Capital Kings LLC

How much rent do I need to qualify for a DSCR loan?

The rent has to cover the full payment, principal, interest, taxes and insurance, at a 1.00 DSCR. On a $250,000 purchase at 745 credit with 80% financing, the payment is $1,903, so you need about $1,904 a month. If the rent comes in short, the loan gets smaller and you bring more down.

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Prefer to talk it through? Call or text Micah at (281) 636-5682.

Reviewed by Micah Foster, Founder & CEO · October 2026

Rates as of October 2026

$250,000 purchase, 745 credit, 80% loan to value

Rent needed

$1,904

Full monthly payment$1,903
Loan$200,000

In short

The short answer, as of October 2026

$150,000 rental: about $1,147 a month.
$250,000 rental: about $1,904 a month.
$350,000 rental: about $2,664 a month.
$500,000 rental: about $3,806 a month.

Capital Kings LLC is a broker, not a lender. We compare every file across 400+ lenders and send the term sheet with every fee on it before you sign.

Worked example

Every dollar, line by line

A $250,000 single-family purchase at 745 credit, 80% loan to value, renting for exactly $1,904. The term sheet at the qualifying rent:

Cash to close$61,523

Proof of funds to show$67,232

Where the $61,523 goes

Down paymentEquity$50,000
Lender fees, underwriting and legalLender$2,295
Broker feeBroker$2,000
Closing / titleTitle co$3,571
Property insuranceInsurer$1,250
Escrow setup, 3 months of taxesLender$1,250
Prepaid interestLender$607
Appraisal feeAppraiser$550

Rent of $1,904 against a $1,903 payment is a 1.00 DSCR. Proof of funds adds $5,709 of reserves. The gold broker line is the only money Capital Kings earns.

A sample sheet for a made-up borrower, built the same way yours is. Yours takes about five minutes and doesn’t pull your credit.

The numbers

Compare the options

The rent you need is roughly a fixed share of the price, because the payment, the taxes and the insurance all scale with it.

The rent that qualifies, at 745 credit

Purchase price	Loan (80%)	Rate	Full payment	Rent needed	Rent as % of price
$150,000	$120,000	7.38%	$1,146	$1,147	0.76%
$250,000	$200,000	7.38%	$1,903	$1,904	0.76%
$350,000	$280,000	7.38%	$2,664	$2,664	0.76%
$500,000	$400,000	7.38%	$3,805	$3,806	0.76%

Full payment = principal, interest, taxes and insurance on a 30-year fixed loan, with taxes at 2% and insurance at 0.5% of the price until you have the real bills. The rent needed is the lowest rent that still covers it at a 1.00 DSCR. Lower taxes or insurance lower the rent you need. Rates as of October 2026.

How it works

Where the numbers come from

DSCR stands for debt service coverage ratio: the rent divided by the full monthly payment. On the $250,000 example the payment is $1,903: $1,382 of principal and interest on a $200,000 loan at 7.38%, $417 of taxes and $104 of insurance. $1,904 of rent covers it at 1.00.

If the rent is $100 short, at $1,804, the loan is sized down to what the rent covers: $185,668 instead of $200,000. You bring $14,332 more down, $64,332 instead of $50,000.

Taxes and insurance here are estimated at 2% and 0.5% of the price until you have the real bills. In a low-tax county the payment is lower and so is the rent you need. The appraiser’s rent schedule sets the market rent on a vacant unit; a signed lease is best.

Before you apply

Four things to check

Use the real tax bill.The estimate is 2% of the price. A lower bill lowers the rent you need.
Check the rent before you offer.Pull rental comps first. Short rent means a smaller loan and more cash down.
Count the HOA.An HOA fee is part of the payment the rent has to cover.
Ask about 2-4 units.A duplex counts all the units’ rent against one payment.

Price my deal →Run your rental on the DSCR calculator DSCR loans by state