DSCR (Debt Service Coverage Ratio)is the key metric lenders use to determine if your short-term rental generates enough income to cover loan payments. Unlike conventional mortgages that look at your personal income, DSCR loans qualify you based on the property's rental income alone.
This makes DSCR loans especially popular with Airbnb and VRBO investors who may have complex tax returns or already have multiple mortgages. The formula is simple: DSCR = Net Operating Income / Annual Debt Service. Many lenders look for roughly 1.1 to 1.25 or higher, but guidelines vary.
Use this calculator to see if your property qualifies. For a complete investment analysis including cash-on-cash return and break-even occupancy, use our Deal Analyzer.
Property Financials
Total rental income before any expenses
Common underwriting placeholder: 30-45% of gross income
Principal and interest (P&I) only
Meets most DSCR lender requirements.
Calculation Breakdown
Looking for DSCR-style financing?
If the property income can support the debt, Kiavi may be worth comparing as an investor-focused lending option.
Affiliate partner. Borrower eligibility and loan terms are set by Kiavi.
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For informational purposes only. Not financial advice. See full disclaimer