DSCR (Debt Service Coverage Ratio)
A ratio that compares a property's gross monthly rent to its total monthly debt obligation (PITIA). DSCR = Gross Rent ÷ PITIA. A 1.0 DSCR means rent exactly covers the mortgage payment; above 1.0 is positive cash flow; below 1.0 means rent doesn't cover the payment. The qualifying metric for DSCR loans. See How to Calculate DSCR →
Why it matters on a DSCR loan
Run this ratio yourself before making any offer — you need market rent and a realistic PITIA estimate including taxes, insurance, and HOA dues, which investors routinely underestimate in high-tax or high-insurance markets. The ratio the lender uses is based on the appraiser's rent figure, not your projection, so leave margin rather than engineering a deal to land exactly at the minimum. Higher DSCR tiers generally earn better pricing, so a strong ratio is worth money, not just approval.
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).