DSCRRadar

Home › Investor Yield Index

Phoenix, AZ, Investor Yield Index

Phoenix scores 7/100 (grade D) and ranks #18 of 18 tracked metros for rental cash flow. At the Phoenix-Mesa median of $330,995 renting near $1,742/mo, the estimated DSCR is 0.65 at a 6.80% loan rate, which is below the 1.2 lender minimum.

Figures use live Zillow medians, not a lender quote. Run your real numbers below.

30-yr mortgage: 6.80% DSCR loan: 7.75% Hard money: 11.50% Updated Jun 19, 2026, 11:13 PM Live
D

Index 7/100 · rank #18

Cap rate

3.79%

Gross yield

6.32%

Median price

$330,995

DSCR

0.65

Cash-on-cash

-7.42%

Monthly rent

$1,742

GRM

15.83
Below the DSCR line at standard terms. The estimated 0.65 DSCR falls short of the 1.2 minimum at 6.80% and 25% down, so net rent does not fully cover the debt payment. The 7/100 score ranks Phoenix #18 of 18 for relative cash flow, a larger down payment or a rate buydown is the usual path to qualify.

Run the numbers on a Phoenix deal

Pre-filled with Phoenix medians. Adjust price, rent, and rate to your actual deal.

3.79%
Cap rate · DSCR 0.65 · cash-on-cash -7.42%
Gross yield
6.32%
Cap rate
3.79%
NOI / yr
$12,542
Loan amount
$248,246
Monthly P&I
$1,618
DSCR
0.65
Annual cash flow
-$6,878
Cash-on-cash
-7.42%
GRM
15.83
Rent / price
0.53%

Assumptions: 25% down + 3% closing costs, 40% opex/vacancy load 30-year amortization. Lenders typically require DSCR ≥ 1.2. Estimates, not a quote.

Get matched with DSCR & hard-money lenders

Compare real rate quotes from investor-friendly lenders for your next rental or flip. Free, no obligation.

Common questions about Phoenix

Is Phoenix, AZ a good market for rental investors in 2026?

On the Investor Yield Index it scores 7/100 (grade D), ranking #18 of 18 tracked metros. The median price is $330,995 with rent around $1,742/mo, producing an estimated 3.79% cap rate and 0.65 DSCR at a 6.80% financing rate. At today's rates few U.S. metros clear positive cash flow on default terms, so the score is best read as where Phoenix stands relative to other markets.

What is the cap rate in Phoenix?

The model estimates a 3.79% cap rate at the median price-to-rent ratio, assuming a 40% operating-expense load. Your actual cap rate depends on the specific property and expenses.

Will a rental in Phoenix qualify for a DSCR loan?

It’s tight. The estimated DSCR of 0.65 is below the typical 1.2 minimum at 6.80%; a larger down payment or rate buydown may be needed to qualify.

Markets ranked near Phoenix

The closest metros above and below Phoenix on the index, plus the top markets for comparison.

Dallas, TX

32 · #14 · grade C

Nashville, TN

13 · #15 · grade D

Las Vegas, NV

11 · #16 · grade D

Austin, TX

9 · #17 · grade D

Cleveland, OH

100 · #1 · grade A

Memphis, TN

100 · #2 · grade A

Birmingham, AL

100 · #3 · grade A

See all 18 markets →

Index assumptions, 25% down, a 40% operating-expense load, 30-year amortization, and a 6.80% loan rate. DSCR is net operating income divided by annual debt service, lenders typically want at least 1.2. Cap rate, gross yield, DSCR, and cash-on-cash are weighted 30, 20, 30, and 20 percent. Prices and rents are live Zillow figures for relative comparison, not lender quotes or investment advice.