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DSCR

DSCR (Debt Service Coverage Ratio) = net operating income ÷ annual mortgage payments. 1.0 means rent exactly covers the loan; lenders usually want 1.2+ (income is 20% above the payment). Below 1.0 means the property doesn't cover its own debt.

▶ Watch the Investopedia explainer: Debt-Service Coverage Ratio

How CashFlowRE uses it

CashFlowRE computes DSCR on every for-sale listing and folds it into each property's overall score, so you can compare deals at a glance instead of running the math by hand. Create a free account to see it on real listings.

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