What rent does a DSCR lender use — the lease or market rent?
A DSCR lender uses either the in-place lease or the appraiser's market rent estimate, and on a vacant property or a purchase it is market rent from the appraisal's rent schedule. When a signed lease exists, underwriters commonly use the lower of the lease and market rent, so an above-market lease does not inflate the ratio and a below-market lease does not get ignored. The appraiser builds the market rent from comparable rentals near the property, which is why the appraisal matters as much as the purchase price. Once the rent figure is set, it is divided by the full monthly payment; Silt requires at least 1.00. Short-term rental income can also qualify, documented with booking history or a market projection rather than a 12-month lease. If you believe market rent is understated, provide comparable listings before the appraisal is ordered, not after the report comes back.
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Last reviewed 19 October 2026 · Terms are illustrative, not a commitment to lend; every loan is subject to underwriting.