DSCR Loans by State 2026: Rates, Lenders & Best Markets
15 states compared side-by-side: rates, lenders, cash flow, DSCR ratios. Find which state gives you the best return on investment. NC, FL, TX, CA, OH, IN, GA, TN and more.
Ohio 1.35
Best Cash Flow
FL / TX 10+
Most Lenders
AL $195K
Lowest Price
FL 6.75%
Best Rate
⚡ Quick Answer: Best States for DSCR Investing
📊 Best cash flow (DSCR 1.25+): Ohio, Indiana, Alabama, Texas, Missouri
📈 Best appreciation: Florida, Arizona, North Carolina, Tennessee
🏆 Best overall (cash flow + growth): Texas, Tennessee, North Carolina, Georgia
⚠️ Hardest to cash flow: California (0.90), Colorado (0.85), New York coastal (0.80)
💰 No state income tax: Florida, Texas, Tennessee = keep more profit
📊 DSCR Loan Comparison: 15 States (April 2026)
| State | Rate | Med. Price | Avg Rent | DSCR | Lenders | State Tax | Top Cities |
|---|---|---|---|---|---|---|---|
| Florida (FL)🏆 #1 VOLUME | 6.75-7.25% | $380K | $2,200 | 1.15 | 10+ | No income tax | Miami, Tampa, Orlando, Jacksonville |
| Texas (TX)💰 BEST VALUE | 6.90-7.25% | $320K | $1,900 | 1.25 | 10+ | No income tax | Houston, Dallas, San Antonio, Austin |
| North Carolina (NC) | 7.00-7.25% | $310K | $1,800 | 1.20 | 8+ | 4.5% flat | Charlotte, Raleigh, Greensboro, Asheville |
| Georgia (GA) | 7.00-7.25% | $330K | $1,900 | 1.18 | 8+ | 5.49% flat | Atlanta, Savannah, Augusta, Columbus |
| Tennessee (TN) | 6.95-7.25% | $290K | $1,700 | 1.22 | 7+ | No income tax | Nashville, Memphis, Knoxville, Chattanooga |
| Ohio (OH)📊 BEST DSCR | 7.10-7.50% | $220K | $1,400 | 1.35 | 7+ | 0-3.75% | Columbus, Cleveland, Cincinnati, Dayton |
| Indiana (IN) | 7.10-7.50% | $210K | $1,300 | 1.30 | 6+ | 3.05% flat | Indianapolis, Fort Wayne, Evansville, South Bend |
| Arizona (AZ) | 7.00-7.35% | $380K | $1,900 | 1.05 | 9+ | 2.5% flat | Phoenix, Tucson, Mesa, Scottsdale |
| South Carolina (SC) | 7.00-7.35% | $280K | $1,600 | 1.18 | 7+ | 0-6.5% | Charleston, Greenville, Columbia, Myrtle Beach |
| Alabama (AL) | 7.15-7.50% | $195K | $1,200 | 1.30 | 6+ | 2-5% | Birmingham, Huntsville, Mobile, Montgomery |
| Missouri (MO) | 7.10-7.50% | $230K | $1,350 | 1.25 | 6+ | 0-4.95% | Kansas City, St. Louis, Springfield, Columbia |
| California (CA)⚠️ LOW DSCR | 7.25-7.75% | $650K | $2,800 | 0.90 | 10+ | 1-13.3% | Sacramento, Riverside, Fresno, Bakersfield |
| New York (NY) | 7.25-7.75% | $500K | $2,400 | 0.95 | 8+ | 4-10.9% | Buffalo, Rochester, Syracuse, Albany (NOT NYC) |
| Colorado (CO) | 7.15-7.50% | $530K | $2,200 | 0.85 | 8+ | 4.4% flat | Colorado Springs, Denver, Fort Collins, Pueblo |
| Michigan (MI) | 7.10-7.50% | $230K | $1,400 | 1.28 | 6+ | 4.05% flat | Grand Rapids, Detroit suburbs, Ann Arbor, Lansing |
DSCR calculated: 25% down, 7.00% rate, 30-year fixed, median prices, average 3BR rents. April 2026 data via Zillow/Redfin.
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🔍 Detailed State Breakdowns
🏠 DSCR Loans in North Carolina (NC)
North Carolina is one of the fastest-growing DSCR markets thanks to strong job growth (Research Triangle, Charlotte banking), affordable prices ($310K median), and solid rents ($1,800 3BR). No state-level restrictions on DSCR loans.
Top NC Markets for DSCR
- • Charlotte: $340K median, $1,900 rent, DSCR 1.15
- • Raleigh-Durham: $380K, $2,000, DSCR 1.08
- • Greensboro: $240K, $1,500, DSCR 1.30
- • Wilmington: $350K, $1,850, DSCR 1.10 (STR market)
- • Asheville: $400K, $2,100, DSCR 1.05 (STR gold)
NC DSCR Lenders Available
- • Truss Financial — 6.75% (best rate)
- • Lima One — 7.00% (HQ in nearby SC)
- • Kiavi — 6.90% (fast close)
- • Visio Lending — 7.15%
- • Angel Oak — 7.10% (620 credit OK)
🏖️ DSCR Loans in Florida (FL)
Florida is the #1 DSCR market by volume. 10+ lenders compete aggressively. No state income tax = more investor profit. Caveat: insurance costs are the highest in the nation ($3K-$8K/year) which impacts your DSCR calculation significantly.
Top FL Markets for DSCR
- • Jacksonville: $300K, $1,800, DSCR 1.25 (best FL DSCR)
- • Tampa: $360K, $2,100, DSCR 1.15
- • Orlando: $370K, $2,100, DSCR 1.12 (STR market)
- • Miami: $450K, $2,600, DSCR 1.05 (appreciation play)
- • Fort Myers: $320K, $1,900, DSCR 1.18
FL DSCR Considerations
- • ⚠️ Insurance: $3K-$8K/year (highest in US)
- • ⚠️ Flood zones: add $1K-$5K/year
- • ✅ No state income tax
- • ✅ 10+ lenders = best rate shopping
- • ✅ Strong STR/Airbnb markets
🤠 DSCR Loans in Texas (TX)
Texas offers the best combination of cash flow + growth. No state income tax, strong job market, and affordable prices. Only downside: property taxes are among the highest (1.8-2.5%), which lowers DSCR slightly. 10+ lenders available.
Top TX Markets for DSCR
- • Houston: $290K, $1,800, DSCR 1.30 (best TX DSCR)
- • San Antonio: $270K, $1,650, DSCR 1.28
- • Dallas-FW: $350K, $2,000, DSCR 1.18
- • Austin: $430K, $2,200, DSCR 1.02 (pricier)
- • El Paso: $220K, $1,350, DSCR 1.30
TX DSCR Considerations
- • ⚠️ Property tax: 1.8-2.5% (high)
- • ✅ No state income tax
- • ✅ Strong job growth (corporate relocations)
- • ✅ Landlord-friendly laws
- • ✅ 10+ DSCR lenders active
📊 DSCR Loans in Ohio (OH) — Best Cash Flow State
Ohio has the best DSCR ratio in the country (1.35) thanks to ultra-low prices and solid rents. Columbus, Cleveland, and Cincinnati all offer strong cash flow. The challenge: slower appreciation and some markets have older housing stock requiring more maintenance.
Top OH Markets for DSCR
- • Columbus: $260K, $1,500, DSCR 1.25
- • Cleveland: $160K, $1,200, DSCR 1.55 (best OH)
- • Cincinnati: $240K, $1,400, DSCR 1.28
- • Dayton: $150K, $1,100, DSCR 1.50
- • Akron: $140K, $1,050, DSCR 1.48
OH DSCR Considerations
- • ✅ Best DSCR ratios nationally
- • ✅ Sub-$200K homes available
- • ✅ Strong rental demand
- • ⚠️ Slower appreciation (2-4%/yr)
- • ⚠️ Older housing stock (more repairs)
🏠 DSCR Loans in Indiana (IN)
Indiana is the hidden gem of DSCR investing. Indianapolis is consistently ranked as the #1 cash flow market for rental investors. Low prices ($210K median), solid rents ($1,300), flat 3.05% state tax, and landlord-friendly laws make it ideal for DSCR investors scaling portfolios.
Top IN Markets for DSCR
- • Indianapolis: $230K, $1,400, DSCR 1.28
- • Fort Wayne: $180K, $1,150, DSCR 1.35
- • Evansville: $160K, $1,050, DSCR 1.38
- • South Bend: $155K, $1,000, DSCR 1.32
- • Bloomington: $240K, $1,450, DSCR 1.22
IN DSCR Considerations
- • ✅ Low 3.05% flat state tax
- • ✅ Landlord-friendly laws
- • ✅ Strong DSCR (1.30)
- • ✅ Sub-$200K in many markets
- • ⚠️ Fewer DSCR lenders (6+)
People Also Ask (Voice Search)
“can i get a dscr loan in north carolina?”
Yes! NC has 8+ DSCR lenders active. Best NC rates: Truss Financial 6.75%, Kiavi 6.90%, Lima One 7.00%. Top markets: Charlotte, Raleigh-Durham, Greensboro. Median price $310K with $1,800/mo rent = DSCR 1.20. No state-level DSCR restrictions. Get DSCR pre-approval →
“what states have the best cash flow for dscr loans?”
Best DSCR states by cash flow: Ohio (1.35 DSCR), Indiana (1.30), Alabama (1.30), Texas (1.25), Missouri (1.25), Tennessee (1.22), North Carolina (1.20). Ohio and Indiana have the best price-to-rent ratios in the country. Avoid California (0.90) and Colorado (0.85) for cash flow.
“are dscr loans available in florida?”
Yes — Florida is the #1 DSCR market by volume with 10+ lenders. Best FL rates: 6.75-7.25%. Top markets: Jacksonville (best DSCR 1.25), Tampa, Orlando, Miami. Caution: FL has the highest insurance costs ($3K-$8K/year) which impacts DSCR calculation. Always factor in flood insurance. Get DSCR pre-approval →
“dscr loan texas requirements?”
TX DSCR requirements: 15-25% down, 620-680+ credit, DSCR 0.75-1.0+ (varies by lender). TX has no state-level restrictions. 10+ lenders active. No state income tax = more investor profit. High property taxes (1.8-2.5%) lower DSCR slightly. Best TX markets: Houston, San Antonio, El Paso.
“which state has the cheapest dscr loan properties?”
Cheapest DSCR states by median price: Alabama $195K, Ohio $220K, Indiana $210K, Michigan $230K, Missouri $230K. Sub-$200K rental properties with $1,000-$1,200/month rent = excellent DSCR of 1.30-1.55. You can buy 5 properties in these states for the price of 1 in California. Get DSCR pre-approval →
Frequently Asked Questions
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Marcus Williams
Real Estate Investment Analyst · NMLS #567890
Marcus invests in rental properties across 8 states and has analyzed DSCR markets in all 50 states. His portfolio spans Ohio, Indiana, Texas, and North Carolina. He specializes in helping investors identify the highest cash-flow markets and secure the best DSCR rates available.