Financing tools
DSCR Qualification Calculator
DSCR loans qualify off the property's rental income relative to its debt payment, not your personal income. See where your numbers land.
Direct answer: DSCR = monthly rental income ÷ monthly PITIA (principal, interest, taxes, insurance, and association dues). A ratio above 1.00 means the rent covers the full debt service; below 1.00 means it doesn’t. Enter your numbers to see where a property lands.
DSCR (debt-service coverage ratio)
1.03x
Many DSCR lenders look for a ratio of 1.00–1.25 or higher, though minimums vary by lender and loan program — confirm current requirements directly with a loan officer. A ratio below 1.00 means the rent doesn't cover the full debt service.
- Monthly rental income
- $2,400
- Monthly principal & interest
- $1,958
- Monthly PITIA (full debt service)
- $2,328
Qualifying on the property, not you
A strong DSCR still depends on realistic rent.
DSCR loans remove personal income from the qualifying equation, but the ratio is only as accurate as the rent figure behind it. Use a defensible market-rent estimate, not an optimistic one, before relying on the result.
Methodology
How this is calculated.
- Monthly P&I uses the standard fixed-rate amortization formula.
- PITIA= P&I plus taxes, insurance, and HOA — the full monthly debt service a DSCR lender typically measures against.
- DSCR = monthly rental income ÷ PITIA.
This is a standalone qualification check, not a full investment analysis. For cash flow, cap rate, cash-on-cash return, and stress testing on the same property, use the Rental Property Analyzer.
Worked example (hypothetical)
A property renting for $2,400/month with a $280,000 loan at 7.5% over 30 years: principal and interest is roughly $1,958. Adding $250 in taxes and $120 in insurance brings PITIA to roughly $2,328 — a DSCR of roughly 1.03x. The rent covers debt service with a small margin, which may or may not meet a specific lender’s minimum.
Downside cases
- A DSCR near or below 1.00 can mean the property doesn’t qualify at all for some DSCR programs, or requires a larger down payment to lower the loan amount.
- DSCR loans commonly carry a higher rate than conventional owner-occupant financing, in exchange for qualifying off the property’s cash flow instead of personal income.
National considerations
DSCR minimums, rates, and terms vary by lender and are not standardized the way conventional/FHA/VA guidelines are.
Utah considerations
Rent levels and property taxes both feed directly into DSCR and vary by Utah county along the Wasatch Front.
Author: Todd McClean, Realtor® | Real Estate Investment Strategist, Mountainland Realty, Inc.. Reviewed July 19, 2026. This tool provides general real estate information and is not legal, tax, accounting, lending, securities, commodities, or financial-planning advice.
Next step
Evaluating a DSCR loan?
A strategy review can help think through the full picture beyond qualification.