DSCR Loan Calculator
Rental Cash Flow & Debt Service Coverage Ratio — 2026
Enter your rental property price and expected rent — get DSCR ratio, monthly cash flow, full PITIA breakdown, and lender qualification status. No income docs required. Powered by live FRED rates and 2026 guidelines.
What the DSCR calculator shows you
Most calculators show only P&I. HomeRates.ai computes full PITIA — principal, interest, taxes, insurance, and HOA — so the DSCR ratio matches what a non-QM lender actually sees, not an optimistic estimate.
Accurate DSCR ratio
Rent ÷ full PITIA — not just P&I. The number that matters to lenders, calculated the same way they calculate it.
Monthly cash flow
Gross rent minus full PITIA. See your actual monthly surplus (or deficit) before vacancy and maintenance reserves.
Lender qualification status
Instant verdict: strong approval, standard approval, borderline, or likely decline — based on your DSCR against 2026 non-QM thresholds.
Full PITIA breakdown
Principal & interest, estimated property taxes, homeowners insurance, and HOA — every component shown separately so nothing is hidden.
Live DSCR rates
DSCR loans price at a premium to conventional. HomeRates.ai applies the current spread over the FRED 30-year average for a realistic rate estimate.
Scenario comparisons
What if rent drops $200? What if rates fall 0.5%? What rent do you need to hit 1.25 DSCR? Run any follow-up instantly in the chat.
DSCR by home price and rent — 2026
Assumes 25% down · 7.25% rate · 30-year fixed · Taxes 1.1%/yr · Insurance 0.35%/yr · No HOA. Rent estimates based on typical 0.8% rent-to-price ratio.
| Price | Down (25%) | Gross Rent | Full PITIA | Cash Flow | DSCR | Status |
|---|---|---|---|---|---|---|
| $250,000 | $62,500 | $2,000/mo | $1,661/mo | +$339/mo | 1.20 | 🟡 Borderline |
| $300,000 | $75,000 | $2,400/mo | $1,993/mo | +$407/mo | 1.20 | 🟡 Borderline |
| $350,000 | $87,500 | $2,800/mo | $2,326/mo | +$474/mo | 1.20 | 🟡 Borderline |
| $400,000 | $100,000 | $3,200/mo | $2,658/mo | +$542/mo | 1.20 | 🟡 Borderline |
| $450,000 | $112,500 | $3,400/mo | $2,990/mo | +$410/mo | 1.14 | 🟡 Borderline |
| $500,000 | $125,000 | $3,600/mo | $3,323/mo | +$277/mo | 1.08 | 🟡 Borderline |
| $600,000 | $150,000 | $4,200/mo | $3,987/mo | +$213/mo | 1.05 | 🟡 Borderline |
Rent estimates are illustrative. Your actual rent, local taxes, and HOA will change the DSCR. For educational purposes only.
DSCR lender thresholds — what each ratio means
Non-QM lenders use DSCR tiers to set approval, rate, and LTV. Here is what each threshold means in practice for a 2026 DSCR loan.
| DSCR Range | Approval Status | Max LTV | Rate Impact | Notes |
|---|---|---|---|---|
| Below 0.75 | ❌ Most lenders decline | N/A | N/A | Property cash flows negative — needs large down payment or rent increase |
| 0.75 – 1.00 | ⚠️ No-ratio programs only | 65–70% max | +1.5–2.0% | Some specialty lenders; higher rate, lower LTV required |
| 1.00 – 1.24 | 🟡 Some lenders OK | 70–75% max | +0.5–1.0% | Breakeven or near-breakeven; requires strong credit (700+) |
| 1.25 – 1.49 | ✅ Standard approval | Up to 80% | Market rate | Most non-QM lenders approve at standard terms |
| 1.50+ | ✅ Strong — best pricing | Up to 80% | Best pricing | Strong cash flow; may qualify for lowest DSCR rates available |
Thresholds vary by lender. Some specialty lenders offer more flexible terms. Ask HomeRates.ai about current DSCR lender requirements →
How HomeRates.ai calculates your DSCR
The calculation is deterministic — not AI-estimated. The same inputs always produce the same output, using the same math a non-QM lender uses.
- Full PITIA calculated — monthly principal & interest at the current DSCR loan rate, plus estimated property taxes (1.1%/yr), homeowners insurance (0.35%/yr), and any HOA dues entered.
- DSCR ratio computed — gross monthly rent divided by full PITIA. This is the ratio lenders pull from the 1007 rent appraisal or existing lease, compared against their minimum threshold.
- Cash flow shown — gross rent minus PITIA gives your monthly surplus before vacancy (typically 5–8%) and maintenance reserves. Annual cash-on-cash return is also computed.
- Lender qualification status — your DSCR is compared against the 1.0, 1.25, and 1.5 thresholds to show approval odds, expected rate tier, and maximum LTV.
- 2026 loan limits applied — loan amount is checked against the 2026 FHFA conforming limit ($832,750 standard, up to $1,249,125 high-cost) to flag jumbo territory.
Frequently asked questions
What is a DSCR loan calculator?
A DSCR loan calculator computes the Debt Service Coverage Ratio — gross monthly rent divided by full monthly PITIA (principal, interest, taxes, insurance, HOA). Lenders use DSCR to qualify investors without personal income docs. A DSCR of 1.25 means rent is 25% above the payment — the standard minimum for most non-QM lenders.
What DSCR do lenders require in 2026?
Most DSCR lenders require 1.0 minimum (some allow it with 25–30% down) and prefer 1.25+ for standard terms. At 1.25 you get market rate and up to 80% LTV. Below 1.0, most lenders decline. Some specialty lenders offer "no-ratio" programs at 0.75+ with compensating factors and reduced LTV.
What is a good DSCR ratio for an investment property?
Above 1.25 is good — the property covers its debt with 25% margin. Above 1.5 is strong and qualifies for the best rates. Below 1.0 is cash-flow negative and most lenders will decline. The higher the DSCR, the better your rate, LTV, and approval odds.
How is DSCR calculated?
DSCR = Gross Monthly Rent ÷ Monthly PITIA. Example: $2,800 rent ÷ $2,100 PITIA = 1.33 DSCR. HomeRates.ai computes full PITIA — not just P&I — for an accurate ratio. Most basic calculators understate PITIA by omitting taxes, insurance, or HOA.
What is the minimum down payment for a DSCR loan?
20–25% for single-family investment properties at most non-QM lenders. Some allow 15% with DSCR 1.25+ and 700+ credit. 2–4 unit properties typically require 25%. The 2026 conforming limit for investment properties is $832,750 standard county per FHFA guidelines.
Do DSCR loans require income verification?
No — DSCR loans qualify the property, not your personal income. Lenders use a 1007 rent appraisal or existing lease instead of W-2s or tax returns. This makes them popular with self-employed investors and those with complex income. You still need a credit score (usually 640+) and reserves (typically 6 months PITIA).
How accurate is the HomeRates.ai DSCR calculator?
HomeRates.ai uses a deterministic calculation engine — same inputs, same output, no AI guesswork. It computes full PITIA (not just P&I), uses live FRED rate data, and applies 2026 FHFA limits. Results match what a non-QM lender would calculate. For educational purposes only — not a commitment to lend.