← Back to BlogMay 20267 minDan White
Free DSCR Calculator — Does Your Rental Qualify for Financing?
DSCR — Debt Service Coverage Ratio — determines whether a rental property qualifies for a DSCR loan. Most lenders require 1.20–1.25 minimum. FreeDealCalc calculates it free so you know before you apply.
Market Context
Live Market Data
Washington, DC Housing Market
Cool Market
Data through Mar 2026
Median Sale Price
$590,000
+0.8% YoY
Median Days on Market
44 days
lower = faster market
Sale-to-List Ratio
99.7%
buyers' market
Homes Sold
4,457
last reported month
Source: Redfin Data Center. Updated monthly. Data reflects Washington, DC residential sales.
redfin.comDSCR Formula
DSCR = Monthly Rent ÷ Monthly PITIA
PITIA = Principal + Interest + Taxes + Insurance + Association dues. If rent is $2,400 and PITIA is $1,850, DSCR = 1.30. That exceeds the 1.25 threshold most lenders require.
What Happens When DSCR Is Below 1.25
- Below 1.20: Most DSCR lenders won't touch it
- 1.00–1.20: Some lenders offer no-ratio DSCR at lower LTV (65–70%) with higher rates
- Below 1.00: Property doesn't cover its debt — negative leverage situation
Calculate Your DSCR Free
Freddie calculates your DSCR ratio — rent vs. PITIA — and tells you whether you qualify for DSCR financing. Free.
Calculate My DSCR Free →How to Improve DSCR Before Applying
- Larger down payment: Lower loan amount = lower PITIA = higher DSCR
- Buy below market: Lower purchase price = lower loan = better DSCR
- Improve rent: Renovate before applying — higher rent improves the ratio
- Shop rates: Even 0.5% lower rate meaningfully improves DSCR on large loans
Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He has been investing in real estate for 20+ years.