DSCR Loans in Arizona

Last updated: May 2026

Arizona is one of the fastest-growing states in the country, fueled by an influx of remote workers, tech companies, and retirees relocating from higher-cost markets. Low property taxes and a very landlord-friendly legal framework make it a top-tier state for DSCR investors looking for strong cash flow and appreciation.

Property Taxes in Arizona

Arizona boasts some of the lowest effective property tax rates in the West. Maricopa County (Phoenix metro) averages about 0.59%, Pima County (Tucson) comes in around 0.93%, and Yavapai County (Prescott area) averages roughly 0.58%.

Insurance Costs

Typical investment property insurance in Arizona runs $2,100/yr. Monsoon-season flooding and dust storms are the primary hazards. Properties in FEMA flood zones will need separate flood policies, and rooftop damage from hail is common enough that insurers often scrutinize roof age.

Landlord-Tenant Laws

Arizona is widely regarded as one of the most landlord-friendly states. Eviction for nonpayment begins with a 5-day notice, and uncontested evictions can be completed in as few as 20 days. State law preempts all local rent control ordinances, so municipalities cannot cap rent increases.

Top Investment Markets in Arizona

DSCR Considerations in Arizona

Low property taxes help keep operating expenses down, making it easier to hit DSCR thresholds even at current interest rates. Population growth continues to push rents upward across the Phoenix metro, which supports strong underwriting. Keep in mind that HOA fees in many Arizona communities can be significant and will factor into your DSCR calculation.