DSCR Calculator
Calculate the debt-service coverage ratio investors use to qualify Florida rental properties — no personal income docs needed.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
DSCR = rental income ÷ debt service. Most lenders want 1.0 or higher; some allow below 1.0 with a larger down payment. No personal income docs required. Estimate only.
DSCR loans qualify investors on the property cash flow rather than personal income. The debt-service coverage ratio compares the monthly rent to the full mortgage payment, including taxes, insurance, and HOA.
A ratio of 1.0 means rent exactly covers the payment. Most lenders want 1.0 or higher, though some approve ratios slightly below with a larger down payment or reserves.
How to Use This Calculator
- 1
Enter the expected monthly rental income, supported by a lease or market rent analysis.
- 2
Enter the loan amount and an illustrative rate.
- 3
Add monthly taxes and insurance, plus any HOA dues.
- 4
Read the DSCR — at or above 1.0 generally qualifies for standard pricing.
The Formula & Assumptions
PITIA = P&I + taxes + insurance
+ HOA
DSCR = monthly rent ÷ PITIA
Target: DSCR ≥ 1.00
The debt-service coverage ratio divides the property gross monthly rent by its full monthly obligation — principal, interest, taxes, insurance, and association dues.
A DSCR of 1.25 means the rent is 25% more than the payment, which lenders view favorably. A ratio under 1.0 means the property runs a shortfall and may require a larger down payment to qualify.
Because DSCR loans rely on the property rather than tax returns or W-2s, they are popular with self-employed investors and those scaling a portfolio. Rates run higher than owner-occupied loans.
Frequently Asked Questions
What DSCR do I need to qualify?
Most lenders look for a ratio of 1.0 or higher, meaning rent covers the full payment. Some programs allow ratios as low as 0.75 with a larger down payment, while a ratio of 1.25 or more earns the best pricing.
Do DSCR loans require income documentation?
No. DSCR loans qualify on the property cash flow rather than your personal income, so there are no tax returns, W-2s, or pay stubs required. That makes them ideal for self-employed investors.
What counts in the debt-service figure?
The full monthly obligation: principal, interest, property taxes, insurance, and any HOA or condo association dues. This is sometimes abbreviated PITIA.
Can I use projected rent instead of a current lease?
Often yes. Lenders typically accept a market rent analysis from the appraisal (Form 1007) when the property is not yet leased, using the lower of the lease or market rent.
Ready to Turn Your Estimate Into a Real Pre-Approval?
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Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.