The rental-income figure used in a DSCR loan is not always the same as the rent an investor expects to collect. Lenders use approved documentation and program-specific methods to establish qualifying income. Because Landlord Lending works with multiple investment-property lenders, exact guidelines can vary by lender, program, property, borrower profile and overall deal strength.
Why Qualifying Rent Matters
The rent number used by the lender is a core input in the DSCR calculation. An investor’s projected rent is not automatically the qualifying rent.
Existing Lease Income
For occupied properties, lenders may review current leases and other documentation supporting actual contractual rent.
Market Rent
Appraisals can include market-rent analysis that helps establish supportable rent for the property.
Short-Term Rental Income
Eligible STR programs may use different methods, including historical performance or approved market data. Methodology varies widely.
Vacant or Newly Stabilized Properties
A lender may rely more heavily on appraisal-supported market rent when there is no established lease, subject to program rules.
Underwrite Conservatively Before Applying
Investors should model the deal using supportable rent rather than the most optimistic projection.
How Landlord Lending Helps
DSCR guidelines are not identical across lenders. Landlord Lending helps real estate investors evaluate financing options based on the property, financing objective, borrower profile and overall deal rather than forcing every scenario into one lender’s credit box.
Explore the DSCR Rental Property Loan to Buy and DSCR Rental Property Loan to Refinance programs.
Related: How to Calculate DSCR for a Rental Property · How Property Taxes, Insurance and HOA Dues Affect DSCR
Looking for Financing for an Investment Property?
Tell us about the property and financing you're looking for. We'll review the scenario and identify potential financing solutions.
Request Loan TermsFrequently Asked Questions
Does a lender use the lease or market rent?
The methodology varies. Existing leases, appraisal-supported market rent and other approved methods may each apply in different scenarios.
Can I use projected rent?
An investor’s projection alone may not be sufficient; lenders use approved supporting documentation.
How is STR income treated?
Eligible short-term rental programs can use different documentation and calculation methods, which vary by lender.