What is DSCR?
Debt Service Coverage Ratio: NOI ÷ annual debt service. Measures a property’s ability to cover its loan payments; lenders typically require comfortably above 1.0x.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.