Opportunity Zone
A federally designated low-income census tract where investors can defer capital gains tax by investing through a Qualified Opportunity Fund. Typically combined with DSCR financing for the long-term hold.
Why it matters on a DSCR loan
Opportunity Zone investing is primarily a tax strategy, and the financing still has to stand on its own — the property must produce enough rent to pass the DSCR test regardless of the tax benefits. Investors commonly pair a Qualified Opportunity Fund equity structure with DSCR debt for the long hold, but should coordinate with a tax advisor first since entity structure affects how the loan is vested. Don't assume a zone designation improves underwriting; lenders evaluate the property and market, not the tax incentive.
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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).