Phoenix / Budget guide

What renting in Phoenix really costs each month

By Homzora Team · September 26, 2026

In Phoenix, the rent is only the first line of the budget. Summer electricity can be the second largest housing cost, Arizona places no limit on rent increases, and a car is part of daily life for most households. This guide builds a full monthly budget for a Phoenix rental, with a source for every rule and figure.

Where Phoenix rents stand

The Census Bureau's American Community Survey estimates median gross rent in the city of Phoenix at $1,582 for 2020 to 2024.^[1] Gross rent includes estimated utility costs paid by the renter, so it is closer to the full cost of housing than an advertised rent. The same survey estimates median household income in the city at $81,332 and an owner occupancy rate of 57.3 percent, so a little over four in ten Phoenix households rent.^[1]

Treat the median as background rather than a quote. It blends five years of responses across every kind of rental, from older apartments to new complexes leasing at market rates, so current asking rents for vacant units are often higher. Build your budget from written quotes for the homes you are considering. The Phoenix data page explains the figures Homzora publishes and the periods they cover.

No cap on increases: plan for renewal

Arizona law states that cities and towns, including charter cities, do not have the power to control rents, with an exception only for housing owned, financed, insured or subsidized by government.^[2] There is no rent control in Phoenix and no statewide percentage cap, so a renewal can bring any increase the market will bear.

What the law controls is timing. Either side may end a month to month tenancy with written notice given at least 30 days before the rental date named in the notice.^[3] A fixed term lease locks the rent until it ends, so a 12 month or longer lease is the most useful protection against a sudden increase. Ask about longer terms, read the renewal clause before you sign, and note the date when a renewal offer is likely to arrive.

One cost that went away: the rental tax

Until recently, many Phoenix leases added a transaction privilege tax on residential rent. The Arizona Department of Revenue announced that the tax on residential rentals was eliminated as of January 1, 2025.^[4] If a lease or bill you receive still lists a rental tax on a residential lease, ask the landlord in writing what the charge is for.

Move in money: what Arizona allows

Arizona limits security deposits and prepaid rent to no more than one and a half months' rent. The purpose of every nonrefundable fee or deposit must be stated in writing, and any fee or deposit not designated as nonrefundable is refundable.^[5] Read the lease for every charge and check which are marked nonrefundable, such as cleaning, administrative or redecorating fees.

At move out, the landlord must give you an itemized list of deductions and any refund due within 14 days, excluding Saturdays, Sundays and legal holidays, after the tenancy ends, you return possession and you ask for the deposit. A landlord that wrongfully keeps money can owe the amount due plus damages equal to twice the amount wrongfully withheld.^[5] Our evidence guide explains how to protect that refund.

Electricity: the summer bill

Electricity in the Phoenix area comes from either SRP or APS, depending on the address.^[6] SRP offers an address lookup on its website.^[6] Ask each landlord which provider serves the home and what the bills have been in July and August, not the annual average.

Summer in Phoenix is long and extreme. In 2024, the city recorded a record 113 consecutive days at or above 100 degrees, from May 27 to September 16.^[7] A home that faces west, has single pane windows or an older air conditioner can cost far more to cool than a similar home without those problems. Budget from real summer bills, and consider how much of your income you can afford to spend on cooling in the hottest months.

Water, sewer and trash

In the city of Phoenix, water, sewer and trash appear on a single City Services Bill. New service can be started online, and the city asks residents to allow at least three business days.^[8] Ask whether these services are included in the rent, billed back by the landlord or billed to you directly, and ask for an example of a recent bill. In apartment communities, water and trash are often billed back as monthly charges on top of rent, so include them in your comparison.

Cooling is a legal requirement, but the bill is yours

Arizona law requires landlords to maintain air conditioning and cooling in good and safe working order and to supply reasonable air conditioning or cooling where such units are installed and offered, when seasonal weather requires it.^[9] Phoenix's city code goes further for rentals with installed systems: refrigerated air must cool habitable rooms to 82 degrees and evaporative coolers to 86 degrees.^[10] These rules protect you from a broken system, but they do not reduce the electric bill for running it. A home cooled by an evaporative cooler usually uses less electricity than one with refrigerated air, but it works poorly during humid monsoon weather, so ask which system a home has.

Getting around: Valley Metro fares and caps

Valley Metro uses a fare capping system on its Copper Card. A local bus or light rail ride costs $2, and once you have paid $4 in a day, $20 in a week or $64 in a month, further local rides in that period are free. Express and RAPID buses cost $3.25 a ride, with caps of $6.50 a day and $104 a month. Reduced fares, for eligible riders including youth aged 6 to 18, seniors 65 and older, people with disabilities and Medicare cardholders, are $1 a ride, with caps of $2 a day, $10 a week and $32 a month.^[11] A standard Copper Card costs $4, and a reduced fare card is free.^[12]

Most Phoenix households drive for at least some trips. If you will drive, add fuel, insurance, maintenance and parking, and remember that a car parked in the sun all summer needs working air conditioning too. The commute guide explains how to test the trip before you sign.

Fees beyond the rent

Many Phoenix apartment communities charge monthly fees on top of the rent, such as trash valet, pest control, package lockers, amenities, technology packages or covered parking. Arizona does not cap these charges, but it does require every nonrefundable fee to be identified in writing.^[5] Ask for a written list of every recurring charge before you apply, add them to the rent, and compare homes on the total. A home with a lower advertised rent can cost more each month once the fees are included, and the difference adds up over a 12 month lease.

Insurance

Renters insurance is inexpensive compared with the cost of replacing your belongings, and many leases require it. Standard renters policies generally exclude flood damage, which is covered separately^[13], so ask about flood risk if a home is near a wash or in a low lying area. Read the policy's rules on power outages and food spoilage too, since a long outage in summer can be expensive.

A sample month, built the careful way

Start with the rent written in the lease. Add the electricity estimate for your hottest month, then water, sewer and trash, any billed back charges, internet, fuel or transit costs, and your insurance premiums divided by twelve. Finally, set aside money each month toward the next renewal. Because Arizona has no cap on increases^[2], a renewal can bring a significant jump, and a household that saves ahead is better placed to decide whether to stay or move.

Keep the cost of moving in view. First month's rent, a deposit of up to one and a half months' rent^[5], nonrefundable fees and movers can add up to well over two months of housing costs at once, so a slightly cheaper home may not be worth a move if the savings take years to recover.

Questions to ask before you sign

What is the total move in cost, and which fees are nonrefundable?
Does SRP or APS serve the home, and what were last July's and August's bills?
Is the home cooled by refrigerated air or an evaporative cooler, and how old is the system?
Which services are included, billed back or billed directly?
What did renewing tenants pay in increases last year?
Is covered parking available, and what does it cost?

If a landlord cannot answer, mark the item as unknown rather than assuming the best case.

Stress test the budget

Add your highest expected electric bill, transportation and insurance to the rent, and compare the total with your take home pay. Then look ahead a year. Without a cap, the rent at renewal is uncertain, so test what happens if it rises by a meaningful amount. Finally, think about summer resilience: heat is a serious health risk in Maricopa County, and in 2025 the county recorded 430 heat related deaths.^[14] A budget that leaves room to keep the air conditioning running in July is not a luxury in Phoenix; it is part of staying safe.

Your completion record

Rent and lease length
Total move in cost in writing
Nonrefundable fees identified
Electric provider and summer bills
Cooling system type and age
Water, sewer and trash costs
Car or transit costs
Savings for renewal

Keep this record with the quotes behind it. Use the calculators to test your figures and the area shortlist to compare neighborhoods.

Sources and official resources

Use the planning tools · All Phoenix guides