DSCR requirements by property type
Coverage floors are not universal. The more units and the less predictable the income, the higher the bar a lender sets. Your asset class is highlighted below.
| Property type | Typical min DSCR | Illustrative rate |
|---|---|---|
| Duplex | 1.20× | 6.8% |
| Triplex | 1.20× | 6.9% |
| Fourplex | 1.25× | 7.0% |
| Single-Family Rental | 1.15× | 6.5% |
| Short-Term Rental (Airbnb) | 1.25× | 7.5% |
| Multifamily (10+ Units) | 1.20× | 6.6% |
Floors and rates are representative market norms for illustration, not a quote. Confirm the current requirement with your lender.
The duplex coverage math
DSCR is net operating income divided by the annual mortgage payment. On a representative $350,000 duplex at $2,600 a month rent and $9,000 of annual expenses, at 6.8% over 30 years with 25% down:
NOI = $31,200 − $9,000 = $22,200
Annual debt service = $1,703 × 12 = $20,431
DSCR = $22,200 ÷ $20,431 = 1.09×
At 1.09× against a 1.20× floor, this example misses the typical requirement. When coverage falls short, the fix is usually to lower the loan amount or raise NOI, because coverage is exactly the ratio of the two.
What moves duplex coverage
- A larger down payment lowers the loan, which lowers the annual payment and lifts DSCR.
- A lower interest rate cuts debt service directly, the fastest lever on coverage.
- A longer term spreads principal over more years, easing the annual payment.
- Higher rent or lower expenses raise NOI, the numerator nobody can quote away.
Check the full picture with the cap rate calculator, then run your own coverage on the interactive DSCR calculator.
Frequently asked questions
4 answers, no funnel.
What DSCR does a duplex need to qualify?
Lenders typically want at least 1.20× of debt-service coverage on a duplex loan. Coverage is net operating income divided by the annual mortgage payment; 1.20× means the property earns 120% of what it owes each year.
How is DSCR calculated on a duplex?
DSCR = NOI ÷ annual debt service. On a representative $350,000 deal at $2,600 a month rent and $9,000 of expenses, NOI is $22,200 against $20,431 of debt at 6.8%, a DSCR of 1.09×.
What happens if duplex DSCR comes in below 1.20×?
A lender that requires 1.20× will usually decline or ask you to raise the down payment, pay down the rate, or bring more reserves. Lowering the loan amount lifts coverage directly, because it cuts the annual payment that divides into NOI.
Is a duplex harder to finance than a single-family rental?
Two units on one loan; lenders treat the second unit as rental income and often add a small rate premium over an owner-occupied loan. Compared with a single-family rental, expect the coverage bar and the rate to move with the number of units and the income type rather than the property's size alone.