True Cost of Renting in Tempe

Tempe is the heart of ASU's 74,000-student main campus, and the Mill Avenue corridor is Arizona's most active college-town district. But Tempe also hosts a significant tech and biomedical corridor, and the Light Rail spine running through the city makes it a genuine transit-accessible option for Downtown Phoenix commuters who want more urban walkability at lower cost.

Neighborhoods & Average Rents

Mill Avenue / Downtown Tempe

Studio:
$1,400/mo
1 Bed:
$1,750/mo
2 Bed:
$2,400/mo

Walkable urban core adjacent to ASU campus; bars, restaurants, and Tempe Town Lake. Light Rail runs through Downtown. Mix of student-oriented and young-professional apartments. SRP electric utility for most of Tempe — generally lower rates than APS. Summer bills still $120–180/mo in a 1BR.

South Tempe

1 Bed:
$1,650/mo
2 Bed:
$2,300/mo

Quiet suburban neighborhoods south of Baseline Road; families and professionals. Newer apartment complexes with modern amenities. Light Rail access limited — car preferred for most errands. Good access to the I-10 and US-60 for Chandler and Mesa tech corridor employment.

ASU Research Park / Broadway Corridor

Studio:
$1,200/mo
1 Bed:
$1,550/mo
2 Bed:
$2,100/mo

More affordable Tempe neighborhoods along Broadway Road and south Rural Road; older apartment stock. Bus access to Light Rail. Lower rents partially offset by older HVAC systems that drive higher summer utility bills.

Utility Providers

Electric
Salt River Project (SRP) for most of Tempe
Water
City of Tempe Water
Internet
Cox Communications, CenturyLink/Lumen, T-Mobile Home Internet

Commute & Transportation

Tempe is geographically central to the Phoenix metro, making it convenient for jobs in multiple directions. The Light Rail spine runs east-west through the city connecting to Downtown Phoenix (20 min) and Mesa (15 min east). Sky Harbor International Airport is 2 miles northwest — noise-sensitive renters should check flight paths before renting near the 202/I-10 interchange. ASU's main campus employs 15,000+ and drives student rental demand in adjacent neighborhoods. The Tempe biomedical and tech corridor along Price Road (near the 101) houses Microchip Technology, several biomedical firms, and call center operations.

Rental Market Overview

Tempe rents run slightly above Phoenix proper and below Scottsdale. SRP serves most of Tempe — SRP rates are generally 10–15% lower than APS, making Tempe a modest utility cost advantage over Phoenix and Scottsdale APS zones. The ASU enrollment creates year-round rental demand that keeps vacancy tight near campus. South and southeast Tempe (near the 101 and Chandler border) functions more as a family-oriented suburban market with newer apartment supply. Renters insurance averages $15–20/month. Landlords near campus frequently require 3x income verification; at $1,750/mo, that's documented income of $5,250/month.

Data last updated: 2026-04

Compare Apartments in Tempe

Enter your rental options below to see the true all-in monthly cost.

Renting in Tempe: Common Questions

What is the average rent in Tempe?
One-bedroom apartments in Tempe range from $1,550/month in ASU Research Park / Broadway Corridor to $1,750/month in Mill Avenue / Downtown Tempe. Two-bedroom units range from $2,100 to $2,400/month. These are base rents — add fees, utilities, and amenity costs to get the true all-in monthly cost.
What utilities do I need to set up in Tempe?
In Tempe, electricity is provided by Salt River Project (SRP) for most of Tempe, water by City of Tempe Water, and common internet providers include Cox Communications, CenturyLink/Lumen, T-Mobile Home Internet. Check whether your lease includes water or trash — some buildings bundle these into rent while others charge separately. Always ask the leasing office for the average monthly utility bill before signing.
What neighborhoods are affordable in Tempe?
ASU Research Park / Broadway Corridor is one of the most affordable neighborhoods in Tempe, with one-bedroom apartments averaging $1,550/month. More affordable Tempe neighborhoods along Broadway Road and south Rural Road; older apartment stock. Bus access to Light Rail. Lower rents partially offset by older HVAC systems that drive higher summer utility bills. Remember to factor in commute costs and parking fees when comparing neighborhoods — a cheaper base rent farther from work may cost more overall.
Is Tempe expensive to rent in?
Tempe rents run slightly above Phoenix proper and below Scottsdale. SRP serves most of Tempe — SRP rates are generally 10–15% lower than APS, making Tempe a modest utility cost advantage over Phoenix and Scottsdale APS zones. Use RentCompare to calculate the true all-in cost for any apartment in Tempe — base rent alone does not tell the full story.

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