DSCR = monthly rent ÷ monthly payment (PITIA). Above 1.0 means the rent covers the loan. Also weigh down payment (20–25%+), reserves, and net cash flow after expenses.
Calculating DSCR
Divide market rent by the full monthly payment — principal, interest, taxes, insurance, and any HOA (PITIA). A DSCR of 1.25 means rent is 25% above the payment; 1.0 means it just covers it. Higher ratios unlock better DSCR pricing.
Estimating cash flow
Subtract the full payment and operating costs (vacancy, maintenance, management) from rent to gauge net cash flow. We’ll model both DSCR and cash flow so you buy with clear eyes.
| Input | Effect |
|---|---|
| Higher rent | Higher DSCR / cash flow |
| Larger down payment | Lower payment, higher DSCR |
| Higher rate | Lower DSCR |
| Higher taxes/HOA | Lower DSCR |
Frequently asked questions
What DSCR is "good"?
1.25+ is comfortable; 1.0 means rent just covers the payment. We’ll help you target a ratio that also cash-flows after expenses.
Can you run my deal?
Yes — send the price, rent, and down payment; we’ll compute DSCR, payment, and estimated cash flow.
Is DSCR the same as cash flow?
No — DSCR is rent vs. loan payment; cash flow subtracts all operating costs too. Both matter.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.