Get Expert Investment Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
DSCR loans (Debt Service Coverage Ratio loans) are gaining popularity with real estate investors who prioritize property income over personal income. But not every city is ideal for this financing strategy. If you’re seeking strong rental cash flow and easy DSCR loan qualification, some markets simply outperform the rest.
In this guide, we’ll explore the best cities for DSCR loans based on rental cash flow and what makes these metros stand out. We’ll also show you how to get started with DSCR financing and grow your portfolio faster.
What Makes a City Ideal for DSCR Loans?
DSCR lenders approve loans based on property performance—not borrower income. This means the higher the rental cash flow relative to the mortgage payment, the easier it is to qualify. Here’s what makes a city DSCR-friendly:
- Affordable home prices relative to rent
- Stable or growing rental demand
- Landlord-friendly laws
- High DSCR potential (1.20 or above)
Looking to get prequalified or matched with the right DSCR lender?
Submit your loan scenario here and we’ll help you find the best financing option.
Top U.S. Cities Where DSCR Loans Work Best in 2025
These cities offer a powerful combination of low purchase prices, solid rents, and favorable regulations—making them top choices for DSCR-funded investments.
1. Cleveland, OH
- Median Home Price: ~$130,000
- Average Rent: $1,350
- Estimated DSCR: 1.25–1.40
- Cleveland consistently ranks high for cash flow. Investors benefit from low acquisition costs and strong rent-to-price ratios.
- Explore our Ohio DSCR Loan Guide
2. Birmingham, AL
- Median Home Price: ~$155,000
- Average Rent: $1,300
- Estimated DSCR: 1.20+
- Birmingham’s landlord-friendly laws and affordable housing market make it a solid pick for investors using DSCR loans.
3. Kansas City, MO
- Median Home Price: ~$200,000
- Average Rent: $1,600
- Estimated DSCR: 1.25+
- KC is a rising star with strong short-term and long-term rental potential, low property taxes, and strong demand.
4. Jacksonville, FL
- Median Home Price: ~$270,000
- Average Rent: $1,900
- Estimated DSCR: 1.20–1.35
- One of the few affordable metros in Florida, Jacksonville offers a beachside lifestyle and booming job market.
- See more in our Florida DSCR Loan Guide
5. San Antonio, TX
- Median Home Price: ~$250,000
- Average Rent: $1,800
- Estimated DSCR: 1.20+
- A great balance of affordability and growth. No state income tax and a friendly business environment.
- Learn more in our Texas DSCR Guide
Bonus Picks: Short-Term Rental Friendly Cities
DSCR loans can also be used for Airbnb and short-term rental properties. Some lenders will qualify based on projected STR income using data from tools like AirDNA.
- Pigeon Forge, TN
- Panama City Beach, FL
- Scottsdale, AZ
Check out our guide on DSCR Loans for Short-Term Rentals for more on these niche markets.
How to Use DSCR Loans in High-Cash-Flow Cities
If you’re targeting one of the cities above, here’s how to make the most of DSCR financing:
- Estimate your DSCR:
Use our DSCR Calculator to see if your property qualifies.
- Shop for the right lender:
Not all DSCR lenders are the same—some work better with short-term rentals, others with multi-family properties.
- Choose a high-rent, low-cost property:
Aim for properties where the monthly rent is at least 1.2x the projected loan payment.
- Consider interest-only options:
Some lenders offer 10-year IO periods to boost cash flow during early ownership years.
Ready to Invest? Start Here.
DSCR loans can fast-track your growth—especially in the right markets.
Get matched with a DSCR lender today
Submit your rental scenario here and we’ll help you calculate your DSCR and eligibility
FAQs About DSCR Loans in Cash Flow Cities
Do I need a tenant in place to qualify for a DSCR loan?
Not necessarily. Lenders often use market rent from the appraisal if the property is vacant.
Can I use DSCR loans in LLCs?
Yes, most lenders allow you to borrow in the name of an LLC, which is ideal for scaling and asset protection.
What credit score do I need?
Most programs require 640–680+, depending on LTV and DSCR ratio.
Can I use projected Airbnb income to qualify?
Yes, some lenders will use data from AirDNA or prior STR income history. See more here.
Read Next
- Top Markets for Real Estate Investing in 2025
- DSCR Loans 101: What Real Estate Investors Need to Know
- Refinancing with DSCR Loans: Unlocking Equity in Your Investment Properties
- How to Analyze Rental Property Cash Flow Like a Pro
Get Expert Investment Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
