| Loan amount | – |
| Principal & interest | – |
| Property taxes | – |
| Insurance | – |
| HOA | – |
| Total payment (PITIA) | – |
| Rent minus payment | – |
| Most you can pay at target DSCR | – |
How the DSCR is calculated
The debt service coverage ratio (DSCR) is what DSCR lenders use instead of your personal income: the property's monthly rent divided by its full monthly payment — principal and interest, property taxes, insurance and HOA (PITIA). At 1.0 the rent just covers the payment; most lenders want 1.0 to 1.25 or better.
DSCR = monthly rent ÷ (P&I + taxes + insurance + HOA)
The common mistake: using the seller's tax bill
A long-time owner's tax bill often reflects a homestead exemption or an assessment cap that ends when the property sells. Plan on taxes at your purchase price. The state menu above fills in a typical non-homestead rate and insurance cost for each state Propertiz covers; your county's millage and a real insurance quote beat both.
"Most you can pay"
Because the loan payment and the taxes both grow with the price, there's a highest price at which the rent still covers the payment at your target ratio. That number is a useful ceiling for an offer on an off-market deal — before repairs, vacancy and closing costs.