Top Cash Flow Zip Codes for DSCR Investors in 2026
Ranked list of 227 US cities by estimated DSCR ratio at 75% LTV. Find the best markets for cash-flowing rental properties.
Good Cash Flow (1.0 - 1.24 DSCR)
4 cities
| # | City / State | Median Price | Median Rent | Est. DSCR | Rent/Price | Price It |
|---|---|---|---|---|---|---|
| 1 | Detroit, MI | $120,000 | $1,000/mo | 1.18x | 0.83% | Run |
| 2 | Mobile, AL | $160,000 | $1,000/mo | 1.06x | 0.63% | Run |
| 3 | Memphis, TN | $180,000 | $1,100/mo | 1.01x | 0.61% | Run |
| 4 | Jackson, MS | $150,000 | $950/mo | 1.01x | 0.63% | Run |
Moderate Cash Flow (0.75 - 0.99 DSCR)
101 cities
| # | City / State | Median Price | Median Rent | Est. DSCR | Rent/Price | Price It |
|---|---|---|---|---|---|---|
| 5 | Shreveport, LA | $150,000 | $900/mo | 0.99x | 0.60% | Run |
| 6 | Birmingham, AL | $175,000 | $1,000/mo | 0.98x | 0.57% | Run |
| 7 | Montgomery, AL | $175,000 | $1,000/mo | 0.98x | 0.57% | Run |
| 8 | Macon, GA | $150,000 | $950/mo | 0.98x | 0.63% | Run |
| 9 | Lansing, MI | $150,000 | $1,000/mo | 0.98x | 0.67% | Run |
| 10 | Charleston, WV | $150,000 | $900/mo | 0.98x | 0.60% | Run |
| 11 | Toledo, OH | $130,000 | $900/mo | 0.97x | 0.69% | Run |
| 12 | Akron, OH | $130,000 | $900/mo | 0.97x | 0.69% | Run |
| 13 | Dayton, OH | $140,000 | $950/mo | 0.97x | 0.68% | Run |
| 14 | Cleveland, OH | $150,000 | $1,000/mo | 0.96x | 0.67% | Run |
| 15 | Warren, MI | $175,000 | $1,100/mo | 0.95x | 0.63% | Run |
| 16 | Little Rock, AR | $200,000 | $1,100/mo | 0.93x | 0.55% | Run |
| 17 | Rockford, IL | $130,000 | $900/mo | 0.93x | 0.69% | Run |
| 18 | Columbia, SC | $225,000 | $1,200/mo | 0.93x | 0.53% | Run |
| 19 | Peoria, IL | $130,000 | $900/mo | 0.93x | 0.69% | Run |
| 20 | New Orleans, LA | $275,000 | $1,400/mo | 0.91x | 0.51% | Run |
| 21 | Rochester, NY | $175,000 | $1,100/mo | 0.91x | 0.63% | Run |
| 22 | Syracuse, NY | $175,000 | $1,100/mo | 0.91x | 0.63% | Run |
| 23 | Wilmington, DE | $250,000 | $1,300/mo | 0.91x | 0.52% | Run |
| 24 | Philadelphia, PA | $275,000 | $1,600/mo | 0.90x | 0.58% | Run |
| 25 | Oklahoma City, OK | $200,000 | $1,100/mo | 0.90x | 0.55% | Run |
| 26 | Tulsa, OK | $190,000 | $1,050/mo | 0.90x | 0.55% | Run |
| 27 | Winston-Salem, NC | $225,000 | $1,200/mo | 0.89x | 0.53% | Run |
| 28 | Fayetteville, NC | $225,000 | $1,200/mo | 0.89x | 0.53% | Run |
| 29 | Augusta, GA | $200,000 | $1,100/mo | 0.89x | 0.55% | Run |
| 30 | Myrtle Beach, SC | $300,000 | $1,500/mo | 0.89x | 0.50% | Run |
| 31 | St. Louis, MO | $200,000 | $1,100/mo | 0.88x | 0.55% | Run |
| 32 | Hampton, VA | $250,000 | $1,300/mo | 0.88x | 0.52% | Run |
| 33 | Topeka, KS | $150,000 | $900/mo | 0.88x | 0.60% | Run |
| 34 | Norfolk, VA | $275,000 | $1,400/mo | 0.87x | 0.51% | Run |
| 35 | Springfield, IL | $150,000 | $950/mo | 0.87x | 0.63% | Run |
| 36 | Davenport, IA | $150,000 | $900/mo | 0.87x | 0.60% | Run |
| 37 | Fort Wayne, IN | $200,000 | $1,050/mo | 0.86x | 0.53% | Run |
| 38 | Baton Rouge, LA | $225,000 | $1,100/mo | 0.86x | 0.49% | Run |
| 39 | Hollywood, FL | $400,000 | $2,000/mo | 0.86x | 0.50% | Run |
| 40 | West Palm Beach, FL | $400,000 | $2,000/mo | 0.86x | 0.50% | Run |
| 41 | Pasadena, TX | $225,000 | $1,300/mo | 0.85x | 0.58% | Run |
| 42 | Pensacola, FL | $275,000 | $1,400/mo | 0.85x | 0.51% | Run |
| 43 | Chicago, IL | $320,000 | $1,800/mo | 0.84x | 0.56% | Run |
| 44 | Springfield, MO | $200,000 | $1,050/mo | 0.84x | 0.53% | Run |
| 45 | Killeen, TX | $210,000 | $1,200/mo | 0.84x | 0.57% | Run |
| 46 | Tampa, FL | $350,000 | $1,700/mo | 0.83x | 0.49% | Run |
| 47 | Hartford, CT | $225,000 | $1,300/mo | 0.83x | 0.58% | Run |
| 48 | Clearwater, FL | $350,000 | $1,700/mo | 0.83x | 0.49% | Run |
| 49 | Greenville, SC | $300,000 | $1,400/mo | 0.83x | 0.47% | Run |
| 50 | Amarillo, TX | $185,000 | $1,050/mo | 0.82x | 0.57% | Run |
| 51 | Clarksville, TN | $275,000 | $1,300/mo | 0.82x | 0.47% | Run |
| 52 | Joliet, IL | $250,000 | $1,400/mo | 0.82x | 0.56% | Run |
| 53 | Indianapolis, IN | $250,000 | $1,200/mo | 0.81x | 0.48% | Run |
| 54 | Louisville, KY | $225,000 | $1,100/mo | 0.81x | 0.49% | Run |
| 55 | Milwaukee, WI | $200,000 | $1,100/mo | 0.81x | 0.55% | Run |
| 56 | Greensboro, NC | $250,000 | $1,200/mo | 0.81x | 0.48% | Run |
| 57 | Buffalo, NY | $200,000 | $1,100/mo | 0.81x | 0.55% | Run |
| 58 | Fort Lauderdale, FL | $475,000 | $2,200/mo | 0.81x | 0.46% | Run |
| 59 | Pembroke Pines, FL | $425,000 | $2,000/mo | 0.81x | 0.47% | Run |
| 60 | Omaha, NE | $225,000 | $1,200/mo | 0.80x | 0.53% | Run |
| 61 | Virginia Beach, VA | $350,000 | $1,600/mo | 0.80x | 0.46% | Run |
| 62 | Wichita, KS | $190,000 | $1,000/mo | 0.80x | 0.53% | Run |
| 63 | Pittsburgh, PA | $250,000 | $1,300/mo | 0.80x | 0.52% | Run |
| 64 | Lubbock, TX | $200,000 | $1,100/mo | 0.80x | 0.55% | Run |
| 65 | Laredo, TX | $200,000 | $1,100/mo | 0.80x | 0.55% | Run |
| 66 | Chesapeake, VA | $350,000 | $1,600/mo | 0.80x | 0.46% | Run |
| 67 | Aurora, IL | $275,000 | $1,500/mo | 0.80x | 0.55% | Run |
| 68 | New Haven, CT | $275,000 | $1,500/mo | 0.80x | 0.55% | Run |
| 69 | Kansas City, MO | $250,000 | $1,200/mo | 0.79x | 0.48% | Run |
| 70 | Corpus Christi, TX | $225,000 | $1,200/mo | 0.79x | 0.53% | Run |
| 71 | Huntsville, AL | $300,000 | $1,300/mo | 0.79x | 0.43% | Run |
| 72 | Tallahassee, FL | $275,000 | $1,300/mo | 0.79x | 0.47% | Run |
| 73 | Gainesville, FL | $300,000 | $1,400/mo | 0.79x | 0.47% | Run |
| 74 | Waco, TX | $225,000 | $1,200/mo | 0.79x | 0.53% | Run |
| 75 | Lakeland, FL | $300,000 | $1,400/mo | 0.79x | 0.47% | Run |
| 76 | Jacksonville, FL | $325,000 | $1,500/mo | 0.78x | 0.46% | Run |
| 77 | Atlanta, GA | $350,000 | $1,600/mo | 0.78x | 0.46% | Run |
| 78 | Orlando, FL | $375,000 | $1,700/mo | 0.78x | 0.45% | Run |
| 79 | St. Petersburg, FL | $375,000 | $1,700/mo | 0.78x | 0.45% | Run |
| 80 | Port St. Lucie, FL | $375,000 | $1,700/mo | 0.78x | 0.45% | Run |
| 81 | Cape Coral, FL | $375,000 | $1,700/mo | 0.78x | 0.45% | Run |
| 82 | Brownsville, TX | $165,000 | $900/mo | 0.78x | 0.55% | Run |
| 83 | Savannah, GA | $300,000 | $1,400/mo | 0.78x | 0.47% | Run |
| 84 | McAllen, TX | $185,000 | $1,000/mo | 0.78x | 0.54% | Run |
| 85 | Palm Bay, FL | $325,000 | $1,500/mo | 0.78x | 0.46% | Run |
| 86 | New York, NY | $750,000 | $3,200/mo | 0.77x | 0.43% | Run |
| 87 | El Paso, TX | $210,000 | $1,100/mo | 0.77x | 0.52% | Run |
| 88 | St. Paul, MN | $300,000 | $1,400/mo | 0.77x | 0.47% | Run |
| 89 | North Las Vegas, NV | $375,000 | $1,600/mo | 0.77x | 0.43% | Run |
| 90 | Worcester, MA | $400,000 | $1,800/mo | 0.77x | 0.45% | Run |
| 91 | Houston, TX | $300,000 | $1,500/mo | 0.76x | 0.50% | Run |
| 92 | San Antonio, TX | $275,000 | $1,400/mo | 0.76x | 0.51% | Run |
| 93 | Tucson, AZ | $300,000 | $1,300/mo | 0.76x | 0.43% | Run |
| 94 | Fresno, CA | $350,000 | $1,500/mo | 0.76x | 0.43% | Run |
| 95 | Arlington, TX | $300,000 | $1,500/mo | 0.76x | 0.50% | Run |
| 96 | Garland, TX | $300,000 | $1,500/mo | 0.76x | 0.50% | Run |
| 97 | Knoxville, TN | $300,000 | $1,300/mo | 0.76x | 0.43% | Run |
| 98 | Chattanooga, TN | $275,000 | $1,200/mo | 0.76x | 0.44% | Run |
| 99 | Visalia, CA | $350,000 | $1,500/mo | 0.76x | 0.43% | Run |
| 100 | Charlotte, NC | $375,000 | $1,600/mo | 0.75x | 0.43% | Run |
| 101 | Albuquerque, NM | $300,000 | $1,300/mo | 0.75x | 0.43% | Run |
| 102 | Richmond, VA | $325,000 | $1,400/mo | 0.75x | 0.43% | Run |
| 103 | Grand Rapids, MI | $275,000 | $1,300/mo | 0.75x | 0.47% | Run |
| 104 | Sterling Heights, MI | $250,000 | $1,200/mo | 0.75x | 0.48% | Run |
| 105 | Concord, NC | $350,000 | $1,500/mo | 0.75x | 0.43% | Run |
Below Threshold (Under 0.75 DSCR)
122 cities
| # | City / State | Median Price | Median Rent | Est. DSCR | Rent/Price | Price It |
|---|---|---|---|---|---|---|
| 106 | Aurora, CO | $450,000 | $1,800/mo | 0.74x | 0.40% | Run |
| 107 | Lexington, KY | $275,000 | $1,200/mo | 0.74x | 0.44% | Run |
| 108 | Cincinnati, OH | $225,000 | $1,100/mo | 0.74x | 0.49% | Run |
| 109 | Des Moines, IA | $225,000 | $1,100/mo | 0.74x | 0.49% | Run |
| 110 | Fort Worth, TX | $310,000 | $1,500/mo | 0.73x | 0.48% | Run |
| 111 | Columbus, OH | $275,000 | $1,300/mo | 0.73x | 0.47% | Run |
| 112 | Las Vegas, NV | $400,000 | $1,600/mo | 0.73x | 0.40% | Run |
| 113 | Minneapolis, MN | $340,000 | $1,500/mo | 0.73x | 0.44% | Run |
| 114 | Bakersfield, CA | $340,000 | $1,400/mo | 0.73x | 0.41% | Run |
| 115 | Henderson, NV | $425,000 | $1,700/mo | 0.73x | 0.40% | Run |
| 116 | Hialeah, FL | $425,000 | $1,800/mo | 0.73x | 0.42% | Run |
| 117 | Enterprise, NV | $400,000 | $1,600/mo | 0.73x | 0.40% | Run |
| 118 | Phoenix, AZ | $400,000 | $1,600/mo | 0.72x | 0.40% | Run |
| 119 | Nashville, TN | $450,000 | $1,800/mo | 0.72x | 0.40% | Run |
| 120 | Glendale, AZ | $375,000 | $1,500/mo | 0.72x | 0.40% | Run |
| 121 | Fontana, CA | $500,000 | $2,000/mo | 0.72x | 0.40% | Run |
| 122 | Moreno Valley, CA | $475,000 | $1,900/mo | 0.72x | 0.40% | Run |
| 123 | Surprise, AZ | $400,000 | $1,600/mo | 0.72x | 0.40% | Run |
| 124 | Columbia, MO | $250,000 | $1,100/mo | 0.72x | 0.44% | Run |
| 125 | Boston, MA | $750,000 | $3,000/mo | 0.71x | 0.40% | Run |
| 126 | Raleigh, NC | $425,000 | $1,700/mo | 0.71x | 0.40% | Run |
| 127 | San Bernardino, CA | $400,000 | $1,600/mo | 0.71x | 0.40% | Run |
| 128 | Modesto, CA | $400,000 | $1,600/mo | 0.71x | 0.40% | Run |
| 129 | Murfreesboro, TN | $375,000 | $1,500/mo | 0.71x | 0.40% | Run |
| 130 | Midland, TX | $275,000 | $1,300/mo | 0.71x | 0.47% | Run |
| 131 | Dallas, TX | $350,000 | $1,600/mo | 0.70x | 0.46% | Run |
| 132 | Miami, FL | $600,000 | $2,400/mo | 0.70x | 0.40% | Run |
| 133 | Durham, NC | $375,000 | $1,500/mo | 0.70x | 0.40% | Run |
| 134 | Irving, TX | $325,000 | $1,500/mo | 0.70x | 0.46% | Run |
| 135 | Elk Grove, CA | $575,000 | $2,200/mo | 0.70x | 0.38% | Run |
| 136 | Charleston, SC | $475,000 | $1,800/mo | 0.70x | 0.38% | Run |
| 137 | Roseville, CA | $575,000 | $2,200/mo | 0.70x | 0.38% | Run |
| 138 | Wilmington, NC | $375,000 | $1,500/mo | 0.70x | 0.40% | Run |
| 139 | Asheville, NC | $400,000 | $1,600/mo | 0.70x | 0.40% | Run |
| 140 | Colorado Springs, CO | $430,000 | $1,600/mo | 0.69x | 0.37% | Run |
| 141 | Mesa, AZ | $400,000 | $1,500/mo | 0.68x | 0.38% | Run |
| 142 | Stockton, CA | $420,000 | $1,600/mo | 0.68x | 0.38% | Run |
| 143 | Peoria, AZ | $425,000 | $1,600/mo | 0.68x | 0.38% | Run |
| 144 | Tempe, AZ | $425,000 | $1,600/mo | 0.68x | 0.38% | Run |
| 145 | Bridgeport, CT | $325,000 | $1,500/mo | 0.68x | 0.46% | Run |
| 146 | Anchorage, AK | $375,000 | $1,500/mo | 0.67x | 0.40% | Run |
| 147 | Lakewood, CO | $500,000 | $1,800/mo | 0.67x | 0.36% | Run |
| 148 | Fargo, ND | $275,000 | $1,100/mo | 0.67x | 0.40% | Run |
| 149 | Washington, DC | $650,000 | $2,400/mo | 0.66x | 0.37% | Run |
| 150 | Riverside, CA | $550,000 | $2,000/mo | 0.66x | 0.36% | Run |
| 151 | Lincoln, NE | $250,000 | $1,100/mo | 0.66x | 0.44% | Run |
| 152 | Gilbert, AZ | $500,000 | $1,800/mo | 0.66x | 0.36% | Run |
| 153 | Providence, RI | $375,000 | $1,600/mo | 0.66x | 0.43% | Run |
| 154 | Cheyenne, WY | $325,000 | $1,200/mo | 0.66x | 0.37% | Run |
| 155 | Sacramento, CA | $500,000 | $1,800/mo | 0.65x | 0.36% | Run |
| 156 | Chandler, AZ | $475,000 | $1,700/mo | 0.65x | 0.36% | Run |
| 157 | Spokane, WA | $375,000 | $1,400/mo | 0.65x | 0.37% | Run |
| 158 | Sioux Falls, SD | $300,000 | $1,200/mo | 0.65x | 0.40% | Run |
| 159 | Salem, OR | $400,000 | $1,500/mo | 0.65x | 0.38% | Run |
| 160 | Denton, TX | $350,000 | $1,500/mo | 0.65x | 0.43% | Run |
| 161 | College Station, TX | $275,000 | $1,200/mo | 0.65x | 0.44% | Run |
| 162 | Boise, ID | $450,000 | $1,600/mo | 0.64x | 0.36% | Run |
| 163 | Cary, NC | $500,000 | $1,800/mo | 0.64x | 0.36% | Run |
| 164 | West Valley City, UT | $425,000 | $1,500/mo | 0.64x | 0.35% | Run |
| 165 | Denver, CO | $600,000 | $2,000/mo | 0.63x | 0.33% | Run |
| 166 | Honolulu, HI | $750,000 | $2,400/mo | 0.63x | 0.32% | Run |
| 167 | Jersey City, NJ | $600,000 | $2,600/mo | 0.63x | 0.43% | Run |
| 168 | Reno, NV | $500,000 | $1,700/mo | 0.63x | 0.34% | Run |
| 169 | Frisco, TX | $550,000 | $2,200/mo | 0.63x | 0.40% | Run |
| 170 | Tacoma, WA | $475,000 | $1,700/mo | 0.63x | 0.36% | Run |
| 171 | Yonkers, NY | $500,000 | $2,000/mo | 0.63x | 0.40% | Run |
| 172 | Ontario, CA | $575,000 | $2,000/mo | 0.63x | 0.35% | Run |
| 173 | Alexandria, VA | $625,000 | $2,200/mo | 0.63x | 0.35% | Run |
| 174 | Pomona, CA | $575,000 | $2,000/mo | 0.63x | 0.35% | Run |
| 175 | Plano, TX | $450,000 | $1,800/mo | 0.62x | 0.40% | Run |
| 176 | Madison, WI | $375,000 | $1,500/mo | 0.62x | 0.40% | Run |
| 177 | Oxnard, CA | $650,000 | $2,200/mo | 0.62x | 0.34% | Run |
| 178 | McKinney, TX | $450,000 | $1,800/mo | 0.62x | 0.40% | Run |
| 179 | Rancho Cucamonga, CA | $650,000 | $2,200/mo | 0.62x | 0.34% | Run |
| 180 | Salinas, CA | $650,000 | $2,200/mo | 0.62x | 0.34% | Run |
| 181 | Corona, CA | $650,000 | $2,200/mo | 0.62x | 0.34% | Run |
| 182 | Round Rock, TX | $425,000 | $1,700/mo | 0.62x | 0.40% | Run |
| 183 | Ann Arbor, MI | $450,000 | $1,700/mo | 0.62x | 0.38% | Run |
| 184 | Portland, ME | $475,000 | $1,900/mo | 0.62x | 0.40% | Run |
| 185 | Burlington, VT | $450,000 | $1,800/mo | 0.62x | 0.40% | Run |
| 186 | Chula Vista, CA | $725,000 | $2,400/mo | 0.61x | 0.33% | Run |
| 187 | Eugene, OR | $425,000 | $1,500/mo | 0.61x | 0.35% | Run |
| 188 | Fort Collins, CO | $525,000 | $1,700/mo | 0.61x | 0.32% | Run |
| 189 | Naperville, IL | $500,000 | $2,000/mo | 0.61x | 0.40% | Run |
| 190 | Meridian, ID | $475,000 | $1,600/mo | 0.61x | 0.34% | Run |
| 191 | Billings, MT | $375,000 | $1,300/mo | 0.61x | 0.35% | Run |
| 192 | West Jordan, UT | $450,000 | $1,500/mo | 0.61x | 0.33% | Run |
| 193 | Portland, OR | $525,000 | $1,800/mo | 0.60x | 0.34% | Run |
| 194 | Oakland, CA | $800,000 | $2,600/mo | 0.60x | 0.33% | Run |
| 195 | Salt Lake City, UT | $525,000 | $1,700/mo | 0.60x | 0.32% | Run |
| 196 | Overland Park, KS | $375,000 | $1,400/mo | 0.60x | 0.37% | Run |
| 197 | Olathe, KS | $375,000 | $1,400/mo | 0.60x | 0.37% | Run |
| 198 | Manchester, NH | $400,000 | $1,600/mo | 0.60x | 0.40% | Run |
| 199 | Santa Clarita, CA | $750,000 | $2,400/mo | 0.59x | 0.32% | Run |
| 200 | Oceanside, CA | $750,000 | $2,400/mo | 0.59x | 0.32% | Run |
| 201 | Scottsdale, AZ | $700,000 | $2,200/mo | 0.58x | 0.31% | Run |
| 202 | Escondido, CA | $700,000 | $2,200/mo | 0.58x | 0.31% | Run |
| 203 | Provo, UT | $475,000 | $1,500/mo | 0.58x | 0.32% | Run |
| 204 | Newark, NJ | $400,000 | $1,600/mo | 0.57x | 0.40% | Run |
| 205 | Hayward, CA | $850,000 | $2,600/mo | 0.57x | 0.31% | Run |
| 206 | Paterson, NJ | $400,000 | $1,600/mo | 0.57x | 0.40% | Run |
| 207 | Austin, TX | $500,000 | $1,800/mo | 0.56x | 0.36% | Run |
| 208 | Los Angeles, CA | $950,000 | $2,800/mo | 0.55x | 0.29% | Run |
| 209 | Garden Grove, CA | $800,000 | $2,400/mo | 0.55x | 0.30% | Run |
| 210 | Santa Fe, NM | $525,000 | $1,600/mo | 0.55x | 0.30% | Run |
| 211 | San Diego, CA | $900,000 | $2,600/mo | 0.54x | 0.29% | Run |
| 212 | Seattle, WA | $800,000 | $2,400/mo | 0.54x | 0.30% | Run |
| 213 | Long Beach, CA | $750,000 | $2,200/mo | 0.54x | 0.29% | Run |
| 214 | Anaheim, CA | $825,000 | $2,400/mo | 0.54x | 0.29% | Run |
| 215 | Santa Ana, CA | $750,000 | $2,200/mo | 0.54x | 0.29% | Run |
| 216 | Missoula, MT | $475,000 | $1,400/mo | 0.52x | 0.29% | Run |
| 217 | Torrance, CA | $950,000 | $2,600/mo | 0.51x | 0.27% | Run |
| 218 | Costa Mesa, CA | $950,000 | $2,600/mo | 0.51x | 0.27% | Run |
| 219 | Huntington Beach, CA | $1,050,000 | $2,800/mo | 0.50x | 0.27% | Run |
| 220 | Boulder, CO | $850,000 | $2,200/mo | 0.50x | 0.26% | Run |
| 221 | Glendale, CA | $1,000,000 | $2,600/mo | 0.48x | 0.26% | Run |
| 222 | San Francisco, CA | $1,400,000 | $3,500/mo | 0.47x | 0.25% | Run |
| 223 | Irvine, CA | $1,200,000 | $3,000/mo | 0.47x | 0.25% | Run |
| 224 | San Jose, CA | $1,300,000 | $3,200/mo | 0.46x | 0.25% | Run |
| 225 | Fremont, CA | $1,300,000 | $3,000/mo | 0.43x | 0.23% | Run |
| 226 | Bellevue, WA | $1,200,000 | $2,800/mo | 0.42x | 0.23% | Run |
| 227 | Sunnyvale, CA | $1,800,000 | $3,200/mo | 0.33x | 0.18% | Run |
What Makes a Good Cash Flow Market for DSCR Investors?
The best cash flow markets for DSCR loan investors share a few key characteristics: affordable median home prices relative to rental income, moderate property tax rates, and strong tenant demand. The metric that ties these together is the DSCR ratio - the relationship between a property's rental income and its total debt service (principal, interest, taxes, insurance, and association dues).
A DSCR of 1.25x or higher is considered excellent and qualifies for the best loan pricing. This means the property generates 25% more income than the monthly payment requires. Markets with lower home prices and relatively strong rents - like many cities in the Midwest and Southeast - tend to produce the highest DSCR ratios.
The rent-to-price ratio (sometimes called the "1% rule") is another useful screen. A ratio of 0.70% or higher generally indicates a market worth investigating, while 1.0%+ is exceptional. However, the DSCR calculation is more comprehensive because it accounts for property taxes and insurance, which vary significantly by location.
Why property tax rates matter
Two cities with identical home prices and rents can produce very different DSCR ratios if one has significantly higher property taxes. Texas and Illinois, for example, have some of the highest property tax rates in the country (1.8%+ and 2.0%+ respectively), which reduces cash flow compared to states like Arizona (0.66%) or Colorado (0.51%).
How we calculated these estimates
Each DSCR estimate uses 75% LTV (25% down payment), a 6.25% interest rate on a 30-year fixed loan, $150/month estimated insurance, and the city's actual median home price, median rent, and property tax rate. Your actual DSCR will vary based on the specific property, your loan terms, and current market rates.
Run your exact scenario
These estimates use general market data. Get real-time DSCR loan pricing for your specific property at dscrdirect.net.