Last updated on June 21st, 2023
best places in arizona to buy rental property
Key Takeaways
● Tucson is the 2nd fastest-growing city in Arizona that offers an affordable cost of living and a wide variety of recreational options. Thanks to this, many Airbnb hosts have the chance to earn a good passive income by owning short-term rental properties.
● Discover the advantages that real estate investors can enjoy when investing in the real estate market in Tucson, Arizona.
● Get to know the top 10 most profitable neighborhoods and nearby cities in Tucson along with their recommended property types, average prices and specific Airbnb data.
Introduction
Tucson is situated on the banks of the Santa Cruz river, in a valley near the Mexican border. The city is surrounded by natural wonders confirmed by the Sonoran Desert landscapes.
Also known as the “Old Pueblo” due to its peculiar Spanish-Indian past, Tucson offers plenty of leisure activities. From fascinating museums to walking trails, boutiques, and wine-growing regions, Tucson gives visitors the freedom to explore its surroundings like any other city.
In addition to this, Tucson is one of the best places to invest in Airbnb in Arizona estate! This city offers an occupancy rate of 70% which is the 6th highest among all major cities in Arizona.
Still, there’s an important factor that you should consider before taking the next step in your journey – where are the most profitable areas for rental properties in Tucson?
In this article, we’ll reveal the best places to Airbnb in Tucson, Arizona, and some of the expectations when investing in real estate in this city. Eager to learn more? Continue reading!
What are the perks of buying investment properties in Tucson, Arizona?
Investing in real estate in Tucson is an amazing idea because it offers a good return to investors who can eventually achieve financial freedom. . Tucson has extraordinary natural surroundings and a rich history. But aside from that, what are the advantages that Tucson offers to real estate investors?
Check out some of the reasons why buying Airbnb investment properties in Tucson is an excellent idea:
● Reasonable cost of living
While the overall cost of living in Arizona is higher than the national average, Tucson remains quite affordable. This is because it’s 5% less expensive than other major cities in the US. The task of saving on living expenses is quite easy if you move to Tucson, considering that it is one of the top cities with the lowest cost of living in the United States.
On the other hand, the real estate market in Tucson is also fairly affordable and offers a wide variety of options. The median property value in this city is $350k and the average selling price is $328k as confirmed by Realtor.
● Plenty of things to do
Tucson is surrounded by the Sonoran Desert which offers breathtaking natural views. In addition to this, the city is also home to Saguaro National Park and the Arizona-Sonora Desert Museum. Tucson offers endless options when it comes to outdoor activities. The best thing is that it has great air quality and low light pollution, allowing the city to have crystal-clear skies almost all year.
● Booming job market
Tucson has a solid job market that offers a wide variety of employment opportunities. This includes the education, tech, defense, healthcare, and hospitality sectors.
The population in Tucson is steadily growing, occupying the 2nd place as the most populous city in Arizona after Phoenix. Many people move to the city looking for opportunities in Tucson’s job market and enjoying the amenities of a big city while living a slow-paced lifestyle.
Is Airbnb Profitable in Tucson, Arizona?
Take it easy because Airbtics assures you that investing in real estate in Tucson is lucrative. That being said, we must point out that the level of profitability depends on other factors such as the property type and location.
But if you’re still having doubts about buying an investment property, you can always test the waters first by doing rental arbitrage in Arizona.
Based on Airbtics’ data, an Airbnb host can expect an average annual revenue of $36,161 and a median occupancy rate of 67% for operating a 2-bedroom property in Tucson.
Best Locations for Airbnb near Tucson, Arizona
Tuscon is the 2nd most populous city in Arizona state and has over 218 neighborhoods. Taking this into account, it’s understandable if you’re struggling to choose the best place to set up your rental property in Tucson.
Check out the best neighborhoods and nearby cities in Tucson that are recommended for starting an Airbnb business:
1. The Garden District, Tucson
- Total Number of Airbnb Listings: 38
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $265,000
- Airbnb Annual revenue: $61,734
- Gross rental yield: 22.95%
2. Hedrick Acres, Tucson
- Total Number of Airbnb Listings: 38
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $175,000
- Airbnb Annual revenue: $36,203
- Gross rental yield: 20.69%
3. Jefferson Park, Tucson
- Total Number of Airbnb Listings: 41
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $294,000
- Airbnb Annual revenue: $52,679
- Gross rental yield: 15.43%
4. Sam Hughes, Tucson
- Total Number of Airbnb Listings: 52
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $500,000
- Airbnb Annual revenue: $75,010
- Gross rental yield: 15%
5. Blenman-Elm Historic District, Tucson
- Total Number of Airbnb Listings: 48
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $347,000
- Airbnb Annual revenue: $60,830
- Gross rental yield: 13.43%
6. Gilbert, AZ
- Distance from Tucson: 86 miles
- Total Number of Airbnb Listings:
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $487,000
- Airbnb Annual revenue: $66,391
- Gross rental yield: 13.63%
7. Mesa, AZ
- Distance from Tucson: 91 miles
- Total Number of Airbnb Listings:
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $400,000
- Airbnb Annual revenue: $61,386
- Gross rental yield: 15.35%
8. Tempe, AZ
- Distance from Tucson: 96 miles
- Total Number of Airbnb Listings:
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): $250,000
- Airbnb Annual revenue: $43,990
- Gross rental yield: 17.60%
9. Phoenix, AZ
- Distance from Tucson: 104 miles
- Total Number of Airbnb Listings:
- Best bedroom size: 5 bedrooms
- Median property price (5 bedrooms): $739,000
- Airbnb Annual revenue: $170,962
- Gross rental yield: 23.13%
10. Scottsdale, AZ
- Distance from Tucson: 112 miles
- Total Number of Airbnb Listings: 1,154
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): $295,000
- Airbnb Annual revenue: $41,960
- Gross rental yield: 14.22%
Summary
Overall, Tucson’s real estate market offers a variety of housing options, prices, and plenty of profitable locations that can help investors to obtain a good return on investment by setting up an Airbnb listing.
After finding out the best places in Tucson, Arizona to buy a rental property, go ahead and check Airbtics’ Airbnb profit estimator. Stand out among your competitors and maximize your profitability by making use of the best analytics tools!
Explore The Most Profitable Airbnb Locations Near Tucson
