DSCRDSCR QUALIFYING RENT · SUBJECT PROPERTY
Rent to qualify for a DSCR loan calculator
In this calculator, DSCR is the monthly gross rent divided by the monthly housing expense of the property, which Fannie Mae calls PITIA. Enter the price, the down payment, the rate, the costs and the DSCR that you want. The calculator gives the monthly gross rent that gives that DSCR. It also shows, as a separate measure, a Fannie Mae break-even rent that this page derives from the 75 percent calculation in Selling Guide section B3-3.8-02. That is a different test from a DSCR lender's ratio.
The results are calculations for one subject property. They are not a loan approval, a lender quote or an offer to lend. How a lender uses the number depends on its own program rules.
RENT FOR YOUR TARGET DSCR
$3,585.49 / month
FANNIE MAE BREAK-EVEN RENT (PITIA / 0.75)
$3,824.52 / month
At this rent, 75 percent of the rent minus PITIA (the ANRI of Fannie Mae B3-3.8-02) is zero, to within one cent.
- Loan amount (price less down payment)
- $337,500.00
- Principal and interest (P&I)
- $2,318.39
- Monthly PITIA (P&I + tax + insurance + dues)
- $2,868.39
- Rent that gives a DSCR of 1.00
- $2,868.39
The Fannie Mae break-even rent is a different test from a DSCR lender's ratio. Fannie Mae does not use it as a pass or fail line. If the ANRI is negative, the lender must include the amount in the DTI ratio.
Required rent by interest rate and target DSCR
Same loan, term, taxes, insurance and dues as the calculator. Each cell is PITIA at that rate x the target DSCR. The rates and the DSCR values are examples, not quotes or lender rules.
| Rate | DSCR 1.00 | DSCR 1.10 | DSCR 1.20 | DSCR 1.25 |
|---|---|---|---|---|
| 6.50% | $2,683.23 | $2,951.55 | $3,219.88 | $3,354.04 |
| 7.00% | $2,795.40 | $3,074.94 | $3,354.48 | $3,494.25 |
| 7.32% | $2,868.39 | $3,155.23 | $3,442.07 | $3,585.49 |
| 7.50% | $2,909.85 | $3,200.84 | $3,491.82 | $3,637.31 |
| 8.00% | $3,026.46 | $3,329.11 | $3,631.75 | $3,783.08 |
The calculation this page reverses
For a purchase, Fannie Mae Selling Guide section B3-3.8-02 gives the lender this instruction.
To determine adjusted net rental income (ANRI), the lender must multiply monthly gross rent by 75% for the net rental income amount, then subtract the PITIA of the subject property from the net rental income.
The guide then shows the formula as an example.
Net Rental Income - PITIA = ANRI
Set the ANRI to zero and solve for the rent. The result is the Fannie Mae break-even rent.
The guide does not use this rent as a pass or fail line. If ANRI is negative, the lender must include the amount in the DTI ratio. If ANRI is positive and the borrower has less than 12 months of rental property management experience, the lender may use the rental income to offset the PITIA only.
Worked example
The table below is the calculator's own default example, computed by the calculator code. A $450,000.00 price with 25% down at 7.32% over 30 years, with property tax of $4,800.00 per year, insurance of $1,800.00 per year and HOA dues of $0.00 per month.
| Step | Amount |
|---|---|
| Loan amount | $337,500.00 |
| Monthly P&I | $2,318.39 |
| Monthly PITIA | $2,868.39 |
| Rent that gives ANRI of zero | $3,824.52 |
| Rent that gives DSCR of 1.00 | $2,868.39 |
Check the arithmetic by hand. Divide the PITIA by 0.75. The result is the break-even rent. This page shows its own work so you can.
What PITIA includes
Section B3-6-03 defines the monthly housing expense of the subject property and calls it PITIA. It is the sum of these items.
- principal and interest (P&I)
- property, flood, and mortgage insurance premiums (as applicable)
- real estate taxes
- ground rent
- special assessments
- any owners' association dues (including utility charges that are attributable to the common areas, but excluding any utility charges that apply to the individual unit)
- any monthly co-op corporation fee (less the pro rata share of the master utility charges for servicing individual units that is attributable to the borrower's unit)
- any subordinate financing payments on mortgages secured by the subject property
The calculator fields cover P&I, taxes, insurance and HOA dues. If the property has ground rent, special assessments, a co-op fee or subordinate financing, add the monthly amount of each one to the HOA dues field. That field is monthly. The calculator does not price flood insurance separately.
Why the break-even rent is PITIA divided by 0.75
A property needs a gross rent of PITIA / 0.75 for 75 percent of that rent to equal the whole expense. For the default example, $2,868.39 divided by 0.75 is $3,824.52. The rent that gives a DSCR of 1.00 is $2,868.39. The break-even rent is 1 / 0.75, about 1.333 times the DSCR 1.00 rent.
Where the 75 percent rule applies
B3-3.8-02 states the 75 percent calculation for a purchase. On a refinance, the guide multiplies the lease amount by 75 percent only when the property is not on Schedule E of the borrower's most recent tax return. When the property is on Schedule E, the lender does a cash flow analysis using Schedule E instead. This calculator does only the 75 percent step.
The section lists these eligible property types: two- to four-unit principal residences, one- to four-unit investment property, and a one-unit accessory dwelling unit with a one-unit primary residence. For rental income that relates to the borrower's principal residence, section B3-3.8-01 says the income cannot be netted against the PITIA of the property, so the rearranged formula on this page does not describe that case. This page is for the investment property purchase case.
Documents that set the rent
For a purchase, the guide requires the lender to obtain the following.
a Single-Family Comparable Rent Schedule (Form 1007) or Small Residential Income Property Appraisal Report (Form 1025), as applicable, and a copy of the fully executed lease agreement(s) when a lease is being transferred to the borrower.
The number this calculator gives you is a target. For a purchase, the guide uses Form 1007 or Form 1025, and the lease when a lease is transferred to the borrower, to document the gross rent. Ask a DSCR lender which documents it uses. If the current market rents do not reasonably support the lease rent, the guide tells the lender to decide if more documentation is necessary and to justify the rent in a written analysis, or to use the lesser amount.
Compare the measures
This page does not state a lender minimum DSCR or how a lender counts rent and expenses. The DSCR values in the table below are examples. Ask the lender for its rule.
| Measure | Formula | Rent for the default example |
|---|---|---|
| Fannie Mae break-even rent, ANRI of zero | PITIA / 0.75 | $3,824.52 |
| DSCR 1.00 (example) | PITIA x 1.00 | $2,868.39 |
| DSCR 1.25 (example) | PITIA x 1.25 | $3,585.49 |
Ask a lender which calculation it uses before you trust any rent number, including this one.
What the calculator does not do
- It does not approve a loan or represent any lender's program.
- It does not compute a debt-to-income ratio. Section B3-6-02 sets those ratios and counts any net loss from a rental property in the total monthly obligation.
- It does not model a Schedule E cash flow analysis for a refinance.
- It does not price flood insurance, mortgage insurance premiums or any rate adjustments.
- It does not include closing costs, reserves or the down payment source rules.
Continue with the DSCR loan calculator, read the 75 percent rental income rule calculator for the ANRI direction of the same arithmetic, or compare a DSCR loan versus conventional financing.
How this page calculates
P&I = loan x r / (1 - (1 + r)-n), r = annual rate / 12 / 100, n = years x 12 (at a 0% rate, P&I = loan / n)
PITIA = P&I + (property tax per year + insurance per year) / 12 + HOA dues per month
Rent for target DSCR = PITIA x target DSCR
Fannie Mae break-even rent = PITIA / 0.75
Each amount is rounded to the nearest cent, except the break-even rent, which is rounded up to the next cent so that the ANRI is not below zero.
Sources, each fetched 2026-10-29.
- Fannie Mae Selling Guide B3-3.8-02, Rental Income from the Subject Property. This section has the 75 percent calculation, the purchase instruction and the documents. Fetched 2026-10-29.
- Fannie Mae Selling Guide B3-6-03, Monthly Housing Expense for the Subject Property. This section defines PITIA. Fetched 2026-10-29.
- Fannie Mae Selling Guide B3-3.8-01, General Rental Income Information. This section says that rental income from the principal residence cannot be netted against the PITIA. Fetched 2026-10-29.
- Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios. This section sets the DTI ratios and counts a net loss from a rental property. Fetched 2026-10-29.
- Freddie Mac Primary Mortgage Market Survey. Source of the 30-year fixed average in the default rate field, as of October 22, 2026. Fetched 2026-10-29.
Sources reviewed October 29, 2026. Agency guides change. Follow the current guide and the requirements of the lender for a real application.