Income & Expenses
Net Operating Income (NOI)
$190,000
per year
Debt Service Coverage Ratio (DSCR)
1.44
x
DSCR Interpretation
Lenders typically require a minimum DSCR of 1.25x. Your calculated DSCR of 1.44x meets most conventional multifamily loan requirements.
Common Lender Benchmarks:
• 1.25x+ — Most conventional loans
• 1.35x+ — Preferred for investment properties
• 1.50x+ — Strong / lower risk
• Below 1.20x — Usually not financeable
• 1.25x+ — Most conventional loans
• 1.35x+ — Preferred for investment properties
• 1.50x+ — Strong / lower risk
• Below 1.20x — Usually not financeable
NOI excludes debt service and capital expenditures. DSCR is a key underwriting metric used by lenders to assess a property’s ability to cover mortgage payments.