DSCR Loans by State: Where the Math Works in 2026

A DSCR loan qualifies on rent divided by PITIA, and every input in that formula is local. Property taxes range from under 0.3% in Hawaii to over 2% in New Jersey. Insurance costs vary threefold. Rent-to-price ratios decide whether a market clears 1.0 at 20% down. This page shows the actual math in every state, computed the same way we underwrite: 6.99% fixed, 30-year term, 20% down on the average single-family home, canonical state property tax rates, and 0.30% annual insurance.

August 2026 Update

Written and reviewed by
Bill Lyons,
NMLS #358687.

Data reflects May and June 2026 for the individual states and the national table. Data is reviewed and refreshed quarterly according to the methodology.

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Table of Contents

Top 50 Metros for DSCR Investors

Using the same methodology as our state-by-state market tables, we ranked the 50 largest U.S. metros by Example DSCR at a hypothetical 20% down. The spread is wide: rentals in New Orleans pencil at 1.17 while San Jose sits at 0.43, and seven of the ten strongest DSCR markets in America are in states where Griffin Funding has published a full market breakdown.

#	Metro Area	State	Avg. SFR Rent	Avg. SFR Home Value	Gross Yield	Example DSCR*
1	New Orleans	Louisiana	$1,930	$263,806	8.8%	1.17
2	Pittsburgh	Pennsylvania	$1,728	$229,604	9.0%	1.14
3	Memphis	Tennessee	$1,655	$246,821	8.0%	1.12
4	Buffalo	New York	$1,975	$289,072	8.2%	1.03
5	Oklahoma City	Oklahoma	$1,566	$248,579	7.6%	1.01
6	Tampa	Florida	$2,419	$376,738	7.7%	1.00
7	Cleveland	Ohio	$1,732	$259,918	8.0%	0.99
8	Houston	Texas	$2,209	$312,057	8.5%	0.99
9	Virginia Beach	Virginia	$2,293	$379,466	7.3%	0.97
10	Richmond	Virginia	$2,397	$400,709	7.2%	0.96

See the full ranking: metros 11–49
▾

#	Metro Area	State	Avg. SFR Rent	Avg. SFR Home Value	Gross Yield	Example DSCR*
11	Cincinnati	Ohio	$2,070	$322,375	7.7%	0.96
12	Chicago	Illinois	$2,557	$375,099	8.2%	0.96
13	Indianapolis	Indiana	$1,955	$300,854	7.8%	0.95
14	Orlando	Florida	$2,473	$404,368	7.3%	0.95
15	Louisville	Kentucky	$1,685	$288,207	7.0%	0.95
16	Miami	Florida	$3,434	$567,435	7.3%	0.94
17	Baltimore	Maryland	$2,477	$418,129	7.1%	0.94
18	Minneapolis	Minnesota	$2,450	$406,112	7.2%	0.94
19	St. Louis	Missouri	$1,665	$282,917	7.1%	0.93
20	Atlanta	Georgia	$2,262	$389,688	7.0%	0.93
21	San Antonio	Texas	$1,854	$281,827	7.9%	0.92
22	Charlotte	North Carolina	$2,185	$394,304	6.6%	0.91
23	Jacksonville	Florida	$2,093	$362,291	6.9%	0.90
24	Dallas	Texas	$2,359	$369,434	7.7%	0.89
25	Hartford	Connecticut	$2,593	$423,120	7.4%	0.89
26	Providence	Rhode Island	$3,119	$538,853	6.9%	0.89
27	Columbus	Ohio	$2,109	$357,316	7.1%	0.88
28	Kansas City	Missouri	$1,830	$332,726	6.6%	0.87
29	Philadelphia	Pennsylvania	$2,296	$400,176	6.9%	0.87
30	Riverside	California	$3,145	$595,857	6.3%	0.86
31	Washington, D.C.	Washington, D.C.	$3,321	$629,402	6.3%	0.84
32	Nashville	Tennessee	$2,334	$463,356	6.0%	0.84
33	Las Vegas	Nevada	$2,258	$450,483	6.0%	0.84
34	Denver	Colorado	$3,003	$599,435	6.0%	0.84
35	Phoenix	Arizona	$2,314	$458,467	6.1%	0.84
36	Detroit	Michigan	$1,627	$268,581	7.3%	0.83
37	Raleigh	North Carolina	$2,135	$442,861	5.8%	0.79
38	Boston	Massachusetts	$3,936	$783,852	6.0%	0.78
39	Sacramento	California	$2,824	$592,067	5.7%	0.78
40	Portland	Oregon	$2,634	$565,718	5.6%	0.75
41	New York	New York	$3,714	$753,365	5.9%	0.74
42	Austin	Texas	$2,298	$435,708	6.3%	0.74
43	Salt Lake City	Utah	$2,562	$588,159	5.2%	0.73
44	Los Angeles	California	$4,501	$1,031,259	5.2%	0.71
45	Seattle	Washington	$3,450	$790,279	5.2%	0.70
46	Milwaukee	Wisconsin	$1,848	$406,114	5.5%	0.68
47	San Diego	California	$4,190	$1,017,658	4.9%	0.67
48	San Francisco	California	$4,161	$1,244,309	4.0%	0.54
49	San Jose	California	$4,646	$1,766,744	3.2%	0.43

Ranked by Example DSCR across the 50 largest U.S. metro areas with published Zillow single-family data (49 metros; the San Juan, PR metro publishes no single-family series). Rent and home value figures reflect metro-level data from the Zillow Observed Rent Index (ZORI) and Zillow Home Value Index (ZHVI) through May 2026. Gross yield = annual rent ÷ average home value. *Example DSCR is a hypothetical illustration assuming a 6.99% fixed interest rate, 30-year amortization, a 20% down payment on the average SFR home value, property taxes at each state’s effective investment-property rate per Griffin Funding’s property tax by state guide, and homeowners insurance at 0.30% of home value annually, with the average SFR rent divided by the resulting monthly PITI payment. Updated July 29, 2026: example DSCRs now reflect each state’s investment-property effective tax rate, accounting for the homestead exemptions, assessment-ratio classifications, and school-millage rules that rental properties do not receive, rather than owner-occupied averages; in states with uniform statewide rates, some cities and counties apply additional owner-occupant exemptions that raise the local investor bill further. Actual insurance costs in coastal and high-premium markets can run well above this assumption. These are business-purpose loan scenarios shown for illustration only. This is not a rate quote, an advertisement of available terms, a loan offer, or a guarantee of qualification; actual rates, taxes, insurance, and DSCR vary by borrower, property, county, tax class, and program. Griffin Funding has no minimum DSCR requirement, and a no-ratio program is available.

Cite this data: Griffin Funding DSCR Market Analysis, August 2026, griffinfunding.com/non-qm-mortgages/dscr-loans/by-state/#metro-data

Market Math Is Half the Deal. State Law Is the Other Half.

The table above ranks metros by cash flow. This one ranks states by legal climate: Griffin Funding scored all 50 states and D.C. across six statute-based factors, including rent control, just-cause eviction rules, notice periods, timelines, deposit caps, and property taxes. The extremes are below; the full 51-state scored ranking and methodology live on our blog.

10 Most Landlord-Friendly

#	State	Score
1	Idaho	98
2	Utah	98
3	Florida	94
4	Georgia	94
5	West Virginia	93
6	Wyoming	93
7	Oklahoma	92
8	Arizona	91
9	Louisiana	91
10	Mississippi	91

5 Most Tenant-Protective

#	State	Score
47	Washington	31
48	New Jersey	30
49	California	28
50	District of Columbia	13
51	New York	13

Tenant-protective doesn’t mean uninvestable. It means underwriting must price longer timelines, capped increases, and local ordinance risk, work our state-by-state DSCR guides do market by market.

Scores as of July 2026, out of 100, from Griffin Funding’s landlord-friendly states ranking, with property tax rates per our property tax by state guide. General information about regulatory climate, not legal advice; statutes change, so verify current law before investing.

DSCR Loan Guides for Every State

Northeast

The Northeast includes high-cost coastal markets, established rental corridors, and more affordable inland cities. DSCR investors should compare rent levels, property taxes, insurance, and local landlord-tenant rules carefully because cash-flow potential can vary substantially between states and metro areas.

Midwest

Midwestern markets often attract DSCR investors with comparatively affordable home prices, steady rental demand, and stronger rent-to-value relationships. Property taxes, insurance costs, population trends, and local economic conditions still vary, so each property should be evaluated using its actual projected income and expenses.

South

The South includes fast-growing metros, vacation-rental destinations, and many markets with relatively accessible purchase prices. Investors should weigh rental demand against insurance exposure, property taxes, local regulations, and market-specific operating costs before relying on a projected DSCR.

West

Western states range from high-value coastal markets to lower-density mountain and desert communities. Purchase prices, rent levels, insurance risks, and local rental rules differ widely across the region, making property-level cash-flow analysis especially important when comparing DSCR loan opportunities.

Don’t see your state? Griffin Funding lends nationwide. Request a quick quote, and a licensed loan officer will confirm DSCR availability in your area, or start with our full DSCR loan guide.

How We Calculate These Numbers

Scoring Methodology: Six Factors, 100 Points

Factor	Weight	Scoring
Rent control status	25	Preempted by state statute: 25. No statewide law and no local ordinances: 20. Local ordinances exist or are permitted: 10. Statewide rent regulation: 0.
Just-cause eviction requirement	20	No requirement: 20. Partial (local ordinances or protected classes): 10. Statewide requirement: 0.
Nonpayment notice period	15	3 days or fewer: 15. 4–5 days: 13. 6–7 days: 11. 8–10 days: 8. 11–14 days: 5. Longer than 14 days: 0.
Typical contested eviction timeline	15	Fast (roughly 3–6 weeks): 15. Moderate (6–10 weeks): 10. Slow (10–16 weeks): 5. Very slow (4 months or more): 0.
Security deposit rules	10	No statutory cap: 10. Cap of 2 months or more: 7. Cap of 1.5 months: 5. Cap of 1 month or less: 2.
Effective investment-property tax rate	15	0.40% or lower: 15. 0.41–0.55%: 13. 0.56–0.75%: 11. 0.76–1.00%: 9. 1.01–1.40%: 6. 1.41–1.70%: 3. Above 1.70%: 0.

Sources: Rent control, just-cause, notice, and deposit factors are scored from each state’s landlord-tenant statutes, cited in the ranking table below. Effective property tax rates use each state’s investment-property rate from Griffin Funding’s property tax by state guide, reflecting the homestead exemptions, assessment classifications, and school-millage rules that rental properties do not receive. States that tax owners and investors identically are unaffected.