DSCRWhich U.S. rental markets actually cash-flow in 2026?
Short answer at 6.80% financing, 4 of the 18 tracked metros clear the 1.2 lender DSCR line, led by Cleveland. The cheaper Midwest and Southern markets cash-flow, the pricier metros do not. The Investor Yield Index fuses cap rate, gross yield, DSCR, and cash-on-cash into one weekly score so you can rank markets, then run the DSCR loan and cap rate calculators on your exact deal.
See the strongest markets → DSCR calculator Cap rate calculator
Investor Yield Index, top markets this week
Scored 0 to 100 at a prevailing 6.80% financing rate, with 25% down and a 40% expense load. Under these assumptions 4 of 18 tracked metros clear the 1.2 lender DSCR line and 6 run a positive cash-on-cash return, while the pricier metros stay negative. The leader sits near 1.22 DSCR today. On a borderline market, a larger down payment or a rate buydown is what tips it positive. See the full ranking →
| # | Metro | Median price | Rent/mo | Cap rate | DSCR | Index | Grade |
|---|---|---|---|---|---|---|---|
| 1 | Cleveland, OH Greater Cleveland | $146,863 | $1,461 | 7.16% | 1.22 | 100 | A |
| 2 | Memphis, TN Memphis metro | $124,349 | $1,441 | 8.34% | 1.42 | 100 | A |
| 3 | Birmingham, AL Birmingham-Hoover | $122,274 | $1,448 | 8.53% | 1.45 | 100 | A |
| 4 | Chicago, IL Chicagoland | $226,376 | $2,266 | 7.21% | 1.23 | 100 | A |
| 5 | Tampa, FL Tampa-St. Petersburg | $236,141 | $2,018 | 6.15% | 1.05 | 89 | A |
| 6 | Indianapolis, IN Indianapolis-Carmel | $186,505 | $1,553 | 6.00% | 1.02 | 85 | A |
Get matched with DSCR & hard-money lenders
Compare real rate quotes from investor-friendly lenders for your next rental or flip. Free, no obligation.
Investor calculators
DSCR loan calculator
Will your rental qualify at today’s DSCR rates?
Cap rate calculator
Unlevered return from NOI and value.
Investment property calculator
Cap rate, DSCR, cash-on-cash, GRM, 1% rule.
Cash-on-cash return
Yield on the cash you actually put in.
GRM calculator
Gross rent multiplier in seconds.
Market rankings
The Investor Yield Index, week by week.
Loan types for investors
DSCR Loan
No-income-verification investment financing where the property’s rent covers the debt.
Typical rate 7.0–8.5%
Hard Money Loan
Short-term, asset-based financing for fast closes and distressed property purchases.
Typical rate 10.0–13.0%
Fix & Flip Loan
Short-term capital for purchase + rehab, repaid on resale. Fast funding for value-add deals.
Typical rate 10.5–13.5%
How DSCR qualification works
1 · Net operating income
Start with gross annual rent, then subtract operating expenses (taxes, insurance, management, maintenance, vacancy), not the mortgage.
2 · Annual debt service
Compute principal + interest for the year on the DSCR loan amount at the lender’s rate and amortization.
3 · DSCR = NOI ÷ debt
Lenders want DSCR ≥ 1.2. At or above that, the rent covers the debt with margin to spare. Below 1.0 the property cannot cover its own payment.
Common questions
What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan is a no-income-verification investment mortgage that qualifies on whether the property’s rent covers the debt, not on your personal income. Lenders typically require a DSCR of at least 1.20.
What is the Investor Yield Index?
A weekly, per-metro cash-flow score (0–100) DSCRRadar computes from public home-value, rent, and rate data. It blends cap rate, gross yield, DSCR, and cash-on-cash at a prevailing rate (currently 6.80%) so you can compare markets apples-to-apples.
What DSCR do I need to qualify?
Most DSCR lenders require 1.2 or higher, meaning annual net operating income must cover annual debt service by at least 20%. At today’s rates many markets fall short of that under conservative assumptions, the Index shows which markets come closest, so you know where a larger down payment or buydown can close the gap.
Are the rates and scores live?
Yes, refreshed weekly from public home-value, rent, and mortgage-rate feeds.
Guides
DSCR loan requirements
What you actually need to qualify in 2026.
Cash-on-cash vs. cap rate
The key difference investors confuse.
Hard money vs. DSCR loans
Which short-term vs. long-term product fits your deal.
How to analyze a rental deal
A repeatable five-step framework.