Did you know that Apache Junction is the best city in Arizona to buy a home, investment-wise?

When looking for a home, figuring out whether to rent or buy can be tricky. There are many factors at play and trying to time the housing market is difficult.

However, there are mathematical ways to evaluate each city, so you can make an informed decision.

UnitedStatesZipCodes.org released the 50 best and worst Zip Codes to buy a home in Arizona.

Based on the latest Census Bureau data for cities with a population of 60,000 or more, the rankings were determined by calculating the price to rent ratio.

The price to rent ratio is the median home value divided by the median annual rent and serves as a benchmark for understanding whether it is better to rent or buy in an area.

When home prices rise significantly faster than the local rents, the ratio will rise – indicating a possible housing bubble where it may be better to rent.

A ratio under 15 indicates that it is likely more affordable to buy, and ratio over 20 are likely better to rent. 

Here are the top 5 best places to buy:

1.     85120 (Apache Junction, AZ) – 8.8

2.     86045 (Tuba City, AZ) – 9.8

3.     86054 (Shonto, AZ) – 10.8

4.     85705 (Tucson, AZ) – 10.8

5.     85009 (Phoenix, AZ) – 10.9

Here are the top five worst neighborhoods to buy:

1.     85253 (Paradise Valley, AZ) – 82.0

2.     86520 (Blue Gap, AZ) – 50.1

3.     85259 (Scottsdale, AZ) – 49.3

4.     85718 (Tucson, AZ) – 47.7

5.     85018 (Phoenix, AZ) – 45.5