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DSCR

Debt Service Coverage Ratio - a metric that compares a property's [net operating income](/glossary/#noi) to its mortgage payments. A DSCR of 1.25 means the property generates 25% more income than need

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Debt Service Coverage Ratio - a metric that compares a property's net operating income to its mortgage payments. A DSCR of 1.25 means the property generates 25% more income than needed to cover the debt. Lenders typically require a minimum DSCR of 1.0 to 1.25 for investment property loans. See also Cap Rate and Cash Flow.

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