Arizona's property tax rate is well below the national average, and the Phoenix metro has become one of the most active housing markets in the country. Maricopa County tax rates are particularly competitive, though home prices have risen substantially since 2020.
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The average effective property tax rate in Arizona is approximately 0.65%. On a $420,000 home, that works out to roughly $2,730 per year, or $228 added to your monthly mortgage payment. Rates vary by county and municipality, so your actual rate may differ.
What is the average mortgage payment in Arizona?
Based on the median home price of approximately $420,000 in Arizona, with 20% down and a 7% interest rate on a 30-year loan, your monthly principal and interest payment would be around $2,235. Add property taxes and insurance and your total PITI payment is typically $2,638/month.
Do I need a special loan for buying in Arizona?
No — conventional, FHA, VA, and jumbo loans are all available in Arizona. If you're a veteran or active-duty service member, a VA loan is worth a close look since it requires no down payment and no PMI. First-time buyers should also check Arizona's state housing finance agency for down payment assistance programs that may be available.
What is the minimum down payment to buy a home in Arizona?
The minimum down payment depends on loan type. Conventional loans allow as little as 3% down. FHA loans require 3.5% (with a 580+ credit score). VA loans allow 0% down for eligible veterans. The higher the purchase price, the more down payment you'll typically need to keep your monthly payment manageable — use the calculator above to model different scenarios.
What salary do I need to afford a home in Arizona?
Using the 28% rule (housing costs should not exceed 28% of gross monthly income), you'd need a gross monthly income of at least $9,421 — about $113,054 per year — to comfortably afford the median-priced home in Arizona with 20% down at current rates.