Factor in financing to see your actual return on invested capital in Payson.
$
$95,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.06%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$106,400
$95,000 down + $11,400 closing
Monthly Mortgage
$1,858
on $285K loan
Monthly Cash Flow
$-715
after all expenses
Annual Cash Flow
$-8,580
before taxes
Cash Flow Breakdown
Monthly Rent$1,970
Less Expenses−$827
Less Mortgage−$1,858
Monthly Cash Flow$-715
Is Payson a Good Place to Invest in Rental Property?
Payson, AZ has a population of 50,000 and has been growing at 1.6% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $380,000 paired with median rents of $1,970/mo produces an estimated cap rate of 4.48%.
Property taxes at 0.63% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.7x, homes cost about 5.7 times the local median income of $66,955. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Payson presents moderate opportunities. Cap rates near 4.48% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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