STR / Airbnb DSCR Loans in Arizona
Arizona is a state-preemption STR market - cities cannot ban short-term rentals, only impose registration and tax requirements. Phoenix metro (especially Scottsdale, Old Town Scottsdale, Cave Creek) is one of the top STR markets in the country, supported by spring-training, golf, and snowbird seasonal demand. Sedona is a premium destination market.
Top Arizona markets for str / airbnb dscr
- Scottsdale / Paradise Valley: Top STR market in AZ; ADRs strong year-round.
- Phoenix: Old Town and Camelback areas top performers.
- Sedona: Limited supply; high ADR; strict HOA rules at some projects.
- Tucson: Lower entry; UA-area strong; Snowbird Q4-Q1.
- Lake Havasu / Bullhead City: Recreation/lake destination; weekend-heavy.
Arizona quick facts
- •State preemption: cities cannot ban STR
- •TPT license required
- •Phoenix metro top-tier STR DSCR market
- •Strong winter/spring seasonality
Active programs available in Arizona
Bridge Loan for Investors
confirmed 5/9/2026A streamlined short-term bridge loan program for non-owner-occupied investment properties, offering interest-only payments and no income documentation requirements for entity-based borrowers.
DSCR Loan for Investment Properties
confirmed 5/9/2026A DSCR loan program for investment properties that allows for short-term rentals, vacant properties, and qualification based on market rent without requiring a lease.
Foreign National Investment Loan
confirmed 5/9/2026Financing program for international investors purchasing U.S. real estate that does not require U.S. credit history or traditional U.S. income documentation.
Non-QM Investor Loan
confirmed 5/9/2026Financing solutions for condo projects that do not meet standard Fannie Mae or Freddie Mac guidelines, including those with litigation, high commercial space, or investor concentration.
Specialized Investor Loan Program
confirmed 5/10/2026A flexible, fully amortized HELOC solution for primary, second home, and investment properties with loan amounts up to $750,000 and fast funding in as little as 5 days.
Fix & Flip Loan for Investors
confirmed 5/9/2026Financing for experienced investors and developers focused on fix-and-flip projects with fast closing timelines.
DSCR Loan for Investment Properties
confirmed 5/9/2026A flexible Non-QM program offering full income, alternative income, and DSCR documentation options with fixed, adjustable, and interest-only rate structures.
Bank Statement Loan
confirmed 5/10/2026A non-QM bank statement program for service and tip industry workers that uses 12-24 months of bank deposits to calculate income without requiring tax returns.
Arizona STR / Airbnb DSCR FAQs
Is Airbnb legal in Phoenix and Scottsdale?
Yes. Arizona's state preemption law (HB 2672, 2016) prohibits cities from outlawing STRs. Cities can require registration, tax collection, and impose nuisance-based penalties, but cannot ban.
Does AZ require a state STR license?
AZ requires Transaction Privilege Tax (TPT) license for STR operators. Most platforms collect TPT and forward, but you must register your property with the Arizona Department of Revenue.
What's the Phoenix metro STR seasonal pattern?
Q4 (Oct-Dec) and Q1 (Jan-Mar) are peak: snowbirds, spring training, Phoenix Open. Summer (Jun-Aug) is the slowest period; some operators reduce ADRs 30-40% to maintain occupancy.
General str / airbnb dscr questions
How is short-term rental income verified?
Three common methods: (1) 12-month trailing statement from Airbnb/VRBO/PriceLabs, (2) AirDNA Rentalizer report for the subject address, or (3) market-rent appraisal addendum that captures STR comps.
What expenses are deducted from gross STR income?
Most lenders apply a 20–25% expense deduction (cleaning, supplies, platform fees, vacancy) to gross STR revenue before computing DSCR. Some lenders use 30%.
Can I get an STR loan in a market that just banned short-term rentals?
Generally no. Lenders verify local STR ordinances and will pivot to long-term DSCR (or decline) if the address sits in a permit-restricted zone.
Got a Arizona str / airbnb dscr scenario?
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