How to BRRRR in Phoenix, AZ
BRRRR in Phoenix is a 4.58% gross yield play — $1,571/mo rent on a $411k median. Whether that cash-flows depends on your debt cost.
DATA · Zillow Research (via scrape.do) · AS OF APRIL 2026
Phoenix is a workable BRRRR market — tight but bankable math on disciplined deals.
- → Gross yield 4.58% — at national baseline
- → Rent $1,571/mo vs. national $1,930 — rent-weak
- → DSCR expectation at 75% LTV / 7.5%: 1.10-1.20 tight
- → Appreciation risk to refi: flat — neutral
Start with the gross math. Phoenix's typical home value is $411,323; ZORI (Zillow's rent index) sits at $1,571/mo. That's 4.58% gross annual yield. That's right at the national 4-5% baseline — workable for BRRRR, but only on disciplined underwriting and a clean refi appraisal.
Run the DSCR sanity check. Assume 75% LTV refi at 7.5% interest, 30-year, plus taxes + insurance + 8% PM + 8% vacancy/capex reserve. On these inputs you'll likely clear DSCR 1.10-1.20 in Phoenix — tight but bankable. Don't fall in love with marginal deals; reject anything that doesn't pencil at 1.15 minimum.
Rent demand color: Phoenix rents ($1,571) sit 19% below the national median ($1,930). Local rent is the constraint here — even at favorable acquisition prices, the rent side of the math is the limiting factor.
Refi appraisal risk: Phoenix home values are flat YoY — refi appraisals should support your renovated comp on a properly scoped rehab. No softening tailwind to worry about, no appreciation tailwind to lean on.
The numbers behind the analysis.
Same Phoenix data, different lens.
Lead lists, sourcing channels, and disposition strategies tuned to the local market.
ARV math, rehab scope, and exit timing for the local buyer profile.
Buy-and-hold rental analysis tuned to local rents, taxes, and tenant mix.
Subject-to, seller financing, wraps, and lease-options sized for the local market.
The Weekly Deal Memo
One market memo, one off-market playbook, one tool review. Every Friday. Free.
No spam. Unsubscribe anytime.