Sell Your Commercial Property In Flagstaff, AZ

Who rents in Flagstaff

Flagstaff had an estimated 76,445 residents in the 2020–2024 American Community Survey, in 28,550 occupied homes. Renters occupied 16,471 of them and owners 12,079, a 57.7% renter share, so renters outnumber owners by more than 4,000 households.

The university is the main reason. Northern Arizona University reports 25,748 students in spring 2025, 19,453 of them at its Flagstaff and Phoenix Bioscience Core campuses. Students, graduate assistants and staff fill much of the rental housing near campus and along the main corridors, and their August move-in sets the leasing calendar for many buildings.

Tourism and outdoor recreation, named on our Flagstaff page, add service-sector renters and compete for housing. The city has 31,994 housing units but only 28,550 occupied homes, leaving 3,444 units, about 10.8%, not occupied as a primary residence when surveyed. Some of that is normal turnover, and some is likely second homes and short-term rentals.

Rents and affordability

Median gross rent in Flagstaff was $1,645 over 2020–2024, against a median household income of $71,512. Of Flagstaff's renter households, 55.8% spend 30% or more of income on rent, and 32.0% spend at least half. Student households likely drive part of that burden, since many report little income, but it also reflects a city where rents are high relative to local wages.

HUD's FY2026 figures show how far Flagstaff rents run above the much larger Phoenix metro for smaller units:

Flagstaff figures cover Coconino County and come from HUD's Flagstaff MSA schedule; Phoenix figures are from HUD's Phoenix-Mesa-Chandler schedule. Studios through two-bedrooms cost more in Flagstaff, while larger units are cheaper, a pattern consistent with strong student and single-adult demand.

The apartment stock

Per ACS table B25024, 9,907 of Flagstaff's 31,994 housing units, or 31.0%, are in buildings with five or more units: 3,362 in 5–9 unit buildings, 3,065 in 10–19 unit buildings, 746 in 20–49 unit buildings and 2,734 in complexes of 50 or more. Small and mid-size buildings make up most of the apartment stock, which suits buyers looking for 5–20 unit properties. Detached homes total 13,582 units, attached townhomes 2,908, duplexes and three- to four-unit buildings 3,590, and mobile homes 1,992. That mix gives renters choices beyond apartments, from rented houses to small multiplexes.

The median year built is 1992. About 28.3% of units date from before 1980 and 13.6% from 2010 or later. Older buildings in Downtown, Sunnyside and East Flagstaff face winter-related maintenance that desert-city buildings do not, including roofs, heating systems and freeze protection, and buyers will look closely at those items. Kachina Village is an unincorporated community south of the city, outside Flagstaff's limits.

Property taxes on apartment buildings in Coconino County

Arizona places rental housing in legal class 4, assessed at 10% of the limited property value. That value can rise no more than 5% a year under A.R.S. 42-13301, and a change of ownership is not among the recalculation triggers in A.R.S. 42-13302, so a buyer generally inherits it.

For rates, the Coconino County budget notice from June 2025 lists a county primary rate of $0.4944 per $100 of assessed value in FY2025 and a proposed $0.4830 for FY2026. The Flood Control District rate holds at $0.50 and the Public Health Services District at $0.25, with a proposed library district increase of $0.02 a year. City of Flagstaff, school district and community college levies are added on top.

Arizona has no real estate transfer tax, and the state constitution bars new ones. The Department of Revenue confirms that city rental sales tax on long-term residential leases ended January 1, 2025, while stays under 30 days remain taxable.

Landlord rules and local compliance

A.R.S. 33-1329 bars Flagstaff from controlling rents on private housing. Deposits are capped at one and a half months' rent under A.R.S. 33-1321, and a landlord may terminate for unpaid rent after a five-day notice. Rentals must be registered with the Coconino County Assessor under A.R.S. 33-1902, and out-of-state owners must name an Arizona statutory agent. The statute allows a $1,000 penalty plus $100 a month for an unregistered newly acquired rental after a 10-day cure. Other material lease violations require a 10-day notice, and wrongfully withheld deposits can cost a landlord twice the amount withheld.

What this means if you own a building here

Flagstaff owners have strong demand and limited competition, offset by high rent burden and weather-driven maintenance. Buyers will compare your rents to the HUD benchmarks above, ask how much of your rent roll depends on students, and price deferred work on roofs and heating. Gather a trailing 12-month net operating income statement and test value with our cap rate calculator. Skyline Capital Investments buys 5+ unit buildings in Flagstaff, listed or off-market; see our seller page.