(Gross Yields from 11.67%, $151 Average Daily Rate)
This is the latest in our series of investor guides we release for free to our investors and everyone interested in investing in Short-Term (Airbnb) Rentals.
For this analysis, we have used the trailing twelve months (July 1st, 2021 to June 30th, 2022). See our previous post for historical data.
See our post on regulation in these markets.
Active Rentals
There are 14590 active rentals in Maricopa County. Almost 60% of all listings are 1 and 2 bedrooms.
Larger homes catering to bigger parties and families are potentially undersupplied. There are only 647 active studio homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in Maricopa County is $151 dollars.
Throughout the year, the rate fluctuates by $74 from that average with the highest Average Daily in February of 2022 ($225) and the lowest in July 2021 ($124).
Occupancy Rate
Occupancy Rates in Maricopa County, Arizona are the highest in the summer. The Occupancy Rate at an annual level is 66%.
The lowest occupancy rate was in June of 2022 (40%) and the highest was in March (95%).
The average occupancy rate is the highest for Studios and 2-bedroom homes, at 70% and 67% respectively.
Get projections on revenue, average daily rate, cap rates, and a lot more.
High-Performance Properties
Chalet’s research shows that studios have the highest percentage of homes in the high-yield territory (33.33%) and therefore could be a good strategy for this market. Studios do not have enough samples to be considered (not enough active listings for sale).
Chalet considers properties with a gross yield greater than 15% as high-yield properties. Gross yield equals Gross Income/Purchase Price
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Annual Revenue
The median revenue is the highest in April of 2022 at $10900 and the lowest in June 2022 at $3300.
Short-term rentals in Maricopa County generate a median revenue of $95,244 annually. The highest median revenue for rentals in Maricopa County is for 5 bedrooms at $467,300.
Throughout the year, monthly revenue fluctuates the most for 5-bedroom homes and the least for 1-bedroom homes. More conservative investors should look into 1 bedroom investment properties as data shows they are the most stable and predictable.
Demand
The majority of the Maricopa County short-term rental guests are domestic guests from the United States, though February is when the presence of international guests is most noticeable.
International guests in April 2021 barely crossed the 4% threshold of total guests.
The majority of Maricopa County guests come from U.S. cities located within driving distance. Almost 25% of all guests in Maricopa County are from Maricopa County. We expect drive-to locations/cities to continue to do well in the post-covid world.
Market Facts
Population – City of Phoenix – 1,608,139 (2020), Marciopa County – 4,420,568 according to US Census Bureau
- MacroTrends states that Maricopa County is currently growing at a rate of 1.48% annually since 2021. As a benchmark, FreddieMac states that US cities grow at an average of 0.3%.
- Famous for its sunny weather and impressive beaches
Cost of Living: Payscale ranks the cost of living in Phoenix to be 5% lower than the national average. Phoenix also has 5% lower housing expenses than the national average.
Other Facts
Maricopa County has an effective property tax rate of 0.59%. That’s slightly lower than the 1.07% national average. Source: SmartAsset.
According to Zillow, homes in Phoenix appreciated 16.5% year-over-year (YoY) and the median home price for active listings was $532,067 (as of September 2022).
Homes in Maricopa County average just 38 days on the market according to Redfin.
The BLS reported that the unemployment rate in Maricopa County fell to 3.4% in August of 2022, which is lower than the national average of 3.6%.
Short-Term Rental Regulation
See Chalet’s detailed analysis of short-term rental regulation in Maricopa County.
