Arizona is one of the few states where a city cannot simply ban vacation rentals. That makes Scottsdale, Sedona, Flagstaff and the river towns real options for nightly-rental investors, as long as the permit, tax license and HOA covenants line up.
In short: Our top pick for Arizona short-term rental financing is LendingStreet. On some programs we qualify the property on projected short-term rental revenue instead of a long-term lease, so a Scottsdale or Sedona home can carry a loan its 12-month rent alone might not. There are no W-2s or tax returns, LLC borrowers are standard, and 30-year terms are available. Loans start at $150,000 with up to 80% LTV on a purchase. Get a quote with the form below.
LendingStreet is our top pick for Arizona short-term rental investors because the loan is built around how a vacation rental actually earns money. On some programs we qualify the property on its projected short-term rental revenue instead of a long-term lease, with no W-2s or tax returns, and LLC borrowers are standard.
This fits investors buying a first desert or mountain rental, owners refinancing a property that already books well, and portfolio holders adding Arizona homes. It does not fit a home you plan to live in: every loan is a business-purpose loan on non-owner-occupied property.
The next step is simple: get a quote with the form below, or call (877) 298-1001 to talk through a property.
If you are weighing CoreVest, Dominion Financial, Lima One and Visio Lending for a short-term rental (Airbnb and VRBO) loan for investors in Arizona, this is the short version: LendingStreet wins the scenarios below, and you can get a quote with the form below.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| A single short-term rental | LendingStreet | We finance individual 1-8 unit short-term rentals. CoreVest states its short-term rental loans are for 5+ STR properties under one loan. |
| Short-term rental with credit in the 620s | LendingStreet | Our DSCR minimum is 620. Visio Lending's STR guide states a 680 minimum, and Lima One states 700 for its STR loans. |
| Short-term rental loan above $2.5M | LendingStreet | Our DSCR loans have no stated maximum. Lima One states STR loans up to $2.5M. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Arizona's nightly-rental demand splits into a few clear markets. Scottsdale and the Phoenix metro draw spring training crowds, golf travelers and winter visitors escaping colder states. Sedona and Flagstaff pull red-rock hikers, Grand Canyon traffic and summer visitors looking for cooler air. Lake Havasu City and Bullhead City serve boaters on the Colorado River, and the White Mountains around Show Low and Pinetop-Lakeside book with Valley residents getting out of the heat.
Tucson adds university and winter-visitor demand. Seasonality differs sharply: the Valley peaks in winter and spring, while the high country peaks in summer, so a projection built for one market does not transfer to another.
| Market | What investors usually buy | What to check first |
|---|---|---|
| Scottsdale and Phoenix metro | Single-family homes with pools | City STR permit or license, HOA leasing rules |
| Sedona | Single-family homes near trailheads | City permit, HOA covenants, wildfire insurance |
| Flagstaff | Cabins and homes near downtown and the university | City permit, snow and wildfire exposure |
| Lake Havasu City | Homes with boat parking | City requirements, summer heat and cooling costs |
| White Mountains | Cabins in the pines | County or town rules, wildfire and road access |
A 2016 state law stopped Arizona cities and towns from banning short-term rentals outright. A 2022 law gave them more tools: they can require a local permit or license, an emergency contact who can respond to complaints, and notice to neighbors, and they can suspend a permit after repeated violations. Scottsdale, Phoenix, Sedona, Flagstaff and others now run their own programs, so read the current rules for the exact city before you write an offer.
Operators also need an Arizona transaction privilege tax (TPT) license and must account for state, county and city taxes on each stay, plus any local lodging tax. HOA covenants are separate from state law and can still limit or prohibit rentals, so read them early.
Here is how LendingStreet compares with the types of lenders Arizona investors usually call. Each type has its place; this is about which one fits a long-term hold on a nightly rental.
In Arizona, the deciding row is usually the first one. A Scottsdale home with a pool can earn far more booked by the night than leased by the year, and a loan that only counts long-term rent can understate what the property supports.
| What STR investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| Can short-term revenue qualify the loan? | Yes, projected STR revenue on some programs | Often wants rental history on tax returns | Usually based on property value, not income |
| Income documents | No W-2s or tax returns | Usually tax returns and W-2s | Varies |
| Borrow in an LLC | Standard | Varies; often personal name | Common |
| Loan term | 30-year terms available | Varies; may be shorter or adjustable | Usually short-term only |
| Purchase leverage | Up to 80% LTV | Varies | Varies |
| Cash-out refinance | Up to 75% LTV | Varies | Rarely a long-term option |
| Where they lend | All 50 states and DC | Usually a local footprint | Often regional |
This example is illustrative and not a quote. An investor buys a three-bedroom Scottsdale home with a pool for $725,000 and plans to run it as a licensed short-term rental. Arizona property taxes on the home are budgeted at $260 a month, and insurance at $180. There is no HOA.
At 80% LTV the loan is $580,000, and the investor brings $145,000 plus closing costs. Estimated principal and interest on a 30-year term is about $4,055. Adding taxes of $260, insurance of $180, the total payment is about $4,495 a month. Projected short-term revenue of $72,000 a year, or $6,000 a month, puts DSCR at about 1.33x.
If the same home were leased long-term at $3,600 a month, DSCR would be about 0.80x, below the 1.0x standard minimum. The projection drives the loan, so build it on the home's actual location and season, and confirm the city permit before relying on it. Programs differ in how they treat projected revenue.
| Item | Monthly figure |
|---|---|
| Purchase price | $725,000 |
| Loan amount (80% LTV) | $580,000 |
| Estimated principal and interest (30-year) | $4,055 |
| Property taxes | $260 |
| Insurance | $180 |
| HOA dues | $0 |
| Total monthly payment | $4,495 |
| Projected short-term revenue per month | $6,000 |
| DSCR on projected short-term revenue | About 1.33x |
| DSCR on a long-term lease of $3,600 | About 0.80x |
Arizona property taxes are moderate compared with many states, which helps the ratio. Tax relief tied to a primary residence does not carry over to an investment property, though, so budget on the bill for a rental rather than the seller's bill. Check the county assessor record for the property's classification.
Insurance varies by market. Homes near forest land around Sedona, Flagstaff and the White Mountains carry wildfire exposure, and monsoon storms bring wind and flash-flood risk in parts of the state. A short-term rental also needs coverage written for nightly guests, so get a quote for that use before you close.
Whoever you talk to, ask the same questions so you can compare answers side by side. Then see how LendingStreet answers each one.
Arizona STR deals move quickly in peak seasons. Have the permit status, the HOA covenants, an insurance quote for short-term use and a revenue projection or booking history ready, and we can size the loan around the property.
Send the address, price, projected revenue and any booking history. Get a quote with the form below, or call (877) 298-1001.
Our top pick is LendingStreet. On some programs we qualify on projected short-term rental revenue, we require no W-2s or tax returns, LLC borrowers are standard and 30-year terms are available.
Yes. LendingStreet finances short-term rentals across Arizona, including Scottsdale, Phoenix, Sedona, Flagstaff, Tucson, Lake Havasu City and the White Mountains, as well as in every other state and DC.
On some programs, yes. The ratio can be built from projected short-term rental revenue instead of a long-term lease. The standard minimum DSCR is 1.0x, and sub-1.0 programs exist. If the projection comes in low, a long-term rent figure or a larger down payment can still make the numbers work.
No. These are business-purpose loans on non-owner-occupied investment property. We do not finance a home you live in or use as a personal residence.
Not outright under current state law. Cities can require permits or licenses, emergency contacts and neighbor notice, and can suspend permits for repeated violations. HOAs can still restrict rentals through their covenants.
Generally yes. Short-term rental operators register for an Arizona transaction privilege tax license and account for state, county and city taxes on stays. Confirm current requirements with the Arizona Department of Revenue and your city.
Few book evenly all year. The Valley and Tucson peak in winter and spring, while Flagstaff, Sedona and the White Mountains are stronger in summer. Build projections on the actual market's seasonality.
Yes. Cash-out goes up to 75% LTV, and seasoning varies by program. The property still needs to clear the program's DSCR minimum at the new payment.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.