How Much Income Can Your
Arizona Property Generate?
Before you sell, know your options. Many Phoenix Metro homeowners are sitting on a property that could generate $30,000 to $120,000+ annually — while continuing to appreciate in value.
Eric Ravenscroft specializes in analyzing STR, mid-term, and long-term rental strategies for Arizona homeowners — using cash-flow models, tax strategies, and local regulations to help you make the most informed decision possible.
Selling feels obvious.
But is it the right move?
Most homeowners assume selling is the only path forward when life changes. But a property that generates $3,000–$10,000+ per month in rental income while continuing to appreciate changes that calculus entirely.
The analysis needs to account for your current mortgage rate, your equity position, local rental demand, short-term rental permit eligibility, tax advantages, and your personal financial goals — not just a gut feel.
I provide a full property income analysis at no cost, so you can make this decision with the same rigor you'd apply to any significant financial move.
"Selling your property may seem like the obvious choice — but many homeowners are unaware of the alternative."
We offer a unique analysis that not only estimates your property's current market value, but projects potential earnings across short-term, mid-term, and long-term rental strategies. In many cases, keeping and converting is the stronger financial decision.
The math often surprises people. A home generating $4,000–$8,000 per month in rental income while appreciating at 4–5% annually can produce $25,000–$50,000+ in annual net worth growth — without giving up the asset.
What could your property
earn as a rental?
Answer three questions for a rough income estimate — then schedule a free call for a full analysis tailored to your specific property.
Estimates are for informational purposes only and do not constitute financial or tax advice. Phoenix Metro ranges based on 2026 comparable property data.
STR, MTR, or LTR —
which strategy fits your property?
Each rental model has a different income ceiling, management intensity, and risk profile. The right one depends on your property, location, goals, and HOA/city permit eligibility.
Airbnb & VRBO
Nightly and weekly rentals on platforms like Airbnb and VRBO. The highest income potential of the three models — especially for resort-style homes, pool properties, and homes near Spring Training, golf courses, or major employers. Requires active management or a property manager.
- Highest gross income potential
- Flexibility to use the property personally
- Bonus depreciation may generate significant tax offset
- Strong demand in Phoenix Metro year-round
30–90 Day Stays
Targeting corporate relocators, traveling nurses, remote workers, and snowbirds. Often 30–90 day stays booked through Furnished Finder, Airbnb extended, or direct corporate outreach. Less management than nightly STR, higher income than traditional leasing — and generally exempt from STR permit requirements.
- Avoids many STR permit restrictions
- Lower turnover than nightly STR
- Strong demand from healthcare + tech corridors
- Higher yield than traditional leasing
Traditional 12-Month Lease
The most passive income model — a traditional annual lease with a qualified tenant. Lower monthly income than STR or MTR, but more predictable cash flow, fewer management demands, and no permit complexity. For most Phoenix Metro properties, market rents currently exceed mortgage payments, creating immediate positive cash flow.
- Most passive — minimal day-to-day management
- Predictable income and tenant stability
- Market rents often exceed mortgage payment
- All expenses remain tax deductible
Your mortgage rate
is a financial asset
Millions of American homeowners are still carrying mortgages at rates between 2.5% and 4% — rates that are effectively irreplaceable in today's market. Selling means giving that asset away permanently.
If you're holding a 3% rate on a $400,000 loan, your payment is roughly $1,686/month. Replacing that loan at today's rates would push the same payment past $2,800/month — a $1,100+ monthly difference, forever.
By keeping your property and renting it, a tenant effectively subsidizes — or exceeds — that payment while you hold onto the rate, the equity, and the appreciation.
Use Our Calculators →
Rate comparison · $400K loan
A $1,153/month difference — every month, for the life of the loan. That's $13,836/year in additional carrying cost if you sell and buy again at today's rates.
How keeping your property
builds net worth year after year
A properly structured rental generates wealth through three simultaneous engines — income, equity paydown, and appreciation. Here's what that looks like on a $500,000 Phoenix Metro home.
| Wealth Engine | Annual Estimate | Notes |
|---|---|---|
| Net rental income (LTR, after expenses) | $8,000–$15,000 | After mortgage, taxes, insurance, maintenance |
| Principal paydown (tenant pays your mortgage) | $10,000–$14,000 | Equity building even at low mortgage rates |
| Property appreciation (4–5% annually) | $20,000–$25,000 | Phoenix Metro historical average; not guaranteed |
| Tax deductions (depreciation, expenses, interest) | $5,000–$20,000+ | Varies widely; STR bonus depreciation can be significant |
| Combined annual net worth increase | $43,000–$74,000+ | Per year, on a single $500K property held and rented |
Estimates are illustrative and based on current Phoenix Metro market conditions. Individual results vary based on property, location, financing, and tax situation. This is not financial or tax advice — consult a CPA for your specific situation.
What the current Phoenix rental
market actually looks like
Understanding the full picture means knowing where the market is right now — not just the headline opportunity. Here's what the data shows, and what it means for your decision.
Traditional rental market (apartments & standard SFR)
Phoenix Metro median rent is approximately $1,728/month as of early 2026. Rents have softened modestly — down roughly 2–4% year-over-year — driven primarily by a surge in new multifamily apartment supply, pushing multifamily vacancy rates above 8%.
This softening is concentrated in the apartment sector. Single-family rental homes continue to outperform — available SFR listings in Maricopa County have declined significantly since late 2025, with renters who want a house, a yard, or a pool facing limited options and sustained pricing.
LTR market snapshot · Maricopa County · 2026
Sources: Relocity Phoenix rental trends report, Maricopa County housing data, 2026.
STR and resort-style properties
Short-term rentals and resort-style single-family homes operate in a fundamentally different supply-demand equation than the apartment market. Properties with pools, game rooms, and premium amenities in STR-permitted communities continue to see strong occupancy driven by Spring Training, corporate relocation, remote work travel, and year-round tourism.
The 2026 market rewards surgical execution — the right submarket, the right property configuration, and accurate underwriting. Investor re-engagement in the STR sector is rising as high-income buyers evaluate income-producing real estate.
STR income range · Phoenix Metro · 2026
Based on Phoenix Metro comparable STR analysis. Individual results vary. Not a guarantee of income.
One of America's strongest
real estate markets
Phoenix's long-term rental and investment fundamentals remain among the most compelling in the country — driven by sustained job growth, corporate expansion, population inflows, and a structural shortage of housing inventory.
Major employers driving rental demand
Phoenix continues to attract major corporate campuses and expansions across technology, financial services, semiconductor manufacturing, and healthcare. This drives a steady pipeline of well-paid relocating employees who need furnished housing — the exact tenant profile that makes STR and mid-term rentals so effective here.
Intel, Amazon, Microsoft, TSMC, State Farm, JPMorgan Chase, Lucid Motors, and dozens of others have anchored major operations in the Valley — creating durable, year-round rental demand that insulates the market from seasonal softness.
A full property income analysis —
at no cost
Every analysis is tailored to your specific property, location, mortgage, and goals. Here's exactly what's included.
Current Market Valuation
An honest assessment of what your property would sell for today in the current market — with full context on comparable sales, days on market, and pricing momentum in your neighborhood.
STR Revenue Projection
Estimated annual gross revenue as a short-term rental based on comparable active STR listings in your area, local occupancy rates, seasonal trends, and your property's specific amenities and STR permit eligibility.
MTR & LTR Income Estimate
Projected monthly income for mid-term (30–90 day furnished) and long-term (12-month lease) rental strategies — benchmarked against current market rents for comparable properties in your community.
Net Cash-Flow Modeling
A full income-minus-expenses model for each rental strategy: mortgage, taxes, insurance, HOA, maintenance reserves, management fees, and platform costs where applicable — so you see net income, not just gross.
Tax Strategy Overview
An overview of the deductible expenses, depreciation schedule, and potential bonus depreciation (especially relevant for STR) that apply to your property — coordinated with your CPA or advisory team as needed.
Side-by-Side Sell vs. Rent Comparison
A clear, apples-to-apples comparison of the financial outcome of selling now vs. converting to rental — showing projected 5-year net worth impact under each scenario so you can make a fully informed decision.
Why converting your primary home
beats buying a new investment property
An outside investor buying an Arizona STR today faces a very different financial equation than you do as an existing owner. Three structural advantages make your position significantly stronger — and most homeowners never realize it.
100% Bonus Depreciation on STR Conversion
When you convert your primary home to a short-term rental, the property becomes eligible for bonus depreciation under current tax law — now restored to 100%. With a cost segregation study, a significant portion of the property's value can be front-loaded into year one as a deduction, rather than spread over 27.5 years under standard residential depreciation.
On a $500,000 home, a cost segregation analysis might identify $100,000–$200,000 in accelerated deductions in the first year alone — generating a substantial paper loss that can offset other income, depending on your tax situation and whether you qualify as a real estate professional.
Example · $500K STR conversion
100% bonus depreciation permanently restored under IRS Notice 2026-11 (IRC §168(k)) ↗ for qualified property placed in service after January 19, 2025. Estimates are illustrative. Actual depreciation and tax benefit depend on cost segregation study results, tax bracket, passive activity rules, and CPA guidance. Consult a licensed tax professional.
Lower Cost Basis — You Already Own It
An outside investor buying an STR today pays today's prices — $450,000, $600,000, $800,000 — and must generate enough income to service that purchase price. You already own the asset, likely at a cost basis well below today's market value.
If you bought your home in 2018 for $320,000 and it's now worth $520,000, your depreciation and equity calculations are anchored to that lower basis — while your rental income is priced to today's market. The investor buying today has no such advantage. They start underwater compared to you.
This gap is especially significant when modeled over a 5–10 year hold period. Your existing equity cushion also provides a level of downside protection that a new leveraged buyer simply doesn't have.
Cost basis comparison · same Phoenix property
Your Rate vs. Today's Investor Rate
This is the advantage most people overlook entirely. If you have an existing mortgage at 3%, 3.5%, or even 4.5% — that was obtained as a primary residence loan. An investor buying the same home today doesn't just face higher prices; they face a higher rate on top of it.
Investment property loans carry a rate premium of 0.5%–0.75% above primary residence rates. So while a primary buyer today might qualify at 6.8%, an investor buying the same property would likely pay 7.3%–7.5% — on a larger loan amount.
You hold a primary residence rate on a property that you're now operating as an investment. That's a structural cost advantage your competition literally cannot replicate — and it flows directly to your bottom line every single month.
Monthly debt service · $400K loan balance
You're competing against outside investors — and you're winning before the game even starts.
Lower cost basis. A primary residence mortgage rate. 100% bonus depreciation eligibility on conversion. These three advantages stack — and collectively, they can mean the difference between a marginally viable STR and an exceptionally profitable one. An investor buying today has to make the numbers work at today's prices and today's investor rates. You don't.
From conversation
to clarity
Here's exactly what the property income analysis process looks like — and what you can expect at every step.
Free Strategy Consultation
A 30–45 minute conversation about your property, your current mortgage, your timeline, and your goals. No commitment required — just an honest assessment of what's possible.
Property Income Analysis
I run the numbers across all three rental strategies, model your net cash flow, review your STR permit eligibility, and build a side-by-side comparison of selling vs. converting — tailored to your specific property.
Review & Decision
We walk through the analysis together — the market value, the income scenarios, the tax picture, and the 5-year wealth projection under each path. You leave with full clarity on which decision is right for your situation.
Execution — Whatever You Decide
Whether you decide to sell strategically, convert to an STR, set up a mid-term rental, or place a long-term tenant — I can support the execution of any path, including helping you find and vet property management if needed.
What this strategy
actually produces
Two recent properties — one client chose to sell strategically, one converted to STR. Both made the right decision for their situation. Here's what the numbers looked like.
From homeowners who
ran the numbers
Real feedback from clients who used this analysis to make one of the most important financial decisions of their lives.
"We came to Eric thinking we were going to sell. He ran the full income analysis on our Peoria home and showed us what it could generate as an STR versus what we'd walk away with after taxes and fees. The numbers weren't close. We converted it, hired a property manager, and it's been cash-flowing ever since. Best decision we've made."
"What I appreciated most was that Eric didn't push us either way. He laid out the sell vs. rent comparison with actual numbers — our specific mortgage, our equity, projected rental income, the tax picture. It was the most thorough financial analysis I've ever seen from a real estate agent. We decided to keep the home and rent it long-term. Zero regrets."
"Eric's background in wealth management really shows. He walked us through the bonus depreciation angle on our pool home in Gilbert — we had no idea that converting to an STR could generate that kind of first-year tax offset. He connected us with a CPA who confirmed everything. We're now generating over $7,000 a month and saving significantly on taxes. Absolutely worth the call."
Common questions about
Arizona property income
License #SA691304000 ↗
A financial advisor who treats
your property as a financial asset
Most real estate agents can tell you what your home is worth. Very few can tell you what it's worth keeping. With a background as a Director of Wealth Management and 15+ years spanning real estate, financial planning, and investment analysis, I approach every homeowner conversation with the full picture in view.
I've helped clients generate over $133 million in long-term wealth — not just through sales, but through informed decisions about when to hold, when to convert, and when to sell. The STR analysis and cash-flow modeling I provide aren't add-ons; they're central to how I work with every homeowner client.
I'm a preferred real estate partner for USAA, Chase, SoFi, PennyMac, Citibank, and RBC — institutions that trust this analytical approach for their clients' real estate decisions. I hold elite designations including CRS, GRI, ABR, MRP, and RSPS, and maintain 150+ five-star Google reviews across buyer, seller, and investor clients.
Insights featured in
Ready to see what your
property can really earn?
Whether you're thinking about selling, converting to a rental, or just want to understand your options — the first step is a free, no-pressure conversation about your property and your goals.
- Full STR, MTR, and LTR income projections for your property
- Net cash-flow model after all expenses
- Side-by-side sell vs. rent comparison
- STR permit eligibility review
- 5-year wealth projection under each scenario
No commitment required · 30–45 minutes · Completely confidential
Related guides &
published resources
Everything you need to make an informed decision about your property — researched, written, and kept current.
The Complete Arizona Short-Term Rental Guide: How to Buy, Optimize, and Scale Your STR in 2026
Everything you need to know about buying, operating, and scaling an STR in Arizona — permit requirements, platform strategy, pricing, management, and local market selection.
Read the Guide →Bonus Depreciation Real Estate 2026: 100% Write-Off & Cost Segregation
How the permanent restoration of 100% bonus depreciation works, who qualifies, and how to structure an STR to maximize year-one deductions.
Read the Guide →Short-Term Rental Tax Strategy: How to Offset W-2 Income
The mechanics of using STR losses to offset W-2 income — including the 7-day rule, material participation requirements, and real case study examples.
Read the Guide →Phoenix Real Estate in 2026: A Complete Market Analysis for Investors
Submarket breakdowns, STR demand trends, employment drivers, and what the current market means for STR and rental investors in the Greater Phoenix Metro.
Read the Analysis →1031 Exchange: The Complete 2026 Investor Guide
When and how to roll your rental property into a larger investment — deferring all capital gains taxes and compounding your equity without an IRS bill.
Read the Guide →Saddleback Foothills: $1.313M Cash — STR Analysis Drove the Sale
How a $228K+ annual STR revenue projection became the primary marketing asset for a 7-bed Glendale estate — attracting a cash investor in 7 days.
Read the Case Study →The Complete Arizona Short-Term Rental Guide: How to Buy, Optimize, and Scale
Everything you need to know about buying, operating, and scaling an STR in Arizona — from permit requirements and platform strategy to pricing, management, and exit planning.
Read the Guide →Phoenix Listing Strategy: A Financial Approach to Selling Your Home
If the analysis points to selling — here's the strategy that protects your value, creates leverage, and gets you the best possible outcome in the Phoenix Metro.
Explore the Strategy →