in Arizona.
The 85349 zip code in San Luis presents the greatest opportunity for the best real estate investments among the 2,104 individual real estate markets in Arizona we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in Arizona
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | San Luis | 100 | 4.3 | 48% |
| 2 | Coolidge | 98.8 | 4.1 | 32% |
| 3 | Thatcher | 96.1 | 3.9 | 32% |
| 4 | Arizona City | 92.7 | 3.6 | 27% |
| 5 | Sierra Vista | 91.1 | 3.9 | 30% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Arizona.
1. San Luis
We've identified the 85349 zip code in San Luis as Arizona's best real estate investment market. Here's why.
🔎 Key data about San Luis (85349)
| Data point | Value | Rank in state (of 2,104 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $261,382[1] | 15th lowest |
| Five-year appreciation | 48%[2] | 6th highest |
| Household income | $60,330[3] | 184th highest |
| Affordability ratio | 4.3 | 37th most affordable |
| Five-year population growth | 8.7%[4] | 12th highest |
| Unemployment rate | 12%[5] | 7th lowest |
| Property taxes | $1,300[6] | 50th lowest |
| Educational attainment | 7.8%[7] | 184th highest |
San Luis (zip code 85349) is the best residential real estate investment market in Arizona. It has the 6th highest property value appreciation among markets we evaluated, with a 48% appreciation of the typical property over the last five years.
San Luis is the 37th most affordable market among the 2,104 Arizona markets we evaluated, with an affordability ratio of 4.3.
2. Coolidge
The 85128 zip code in Coolidge is the runner-up spot for the best real estate investments in Arizona.
🔎 Key data about Coolidge (85128)
| Data point | Value | Rank in state (of 2,104 markets) |
|---|---|---|
| InvestScore | 98.8 | 2nd highest |
| Typical property value | $270,634[1] | 21st lowest |
| Five-year appreciation | 32%[2] | 45th highest |
| Household income | $65,477[3] | 161st highest |
| Affordability ratio | 4.1 | 25th most affordable |
| Five-year population growth | 4.9%[4] | 31st highest |
| Unemployment rate | 4.2%[5] | lowest |
| Property taxes | $874[6] | 9th lowest |
| Educational attainment | 13%[7] | 168th highest |
The 85128 zip code in Coolidge features a typical property value of $270,634, the 21st lowest in the state.
Property values have appreciated 32% over the past five years, the 45th highest increase among evaluated markets in the state. Coolidge homes have an affordability ratio of 4.1, the 25th most affordable in the state.
3. Thatcher
The 85552 zip code in Thatcher comes in at No. 3 in our ranking of the best residential real estate investment markets in Arizona.
🔎 Key data about Thatcher (85552)
| Data point | Value | Rank in state (of 2,104 markets) |
|---|---|---|
| InvestScore | 96.1 | 3rd highest |
| Typical property value | $347,960[1] | 65th lowest |
| Five-year appreciation | 32%[2] | 44th highest |
| Household income | $88,454[3] | 77th highest |
| Affordability ratio | 3.9 | 17th most affordable |
| Five-year population growth | 3.7%[4] | 49th highest |
| Unemployment rate | 4.5%[5] | 2nd lowest |
| Property taxes | $1,274[6] | 46th lowest |
| Educational attainment | 22%[7] | 132nd highest |
With a typical property value of $347,960, Thatcher's 85552 zip code features the 65th lowest property values in the state.
Thatcher homes have an affordability ratio of 3.9, the 17th most affordable among the markets we evaluated.
4. Arizona City
The 85123 zip code in Arizona City ranks No. 4 among Arizona's residential real estate investment markets.
🔎 Key data about Arizona City (85123)
| Data point | Value | Rank in state (of 2,104 markets) |
|---|---|---|
| InvestScore | 92.7 | 4th highest |
| Typical property value | $249,378[1] | 11th lowest |
| Five-year appreciation | 27%[2] | 117th highest |
| Household income | $69,137[3] | 117th highest |
| Affordability ratio | 3.6 | 6th most affordable |
| Five-year population growth | 13%[4] | 3rd highest |
| Unemployment rate | 4.2%[5] | lowest |
| Property taxes | $959[6] | 16th lowest |
| Educational attainment | 12%[7] | 176th highest |
Property values in Arizona City's 85123 zip code have seen the 117th highest increase among evaluated markets in the state, with an appreciation of 27% over the past five years.
Arizona City's affordability ratio of 3.6 makes it the 6th most affordable among the 2,104 markets we evaluated.
5. Sierra Vista
The 85650 zip code in Sierra Vista rounds out our top five residential real estate investment markets in Arizona.
🔎 Key data about Sierra Vista (85650)
| Data point | Value | Rank in state (of 2,104 markets) |
|---|---|---|
| InvestScore | 91.1 | 5th highest |
| Typical property value | $359,395[1] | 70th lowest |
| Five-year appreciation | 30%[2] | 65th highest |
| Household income | $91,654[3] | 65th highest |
| Affordability ratio | 3.9 | 15th most affordable |
| Five-year population growth | 5.1%[4] | 30th highest |
| Unemployment rate | 6.1%[5] | 6th lowest |
| Property taxes | $1,763[6] | 100th lowest |
| Educational attainment | 38%[7] | 75th highest |
Property values in Sierra Vista's 85650 zip code rose 30% over the last five years, ranking the city 65th highest among evaluated markets in Arizona.
Sierra Vista homes have an affordability ratio of 3.9, the 15th most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Arizona.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Arizona
To determine the best real estate investments in Arizona we evaluated 2,104 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Arizona.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
