Disclaimer: Rate data is updated weekly. Last updated: April 14, 2026. Rates change daily — always contact lenders directly for a current quote on your specific deal. DSCRFinder.com does not guarantee rate accuracy from third-party lenders.
DSCR Loan Rates in Arizona — April 2026
Arizona — anchored by the Phoenix metro — is one of the most active Sun Belt real estate investment markets in the US. Population growth, a diversified economy, and strong short-term rental demand (driven by tourism, spring training, and corporate relocations) make Arizona a top DSCR loan market.
As of April 14, 2026, the national 30-year fixed rate for primary residences is 6.40% (Bankrate). DSCR loans in Arizona typically run 7.15% to 8.75% depending on borrower profile and property type.
April 2026 Arizona DSCR Rate Table by Borrower Profile
| Borrower Profile | DSCR | FICO | Down Payment | Rate Range | |---|---|---|---|---| | Best-qualified | 1.25+ | 740+ | 30%+ | 7.15% – 7.50% | | Strong | 1.25+ | 720–739 | 25% | 7.50% – 7.75% | | Standard | 1.0–1.24 | 680–719 | 20–25% | 7.75% – 8.25% | | Moderate | 0.75–0.99 | 660–679 | 20% | 8.25% – 8.50% | | Challenging | Below 0.75 | Below 660 | 20% | 8.50% – 8.75%+ |
Rates for 30-year fixed DSCR loans on single-family investment properties in Arizona. Source: Bankrate national averages + non-QM spread, April 14, 2026.
Arizona DSCR Market Fundamentals
Arizona offers a favorable combination for DSCR investors:
- Moderate property taxes — averaging 0.60%–0.85% of assessed value (one of the lowest in the US)
- No rent control statewide
- Landlord-friendly eviction laws
- Strong short-term rental market — Phoenix/Scottsdale, Sedona, Flagstaff
- Continued population growth — Phoenix metro among the fastest-growing in the US
Arizona DSCR Fundamentals by Market
| Market | Median Price (SFR) | Typical Monthly Rent | Estimated DSCR | |---|---|---|---| | Phoenix (suburban) | $380,000 – $480,000 | $2,000 – $2,600 | 1.00 – 1.20 | | Scottsdale | $600,000 – $900,000 | $2,800 – $4,000 | 0.80 – 1.00 | | Mesa / Chandler / Gilbert | $380,000 – $500,000 | $2,100 – $2,700 | 1.00 – 1.20 | | Tucson | $250,000 – $340,000 | $1,500 – $2,000 | 1.05 – 1.25 | | Tempe | $380,000 – $500,000 | $2,000 – $2,600 | 0.95 – 1.15 |
Estimates only — verify with actual property income and expense data before applying.
Arizona DSCR Loan Market by City
Phoenix Metro
The Phoenix metro (Phoenix, Mesa, Chandler, Gilbert, Glendale, Surprise) is the largest DSCR loan market in Arizona. Suburban Phoenix offers a balance of affordable prices and strong rental demand. DSCR ratios of 1.0–1.20 are achievable for well-located suburban SFRs.
Phoenix has seen some price correction since the 2021–2022 peak, which has improved rent-to-value ratios and DSCR qualification prospects compared to 2022–2023.
Scottsdale
Scottsdale is Arizona's premium market for short-term rentals. Spring training (10 MLB teams), golf tourism, and luxury travel create strong Airbnb demand. DSCR ratios are compressed for purchase prices but STR income can significantly improve cash flow for investors using STR-friendly DSCR lenders.
Tucson
Tucson offers the best rent-to-value ratios in Arizona for traditional long-term rentals. University of Arizona drives strong student rental demand, and military presence (Davis-Monthan AFB) provides stable tenants. DSCR ratios of 1.10–1.30 are typical.
Sedona / Flagstaff
Tourism-driven STR markets with strong Airbnb demand. These are smaller markets with less liquidity but very strong STR cash flows. DSCR lenders that accept STR income documentation are required.
Arizona Short-Term Rental DSCR Loans
Arizona is one of the most STR-friendly states in the US. State law (ARS 9-500.39) limits local governments from banning STRs outright. Scottsdale, Sedona, and Phoenix have active STR markets.
For DSCR loans on STR properties:
- Most lenders use market rent (not Airbnb income) for DSCR qualification
- Some lenders accept STR income with AirDNA documentation — rate premium of 0.25%–0.50%
- Scottsdale luxury STR properties may require jumbo DSCR products
Arizona DSCR Loan Requirements (April 2026)
| Requirement | Typical Range | |---|---| | Minimum DSCR | 0.75 (some lenders) to 1.0 | | Minimum FICO | 620–680 depending on lender | | Down payment | 20%–25% | | Max LTV | 75%–80% | | Loan amounts | $150K–$3M+ | | Property types | SFR, 2–4 unit, condo, STR | | LLC allowed | Yes |
Arizona Landlord-Tenant Law: Investor-Friendly
- No rent control — preempted statewide
- Eviction process — 5-day pay or quit notice, then court filing; typically 3–5 weeks to possession
- Security deposit — maximum 1.5 months' rent
- STR protections — state law limits local STR bans
- Low property taxes — assessed at 10% of market value for investment properties, effective rate ~0.65%–0.85%
How to Get the Best DSCR Rate in Arizona
- Target Mesa, Chandler, and Gilbert for the best combination of price, rent, and DSCR ratio
- Arizona's low property taxes are a significant advantage — less PITIA drag than Texas or Illinois
- Consider Tucson for the best rent-to-value ratios in the state
- Use an STR-friendly lender for Scottsdale and Sedona properties
- Use our DSCR calculator to verify your ratio before applying
Frequently Asked Questions — Arizona DSCR Loans
What DSCR ratio is typical for Phoenix investment properties? Suburban Phoenix SFRs typically achieve DSCR ratios of 1.00–1.20, placing most investors in the standard rate tier. Scottsdale's higher prices often produce sub-1.0 DSCR ratios.
Is Scottsdale a good market for DSCR STR loans? Yes, for investors with the right lender. Scottsdale STR income is strong, but most DSCR lenders use market rent for qualification. Find lenders that accept AirDNA income estimates or actual STR income documentation.
Does Arizona have rent control? No. Arizona state law preempts local rent control, making it one of the most landlord-friendly states for long-term investors.
What are Arizona property taxes for investment properties? Arizona investment properties are assessed at 10% of market value, with an effective tax rate of approximately 0.65%–0.85%. This is significantly lower than Texas (2.0%+), which means less drag on your DSCR calculation.
Can I get a DSCR loan for a Sedona vacation rental? Yes, but lender options are limited for STR properties. The Sedona market has high home prices and strong STR income — find a lender that accepts STR income documentation for DSCR qualification.
Related: Current DSCR Loan Rates April 2026 | Best DSCR Lenders 2026 | DSCR Calculator | Compare Lenders
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