Is Arizona a good place to invest in real estate?

Yes. Arizona's combination of strong population growth (12% from 2010-2020), a robust economy ($34B+ in new investments FY2025), and limited supply of private land (only 29% of the state is privately owned) makes it a highly attractive market for real estate investment. The All-Transactions House Price Index has grown over 728% since 1980.

What down payment do I need for an investment property in Arizona?

Most lenders require 15-25% down for investment properties. Single-family rentals typically require 15-20%, while multi-family (2-4 units) usually requires 20-25%. Some DSCR lenders may require 25% or more for first-time investors.

Are investment property rates higher than primary residence rates?

Yes. Expect to pay 0.5% to 1.0% higher than primary residence rates. As of early 2026, investment property rates in Arizona typically range from 7.5% to 8.5% depending on credit score, down payment, and loan type.

How has land appreciated in Arizona?

Historically, raw land in Arizona has shown significant appreciation, with rates of 10% or more annually in strong markets. Even in slower periods, growth of 2-4% is typical, particularly in high-demand areas near expanding metropolitan centers like Phoenix and Tucson. The limited supply of private land (only 26 million acres) drives this growth.

Can I use rental income to qualify for the mortgage?

Yes, most lenders allow 75% of projected rental income to offset the mortgage payment. DSCR (Debt Service Coverage Ratio) loans go further—they qualify you entirely based on the property's rental income, not your personal income.

How many investment properties can I finance?

Fannie Mae allows up to 10 financed properties per borrower. However, properties 5-10 have stricter requirements (25% down, 6+ months reserves per property). Portfolio and DSCR lenders often have no property limits.

What are the best Arizona areas to invest in?

Areas with strong job growth and infrastructure development present the best opportunities. The Southeast Valley (Chandler, Gilbert, Queen Creek) offers tech corridor growth with Intel expansion. Tucson suburbs (Marana, Oro Valley) provide higher cap rates with university and Raytheon demand. Phoenix remains the largest and most liquid market.

Is Arizona landlord-friendly?

Yes. Arizona is considered one of the most landlord-friendly states. Eviction timelines are relatively short (typically 30-45 days), there's no rent control, and security deposit rules are straightforward. The Arizona Residential Landlord and Tenant Act governs these relationships.

What property taxes should I expect in Arizona?

Arizona has relatively low property taxes—the effective rate averages 0.62%, well below the national average of 1.1%. On a $400,000 investment property, expect roughly $2,480 annually in property taxes. This tax-friendly environment improves cash flow for investors.

Does Arizona have an inheritance tax on investment properties?

No. Arizona has no state-level inheritance or estate tax, allowing investors to pass properties to heirs without additional state taxation. This makes Arizona attractive for building generational wealth through real estate.

Can I buy investment property with an FHA or VA loan?

Not directly. FHA and VA loans require owner-occupancy. However, you can buy a 2-4 unit property with FHA (3.5% down) or VA (0% down), live in one unit, and rent the others. After 12 months of occupancy, you can move out and keep the property as a rental.

Arizona Investment

Finance YourArizona Investment Property

Arizona's real estate market has appreciated over 728% since 1980. With only 29% of the state being private land and 130,000+ new residents annually, demand consistently outpaces supply. Whether you're buying your first rental or expanding a portfolio, we'll find the right financing.

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728%+

home price growth since 1980

29%

private land (limited supply)

0.62%

avg. property tax rate

130K+

new Phoenix residents (2022)

Financing Options

Investment Property Loan Options

Different loans for different investor profiles. Here's what's available in Arizona.

Conventional

Down Payment15-25%

RatesMarket + 0.5-0.75%

Max PropertiesUp to 10 financed

Best rates for well-qualified investors

Learn more

DSCR Loans

Down Payment20-25%

RatesMarket + 1-2%

Max PropertiesNo limit

Qualify based on rental income, not personal income

Portfolio Loans

Down Payment20-30%

RatesVaries by lender

Max PropertiesNo limit

Flexible terms for experienced investors

Jumbo Investment

Down Payment25-30%

RatesMarket + 0.75-1.25%

Max PropertiesUp to 4

For properties above conforming limits ($832,750)

Learn more

Market Comparison

Arizona Investment Markets

Compare key metrics across Arizona's top rental markets.

Phoenix Metro

Phoenix, Scottsdale, Tempe, Mesa

Median Price$450K

Avg. Rent$1,850/mo

Cap Rate4.5-5.5%

YoY Growth+8.2%

Why invest: Largest market, diverse economy

Southeast Valley

Chandler, Gilbert, Queen Creek

Median Price$520K

Avg. Rent$2,100/mo

Cap Rate4.0-5.0%

YoY Growth+9.1%

Why invest: Tech corridor, Intel expansion

Tucson Metro

Tucson, Marana, Oro Valley

Median Price$340K

Avg. Rent$1,450/mo

Cap Rate5.5-6.5%

YoY Growth+6.8%

Why invest: Higher yields, university market

Flagstaff

Flagstaff, Sedona region

Median Price$580K

Avg. Rent$2,200/mo

Cap Rate3.5-4.5%

YoY Growth+5.4%

Why invest: Vacation rentals, NAU students

View Arizona House Price Index on FRED

Land Investment

The Untapped Potential of Arizona Land

While residential real estate captures most attention, investing in Arizona's land offers a unique and potentially lucrative opportunity. A significant portion of the state—over 71%—is comprised of federal and tribal lands, leaving a finite supply of just 26 million acres of private land to accommodate a growing population.

This scarcity of private land, coupled with high demand from new residents and expanding industries, creates powerful dynamics for land value appreciation.

10%+

annual land appreciation in strong markets

2-4%

typical growth in slower periods