Prescott Rental Market Update: What Landlords Need to Know in 2025

Prescott and the surrounding areas — including Prescott Valley, Chino Valley, and Dewey-Humboldt — continue to attract new residents seeking cooler weather, small-town charm, and strong community values. For property owners and landlords, understanding the current rental market is essential to setting competitive rents, reducing vacancies, and planning for long-term investments.

This 2025 rental market update will give you an overview of rental rates, demand trends, local developments, and what it all means for landlords.

Average Rental Rates in Prescott & Surrounding Areas

• Single-Family Homes: Rents for 3-bedroom homes average between $2,000 and $2,400/month, depending on neighborhood and amenities.
• Apartments/Townhomes: One-bedroom units average $1,300–$1,500/month, while two-bedrooms range from $1,600–$1,900/month.
• Luxury & New Builds: Newer homes and condos in subdivisions like Granite Dells Estates often command $2,500+ per month.

Vacancy Rates & Tenant Demand

Vacancy rates in Prescott remain low — around 4–5% — which is below the national average. Demand is fueled by:

• Retirees relocating from California and Phoenix metro areas
• College students at Embry-Riddle and Yavapai College
• Families drawn to Prescott’s schools and lifestyle

This strong demand makes it easier to fill rentals quickly, but landlords must remain competitive on price and amenities.

Local Developments Impacting the Market

• New Housing Projects: Ongoing residential construction in Prescott Valley is increasing supply, which could stabilize rents in certain neighborhoods.
• Infrastructure Improvements: Road expansions and new retail hubs continue to make Chino Valley and Dewey more attractive to renters.
• Job Growth: The healthcare, education, and hospitality sectors are hiring, boosting long-term rental demand.

What This Means for Landlords

• Set the Right Rent: Overpricing leads to longer vacancies. Aim for market-aligned pricing while factoring in unique property features.
• Invest in Upgrades: Modern kitchens, energy-efficient systems, and fiber internet access are in high demand among tenants.
• Plan for Turnover: Retiree and student tenants may not stay long-term, so having strong leasing systems is critical.
• Stay Compliant: Arizona rental laws and city-specific ordinances (such as short-term rental licensing) continue to evolve.

Tips for Staying Competitive in 2025

1. Offer Tenant Perks – Deposit alternatives, online payment options, and 24/7 maintenance access improve retention.
2. Market Smart – Use professional photos, 3D tours, and targeted online advertising.
3. Be Proactive with Maintenance – Prevent small issues before they become costly emergencies.
4. Consider Lease Renewal Incentives – A small rent freeze or upgrade may cost less than vacancy.

The Prescott rental market in 2025 remains strong, but landlords must balance competitive pricing, tenant satisfaction, and property compliance to maximize their returns.

At Peak Property Solutions, we help landlords navigate these market trends with professional management, full compliance with Arizona landlord-tenant law, and proven tenant retention strategies.

👉 Contact us today for a free Prescott rental analysis and see how your property stacks up in the 2025 market.