DSCR calculator for Arizona rental properties
Debt service coverage ratio (DSCR) is a rental's monthly rent divided by its full monthly housing payment. Enter the rent and the payment for a specific property to see the ratio and what it means. Every field starts blank, and this tool never supplies a rate, a payment or a loan amount.
Enter the monthly rent, choose how to enter the payment and fill in the payment fields. The ratio updates as you type.
How is DSCR calculated?
Divide the monthly rent by the monthly housing payment. The payment is PITIA: principal, interest, property taxes, homeowners insurance and association dues. If the rent and the payment are the same, the ratio is 1.00. Rent above the payment gives a ratio above 1.00, and rent below the payment gives a ratio below 1.00. The calculator rounds to two decimal places.
How do lenders read a DSCR?
They divide the rent they accept by the full payment they count, then compare the result with their own program rules. The rent usually comes from a signed lease, the appraiser's market-rent estimate, or both. For a one-unit investment property in a conventional file, Fannie Mae requires its comparable rent schedule, Form 1007, when rental income is used to qualify (Fannie Mae Selling Guide B4-1.2-01, dated September 3, 2025, read November 5, 2026). DSCR lenders write their own rent rules, so which figure counts, and whether a lender uses the lower of the lease and the market rent, varies by lender. On the payment side, taxes, insurance and HOA dues are part of the number, which is why this calculator asks for each one.
What DSCR do lenders look for?
There is no single number. A ratio of 1.00 is the break-even line in the math, but where a lender sets its minimum, whether it offers anything below 1.00, and how the ratio affects pricing all vary by lender. Use the result to compare properties and to know what to ask, not as an approval.
What does the ratio leave out?
A DSCR is a lender's test, not your cash flow. It usually ignores vacancy, repairs, property management, utilities you pay and money set aside for big replacements. A property can pass a lender's ratio and still lose money in a slow month, so run your own budget alongside it.
Arizona figures to check before you trust the number
- Property taxes: Look up the parcel on the Maricopa County Treasurer's site (read November 5, 2026), or the treasurer for the county the property is in.
- HOA dues and rental rules: Get the current dues and read the rental restrictions before you rely on any rent figure.
- Short-term versus long-term rent: Scottsdale requires a city license for rentals of less than 30 days (City of Scottsdale, last updated July 31, 2026, read November 5, 2026), and Phoenix requires a short-term rental permit (City of Phoenix, read November 5, 2026). Whether a lender counts short-term income, and how, varies by lender.
- Insurance: Price the policy the property will actually carry. A landlord or short-term rental policy can cost more than an owner-occupied one.
Frequently asked questions
Does DSCR include HOA dues?
Usually, yes. Lenders generally count association dues in the housing payment along with principal, interest, taxes and insurance, which lowers the ratio. Exactly which costs are counted varies by lender.
Can I use short-term rental income in a DSCR?
Some lenders will, using operating history or another method they approve, and others will not. In Scottsdale and Phoenix, confirm the city license or permit and the HOA rules before you count on that income. Programs vary by lender.
Is a DSCR the same as cash flow?
No. A DSCR compares rent with the housing payment only. Your real cash flow also has to cover vacancy, repairs, management and other operating costs that the ratio usually leaves out.
Ready to look at a real property? Read the DSCR loan guide for Arizona, compare every path on the non-QM loan options page, or send Dan the address and the rent.
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Want the ratio checked against real numbers?
The calculator uses your figures. Dan can review the rent documentation, the payment and the property with you before you commit.
