A DSCR loan qualifies a rental on its own income. The lender divides the monthly rent by the full monthly payment, principal, interest, taxes, insurance and any HOA, and if the ratio clears the bar the loan works. Your personal income and tax returns never enter it. Below is what that looks like in Florida using the latest Census figures, so you can see where deals pencil before you make an offer.
The Florida rental market by the numbers
| Florida | United States | |
|---|---|---|
| Median monthly rent | $1,669 | $1,413 |
| Median home value | $359,000 | $332,700 |
| Median property tax (owner occupied) | $2,730/yr | $3,119/yr |
| Effective property tax rate | 0.76% | 0.94% |
| Households that rent | 32% | 35% |
| Gross rent yield (annual rent / value) | 5.6% | 5.1% |
Florida's gross rent yield of 5.6% is above the national 5.1%, and its effective property tax rate of 0.76% is below the national 0.94%. About 32% of households rent.
A DSCR loan at the Florida median
Take a rental bought at the median value of $359,000 with 25% down, a 7.0% rate on a 30 year schedule, the median property tax, and insurance estimated at 0.6% of value a year:
- Loan amount: $269,250
- Principal and interest: $1,791 a month
- Taxes and insurance: $407 a month
- Total payment (PITIA): $2,198
- Median rent: $1,669
- DSCR: 0.76
That ratio is below 1.00, so the typical house at the typical rent does not quite cover its own payment with 25% down. At Florida's median rent, a purchase price up to about $272,574 keeps the ratio at 1.00 with 25% down, and up to about $218,059 keeps it at 1.25. To reach 1.00 at the median price you would need roughly 47% down.
Medians blend every kind of home and rental together, so treat this as a starting point. A three bedroom house usually rents well above the median gross rent, which includes small apartments. Run this deal in the DSCR calculator and change any number to match the property you are looking at.
Property taxes and insurance in Florida
The tax figure above is the median paid by owner occupants, and investors often pay more because a rental usually does not get the homestead exemptions owners do. On a DSCR loan, taxes and insurance sit inside the payment, so every extra dollar there lowers your ratio. Florida caps how fast taxes can rise on a homesteaded primary residence, but a rental does not get that homestead cap, so taxes are reassessed at the sale and can climb faster afterward. Insurance is the other big variable here. Quotes in coastal counties can be several times what the same house costs to insure inland, so get a real quote before you count on a ratio.
Florida cities we cover in depth
- Jacksonville: median rent $1,465, median value $293,700, gross yield 6.0%
- Tampa: median rent $1,701, median value $420,400, gross yield 4.9%
- Orlando: median rent $1,747, median value $394,100, gross yield 5.3%
- Miami: median rent $1,758, median value $518,100, gross yield 4.1%
- St. Petersburg: median rent $1,663, median value $371,100, gross yield 5.4%
Higher gross yields mean the rent carries more of the payment, so those markets clear 1.00 more easily at typical prices.
How we lend in Florida
We make DSCR loans on rentals in Florida and in 42 states plus Washington DC. The program:
- Up to 80% of the property's value
- Qualifies on the rent, with no tax returns, W-2s or pay stubs
- 620 minimum credit score
- Single family and 2 to 4 unit rentals on long term leases
- Closes in an LLC
- 30 year fixed options and step down prepayment choices
- Closings in about 21 to 30 days once conditions are met
Buying a property that needs work first? A rehab loan covers the purchase and the renovation, and the DSCR loan refinances it once it is leased. See the full DSCR loan requirements or send us the deal for terms.
Frequently asked questions
Can I get a DSCR loan in Florida?
Yes. We make DSCR loans on 1 to 4 unit rentals in Florida on long term leases, closed in an LLC, with a 620 minimum credit score and up to 80% of the property's value.
What DSCR do lenders want in Florida?
Most DSCR programs want at least 1.00, and the best pricing usually starts around 1.20 to 1.25. At Florida's median rent and home value with 25% down, the ratio works out to about 0.76.
Are short term rentals in Florida eligible?
Not on our DSCR program. We lend on properties with long term leases. Airbnb and other rentals under 30 days are not eligible.
How do Florida property taxes affect a DSCR loan?
Taxes are part of the payment the lender divides the rent by, so a higher tax bill lowers the ratio. Florida's owner occupied median is $2,730 a year, about 0.76% of value, and rentals often pay more.
Market figures: U.S. Census Bureau, American Community Survey 2024 5 year estimates. The example uses a 7.0% rate, 25% down and insurance at 0.6% of value for illustration only. It is not a loan offer.