DSCR Loans in Arizona
3 lenders, 0.62% property tax, $1,700/mo median rent. Landlord-friendly state.
Market Snapshot
Estimated DSCR assumes median price, median rent, 75% LTV, 30-year fixed at 7.45%, property tax and insurance only. Your deal will differ.
The Arizona Rental Market
Phoenix metro is massive and varied. West Valley (Surprise, Goodyear, Buckeye) offers better cash flow than Scottsdale or Tempe. Tucson is the value play with lower entry points. STR demand is strong in Scottsdale.
Top markets in Arizona
- Phoenix
- Tucson
- Mesa
- Scottsdale
How Arizona Costs Affect Your DSCR
Two line items determine whether a Arizona rental hits DSCR thresholds: property tax and insurance. Together they represent the bulk of operating expenses in a DSCR calculation (which excludes management fees and capital expenditures).
Property tax: 0.62%
Arizona's property tax rate is well below the national average of roughly 1.1%. This gives Arizona investors a meaningful DSCR advantage. On a $395,000 property, you pay approximately $204/month in property taxes.
Insurance: $1,350/year
Insurance in Arizona runs about $1,350/year ($113/month), which is manageable. Rates can vary by city, property age, and condition. Get a real quote for your specific property.
Combined impact
On a median-priced Arizona property, property tax plus insurance runs approximately $317/month. Subtract that from the $1,700 median rent, and your NOI is roughly $1,383/month before the mortgage payment. Run your own numbers in the DSCR calculator to see exactly where your deal lands.
DSCR Lenders in Arizona
3 lenders in our database cover Arizona. All major lenders cover Arizona. Very low property taxes help DSCR. Phoenix is one of the top STR markets, so lenders with STR programs are particularly relevant here.
| Lender | Min DSCR | Min FICO | Max LTV | STR |
|---|---|---|---|---|
| Visio Lending | 1.00 | 680 | 80% | Yes |
| Griffin Funding | 0.75 | 660 | 80% | Yes |
| Truss Financial Group | N/A | N/A | 75% | N/A |
See the full lender comparison matrix for all columns, or use the DSCR qualifier to find which lenders match your specific deal.
Landlord-Tenant Climate
Arizona is generally considered a landlord-friendly state. Landlord-friendly. Fast eviction for nonpayment (5-day notice). No rent control statewide. Arizona preempts local rent control ordinances.
Landlord-friendliness matters for DSCR investors because extended vacancies and eviction costs eat into the rental income that your DSCR depends on. A state where evictions take 3 months versus 3 weeks changes the effective vacancy factor in your underwriting.
Example Deal: Median Arizona Property
To show how these numbers interact, here is a simplified underwrite of a median-priced Arizona rental at current rates:
| Purchase price | $395,000 |
| Loan amount (75% LTV) | $296,250 |
| Rate (30yr fixed) | 7.45% |
| Monthly payment (P&I) | $2,061 |
| Monthly rent | $1,700 |
| Property tax | $204/mo |
| Insurance | $113/mo |
| NOI (rent minus tax and insurance) | $1,383/mo |
| DSCR | 0.67 |
The median deal falls short of the 1.0 DSCR minimum. You need to find properties with significantly above-median rents or below-median prices to make DSCR financing work in this market. Plug your actual numbers into the DSCR calculator.
Tools for Arizona Investors
- DSCR Calculator - Check if your Arizona rental qualifies
- Cash-Out Refi Calculator - Model a refinance on an existing Arizona property
- DSCR Qualifier - Match your deal against lenders in Arizona
- Lender Matrix - Compare all lenders side by side
- Rate Monitor - Track current DSCR rates weekly
- Rental Property Analyzer - Full deal analysis with NOI, cash flow, and ROI
FAQ
Can I get a DSCR loan in Arizona?
Yes. 3 of the major DSCR lenders in our database operate in Arizona. DSCR loans are available in all 50 states, though some lenders exclude specific states. Arizona is one of the more active DSCR markets.
What DSCR do I need for a rental property in Arizona?
Most lenders require a minimum DSCR of 1.0 to 1.25. Arizona's low property tax rate (0.62%) helps your DSCR compared to the national average. On a median-priced Arizona property, the estimated DSCR is around 0.67 at current rates.
What are property taxes in Arizona?
The average effective property tax rate in Arizona is 0.62%. On a $395,000 property, that is roughly $2,449/year or $204/month. This directly reduces your NOI and DSCR.
How much is rental property insurance in Arizona?
The average annual insurance premium for a rental property in Arizona is approximately $1,350. This is near or below the national average, which helps your DSCR.
Is Arizona a good state for rental property investing?
Arizona is generally considered landlord-friendly. Landlord-friendly. Fast eviction for nonpayment (5-day notice). No rent control statewide. Arizona preempts local rent control ordinances. The best markets in Arizona for DSCR investors are Phoenix, Tucson, Mesa.
Which DSCR lenders work in Arizona?
Our database shows 3 DSCR lenders operating in Arizona. Most national lenders cover Arizona. Check our lender comparison matrix for specific lender requirements and filter by state.
What is the median rent in Arizona?
The median rent for a single-family rental in Arizona is approximately $1,700/month. Actual rents vary widely by market: Phoenix may be higher or lower than Scottsdale. Always use actual rental comps for your specific property and neighborhood.