Yields across 127 ZIP codes in Phoenix (Maricopa County) range from 8.2% in Gila Bend (85337) down to under 1% in Paradise Valley and around 1 to 2% in the most expensive inner Scottsdale pockets. That spread is wider than the gap between short-term rental and long-term rental at the city level, which means where you buy in Phoenix matters more than how you choose to rent it out. The pattern is consistent: the further out from central Phoenix and Scottsdale you go, the higher the gross yield, and the lower the entry price. This article ranks the top yielding ZIPs and explains why the gap exists.
Gila Bend (85337) Leads Phoenix Yields at 8.2%
The five highest-yielding ZIPs in Maricopa County all share one feature: entry prices well below the city median of about $615,000. Top of the table is Gila Bend (85337), where rents of about $1,100 against a median sale price of about $165,000 produce a long-term gross yield of 8.2%. That is roughly double the yield available in central Scottsdale or Arcadia.
Gross yields = annual income / sale price. Based on 3-bed house medians. The dashboard shows every property type and bedroom count.
Why the Top Suburbs Lead
The yield ranking is dominated by outlying and master-planned communities, not the urban core. Gila Bend (85337) sits well outside metropolitan Phoenix, which keeps land cheap; rents track the surrounding labour market for agriculture, freight along the I-8 corridor, and Luke Air Force Base support workers, so the rent-to-price ratio holds up even though absolute rent is modest. this is the high-yield, low-liquidity pattern: buyers are scarce, but tenants are reliable.
Sun City (85373) and Sun City (85351) represent the West Valley retirement-belt ZIPs. The 55-plus communities of Sun City, Sun City West, and adjacent areas trade at depressed prices because age-restricted deeds shrink the buyer pool, but rental demand from snowbirds, contract nurses, and adult children of residents keeps occupancy high. Sun City (85373) is more of a long-term rental suburb where tenants stay for years; the short-term rental market is thinner here than near central Phoenix or Old Town Scottsdale.
Phoenix (85041) is a South Phoenix ZIP that has gentrified slowly over the past decade. Proximity to South Mountain, the airport, and downtown Phoenix gives it strong tenant demand from workers commuting to the central business district, while sale prices remain a fraction of what equivalent housing costs in Arcadia or central Scottsdale. Surprise (85378) is part of the Northwest Valley growth area along Grand Avenue and the Loop 303, where new-build inventory has kept prices in check while population growth continues to drive rental demand.
The Yield-Price Trade-Off Is Stark in Phoenix
Phoenix shows the inverse relationship between price and yield more clearly than most US metros. An investor entering at about $165,000 in Gila Bend (85337) versus the city median of about $615,000 faces a very different capital-risk profile. The lower entry price means lower exposure to a price correction, lower property tax in absolute dollars, and faster cash-on-cash returns, but the resale market is thinner and capital growth has historically lagged the inner suburbs.
Premium ZIPs do the opposite. Buyers in central Scottsdale, Arcadia, and Paradise Valley are not pricing income, they are pricing scarcity, school catchments, and proximity to employment hubs. Rent does not scale with sale price one-for-one, so gross yield compresses to roughly 1 to 3% in those areas while the market median sits at 4.4%. Across the full Phoenix range, sale prices stretch from about $165,000 to about $4.42m, but rents do not stretch nearly as far, which is why yields converge downward as you move into premium territory.
Premium Phoenix Suburbs for Context
For context, here is how some of Phoenix's most in-demand suburbs compare. These are established areas where investors typically accept lower yields in exchange for capital growth, liquidity, and tenant quality.
High-demand suburbs for context. Same methodology as the yield ranking above.
These suburbs yield less on long-term rental because buyers are paying for amenity, schools, and expected capital growth rather than rental income. Short-term rental does shift the picture for some of them: tourist-facing pockets near Old Town Scottsdale, Camelback resorts, and spring training facilities can lift gross revenue through Phoenix's strong winter visitor season, narrowing the yield gap with the outer suburbs. Investors targeting capital growth typically accept the lower current yield as the price of admission.
What the Yield Ranking Doesn't Show
Gross yield is rent divided by price, which means a high yield can signal depressed prices as much as strong rents. The West Valley retirement ZIPs and outlying communities at the top of the ranking have all delivered high yields for years, but their capital growth has historically trailed the inner Phoenix suburbs. An investor who bought in central Scottsdale a decade ago has likely outperformed an investor who bought in an outer ZIP, even though the outer ZIP delivered better cash flow each year. Total return matters more than yield in isolation, and yield rankings cannot tell you which way prices will move next.
Vacancy risk is the second blind spot. Some high-yield ZIPs have thin rental pools, so a single vacancy can wipe out months of returns. Median rents also lag in fast-moving suburbs: the published figure may be six to twelve months stale in pockets where rents are climbing quickly. The dashboard lets you sanity-check the rent figure against active listings before committing.
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Phoenix Yields Sit Below the National Median
The top yielding ZIP, Gila Bend (85337) at 8.2%, beats the national median of 5.3% comfortably, while the city-wide median of 4.4% sits below the national figure. State-level comparisons place Arizona's median at 5.2%, again below the top Phoenix ZIPs but above the city median. The takeaway: Phoenix as a whole is a moderate-yield market because of how much weight the premium inner suburbs carry, but the West Valley and outlying ZIPs comfortably exceed national averages. suburb selection drives most of the variation.
Across 127 ranked ZIPs in Maricopa County, the top quartile delivers yields well above 5.3%, the middle band tracks the national median, and the inner premium ZIPs trail it. Permit required ($250) in Phoenix. Arizona state law (SB 1350) prevents cities from banning short-term rentals. Phoenix requires registration, safety standards, and tax collection. Relatively investor-friendly. Investors targeting short-term rental should factor the Tempe permit and Maricopa-wide tax stack into net returns. Data reflects market conditions as of June 2026.
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For methodology details, see the market score methodology and data sources pages. For broader Arizona context, see Arizona Rental Investment Insights. For the after-costs picture in Phoenix specifically, see After All Costs, Phoenix's Short-Term Rental Premium Shrinks Sharply.
This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.
Methodology and Assumptions
Defaults used in the figures above. All inputs are adjustable in the dashboard.
How available nights are determined
Available nights default to 330 per year, reflecting an active operator with minimal blocked time. Where local regulations cap whole-home short-term lets (for example New York City 30-day minimum stays and San Francisco un-hosted 90-night caps), the cap is applied. In markets where short-term rental requires owner-occupancy or is otherwise prohibited for investment properties, available nights drop to zero.
How occupancy is measured
The percentage of available nights that get booked, drawn from market data. A property listed for 200 nights with 100 bookings shows 50% occupancy. Adjustable in the dashboard.
Long-term rental management default
Defaults to self-managed (zero management fee), reflecting the most common arrangement for US individual investors. The dashboard slider lets you add a property manager fee if you plan to outsource.
Short-term rental management default
Set to self-managed (zero management fee) by default, the most common arrangement for individual investors. Hiring a professional manager typically costs around 22% of gross revenue and reduces net yield proportionally. Toggle in the dashboard.
How property tax is calculated
Calculated as a percentage of property value, varying by state and county. California properties show lower effective rates due to Proposition 13's 1% cap on assessed value. Property tax sits with the owner; long-term tenants do not pay it.
Local regulations
Check state, county, and HOA rules before investing; these change frequently. The regulations summary in this article reflects the latest data we hold. Always verify the live position with the local authority.
Sampling and data sources
Short-term rental yield figures reflect properties currently listed on short-term rental platforms. In high-tourism markets, listings tend to concentrate in central postcodes, which can pull city-median yields above what residential areas of the same city would achieve. Yields for any specific suburb may differ significantly from the city-wide median.
For metric definitions and broader methodology, see the About page.