Tempe’s Zillow ZHVI is $467,863, and Zillow ZORI is $1,667 per month, implying a 4.3% gross yield before every operating cost. Both city measures softened year over year: home value fell 1.3%, and observed market rent fell 1.3%. Against ACS median household income, the Zillow value equals 5.9x income and annualized Zillow rent equals 25.1%, framing broad affordability but not a specific borrower’s or tenant’s budget.
The city has 86,182 housing units; citywide vacancy is 9.2%, and renters occupy 57.7% of occupied units. For surveyed occupied housing, ACS reports a $455,400 median owner-reported home value and $1,743 median gross rent, which includes contract rent plus selected utilities. These ACS measures cover different populations and periods from Zillow’s typical city value and observed market rent, so they should not be blended into a purchase price, asking-rent estimate, or yield.
Within the city, 52.7% of renter households are rent burdened. Single-family homes are 48.1% of units and large multifamily buildings 24.1%; these ACS structure shares do not measure purchasable inventory. Of vacant city units, 41.5% are classified as for rent, but vacancy reasons and the citywide vacancy rate cannot predict lease-up for one property. Population rose 0.3% between overlapping ACS vintages, a comparison potentially affected by boundary changes. Median household income is $79,663, while poverty is 15.8% and unemployment 5.5%; these describe demand constraints, not causes.
The county context for Maricopa County shows a median marketing time of 64 days and price reductions on 28.9% of active listings, useful for negotiation conditions but not city performance. The metro context for Phoenix, AZ reports 3.5 months of supply and job growth of 0.2%; both are metro evidence rather than Tempe measures. The national Freddie Mac 30-year mortgage rate was 6.58%, a national financing benchmark rather than a quote for any borrower.
Underwriting is limited by citywide averages, mismatched survey and market definitions, and the absence of property-specific condition, taxes, insurance, utilities, association dues, management, maintenance, financing, and achievable rent. Before acting, verify the subject’s sale comparables, rent comparables, and concessions; inspect the roof, systems, and deferred work; obtain parcel tax and insurance quotes; review zoning, rental rules, and association documents; and run vacancy, repair, capital-expenditure, and interest-rate stress cases. City vacancy and renter share should not substitute for this work.