Capital Kings LLCHow much rent do I need to qualify for a DSCR loan?
The rent has to cover the full payment, principal, interest, taxes and insurance, at a 1.00 DSCR. On a $250,000 purchase at 745 credit with 80% financing, the payment is $1,903, so you need about $1,904 a month. If the rent comes in short, the loan gets smaller and you bring more down.
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- Full monthly payment$1,903
- Loan$200,000
The deal, in pictures
Rent divided by the full monthly payment (principal, interest, taxes and insurance). Lenders want 1.00 or better.
- DSCR
- Rent divided by the full monthly payment. 1.00 means the rent exactly covers it.
The short answer, as of October 2026
- The rent you need is roughly a fixed share of the price, about 0.76% here.
- If the rent comes in short, the loan shrinks and you bring more down.
- Lower taxes, lower insurance or no HOA all lower the rent you need.
Capital Kings LLC is a broker, not a lender. We compare every file across 400+ lenders and send the term sheet with every fee on it before you sign.
Every dollar, line by line
A $250,000 single-family purchase at 745 credit, 80% loan to value, renting for exactly $1,904. The term sheet at the qualifying rent:
- Down paymentEquity$50,000
- Lender fees, underwriting and legalLender$2,295
- Broker feeBroker$2,000
- Closing / titleTitle co$3,571
- Property insuranceInsurer$1,250
- Escrow setup, 3 months of taxesLender$1,250
- Prepaid interestLender$607
- Appraisal feeAppraiser$550
Rent of $1,904 against a $1,903 payment is a 1.00 DSCR. Proof of funds adds $5,709 of reserves. The gold broker line is the only money Capital Kings earns.
A sample sheet for a made-up borrower, built the same way yours is. Yours takes about five minutes and doesn’t pull your credit.
How do the options compare?
The rent you need is roughly a fixed share of the price, because the payment, the taxes and the insurance all scale with it.
The rent that qualifies, at 745 credit
| Purchase price | Loan (80%) | Rate | Full payment | Rent needed | Rent as % of price |
|---|---|---|---|---|---|
| $150,000 | $120,000 | 7.38% | $1,146 | $1,147 | 0.76% |
| $250,000 | $200,000 | 7.38% | $1,903 | $1,904 | 0.76% |
| $350,000 | $280,000 | 7.38% | $2,664 | $2,664 | 0.76% |
| $500,000 | $400,000 | 7.38% | $3,805 | $3,806 | 0.76% |
Full payment = principal, interest, taxes and insurance on a 30-year fixed loan, with taxes at 2% and insurance at 0.5% of the price until you have the real bills. The rent needed is the lowest rent that still covers it at a 1.00 DSCR. Lower taxes or insurance lower the rent you need. Rates as of October 2026.
How does it actually work?
If the rent is $100 short, at $1,804, the loan is sized down to what the rent covers: $185,668 instead of $200,000. You bring $14,332 more down.
Taxes and insurance here are estimated at 2% and 0.5% of the price until you have the real bills. The appraiser’s rent schedule sets the market rent on a vacant unit; a signed lease is best.
What else do people ask?
How much rent do I need to qualify for a DSCR loan?
What is the minimum DSCR?
What happens if the rent is too low?
Is the rent based on the lease or the appraisal?
Do taxes and insurance count against the rent?
What credit score do I need for a DSCR loan?
Do you pay a referral fee if I send you an investor?
Is Capital Kings the lender?
Which questions have worked examples?
Keep reading
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