DSCR Loans in Phoenix, AZ | Pillar Mortgage Group

Pillar Mortgage Group places DSCR loans on Phoenix rental properties with ratios down to 0.75 and LLC vesting allowed, so the deal is judged on what the property earns against its payment. We are based in Scottsdale and finance investors across the Valley, and the cited numbers below show what it takes for a Phoenix rental to qualify right now.

Phoenix by the numbers

Zillow's rent figure is a citywide average, not the rent on the typical valued home, so treat the pairing as a market snapshot rather than a single property.

What it takes to qualify in Phoenix

DSCR is the property's monthly rent divided by its monthly housing payment. Pillar Mortgage Group places loans down to a 0.75 ratio, and a 1.0 ratio means rent fully covers the payment (Pillar Mortgage Group, DSCR Loans). Property tax, insurance, and HOA dues vary by parcel and policy, so every figure below uses principal and interest only. Taxes, insurance, and HOA dues lower the real ratio, so treat these as the starting line, not the finish.

A. At Phoenix's average rent, how big a loan qualifies?

Inputs: average rent of $1,571 a month (Zillow, as of September 30, 2026), the Freddie Mac 30 year average of 7.32% (Freddie Mac PMMS, week of October 22, 2026), and a 360 month term. Implied purchase price assumes 25 percent down.

B. At Phoenix's typical home value, how much rent does it take?

Inputs: typical home value of $404,067 (Zillow, as of September 30, 2026), 25 percent down for a $303,050 loan, the Freddie Mac 30 year average of 7.32% (Freddie Mac PMMS, week of October 22, 2026), and a 360 month term, for monthly principal and interest of $2,081.74.

Loan amounts and prices are rounded down and rents rounded up to the nearest dollar.

In Phoenix, Zillow's citywide average rent of $1,571 already clears the $1,562 a 0.75 ratio needs on a typical value home with 25 percent down, on principal and interest. The levers that raise the ratio are a larger down payment or a property type or unit that rents above the citywide average.

Rate note: Freddie Mac's PMMS tracks conventional loans, not investor DSCR loans. PMMS tracks conventional loans for owner occupied homes, so it is a benchmark here, not a DSCR quote. Your actual rate depends on credit, down payment, ratio, and property type.

Phoenix short-term rental rules

Phoenix requires every short-term rental to hold a city STR permit from the Planning and Development Department. The fee is $250 for the initial permit and each renewal, and owners also need an Arizona TPT license, must show the permit number on every listing, and must send a Notice of Intent by certified mail to adjacent neighbors and to registered HOAs and neighborhood associations within 600 feet. Court adjudicated violations start at a minimum of $500 or one night's rent, and three violations in 12 months can suspend the permit for a year. For an ADU with a certificate of occupancy issued on or after September 14, 2024, the owner must attest that they live on the property. (City of Phoenix, Short-Term Rental Permit page). Statewide, A.R.S. 9-500.39 says a city or town may not prohibit vacation or short-term rentals, but it can require a permit or license and cap that fee at $250 or the actual cost, whichever is less (A.R.S. 9-500.39). HOA rules can still restrict rentals, so check your CC&Rs before you buy.

Phoenix DSCR loan FAQs

What DSCR do I need to get a rental loan in Phoenix?

Pillar Mortgage Group places DSCR loans down to a 0.75 ratio. Expect credit around 660 or higher, typically 20 to 25 percent down, and reserves of roughly 3 to 6 months of payments.

Can I close a Phoenix rental in an LLC?

Yes. DSCR financing through Pillar Mortgage Group allows you to close in the name of an LLC.

Can I run a short-term rental in Phoenix?

Yes, with a city STR permit ($250 initial and at each renewal), an Arizona TPT license, the permit number on every listing, and certified mail notice to adjacent neighbors and nearby registered HOAs. ADUs with a certificate of occupancy issued on or after September 14, 2024 require the owner to live on site. Arizona law (A.R.S. 9-500.39) does not let cities ban short-term rentals outright, but they can require permits and enforce local rules.

What does it take for a Phoenix rental to qualify for a DSCR loan?

At Zillow's Phoenix average rent of $1,571 a month as of September 30, 2026 and the Freddie Mac 30 year average of 7.32% for the week of October 22, 2026, principal and interest reaches a 0.75 DSCR on a loan up to $304,931, about a $406,574 purchase at 25 percent down, and a 1.0 DSCR on a loan up to $228,698, about a $304,930 purchase. At Zillow's typical Phoenix home value of $404,067 with 25 percent down, the property needs about $1,562 a month in rent for a 0.75 DSCR and $2,082 for a 1.0 DSCR. These figures are principal and interest only. Taxes, insurance, and HOA dues lower the real ratio. The levers that raise the ratio are a larger down payment or a property type or unit that rents above the citywide average.

Talk to Pillar Mortgage Group

Send us the address and the rent you expect, and we will run the real ratio with your actual taxes, insurance, and HOA before you write an offer. Start your Phoenix DSCR scenario.

Sources

1. Zillow, Phoenix, AZ Home Values (typical home value and average rent, data through September 30, 2026). https://www.zillow.com/home-values/40326/phoenix-az/
2. Freddie Mac, Primary Mortgage Market Survey (30 year fixed average 7.32% as of October 22, 2026). https://www.freddiemac.com/pmms
3. City of Phoenix, Short-Term Rental Permit page (accessed October 22, 2026). https://www.phoenix.gov/administration/departments/pdd/registration-licensing/short-term-rental-registry.html
4. Arizona Revised Statutes 9-500.39, Vacation rentals and short-term rentals (accessed October 22, 2026). https://www.azleg.gov/ars/9/00500-39.htm
5. Pillar Mortgage Group, DSCR Loans (program overview). https://pillarmortgagegroup.com/dscr-loans