Phoenix · Scottsdale · Tempe · Investment STRs only
Short-Term Rental DSCR Loans in Phoenix, Scottsdale and Tempe
TL;DR: Yes, you can finance a Phoenix, Scottsdale or Tempe Airbnb or VRBO with a DSCR loan if it is a business-purpose investment property you don't live in. Lenders size the loan on the rental's income instead of your tax returns. In these three cities, that income only counts if the property can legally operate: a state TPT license plus the city STR permit or license. We're a broker, so we compare STR-friendly wholesale programs for you.
- We compare STR-friendly wholesale programs by how they read booking income.
- Phoenix permit, Scottsdale and Tempe licenses, TPT and HOA checks handled up front.
- Purchase, cash-out and rate/term refinance for business-purpose investment homes.
Check your STR deal in 60 seconds
Built for one kind of deal: the Valley short-term rental
This site covers one thing: financing whole-home short-term rentals in the core of the Valley. For general Arizona DSCR financing (long-term rentals, purchases, small multifamily), see our Arizona home site at dscrloanarizona.com.
Can I get a DSCR loan for an Airbnb in Phoenix, Scottsdale or Tempe?
Usually, yes. Arizona law bars cities and towns from banning vacation and short-term rentals (A.R.S. § 9-500.39), so STR use is legal in all three cities. Lenders still want proof the property can operate here: a state TPT license, the city's STR permit or license, and income evidence the program accepts. Owner-occupied homes don't qualify.
What do Arizona cities require before an STR can take guests?
Phoenix, Scottsdale and Tempe each require their own annual STR permit or license. All three ask for a state transaction privilege tax (TPT) license, an emergency contact and neighbor notification. State law caps the local fee at $250 or the city's actual cost, whichever is lower. Scottsdale and Tempe also require at least $500,000 of liability coverage.
How do DSCR lenders count short-term rental income?
It depends on the program. Some lenders use 12 months of platform payout history, some accept a third-party market-data estimate for a new listing, and some count only long-term market rent from the appraisal. Which method the lender uses can change the DSCR on the same Scottsdale house, so we compare programs by income method first.
What does Arizona state law say about short-term rentals?
Arizona sets the outer boundary for every city on this page. Under A.R.S. § 9-500.39, a city or town may not prohibit vacation rentals or short-term rentals, and it may not regulate them based on their classification, use or occupancy except in specific ways the statute lists. Those permitted tools include:
- Health and safety rules (fire and building codes, sanitation, traffic, waste)
- Zoning and nuisance ordinances, including noise, applied the same way they apply to other residential property
- A requirement to give the city an emergency contact who can respond in person, by phone or by email at any hour
- A local regulatory permit or license, with the application limited to items the statute lists and a fee capped at the actual cost of issuing it or $250, whichever is less
- Neighbor notification before the first rental (adjacent and across-the-street single-family homes, or same-floor units in a multifamily building)
The statute also ties STRs to the transaction privilege tax (TPT) system run by the Arizona Department of Revenue. Each rental needs a TPT license, and the cities below ask for that license number on their applications.
What this means for financing: State preemption is one reason lenders tend to be comfortable with Valley STRs. A city can't simply zone them out of existence. It does not override private restrictions. An HOA's CC&Rs, a condo declaration or a deed restriction can still limit rentals under 30 days, and lenders and appraisers check for those.
Not legal advice. Statutes and ordinances change; confirm current rules with the city and your own counsel.
How do the Phoenix, Scottsdale and Tempe STR rules compare?
| Phoenix | Scottsdale | Tempe | |
|---|---|---|---|
| City credential | STR permit from Planning & Development (City Code § 10-195) | Annual STR / vacation rental license per property (City Code Ch. 18, Art. IX) | Annual STR license per unit |
| Applies to | Short-term rentals as defined by the city code | Rentals of less than 30 days | Rentals of 29 days or less |
| Fee (per city) | $250 initial and renewal | $250 per property, per year | $250 (reduced if issued on or after July 1) |
| Also required | TPT license; Maricopa County Assessor rental registration; certified-mail notice to neighbors and nearby registered HOAs/neighborhood groups; permit number on every ad | TPT license; neighbor notification within 30 days of licensing; at least $500,000 liability coverage | TPT license; Maricopa County Assessor registration; at least $500,000 liability coverage; neighbor notice emailed to the city |
| ADU note | For ADUs with a certificate of occupancy issued on or after Sept. 14, 2024, the owner must attest they will live on the property (effective April 4, 2026) | Check the city code | Check the city code |
The Phoenix ADU rule matters for DSCR. Under the Phoenix rule above, an ADU STR on such a property requires the owner to live on site. A property where you live doesn't fit an investment-only DSCR loan. If the deal depends on renting a newer Phoenix ADU short-term, raise it before you're under contract.
Explore the Phoenix and Scottsdale STR market hub or jump to a neighborhood:
What paperwork will an STR DSCR lender ask for in the Valley?
STR files ask for more than long-term rental files. A complete Phoenix, Scottsdale or Tempe STR package usually includes:
- Address, property type and HOA status, plus the CC&R or condo rental clause if there is one
- Arizona TPT license number for the property, or proof you've applied
- City STR permit or license, or your application status
- Income evidence: for an existing STR, platform payout statements or a management-company owner statement covering the period the program asks for; for a new listing, a market-data income estimate or appraiser STR rent analysis, if the program accepts one, or long-term market rent if it doesn't
- Insurance quote that covers short-term rental use (Scottsdale and Tempe require liability coverage in their license process)
- Purchase contract or current mortgage statement, and the LLC documents if you'll hold title in an entity
- Occupancy confirmation that no owner or family member will live there
Bring the license and TPT items early. Lenders review the income, and the city reviews whether you're allowed to earn it.
Is STR DSCR better than long-term rental DSCR on the same Valley house?
It depends on the house, the program and how sure you are about the income. Here is how the two compare on factual terms:
| Question | Short-term rental DSCR | Long-term rental DSCR |
|---|---|---|
| Income the lender reads | Platform history, a market-data estimate or long-term rent, depending on the program | A lease and/or the appraiser's market rent |
| City credential | Phoenix permit or Scottsdale/Tempe license, plus TPT | No STR license. Long-term residential rentals still register with the county assessor under A.R.S. § 33-1902 |
| Number of wholesale programs | Fewer; some programs exclude STR or certain condo projects | More |
| Expenses in the file | Furnishing, cleaning, platform fees and management affect real cash flow, but lenders don't read them the same way | Fewer moving parts |
| Insurance | Policy has to cover STR use; Scottsdale and Tempe set a liability minimum | Standard landlord policy |
| HOA risk | Many Valley HOAs restrict rentals under 30 days | HOAs usually allow long-term leasing, with possible minimums |
| Exit flexibility | Can usually switch to long-term leasing if STR doesn't work | Switching to STR later needs the city credential first |
A common approach is to run the deal both ways. If it still covers the payment on long-term market rent, the STR income is upside. If it only works on projected booking revenue, choose a program built for that and expect more scrutiny. More detail in STR vs long-term rental DSCR.
What makes a Phoenix, Scottsdale or Tempe STR harder to finance?
HOA and condo restrictions. Many master-planned communities and condo projects across the Valley limit rentals under 30 days. State preemption covers cities, not your HOA. Get the CC&Rs before you submit the scenario.
Condo project reviews. Some lenders limit financing in projects with a large share of short-term units, or in projects that run like hotels with a rental desk, mandatory pooling or front-desk services. Scottsdale's resort-area condos and Tempe's near-campus buildings both deserve this check.
Seasonality. Valley STR income is seasonal. When a lender uses actual history, a partial year can look different from a full one. Tell us how long the property has operated and which months the statements cover.
City compliance history. Phoenix, Scottsdale and Tempe can all suspend STR credentials for violations. A suspended or lapsed permit is a red flag in any refinance file.
Furnishing and setup costs. On a purchase, the furniture budget is real cash. It usually isn't financed in the loan, so plan reserves for it.
Can I do a cash-out refinance on an existing Valley STR?
Often, if the property has history. A cash-out refinance on a seasoned STR usually needs platform or management statements, a current license and TPT record, and an appraisal that supports the value. Seasoning rules (how long you've owned it) vary by lender. Proceeds have to go to business purposes, such as the next purchase, a remodel or reserves. See STR cash-out refinance, or our national guide to DSCR cash-out refinances for the mechanics.
How does the process work with a broker?
Four steps from scenario to closing. The wholesale lender underwrites and makes the loan.
Send the scenario
City, HOA status, STR or long-term plan, value or price, and the loan you want.
We match the income method
Programs that read STR income in a way that fits, and a plain answer if it only works on long-term rent.
We line up compliance
TPT, city permit or license, STR insurance and HOA documents, so they don't hold up underwriting.
You choose a program
The wholesale lender underwrites the file, makes the credit decision and funds the loan.
Close in as little as 14-21 days when all documents are submitted on time. Typical closing is about 30 days. Pricing comes from wholesale lender partners and changes, so we don't publish a starting figure. Start an Arizona STR scenario on this site. Investment property only; you'll be asked to confirm occupancy.
STR financing options
Every option is a business-purpose loan for a home no owner or family member lives in. Start with the short-term rental DSCR loan overview.
Short-term rental DSCR loans
The core loan: qualify a Valley Airbnb on its income, not your tax returns.
Learn moreSTR purchase loans
Buying a home to list? What to check before the contract, and how new-listing income is sized.
Learn moreSTR cash-out refinance
Pull equity from a seasoned listing for the next business purchase or remodel.
Learn moreSTR rate/term refinance
Exit a short-term loan or restructure, without taking cash out.
Learn moreMulti-property STR financing
Individual or blanket loans when you hold several Valley listings.
Learn moreSTR DSCR calculator
Enter your own income, costs, loan amount and rate to see the ratio.
Learn more
The DSCR math in one line
Divide the monthly income a lender accepts by the full monthly payment (principal, interest, taxes, insurance and HOA). Example with user-style inputs: $5,400 of averaged Airbnb payouts against a $3,900 payment is 5,400 / 3,900 = 1.38. On long-term rent of $3,600, the same house is 0.92. The income method decides it.
Short-term or long-term on the same house?
Run it both ways. If it covers the payment on long-term rent, STR income is upside. Read STR vs long-term rental DSCR, or compare DSCR vs hard money for a renovation play.
Arizona STR financing FAQ
Do I need a Phoenix STR permit before I close on a DSCR loan?
It depends on the program. Some lenders want the permit in hand, and others accept proof that you’ve applied. Phoenix City Code § 10-195 prohibits renting or offering an STR without a current permit, so the property can’t earn STR income until you have one. Plan the permit timeline into your closing and first booking dates.
Can an Arizona HOA stop me from running a short-term rental?
Yes, potentially. A.R.S. § 9-500.39 limits what cities and towns can do. It doesn’t override private CC&Rs or condo declarations. If your community’s documents restrict rentals under 30 days, an STR-based loan probably won’t work there. Read the rental clause before you make an offer.
Is a Scottsdale condo in a resort-style building financeable as an STR?
Sometimes. Lenders review the condo project as well as your unit. Projects that operate like hotels, with rental pools, front desks or mandatory management, or that have a high share of short-term units, can fall outside many DSCR programs. Send the building name early so we can check program eligibility.
Does the lender use my Airbnb projections or real bookings?
It depends on the program. Seasoned listings are often reviewed on actual payout history. New listings may qualify on a market-data estimate if the program accepts one, and some programs count only long-term market rent. We’ll tell you which method each program uses before you choose.
Can I live in the property part of the year and rent it out the rest?
No, not with these loans. DSCR financing through Loan Daddy is for business-purpose, non-owner-occupied investment property only. A home you or your family use as a residence, even part-time, needs a different consumer product, and we don’t arrange those.
What Arizona taxes apply to short-term rental income?
STR operators need an Arizona transaction privilege tax (TPT) license through the Department of Revenue, and the cities ask for it in their permit process. Booking platforms may collect and remit some taxes, but you still need the license. Ask a tax professional about your obligations.
More answers on the STR DSCR FAQ and in our short-term rental financing guides.
Licensing: who is Loan Daddy LLC?
dscrloansarizona.loans is a Loan Daddy LLC brand. Loan Daddy LLC is a mortgage broker, not a lender (NMLS #2827624), headquartered in Scottsdale. In Arizona we hold AZ CMB Licensed · #CMB-2016143. We arrange business-purpose loans on non-owner-occupied investment property through wholesale lender partners, who underwrite and fund under their own guidelines and licenses. We don't arrange owner-occupied, consumer-purpose or government-insured loans. Details on our licensing page.
Related reading
Sources
- Arizona Revised Statutes § 9-500.39, Limits on regulation of vacation rentals and short-term rentals
- City of Phoenix, Short-Term Rental Registry / permit requirements
- Phoenix City Code § 10-195, Short-term rental; permits for vacation rentals required
- City of Scottsdale, Vacation and Short-Term Rentals: Information for Owners and Operators
- City of Tempe, Short-Term Rental License
- Arizona Department of Revenue, Transaction Privilege Tax licensing (AZTaxes)
- Arizona Revised Statutes § 33-1902, Residential rental property registration
Nothing on this page is legal or tax advice.
Ready to run your Valley STR?
Investment property only; you'll be asked to confirm occupancy. Loan Daddy LLC is a mortgage broker (NMLS #2827624) headquartered in Scottsdale. See licensing.