Best Locations in Arizona for Multifamily Investments
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 20
- 2 min read
Arizona continues to attract real estate investors from across the country, especially in the multifamily sector. With strong population growth, a landlord-friendly legal environment, and rising rental demand, the state offers excellent opportunities for high ROI.
Here are the best locations in Arizona for multifamily investments:
1. Phoenix
As Arizona’s largest city, Phoenix is a multifamily investment powerhouse. With over 200 new residents moving in daily, demand for rental housing remains strong. Investors benefit from:
Diverse economy (tech, healthcare, logistics)
Steady appreciation and rental income
Low property taxes (~0.56%)
2. Tucson
Tucson offers affordability and consistent rental demand, especially near the University of Arizona. It’s ideal for investors seeking:
Lower entry costs
Strong student and retiree rental markets
5–6.5% cap rates on multifamily properties
3. Scottsdale
Known for luxury living and tourism, Scottsdale is perfect for short-term and high-end multifamily rentals. Investors enjoy:
High rental income potential
Strong appreciation trends
Upscale tenant demographics
4. Mesa
Mesa is one of the fastest-growing cities in Arizona, offering:
Affordable multifamily options
Strong demand from families and professionals
Proximity to Phoenix without the premium pricing
5. Chandler
Chandler’s booming tech sector and family-friendly neighborhoods make it a top pick for multifamily investors. Expect:
High occupancy rates
Steady rental growth
Strong infrastructure and amenities
Why Arizona Is Ideal for Multifamily Investments
Population Growth: Arizona ranks #5 nationally for net migration.
Landlord-Friendly Laws: No rent control and efficient eviction processes.
Tax Advantages: Low property taxes and favorable depreciation rules.
Income Stability: Multifamily properties offer multiple revenue streams.
Wexford Insurance: Protecting Your Multifamily Investment
Multifamily properties require specialized insurance coverage. At Wexford Insurance, we offer tailored commercial property insurance for:
Duplexes, triplexes, and apartment complexes
Mixed-use buildings with residential units
Multifamily developments of all sizes
Our policies cover property damage, liability, loss of rental income, and more.
Final Thoughts:
Arizona’s multifamily market is thriving, and cities like Phoenix, Tucson, and Scottsdale offer strong returns for savvy investors. Whether you're new to real estate or expanding your portfolio, Wexford Insurance is here to ensure your property is protected every step of the way. Contact now!
FAQs:
Q1: What is the average ROI for multifamily properties in Arizona?
Investors typically see 10–20% annual returns, combining rental income and appreciation.
Q2: Are Arizona’s landlord laws favorable for investors?
Yes. Arizona offers strong property rights, no rent control, and efficient eviction processes.
Q3: What insurance coverage do I need for a multifamily property?
You’ll need commercial property insurance, liability coverage, and loss of income protection. Wexford Insurance can tailor a policy to your needs.
