What is the DSCR on my rental property?
DSCR, the debt service coverage ratio, is a rental property’s monthly rent divided by its full monthly payment: principal, interest, taxes, insurance and HOA dues, called PITIA. A rental that brings in $2,600 a month against a $2,497.64 payment has a DSCR of 1.040, which meets the 1.000 minimum in the Luxury Mortgage Simple Access guideline this calculator follows.
A DSCR loan qualifies on the property’s rent instead of your income. Put in your rent and loan below to see your ratio and where it falls on the guideline.
DSCR
1.040
$2,600.00 rent divided by $2,497.64 PITIA
At or above the 1.000 minimum in the guideline.
- Principal and interest, 30-year
- $2,097.64
- Taxes, insurance and HOA
- $400.00
- PITIA
- $2,497.64
Rent of $2,497.64 a month would put this property at exactly 1.000.
A worked example
A $300,000 loan at a 7.5% example rate, figured as a 30-year amortizing payment the way the guideline requires, is $2,097.64 a month. Taxes of $3,000 a year and insurance of $1,800 a year add $400.00, for a PITIA of $2,497.64.
$2,600 ÷ $2,497.64 = 1.040. Rent of $2,497.64 would put the property at exactly 1.000.
Where the thresholds come from
Every threshold here is from one lender’s published guideline: Luxury Mortgage Corp, Simple Access Non-QM Underwriting Guidelines, version 9.2 (July 8, 2026, revised July 31, 2026), Section 5.5 and Exhibit C. Other DSCR lenders set their own minimums, so a ratio that falls short here may fit somewhere else, and the other way around. The guideline figures the payment over 30 years at the starting rate, even when the loan itself has a different term, unless the interest-only payment can be used.
Questions people ask
What is a good DSCR?
1.000 or higher meets the minimum in the guideline this calculator follows. At 1.000 the rent exactly covers the full payment; above it, the property brings in more than it costs each month. The ratio is figured precisely and is never rounded up, so 0.999 is below 1.000.
Can I get a DSCR loan with a ratio below 1.0?
Under this guideline, down to 0.750, with a lower maximum loan-to-value, a higher minimum credit score and 6 more months of payments in reserve. Below 0.750 is not eligible. For a foreign national client the floor is 0.90, and a 5 to 10 unit property needs at least 1.15.
Does a DSCR loan look at my income?
No. The guideline qualifies the loan on the property’s rent: no income or employment is verified and no debt-to-income ratio is figured. It is a business purpose loan on an investment property.
Which rent does the lender use?
On a refinance, the guideline uses the lesser of the current lease and the market rent from the appraiser’s rent schedule. For a new lease starting within 60 days of closing, it uses the lesser of the lease and market rent, with proof the first month’s rent or deposit was received. Short-term rentals have their own rules, including a 1.0 minimum DSCR.
Can the interest-only payment be used?
Yes, on a loan with an interest-only feature, a credit score of at least 680 and a loan-to-value of 80% or less. In the example on this page it raises the DSCR from 1.040 to 1.142. It is not allowed for foreign national clients or for 5 to 10 unit properties, which use the amortizing payment.
Do I need to have been a landlord before?
Under this guideline, at least one applicant needs a 12-month history of owning and managing rental property unless the DSCR is above 1.0. There is also a waiver on purchases that meet several conditions, including a 680 credit score and no late housing payments in the last 12 months.
Your next step
DSCR loans are not in the online pricing tool, so the next step is a conversation about your property. You can call me at (843) 765-0000 or schedule an appointment when you are ready or if you have questions.
More calculators
Educational information, not a loan approval or commitment to lend. A calculator works out what you type into it; it does not approve or deny anyone, and your own figures come from your Loan Estimate. Jeff Moran, NMLS #483943, through C2 Financial Corporation, NMLS #135622. Equal Housing Opportunity.