How to BRRRR in Tucson, AZ
BRRRR in Tucson is a 5.12% gross yield play — $1,387/mo rent on a $325k median. Whether that cash-flows depends on your debt cost.
DATA · Zillow Research (via scrape.do) · AS OF APRIL 2026
Tucson is a workable BRRRR market — tight but bankable math on disciplined deals.
- → Gross yield 5.12% — at national baseline
- → Rent $1,387/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. Tucson's typical home value is $324,946; ZORI (Zillow's rent index) sits at $1,387/mo. That's 5.12% 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 Tucson — tight but bankable. Don't fall in love with marginal deals; reject anything that doesn't pencil at 1.15 minimum.
Rent demand color: Tucson rents ($1,387) sit 28% 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: Tucson 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.
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