What is DSCR (Debt Service Coverage Ratio)?

Debt Service Coverage Ratio measures whether a property's income can cover its debt payments. A DSCR of 1.0 means income exactly equals mortgage payments. Above 1.0 means positive cash flow. Below 1.0 means negative cash flow.

Formula
DSCR = NOI / Annual Debt Service
Good
1.25+ (most lenders require this minimum)
Great
1.5+ (strong cash flow cushion)
Watch For
Below 1.0 means you pay out of pocket every month

Frequently Asked Questions

What is a good DSCR for rental property?

A good DSCR is 1.25+ (most lenders require this minimum). A great DSCR is 1.5+ (strong cash flow cushion). Be cautious if Below 1.0 means you pay out of pocket every month.

Full DSCR Guide →All Terms
Track This Across Your Entire Portfolio
becvio automatically calculates DSCR and 20+ other metrics for every property in your portfolio. Free to start.
Start Free — No Credit Card