--- title: DSCR loan calculator for North Carolina rentals description: Enter the rent and the costs of the property and the calculator shows your debt service coverage ratio, the full monthly payment, and the largest loan the rent supports. Lenders approve DSCR loans on this one number, so it is worth knowing before you make an offer. canonical_url: https://www.homeloannc.com/dscr/calculator last_updated: "2026-11-12" --- # [DSCR loan calculator for North Carolina rentals](https://www.homeloannc.com/dscr/calculator) > Enter the rent and the costs of the property and the calculator shows your debt service coverage ratio, the full monthly payment, and the largest loan the rent supports. Lenders approve DSCR loans on this one number, so it is worth knowing before you make an offer. - **Updated:** 2026-11-12 - **The formula:** Rent ÷ PITIA - **Typical minimum:** 1.00 - **Best pricing:** 1.25 and up - **Income documents:** None ## Contact - **Phone:** 910-520-6402 - **Address:** 2030 Eastwood Rd #12, Wilmington, NC 28403 - https://www.homeloannc.com/contact ## Actions - [Request a quote from Tom Laakmann](https://www.homeloannc.com/contact) - No credit pull to review a scenario. Rates are quoted per property, not published. ## How DSCR is calculated DSCR stands for debt service coverage ratio. For a residential rental it is the monthly rent divided by the monthly housing payment on that property. The payment is PITIA: principal, interest, property taxes, insurance, and any association dues. A ratio of 1.00 means the rent exactly covers the payment. A ratio of 1.25 means the rent is 25 percent higher than the payment. Nothing about your job, your tax returns, or your other debts enters the math. | Line | Example | Notes | | --- | --- | --- | | Monthly rent | $2,600 | Signed lease, or market rent from the appraiser's rent schedule | | Principal & interest | $1,791 | $262,500 loan at an example rate of 7.25%, 30-year fixed | | Property taxes | $233 | $2,800 a year | | Insurance | $150 | $1,800 a year | | HOA dues | $0 | Add them if the property has an association | | Total payment (PITIA) | $2,174 | | | DSCR | 1.20 | $2,600 ÷ $2,174 | ## What ratio do lenders want? Most DSCR programs want 1.00 or higher. Ratios of 1.25 and above usually earn the best pricing. Some programs go as low as about 0.75, which helps on properties in appreciating markets where rents have not caught up with prices, but expect a larger down payment or a higher rate in exchange. - 1.25 and above: strongest tier, widest choice of lenders - 1.00 to 1.24: qualifies with most programs - 0.75 to 0.99: possible with select programs, more money down - Below 0.75: restructure the deal before applying ## Which rent number counts On a purchase, lenders use the market rent from the appraiser's rent schedule, the form known as a 1007. On a refinance of a leased property, they generally use the lower of the lease and the market rent. For short-term rentals, lenders look at documented booking history or a market-rent analysis, case by case. Use a conservative rent when you run the numbers. If the appraiser comes in below what you assumed, the ratio drops and so can the loan amount. ## Five ways to raise a low ratio - Put more money down. A smaller loan means a smaller payment. - Ask about an interest-only period, which lowers the payment the ratio is measured against. - Buy the rate down with points if you plan to hold the property for years. - Shop the insurance. On some North Carolina properties, especially near the coast, the premium moves the ratio more than the rate does. - Document the real market rent. A lease at the low end of the market holds the number back. ## What the calculator does not tell you The ratio is the gate, not the whole approval. Lenders also look at credit score, the size of the down payment, cash reserves after closing, and the type and condition of the property. Two investors with the same ratio can get different terms. That is where a broker earns his keep. Tom places DSCR loans with multiple lenders, so a deal that misses one lender's guidelines can often fit another's. ## What is a good DSCR for a rental property? 1.25 or higher is considered strong and usually gets the best pricing. 1.00 is the typical minimum. Some programs approve ratios down to about 0.75 with a larger down payment. ## Does DSCR include taxes and insurance? Yes. Residential DSCR lenders measure rent against the full payment: principal, interest, taxes, insurance, and HOA dues. Leaving out taxes and insurance makes the ratio look better than a lender will see it. ## Can I get a DSCR loan with a ratio under 1.0? Sometimes. Select programs lend with ratios down to roughly 0.75, generally with more money down, stronger credit, or a higher rate. Tom can tell you quickly whether a specific property fits one of them. ## Is the rate in the calculator your current rate? No. The rate field is an editable example so you can test scenarios. Actual DSCR pricing depends on the ratio, credit score, down payment, property type, and prepayment terms. Call or text Tom for a real quote on a specific property. ## Do vacancy or repairs count against DSCR? Not on most residential DSCR programs, which use gross rent against PITIA. You should still budget for vacancy, maintenance, and management when deciding whether the deal makes sense for you. ## Related - [DSCR loan requirements](https://www.homeloannc.com/dscr/requirements) - Credit, down payment, reserves, and property rules. - [What drives DSCR rates](https://www.homeloannc.com/dscr/rates) - The six levers that move your pricing. - [DSCR cash-out refinance](https://www.homeloannc.com/dscr/cash-out-refinance) - Pull equity from one rental to buy the next. - [All investment property loans](https://www.homeloannc.com/investment-property-loans) - Every way to finance an NC rental, compared.