House hacking has become one of Phoenix’s fastest-growing entry points for new real estate investors—and for good reason. Rising rents, strong job growth, and a new wave of younger buyers looking to build wealth are pushing duplexes, triplexes, ADUs, and rentable casitas back into the spotlight.
But here’s the real challenge:
Not every “affordable” area is a smart house hack.
And not every “popular” neighborhood actually cash-flows.
Some areas look great on paper but have weak rental demand. Others cash-flow well but are too far from job centers or lifestyle amenities to appeal to quality tenants.
So today, I’m breaking down the 7 best areas in Phoenix for house hacking in 2025 — based on rental demand, cash-flow potential, neighborhood livability, commute convenience, and long-term appreciation fundamentals.
Let’s dive in.
1. Central Phoenix (85006, 85008)
The “Best Balance of Price, Demand, and Amenities” Pick
Central Phoenix has become the sweet spot for young house hackers. Prices are still achievable (by Phoenix standards), rental demand is extremely strong, and the area continues to appreciate faster than the metro average.
Why it works:
- High demand from medical professionals (Close to Banner, VA, Phoenix Children’s)
- Strong long-term appreciation
- ADUs and casitas more common than in newer suburbs
- 5–10 min to downtown + Arcadia + Biltmore
Best property types:
Casita homes, small multifamily, duplexes on larger lots.
2. Tempe North / Apache Corridor (85281)
The “High Demand, Low Vacancy” Pick
This area offers incredible rentability thanks to ASU, the Tempe Streetcar, and proximity to tech employers.
Why it works:
- Year-round rental demand
- Easy to fill rooms or units
- Mill Ave + Tempe Town Lake lifestyle factor
- Endless tenant pool of students, grad students, and young professionals
Best property types:
Triplexes, duplexes, single-family with room-to-rent logic.
3. Maryvale / West Phoenix (85031, 85033, 85035)
The “Best Cash Flow” Pick
Not the fanciest, but often the highest cash-flowing house hack in the Phoenix metro. ADUs and casitas are extremely common, and values are still below the metro median.
Why it works:
- Lower acquisition price
- High rental absorption
- Large lots with ADU potential
- Strong long-term redevelopment interest
Best property types:
Homes with existing guest houses or easy ADU conversion potential.
4. South Scottsdale (85257)
The “Lifestyle + Appreciation” Pick
This is where cash flow meets walkability, nightlife, and top-tier tenant demand.
Why it works:
- 10 minutes to Old Town
- 12 minutes to Sky Harbor
- Strong appreciation for the last decade
- High-income tenants
Best property types:
Mid-century single family homes with converted garages or guest suites.
5. North Phoenix / Deer Valley (85027, 85053)
The “Quiet Suburb That Still Cash-Flows” Pick
This area has quietly become a house hacking favorite: solid rents + stable neighborhoods + ADU-friendly lot sizes.
Why it works:
- Steady tenant base
- Close to US-101 + I-17 employment corridor
- Strong corporate presence (USAA, PetSmart HQ, TSMC proximity)
Best property types:
Single-family with ADU potential, duplexes near Bell Road corridor.
6. Mesa Downtown Revitalization Zone (85201, 85203)
The “Underrated Appreciation” Pick
Downtown Mesa has changed dramatically, and light rail expansion continues to drive investment interest.
Why it works:
- Lower purchase price than Tempe
- Easy commute to ASU + employment hubs
- Increasing walkability and redevelopment
- Strong rent growth
Best property types:
Duplexes, triplexes, older homes with garages that can convert to ADUs.
7. Glendale – Close to Westgate (85301, 85303)
The “Entertainment District” Pick
As the Westgate entertainment district expands, so has demand for housing among service workers, event staff, and young families.
Why it works:
- Excellent rents for the price point
- Lots of multi-gen properties
- Surprising appreciation momentum
- Cardinals Stadium + new retail developments
Best property types:
Homes with casitas, duplexes, and anything with a long driveway for tenant parking.
How to Pick the Right House Hack Strategy (and Avoid Mistakes)
Here’s what I tell clients:
✔ Pick the right location
Choose areas with strong tenant demand, not just “cheap.”
✔ Run numbers with conservative rents
Always under-estimate rent and over-estimate vacancy.
✔ Buy something with optionality
Casita? Large lot? Garage conversion potential? Multi-gen layout?
These features dramatically increase ROI.
✔ Avoid HOAs unless ADUs are allowed
Most HOAs block the exact strategies that make house hacking profitable.
✔ Use financing to your advantage
FHA, 5% down conventional, and certain down payment programs still make house hacking the #1 way to build equity while reducing your living costs.
DTD Realty — Do The Deal.
Driven. Trusted. Dependable.
📞 602.702.3601
🌐 https://www.dtdrealty.com
📩 [email protected]
