Tucson Real Estate Investment Guide
Arizona's university city offers affordable entry points, strong rental demand from students and professionals, plus rapid appreciation in the shadow of the Catalina Mountains.
Tucson Investment Market Overview
Tucson combines university-driven rental demand with desert lifestyle appeal, creating consistent cash flow opportunities and strong appreciation potential.
Market Statistics
$385K
Median Home Price
↗ 16.8% YoY Growth
7.2%
Average Cap Rate
DSCR Properties
$1,850
Average Monthly Rent
Single Family Homes
1.35
Average DSCR
Rental Properties
University Impact
University of Arizona Students47,000+
Student Housing DemandHigh
Occupancy Rate94%+
Investment Drivers
University of Arizona
47,000+ students create consistent rental demand year-round
Affordability Factor
Lower entry costs compared to Phoenix metro area
Healthcare & Research
Banner Health and medical research facilities drive employment
Winter Destination
Snowbird season creates short-term rental opportunities
Top Tucson Investment Neighborhoods
University Area
Student HousingMedian Price
$285K
Monthly Rent
$1,400-2,100
Cap Rate
8.5%
Appreciation
18.2%
Walk to campus
High occupancy
Consistent demand
Foothills
Luxury/VacationMedian Price
$750K
Monthly Rent
$3,200-4,800
Cap Rate
5.1%
Appreciation
19.8%
Mountain views
Luxury market
Vacation rentals
Midtown
Professional HousingMedian Price
$420K
Monthly Rent
$2,100-2,700
Cap Rate
6.8%
Appreciation
17.5%
Young professionals
Entertainment district
Walkable
Oro Valley Border
Family SuburbanMedian Price
$485K
Monthly Rent
$2,400-3,100
Cap Rate
6.2%
Appreciation
20.1%
Top schools
Family friendly
New developments
East Side
Value InvestmentMedian Price
$315K
Monthly Rent
$1,700-2,300
Cap Rate
7.9%
Appreciation
22.3%
Rapid appreciation
Emerging area
Value plays
Rita Ranch
New ConstructionMedian Price
$395K
Monthly Rent
$2,000-2,600
Cap Rate
6.5%
Appreciation
19.2%
Master planned
Modern amenities
Family focus
Tucson DSCR Loan Programs
Specialized financing for Tucson real estate investors
Student Housing DSCR
DSCR Minimum1.00+
LTVUp to 80%
Rates from7.85%
Terms30 Years
- • University area expertise
- • Student rental specialists
- • High occupancy markets
- • Year-round demand
Best Value
Standard DSCR
DSCR Minimum1.00+
LTVUp to 80%
Rates from7.75%
Terms30 Years
- • Tucson market specialists
- • Fast 10-day closings
- • No income verification
- • Professional rentals
Vacation Rental DSCR
DSCR Minimum1.20+
LTVUp to 75%
Rates from8.25%
Min Loan$200K
- • Airbnb/VRBO qualified
- • Seasonal rental income
- • Desert resort markets
- • Snowbird season focus
Ready to Invest in Tucson?
Get pre-approved for DSCR loans and start your Tucson investment journey