Miami · DSCR loans for rental property
DSCR Loans for Miami Investment Properties
Financing for Miami rentals that qualifies on the property’s rent instead of your tax returns, with the math worked out for condos, duplexes and houses at Miami-Dade tax and insurance costs.
Miami DSCR Loan Overview
If you are an investor looking for a DSCR loan in Miami, this financing option allows you to qualify based on property cash flow rather than personal income.
A DSCR loan sets your tax returns aside. Instead of adding up W-2s, Schedule E losses and depreciation, the underwriter asks one question about the property: does the rent cover the payment? That makes it the loan most Miami investors end up using once they own a few doors, buy through an LLC, or show a small taxable income because their accountant is doing a good job.
The catch in Miami is arithmetic. Prices in the city have climbed faster than rents, and condo dues have climbed faster than both, so a rental that looks fine on a listing sheet can fall short of the ratio a lender wants. This page runs the numbers honestly, then shows the structures that make Miami rentals work. For an owner-occupied purchase, see the Miami mortgage rates page instead.
Miami DSCR Calculator
Start with a two-bedroom at the Miami average rent, then change anything. The tax and insurance figures are Miami-Dade estimates for a rental, which pays tax without the homestead exemption.
- Loan amount
- $300,000
- Principal and interest
- $2,175
- Full payment (PITIA)
- $3,270
- Rent needed for 1.00
- $3,270
- Rent needed for 1.25
- $4,088
Starting point: a $400,000 two-bedroom condo with $600 in monthly dues and a landlord unit policy. The rate is an illustration, about one point above today’s owner-occupied 30-year fixed; DSCR pricing varies with the ratio, down payment, credit and prepayment term.
Today’s Miami-Dade County ratesHow DSCR loans workMore mortgage calculators
Why Miami Is a Strong Market for DSCR Loans (2025 to 2026)
Lenders like Miami rentals for the same reason investors do: the tenant pool is deep and rarely empty. What a DSCR file needs is a rent the appraiser can support with nearby leases, and Miami produces more comparable leases per square mile than almost anywhere in Florida.
Large Renter Population
About 70 percent of Miami households rent, one of the highest shares among large American cities. For a DSCR borrower, that means shorter vacancies and an appraiser who can find recent leases on the same block.
Measured Rent Levels
Early 2026 listing averages: about $2,064 for a studio, $2,388 for one bedroom, $2,950 for two, and $2,708 across all units. These are the rents an appraiser’s rent schedule usually lands near.
Median Income and Local Demand
Median household income in the city is about $59,390 (Census estimates). With rents where they are, many households spend well over 30% of income on housing, which keeps renting the default and supports occupancy.
Understanding DSCR Loans for Miami Investors
DSCR stands for debt service coverage ratio. Lenders divide the monthly rent by the full monthly payment, called PITIA: principal, interest, property taxes, insurance and association dues. Rent of $3,000 against a $3,000 payment is a 1.00. Rent of $3,600 against the same payment is a 1.20.
Where the rent number comes from matters. On a purchase, the appraiser completes a rent schedule (Form 1007 for a single unit, Form 1025 for two to four units) based on comparable leases. On a refinance, lenders usually use the lower of the signed lease and that market figure, though some accept a higher lease with proof the tenant has been paying it.
Most programs want 1.00 or better. At 1.20 to 1.25 the rate usually improves and the maximum loan-to-value can rise. Below 1.00, a smaller group of lenders still lends, typically with at least 25% to 30% down and a higher rate.
A Miami DSCR Example
Three common Miami rentals, each bought with 25% down at the illustrative DSCR rate. The last two rows solve for the down payment each property needs to reach the ratio, which is the most useful number to know before you make an offer.
| 25% down, 7.875% | Two-bed condo near Brickell | Allapattah duplex, two units | Three-bed house, Flagami |
|---|---|---|---|
| Price | $450,000 | $700,000 | $650,000 |
| Monthly rent | $2,950 | $4,600 | $3,800 |
| Principal and interest | $2,447 | $3,807 | $3,535 |
| Tax, no homestead | $450 | $700 | $650 |
| Landlord insurance | $95 | $570 | $529 |
| Association dues | $750 | None | None |
| PITIA | $3,742 | $5,077 | $4,714 |
| DSCR at 25% down | 0.79 | 0.91 | 0.81 |
| Down payment for 1.00 | 49% | 34% | 44% |
| Down payment for 1.20 | 64% | 49% | 58% |
Taxes use Miami-Dade’s average millage on the full price, since a rental gets no homestead exemption and is reassessed after a sale. House and duplex insurance is a county market estimate raised about 15% for a landlord policy; the condo carries a unit policy because the association insures the building. Rents follow the citywide averages above.
The duplex usually wins in Miami, because two rents share one roof, one tax bill and one insurance policy. The condo usually loses, because dues are a full line in the payment and rise every year as associations fund the reserves Florida now requires. None of these properties reaches 1.00 at 25% down at today’s pricing, and that is normal here. It does not mean the deal is dead; it means the structure has to change.
DSCR Financing for Investment Properties in Miami
When a Miami rental comes up short of 1.00, these are the levers we pull, roughly in order of cost:
- Interest-only for the first ten years. Many DSCR lenders qualify on the interest-only payment. On the duplex above it trims $361 a month and moves the ratio from 0.91 to 0.98: modest alone, but it stacks with the levers below.
- Sub-1.00 programs. Some lenders go down to 0.75 with more down and a higher rate. Useful for appreciation plays where you will cover a small monthly gap.
- A longer prepayment penalty. Choosing a five-year penalty instead of none often lowers the rate enough to matter.
- Points. Buying the rate down a half point raises the ratio, and on a rental the cost is generally deducted over the life of the loan (ask your tax adviser).
- The building. An older low-rise condo with $400 dues can cash flow where a new tower with $1,100 dues never will.
Expect lenders to ask for credit in the mid-600s or better, three to six months of the payment in reserves, an appraisal with a rent schedule, and the condo questionnaire if it is a unit. Many Miami towers restrict leases to a minimum term or cap the number of rented units, and a lender will read those rules before closing.
DSCR Loan FAQs for Miami Investors
What is a DSCR loan?
A mortgage on a rental property that qualifies on the property’s rent compared with its full payment, rather than on your personal income. No tax returns, W-2s or pay stubs are used to qualify.
What DSCR ratio do Miami lenders want?
Most want 1.00 or higher, and the best pricing usually starts around 1.20 to 1.25. Some programs accept as low as 0.75 with a larger down payment and a higher rate, which is common for Miami condos with high dues.
Do condo association dues count against the ratio?
Yes. Dues are part of PITIA, so a $900 monthly assessment reduces the ratio exactly as $900 of extra mortgage payment would. Special assessments being paid in installments can count too.
Can I close a Miami DSCR loan in an LLC?
Usually yes. Most DSCR lenders allow an LLC or corporation as the borrower, with the members signing a personal guarantee. Your attorney should set up the entity before the contract is assigned or signed.
Is there a limit on how many properties I can finance?
Not the conventional ten-property cap. Each DSCR lender sets its own exposure limit per borrower, and we spread a growing portfolio across several when needed.
What property types qualify?
Single-family homes, townhomes, warrantable and many non-warrantable condos, and two- to four-unit buildings. Some lenders also do five- to eight-unit and mixed-use properties under separate guidelines.
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