DSCR calculator — Florida

Frequently asked questions

What is DSCR for rental property?

Debt Service Coverage Ratio (DSCR) is annual NOI divided by annual debt service. A DSCR above 1.0 means NOI covers debt payments before tax.

Is 1.25 DSCR required by lenders?

Many DSCR lenders target around 1.20 to 1.25, but requirements vary by product, market, and borrower profile. Always confirm current underwriting with your lender.

Can I save DSCR calculator results?

This calculator does not save your session. Use a free Veld account to save assumptions, compare scenarios, and track deal performance over time.

Does this include hurricane or flood insurance?

No. Add expected insurance and reserves in your expense inputs. The calculator does not model hazard zones or carrier requirements for you.

What is a good cap rate in Florida?

Residential cap rates in Florida markets like Tampa, Orlando, and Jacksonville typically run 5–7% as of 2024–2025. South Florida and beach markets compress toward 4–5% due to appreciation expectations and higher prices. Wind and flood insurance costs reduce effective NOI—use your actual carrier quotes in the expenses line.

What DSCR do Florida lenders typically require?

Most DSCR lenders in Florida require a minimum of 1.0, with many preferring 1.20–1.25 for lower rates and better terms. Given Florida's higher insurance costs—especially in coastal counties—underwriting at 1.25 or above leaves room for insurance premium increases without failing coverage thresholds. Confirm requirements with your specific lender.

How should I set DSCR assumptions for Florida rentals?

Most lenders look for DSCR around 1.20 to 1.25, but program terms vary. In Florida, use realistic rent near about $1,700/month and include full operating costs (especially 0.76% effective property tax) before sizing leverage.