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AI DSCR screening tool

DSCR Calculator for Real Estate Investors

DSCR matters because lenders and investors need to know whether rental income can support the debt. Real AI State estimates DSCR alongside cash flow, cap rate, rent range, and risk notes so the number has context.

Run a free property reportSee sample investor output
Cash flowCap rateDSCRRent rangeRisk notes
FormulaNOI / Debt
Example DSCR0.51x
Strong targetOften 1.20x+
Use caseLender screen
OutputRisk notes
FreeStart report

What is DSCR in real estate?

DSCR stands for debt service coverage ratio. In rental property analysis, it compares annual net operating income to annual loan payments. A DSCR above 1.0 means income covers debt service before some investor-level considerations; many lenders prefer a cushion above that.

DSCR formula

DSCR = Net Operating Income / Annual Debt Service

Example: if a property produces $18,439 in NOI and annual debt service is $36,477, DSCR is about 0.51x. That means the property does not come close to covering the assumed debt service.

Example AI DSCR interpretation

Inputs

  • Estimated rent: $2,810/month
  • Annual debt service: $36,477
  • Estimated NOI: $18,439

Output

  • DSCR: 0.51x
  • Risk: debt service is too high for rent assumptions.
  • Action: verify rents, lower offer, improve financing, or pass.

When DSCR is useful

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FAQ

What is a good DSCR for rental property?

Many lenders prefer DSCR above 1.0 and often around 1.20x or higher, but requirements vary by lender, loan type, market, and borrower profile.

Does DSCR include appreciation?

No. DSCR focuses on income compared with debt service. Appreciation may matter to total return, but it does not fix weak rental debt coverage.

Can Real AI State estimate DSCR from one address?

Real AI State can start with a property lookup and user assumptions, then estimate rent, NOI, annual debt service, DSCR, risk notes, and a plain-English explanation.

Screen one property free

Paste one address into Real AI State and get a first-pass investor screen plus listing copy, flyer bullets, rent/risk notes, and a plain-English property summary.

Run a free property reportView the sample report