Published market hub · September 2026
Phoenix, AZ: a typical house misses 1.20x; the lender's ratio passes under about $249,300, and a house cash flows under about $224,300
At typical rent ($1,843, across rentals of all kinds, apartments included, not a house rent), a house at the typical price ($405,689) comes in at 0.74x, short of the 1.20x cushion. At the typical price, a house needs about $2,999 a month in rent to clear 1.20x. At $1,843 a month, the lender's 1.20x ratio works up to about $249,300 (a $187,000 loan); positive cash flow after a 25% set-aside for vacancy, repairs and management needs about $224,300.
The numbers
DSCR is the monthly rent divided by the full monthly payment (principal, interest, taxes, insurance and any HOA dues). At 1.20x the rent is 20% more than the payment. We use 1.20x as a cushion; many DSCR lenders accept as low as 1.00x. A lender sizes the loan on the lease or the appraiser's estimate of market rent (Form 1007), often the lower of the two, not on a city figure.
Typical rent
$1,843/mo
A typical asking rent across rentals of all kinds, apartments included, not a house rent. This page has no 3-bedroom figure, so every ratio on this page uses this rent. A specific house can rent for more or less than this figure, so run the numbers on that house's own rent.
Max monthly payment
$1,536/mo
Typical rent ($1,843/mo) divided by 1.20 (a 1.20x DSCR). Taxes and insurance are included in this payment; budget vacancy and repairs on top. Check it against your own numbers.
Typical home value
$405,689
The typical home value for the city as a whole.
Rent-to-price
5.4%
A year of rent divided by the typical home value. Higher means the rent does more of the work.
A typical house
0.74x DSCR
A house at $405,689 renting for $1,843 a month falls short of 1.20x and loses about $1,117 a month after a 25% set-aside for vacancy, repairs and management. The lender's ratio works near $249,300 (39% lower); a house that rents for more, or a bigger down payment, also gets there.
Price that works
up to about $249,300
The most a house can cost at 1.20x if it rents for $1,843 a month. That clears the lender's ratio; to also cover a 25% set-aside for vacancy, repairs and management, the price needs to be near $224,300. At 1.00x, many lenders' floor, it is about $299,100, though lenders often charge more or lend less there. Every price here assumes the house rents for $1,843; check its own rent.
Assumptions for every price on this page: 25% down and a 7.5% 30-year rate. Property taxes about 0.6% and landlord insurance about 0.5% of the price a year, a rough estimate for Phoenix-area rentals. Many houses here carry HOA dues, and they count in the lender's payment; this example assumes none, so add the house's dues.
- Typical rent of $1,843 leaves little room for property taxes, insurance, vacancy, or repairs at Phoenix’s typical home value.
- A rent shortfall or higher insurance costs can make a deal miss the 1.20x check; verify the property’s insurance quote and flood zone.
ZIP codes
Where to start
We don't have usable ZIP-level prices and rents this month, so this page lists no ZIP codes.
85021 is left out: its median price ($571,000) is well above the city's typical value ($405,689) while its median rent ($1,308 a month) is well below the city's rent ($1,843), so the two figures likely describe different kinds of homes.
Monthly read · September 2026
What we would do this month
What to do next
Buying
- Confirm the lease or an appraiser’s market-rent estimate, then calculate the full monthly payment.
- Negotiate a lower purchase price on a listing that has lingered; do not count on a price cut to make weak rent work.
- Include property taxes, insurance, vacancy, and repairs in your numbers.
Refinancing
- Check the lease, current value, taxes, insurance, and loan costs before moving ahead.
Holding
- Keep well-rented properties and review insurance, taxes, vacancy, and repairs against current rent.
Ask your lender which rent figure and monthly costs it will use to size the loan.
These are market numbers. A specific house needs its own rent, tax and insurance numbers, and the example deal is an illustration, not a loan quote.
When a specific house's rent covers its full payment with the 1.20x cushion, Sphinx Capital's loan application is the next step. Continue to application
Earlier monthly reads
Each used that month's numbers; the figures above are current.
- August 2026: Phoenix, AZ has been upgraded to a 'selected' market, signaling improved conditions for DSCR investors. Focus on disciplined pricing and expense control, particularly in West Phoenix's promising ZIP code 85031, to navigate a market with declining home values but increasing buyer leverage.
Buy, refinance, or hold
What to do if you are buying, refinancing, or holding
Buying
Look for houses priced under about $249,300 that rent for at least $1,843 a month, or houses that rent for more; a house at the typical price ($405,689) misses 1.20x at this rent. Buy only where the property’s rent supports the full payment; negotiate on price when the home has lingered.
Refinancing
Check the lease, current value, taxes, insurance, and loan costs before pursuing a refinance.
Holding
Keep well-rented properties; review insurance, taxes, vacancy, and repairs against current rent.
Application next step
Found a property here that works on your numbers?
Continue into Sphinx Capital's loan application when the rent on a specific property covers its full monthly payment with the 1.20x cushion. DSCRInfo will carry this market context into the application start.
If you apply with Sphinx Capital from this page, DSCRInfo may receive referral compensation. See disclosures
Risks
What could make this market stop working
- The typical rent may not hold for a specific house; check the lease or an appraiser’s market-rent estimate.
- Phoenix’s typical home value is $405,689, while metro listing prices are flat to slightly higher; verify the property’s value against recent comparable sales.
Buying conditions
What else we see
- Phoenix’s typical home value is $405,689. Metro listings are up year over year while the median listing price is flat to slightly higher; 27.6% of metro listings have price cuts. Homes spend a median 66 days on market across the metro, giving buyers time to compare and negotiate.
About these numbers
How this page is built
Updated September 25, 2026. City rent and home value and listing activity come from public sources, including U.S. federal and government datasets and public property listings. They show whether a market is worth a look, not whether a specific house works.
Every county in Arizona, with rent, property tax, insurance, vacancy and jobs: Arizona rent, property tax and insurance by county.
Application next step
Ready to apply?
Apply with Sphinx Capital once the market numbers and your property's numbers agree.