How is DSCR calculated with vacancy?
On a residential DSCR loan the ratio is usually monthly rent divided by the monthly housing payment, and a vacancy factor is not normally deducted from that rent. The rent figure is the lesser of the lease and the appraiser's market rent, or market rent alone on a vacant unit, which is how the risk of an empty unit is already reflected. The payment is principal and interest plus taxes, insurance and any HOA dues. Divide one by the other: $2,500 of rent against a $2,000 payment is a 1.25 DSCR. Silt's floor is 1.00, with pricing breaks at 1.05 and 1.25. Investors who want a cushion should run the same math with a vacancy haircut themselves; if the property still clears 1.00 after a month of vacancy a year, the deal has room. Commercial income loans are different and underwrite net operating income after vacancy and expenses.
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Last reviewed 19 October 2026 · Terms are illustrative, not a commitment to lend; every loan is subject to underwriting.