Phoenix leads the build-to-rent figures we track. RealPage counted about 7,300 build-to-rent units under construction there in May 2026, and in August 2026 Phoenix alone held roughly 10% of a US pipeline of 59,660 units. Arizona also permitted 33,371 single-family units in 2025 (US Census Bureau). The sources are on our 2026 financing data page.
Our reading, as a lender: a large pipeline means your homes will lease against a lot of new competition, so the rent assumption is the part of the file that gets the hardest look.
What the lender reads, and why
| Part of the file | What is checked | Why it matters |
|---|---|---|
| The build | Site control, permits, plans, line-item budget with contingency, builder contract and record | Sets the construction loan, up to 85% of cost |
| The rent | Comparable rents for new rental homes nearby, not asking rents on listings | Decides what the take-out can repay |
| The take-out | A DSCR loan up to 80% of leased value, tested before the first draw | The construction loan is repaid from it |
| The phasing | Which homes finish first and when they lease | Cuts interest carry and proves the rents early |
Two loans in sequence
Both loans are made to a US LLC, from $1M to $5M, with a fee of 1% to 2% of each loan at closing and no upfront fees. The general mechanics are in financing a build-to-rent project under $5M.
| Construction loan | DSCR take-out | |
|---|---|---|
| Leverage | Up to 85% of total cost | Up to 80% of appraised value |
| Qualifies on | Budget, builder, schedule and exit | Rent against the loan payment, as low as 1.0x |
| Funding | Draws after each inspected stage | One payment that repays the construction loan |
| Payment | Interest-only on the drawn balance, typically 9% to 12% | 30-year fixed available, from 6% to 6.5% |
| Term | 12 to 24 months | 30 years |
Arizona points to plan for
- Each finished home has to be registered as residential rental property with the county assessor before the take-out
- An owner based outside Arizona names an in-state statutory agent when registering the rental
- Loans are secured by a deed of trust, and a trustee sale cannot be held sooner than 91 days after the notice of sale is recorded (A.R.S. 33-808)
- We finance the homes, not land development or public infrastructure: the lots should be finished or the horizontal work funded separately
Making the take-out work
Run the DSCR test before you commit to the land: 80% of the expected leased value has to repay the construction balance, and the rent has to cover the payment with taxes and insurance included. If it only works at the top of the rent range, the project is too tight for a pipeline this size. Phase the build so the first homes lease while the last are still going up; that gives the take-out a real rent roll instead of a projection.
Program details are on Arizona build-for-rent financing and investment property loans in Phoenix. A term sheet comes back in 24 to 48 hours.
Foreign investors building to rent in Arizona
Non-US investors finance Arizona build-to-rent on the same terms as US investors, through a US LLC and with no US credit history. Plan the statutory agent and the way draws are approved from abroad before the first one is due.