Average capitalization rate in Arizona, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in Arizona

MedianMeanMode
7.2%
From 3,094,887 homes
7.6%
From 3,094,887 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in Arizona

LocationMedianMeanMode
Aguila
9.4%
From 177 homes
10.0%
From 177 homes
-
Ajo
11.7%
From 2,073 homes
12.6%
From 2,073 homes
-
Alamo Lake
8.8%
From 1 home
8.8%
From 1 home
-
Alpine
6.5%
From 238 homes
6.5%
From 238 homes
-
Amado
7.1%
From 118 homes
7.2%
From 118 homes
-
Antares
7.6%
From 32 homes
8.0%
From 32 homes
-
Anthem
6.5%
From 9,267 homes
6.4%
From 9,267 homes
-
Apache County
11.5%
From 17,714 homes
11.2%
From 17,714 homes
-
Apache Junction
8.2%
From 28,149 homes
9.3%
From 28,149 homes
-
Arivaca
10.7%
From 221 homes
11.9%
From 221 homes
-

All cities in Arizona