DSCR loans explained: invest in Florida rental properties
March 2026
A DSCR (Debt-Service Coverage Ratio) loan qualifies borrowers based on the rental income of the property rather than personal income. This makes them ideal for real estate investors in Florida who have strong rental portfolios but complex tax returns.
How DSCR is calculated
DSCR = Gross Monthly Rent ÷ Monthly PITI (Principal, Interest, Taxes, Insurance). A ratio of 1.0 means rental income exactly covers the payment. Most DSCR lenders require 1.10–1.25 to qualify. Some offer "no-ratio" DSCR programs where any ratio is acceptable with a higher down payment.
Why Florida is ideal for DSCR investing
Florida has no state income tax, strong short-term rental markets in most coastal markets, and a landlord-friendly legal environment. The combination of high gross rents and strong DSCR ratios makes Palm Beach, Broward, and Miami-Dade among the top DSCR markets nationally.
For personalized guidance on buying or selling in South Florida, contact the team at Pure Equity Realty. We serve Palm Beach, Broward, Miami-Dade, St. Lucie, and Highlands counties with expert representation and a 1% listing fee.