Data study
DSCR pass rate by metro: can a typical rental cover its payment?
RE Underwrite Lab · Published November 2, 2026
We ran a debt service coverage ratio for a typical single-family rental in each of the 100 largest U.S. metros, with 25% down at the October 29, 2026 Freddie Mac rate, and compared it with a year ago.
- Metros where a typical rental reaches DSCR 1.0 at 7.24% with 25% down
- 25 of 100
- Metros where a typical rental reaches DSCR 1.0 at 7.24% with 25% down
- A year ago, at 6.17% and September 2025 values and rents
- 54 of 100
- A year ago, at 6.17% and September 2025 values and rents
- Median down payment needed to reach DSCR 1.0 today
- 30%
- Median down payment needed to reach DSCR 1.0 today
Key findings
- A typical single-family rental reaches DSCR 1.0 in 25 of the 100 largest metros at today's 7.24% rate with 25% down, down from 54 a year ago. The median metro sits at 0.95, compared with 1.01 a year ago.
- Only 1 metro clears the stricter 1.25 cushion today: McAllen, TX at 1.27. A year ago, 4 did.
- The rate did most of the work. At today's values and rents but last year's rate, 61 metros would pass; at last year's values and rents but today's rate, only 20 would.
- If an investor loan prices a point above the survey rate (8.24%), 8 metros pass and the median falls to 0.88.
- To bring the typical rental to DSCR 1.0 at 7.24%, the median metro needs about 30% down rather than 25%.
- Under 0.703
- 0.70 to 0.7911
- 0.80 to 0.8920
- 0.90 to 0.9941
- 1.00 to 1.0918
- 1.10 to 1.246
- 1.25 and up1
- McAllen, TX1.27
- Columbia, SC1.19
- Jackson, MS1.16
- Syracuse, NY1.15
- Pittsburgh, PA1.13
- New Orleans, LA1.12
- Baton Rouge, LA1.12
- Greensboro, NC1.09
- Springfield, MA1.07
- Memphis, TN1.07
- San Jose, CA0.50
- San Francisco, CA0.59
- Urban Honolulu, HI0.61
- San Diego, CA0.71
- New York, NY0.71
- Milwaukee, WI0.71
- Provo, UT0.72
- Boston, MA0.74
- Los Angeles, CA0.75
- Salt Lake City, UT0.76
All 100 metros
Sorted from highest to lowest DSCR today. Typical value and rent are Zillow figures for September 2026; tax rate and insurance come from the Census Bureau. Data Provided by Zillow Group.
Counts use unrounded ratios, so a metro shown as 1.00 can fall just short: Cleveland (0.999) and Little Rock (0.998) round to 1.00 but do not count as passing.
| # | Metro | Typical value (Zillow) | Typical rent (Zillow) | Tax rate | Insurance / yr | DSCR now | Clears 1.0 | Year ago |
|---|---|---|---|---|---|---|---|---|
| 1 | McAllen, TX | $190,000 | $1,760 | 1.37% | $2,400 | 1.27 | Yes | 1.34 |
| 2 | Columbia, SC | $255,000 | $1,820 | 0.51% | $1,400 | 1.19 | Yes | 1.28 |
| 3 | Jackson, MS | $212,000 | $1,570 | 0.68% | $1,800 | 1.16 | Yes | 1.25 |
| 4 | Syracuse, NY | $269,000 | $2,220 | 2.00% | $1,300 | 1.15 | Yes | 1.25 |
| 5 | Pittsburgh, PA | $226,000 | $1,660 | 1.17% | $1,100 | 1.13 | Yes | 1.20 |
| 6 | New Orleans, LA | $259,000 | $1,860 | 0.62% | $2,500 | 1.12 | Yes | 1.22 |
| 7 | Baton Rouge, LA | $251,000 | $1,800 | 0.57% | $2,500 | 1.12 | Yes | 1.22 |
| 8 | Greensboro, NC | $266,000 | $1,790 | 0.72% | $1,400 | 1.09 | Yes | 1.16 |
| 9 | Springfield, MA | $379,000 | $2,700 | 1.39% | $1,800 | 1.07 | Yes | 1.15 |
| 10 | Memphis, TN | $241,000 | $1,600 | 0.70% | $1,400 | 1.07 | Yes | 1.15 |
| 11 | Augusta, GA | $251,000 | $1,640 | 0.57% | $1,600 | 1.07 | Yes | 1.18 |
| 12 | Winston, NC | $281,000 | $1,810 | 0.64% | $1,400 | 1.06 | Yes | 1.13 |
| 13 | Scranton, PA | $234,000 | $1,610 | 1.21% | $1,100 | 1.06 | Yes | 1.14 |
| 14 | Lakeland, FL | $299,000 | $2,070 | 0.80% | $2,800 | 1.06 | Yes | 1.10 |
| 15 | Rochester, NY | $282,000 | $2,130 | 2.11% | $1,300 | 1.04 | Yes | 1.11 |
| 16 | Indianapolis, IN | $296,000 | $1,900 | 0.85% | $1,300 | 1.04 | Yes | 1.09 |
| 17 | Houston, TX | $307,000 | $2,220 | 1.49% | $2,400 | 1.03 | Yes | 1.09 |
| 18 | El Paso, TX | $234,000 | $1,770 | 1.67% | $2,400 | 1.03 | Yes | 1.08 |
| 19 | Albuquerque, NM | $351,000 | $2,180 | 0.77% | $1,300 | 1.02 | Yes | 1.11 |
| 20 | Charleston, SC | $439,000 | $2,580 | 0.45% | $1,400 | 1.02 | Yes | 1.07 |
| 21 | Greenville, SC | $312,000 | $1,860 | 0.45% | $1,400 | 1.02 | Yes | 1.10 |
| 22 | Cincinnati, OH | $317,000 | $2,050 | 1.12% | $1,200 | 1.02 | Yes | 1.09 |
| 23 | Bakersfield, CA | $363,000 | $2,260 | 0.89% | $1,500 | 1.01 | Yes | 1.07 |
| 24 | Virginia Beach, VA | $377,000 | $2,310 | 0.83% | $1,300 | 1.00 | Yes | 1.07 |
| 25 | Tampa, FL | $373,000 | $2,390 | 0.78% | $2,800 | 1.00 | Yes | 1.07 |
| 26 | Cleveland, OH | $257,000 | $1,740 | 1.53% | $1,200 | 1.00 | No | 1.08 |
| 27 | Little Rock, AR | $230,000 | $1,430 | 0.61% | $1,600 | 1.00 | No | 1.10 |
| 28 | Birmingham, AL | $262,000 | $1,570 | 0.48% | $1,600 | 0.99 | No | 1.08 |
| 29 | Palm Bay, FL | $353,000 | $2,230 | 0.73% | $2,800 | 0.99 | No | 1.05 |
| 30 | Toledo, OH | $201,000 | $1,350 | 1.39% | $1,200 | 0.99 | No | 1.06 |
| 31 | Chattanooga, TN | $319,000 | $1,870 | 0.56% | $1,400 | 0.99 | No | 1.06 |
| 32 | Baltimore, MD | $409,000 | $2,500 | 0.98% | $1,400 | 0.99 | No | 1.06 |
| 33 | Deltona, FL | $334,000 | $2,140 | 0.81% | $2,800 | 0.99 | No | 1.04 |
| 34 | Knoxville, TN | $365,000 | $2,060 | 0.36% | $1,400 | 0.98 | No | 1.08 |
| 35 | New Haven, CT | $433,000 | $2,940 | 1.74% | $1,800 | 0.98 | No | 1.06 |
| 36 | Grand Rapids, MI | $357,000 | $2,160 | 1.01% | $1,200 | 0.97 | No | 1.07 |
| 37 | Fresno, CA | $412,000 | $2,410 | 0.74% | $1,500 | 0.97 | No | 1.03 |
| 38 | Tulsa, OK | $254,000 | $1,610 | 0.82% | $2,300 | 0.97 | No | 1.05 |
| 39 | Detroit, MI | $264,000 | $1,670 | 1.29% | $1,200 | 0.97 | No | 1.03 |
| 40 | Miami, FL | $569,000 | $3,430 | 0.86% | $2,800 | 0.97 | No | 1.04 |
| 41 | Atlanta, GA | $383,000 | $2,280 | 0.84% | $1,600 | 0.96 | No | 1.01 |
| 42 | Louisville, KY | $283,000 | $1,700 | 0.81% | $1,500 | 0.96 | No | 1.04 |
| 43 | Chicago, IL | $375,000 | $2,540 | 1.92% | $1,400 | 0.96 | No | 1.05 |
| 44 | Oklahoma City, OK | $245,000 | $1,560 | 0.92% | $2,300 | 0.96 | No | 1.03 |
| 45 | Orlando, FL | $400,000 | $2,430 | 0.80% | $2,800 | 0.96 | No | 1.01 |
| 46 | Charlotte, NC | $385,000 | $2,190 | 0.65% | $1,400 | 0.95 | No | 1.01 |
| 47 | Albany, NY | $374,000 | $2,390 | 1.57% | $1,300 | 0.95 | No | 1.05 |
| 48 | Harrisburg, PA | $309,000 | $1,850 | 1.06% | $1,100 | 0.95 | No | 1.03 |
| 49 | Buffalo, NY | $288,000 | $1,910 | 1.81% | $1,300 | 0.95 | No | 1.02 |
| 50 | Richmond, VA | $395,000 | $2,240 | 0.71% | $1,300 | 0.95 | No | 1.04 |
| 51 | Minneapolis, MN | $400,000 | $2,440 | 1.10% | $2,000 | 0.95 | No | 1.01 |
| 52 | San Antonio, TX | $275,000 | $1,820 | 1.38% | $2,400 | 0.95 | No | 1.00 |
| 53 | Allentown, PA | $365,000 | $2,240 | 1.36% | $1,100 | 0.95 | No | 1.03 |
| 54 | Dallas, TX | $361,000 | $2,350 | 1.46% | $2,400 | 0.94 | No | 0.99 |
| 55 | Cape Coral, FL | $350,000 | $2,150 | 0.87% | $2,800 | 0.94 | No | 0.99 |
| 56 | North Port, FL | $423,000 | $2,540 | 0.84% | $2,800 | 0.94 | No | 1.00 |
| 57 | Omaha, NE | $308,000 | $2,000 | 1.50% | $2,100 | 0.94 | No | 1.00 |
| 58 | Columbus, OH | $351,000 | $2,110 | 1.27% | $1,200 | 0.93 | No | 0.98 |
| 59 | St. Louis, MO | $279,000 | $1,690 | 1.13% | $1,700 | 0.92 | No | 0.99 |
| 60 | Madison, WI | $465,000 | $2,800 | 1.47% | $1,200 | 0.92 | No | 1.00 |
| 61 | Tucson, AZ | $346,000 | $1,890 | 0.67% | $1,200 | 0.92 | No | 0.98 |
| 62 | Wichita, KS | $223,000 | $1,400 | 1.20% | $2,000 | 0.91 | No | 0.97 |
| 63 | Providence, RI | $536,000 | $3,040 | 1.01% | $1,800 | 0.91 | No | 0.97 |
| 64 | Akron, OH | $242,000 | $1,460 | 1.36% | $1,200 | 0.91 | No | 0.99 |
| 65 | Stockton, CA | $526,000 | $2,850 | 0.77% | $1,500 | 0.90 | No | 0.94 |
| 66 | Philadelphia, PA | $396,000 | $2,290 | 1.28% | $1,100 | 0.90 | No | 0.98 |
| 67 | Phoenix, AZ | $451,000 | $2,300 | 0.42% | $1,200 | 0.90 | No | 0.96 |
| 68 | Nashville, TN | $457,000 | $2,360 | 0.49% | $1,400 | 0.90 | No | 0.96 |
| 69 | Riverside, CA | $591,000 | $3,150 | 0.75% | $1,500 | 0.90 | No | 0.97 |
| 70 | Jacksonville, FL | $360,000 | $2,070 | 0.81% | $2,800 | 0.90 | No | 0.95 |
| 71 | Hartford, CT | $422,000 | $2,590 | 1.70% | $1,800 | 0.89 | No | 0.96 |
| 72 | Worcester, MA | $490,000 | $2,800 | 1.20% | $1,800 | 0.89 | No | 0.96 |
| 73 | Las Vegas, NV | $443,000 | $2,250 | 0.48% | $1,000 | 0.89 | No | 0.94 |
| 74 | Bridgeport, CT | $784,000 | $4,500 | 1.43% | $1,800 | 0.89 | No | 0.98 |
| 75 | Modesto, CA | $464,000 | $2,430 | 0.69% | $1,500 | 0.88 | No | 0.96 |
| 76 | Spokane, WA | $419,000 | $2,220 | 0.82% | $1,300 | 0.88 | No | 0.91 |
| 77 | Colorado Springs, CO | $454,000 | $2,330 | 0.43% | $2,400 | 0.87 | No | 0.91 |
| 78 | Des Moines, IA | $301,000 | $1,750 | 1.42% | $1,500 | 0.87 | No | 0.93 |
| 79 | Durham, NC | $406,000 | $2,120 | 0.76% | $1,400 | 0.87 | No | 0.90 |
| 80 | Washington, DC | $615,000 | $3,210 | 0.94% | $1,500 | 0.86 | No | 0.92 |
| 81 | Denver, CO | $581,000 | $2,930 | 0.58% | $2,400 | 0.85 | No | 0.91 |
| 82 | Kansas City, MO | $328,000 | $1,790 | 1.07% | $1,700 | 0.85 | No | 0.91 |
| 83 | Boise City, ID | $494,000 | $2,340 | 0.43% | $1,200 | 0.83 | No | 0.88 |
| 84 | Raleigh, NC | $433,000 | $2,110 | 0.73% | $1,400 | 0.82 | No | 0.87 |
| 85 | Portland, OR | $553,000 | $2,690 | 0.89% | $1,200 | 0.81 | No | 0.87 |
| 86 | Sacramento, CA | $582,000 | $2,810 | 0.79% | $1,500 | 0.81 | No | 0.86 |
| 87 | Austin, TX | $421,000 | $2,290 | 1.52% | $2,400 | 0.79 | No | 0.81 |
| 88 | Oxnard, CA | $906,000 | $4,070 | 0.69% | $1,500 | 0.77 | No | 0.83 |
| 89 | Ogden, UT | $515,000 | $2,290 | 0.55% | $1,200 | 0.77 | No | 0.83 |
| 90 | Seattle, WA | $753,000 | $3,440 | 0.84% | $1,300 | 0.77 | No | 0.80 |
| 91 | Salt Lake City, UT | $578,000 | $2,510 | 0.52% | $1,200 | 0.76 | No | 0.82 |
| 92 | Los Angeles, CA | $1,012,000 | $4,420 | 0.66% | $1,500 | 0.75 | No | 0.82 |
| 93 | Boston, MA | $765,000 | $3,500 | 1.00% | $1,800 | 0.74 | No | 0.82 |
| 94 | Provo, UT | $556,000 | $2,280 | 0.45% | $1,200 | 0.72 | No | 0.79 |
| 95 | Milwaukee, WI | $400,000 | $1,820 | 1.25% | $1,200 | 0.71 | No | 0.78 |
| 96 | New York, NY | $755,000 | $3,460 | 1.45% | $1,300 | 0.71 | No | 0.78 |
| 97 | San Diego, CA | $1,001,000 | $4,120 | 0.68% | $1,500 | 0.71 | No | 0.77 |
| 98 | Urban Honolulu, HI | $1,058,000 | $3,540 | 0.29% | $1,900 | 0.61 | No | 0.66 |
| 99 | San Francisco, CA | $1,212,000 | $4,220 | 0.80% | $1,500 | 0.59 | No | 0.63 |
| 100 | San Jose, CA | $1,669,000 | $4,790 | 0.62% | $1,500 | 0.50 | No | 0.52 |
Methodology
For each metro we take the typical single-family home value (ZHVI) and the typical single-family asking rent (ZORI) for September 2026. We finance 75% of the value on a 30-year fixed loan at the Freddie Mac survey rate for the week of October 29, 2026 (7.24%), then add monthly property tax and insurance.
DSCR = monthly rent / (principal and interest + property tax + insurance)
The property tax rate for each metro is the Census Bureau's median real estate taxes paid divided by median home value for owner-occupied homes (ACS 2025 1-year). Insurance is the weighted median annual premium reported by owners of one-unit homes in the metro's principal state (ACS 2024 1-year microdata, the latest available). The year-ago run uses September 2025 values and rents and the 6.17% rate from the same week of 2025.
The metro list is the 100 largest by Zillow's size rank that have both single-family indexes for both months. Two metros in the top 100 (Dayton, OH and Poughkeepsie, NY) lack a single-family value index, so the list runs to rank 103.
Assumptions
- 25% down, 30-year fixed, survey rate as published. The survey describes owner-occupied conventional loans; the 8.24% line is our own scenario, not a quoted rate.
- The ratio covers principal, interest, tax, and insurance only. It leaves out vacancy, repairs, management, HOA dues, and any extra premium for landlord policies.
- Rent is an asking rent for newly listed rentals, and value is a typical home value, not a sale price.
- Tax rate and insurance are held constant for the year-ago comparison. Census figures are survey estimates with margins of error.
- Insurance is the input most likely to run low for landlords, because it reflects owner policies by state in 2024 dollars. The count is sensitive to it: at 1.5 times our insurance figures, 15 metros pass instead of 25; at 2 times, 7 do.
- A ratio at or above 1.0 here is not a loan approval or a lender's DSCR; lenders use their own rent, expense, and rate inputs.
Sources
- Zillow Group, Zillow Home Value Index (ZHVI), single-family, smoothed and seasonally adjusted, metroData as of: September 2026 and September 2025. Retrieved 2026-11-02. Typical value of a single-family home in each metro (a typical value, not a median sale price).
- Zillow Group, Zillow Observed Rent Index (ZORI), single-family, smoothed, metroData as of: September 2026 and September 2025. Retrieved 2026-11-02. Typical asking rent for single-family rentals coming on the market in each metro.
- Freddie Mac, Primary Mortgage Market Survey (PMMS)Data as of: Week of October 29, 2026 (7.24%); year-ago week (6.17%). Retrieved 2026-11-02. U.S. weekly average 30-year fixed rate. PMMS describes conventional, conforming, owner-occupied loans with 20% down.
- U.S. Census Bureau, American Community Survey 2025 1-year estimates, tables B25103 and B25077Data as of: Calendar 2025 (released October 29, 2026). Retrieved 2026-11-02. Median real estate taxes paid and median home value for owner-occupied homes, by metro area.
- U.S. Census Bureau, American Community Survey 2024 1-year Public Use Microdata Sample (housing records)Data as of: Calendar 2024, in 2024 dollars (2025 microdata not yet released). Retrieved 2026-11-02. Annual property insurance (INSP) reported by owners of one-unit homes, summarized as a weighted median by state.
Data Provided by Zillow Group (Zillow Home Value Index and Zillow Observed Rent Index). Mortgage rate: Freddie Mac Primary Mortgage Market Survey. Tax and insurance: U.S. Census Bureau, American Community Survey.
Cite this study
You are welcome to quote our findings with a link back to this page. Underlying data belongs to the credited sources (Zillow Group, Freddie Mac, U.S. Census Bureau) and is subject to their terms.
RE Underwrite Lab, "DSCR Pass Rate by Metro: 100 Markets," November 2, 2026. https://reunderwritelab.com/data/dscr-pass-rate-by-metro
Questions
What is DSCR?
The debt service coverage ratio is monthly rent divided by the monthly mortgage payment plus property tax and insurance. At 1.0 the rent exactly covers those costs; below 1.0 the owner covers the gap each month.
Do lenders require a DSCR of 1.0 or 1.25?
It varies by lender and loan program, so check the term sheet you are offered. We show 1.0 as the break-even line and 1.25 as a stricter cushion so you can see both.
Why did fewer metros pass than a year ago?
Mostly the rate. Holding today's values and rents but using last year's 6.17% rate, 61 metros would pass. Holding last year's values and rents at today's 7.24% rate, 20 would pass. Typical rents rose a bit faster than values (median +3.1% versus +1.5%), which helped only a little.
Does a DSCR above 1.0 mean a rental makes money?
Not on its own. This ratio leaves out vacancy, repairs, capital reserves, property management, and HOA dues. Run your own rent and expenses in the rental cash flow calculator before deciding.
Can I use this for a specific property?
Use it as a market screen, not a deal answer. Typical values and asking rents in a metro can be far from a given house. The DSCR loan calculator takes your actual price, rent, rate, tax, and insurance.
Modeled estimates from public data, for education. Not financial, investment, legal, tax, lending, or appraisal advice.
Estimates only. Not financial, legal, tax, or investment advice. RE Underwrite Lab calculators and PDF reports provide educational estimates based on the numbers you enter. Actual purchase costs, rents, expenses, financing terms, taxes, insurance, vacancy, rehab costs, refinance eligibility, and returns vary by property, market, lender, and local law (including short-term rental rules). We do not guarantee any outcome, profit, cash flow, or appraisal. Some content and tools may be generated or assisted by artificial intelligence and can contain errors. Always verify assumptions with licensed professionals and your own due diligence before making decisions.