DSCR Qualifier

Will your property qualify for a DSCR loan? Check qualification, see rate sensitivity, and find your max purchase price.

Property & Loan
$

Purchase price or current value for a refinance.

%

Most DSCR loans offer 70-80% LTV. Lower LTV = better rates.

%

DSCR loan rates are typically 0.5-1.5% above conventional. Mid-2026: 6.5-8.5%.

Rental Income
$

Gross monthly rental income. Use market rent, not below-market or Section 8 contract rent.

$

Laundry, parking, storage, pet rent, etc.

%

Most lenders underwrite at 5-8%. Lower values may be overridden by the lender.

Operating Expenses
$
$
$
%

Typical: 8-10%. Set to 0% if self-managing (but lenders may add their own).

$

Combined maintenance, CapEx reserve, and repairs estimate.

Qualification Target

Used for reverse calculations — max purchase price and min rent.

DSCR

0.97

Net Operating Income divided by annual debt service. 1.25+ is standard, 1.0+ is minimum.

Monthly Cash Flow

-$28

Net monthly income after all operating expenses and mortgage payment.

Annual NOI

$12,245

Net Operating Income — gross rental income minus vacancy and operating expenses, before debt service.

Warnings

This property loses money every month.

Monthly cash flow is -$28. The rental income does not cover operating expenses plus the mortgage payment.

Either the rent is too low, the purchase price is too high, or the expenses need to come down. Check the reverse calculation for your max purchase price.

Cash Flow Breakdown

Gross rent$1,800
Vacancy-$144
Effective income$1,656
Property tax-$200
Insurance-$120
Management-$166
Maintenance-$150
NOI (monthly)$1,020
Mortgage payment-$1,049
Net cash flow-$28

What It Takes to Hit 1.25 DSCR

Max Purchase Price

$155,664

at 75% LTV

Min Monthly Rent

$1,583

at current price & rate

DSCR by LTV

LTVLoanPaymentDSCR
65%$130,000$9091.12
70%$140,000$9791.04
75%$150,000$1,0490.97
80%$160,000$1,1190.91

DSCR by Interest Rate

RatePaymentDSCR
6.0%$8991.13
6.5%$9481.08
7.0%$9981.02
7.5%$1,0490.97
8.0%$1,1010.93
8.5%$1,1530.88
9.0%$1,2070.85

How to Qualify

At current rents and rates, a 1.25 DSCR supports a max purchase price of $155,664 (you entered $200,000).

Reducing LTV from 75% to 70% lowers your monthly payment and improves DSCR. Some lenders offer better rates at lower LTV.

Self-managing (0% management fee instead of 10%) would save $166/month and improve your DSCR.