Table of contents
Table of contents
Loans
*Quote takes 1 minute, no credit pull
Insurance*1 quote from 40+ carriers
Listings*New listings daily
Table of contents
Table of contents
How to Calculate DSCR for Rental Property: A Step-by-Step Guide for Real Estate Investors
Last Updated: April 23, 2025
What Is DSCR and Why Does It Matter?
Calculating DSCR for rental property measures whether your rental income covers your debt payments. DSCR directly impacts how lenders evaluate your investment property.
Understanding the Debt Service Coverage Ratio
Calculating DSCR for rental property means dividing your gross rent by your PITIA. PITIA adds up your principal, interest, taxes, insurance, and association dues. For example, if your rental property generates $2,500 in monthly rent and your PITIA totals $2,000, your DSCR for rental property is 1.25. Lenders favor DSCR values greater than 1.0, since those indicate rental income pays the property’s monthly debts.
