Looking for a DSCR Loan in Florida?

DSCR Loans in Florida: Finance Rentals on the Property's Income

A DSCR (debt service coverage ratio) loan lets Florida investors qualify using the rent a property earns instead of personal tax returns, W-2s, or pay stubs. If the rent covers the mortgage payment, taxes, insurance, and any HOA dues, the property can usually carry its own loan. Florida's rental demand spans year-round metros (Miami, Tampa, Orlando, Jacksonville) and seasonal tourist and coastal markets, and South Florida has the state's highest HUD Fair Market Rents. Investors should budget for the fact that rentals do not get the homestead exemption or the 3% Save Our Homes cap, and that insurance and hurricane risk weigh heavily on operating costs.

Broker Buddy shops DSCR programs from multiple wholesale lenders for single-family homes, 2–4 unit properties, condos and townhomes across all 67 Florida counties — purchases, rate-and-term refinances, and cash-out refinances.

Florida DSCR Loan Guidelines at a Glance

Every DSCR lender has its own guidelines, and Florida adds a few wrinkles of its own — insurance, condos and closing taxes. Most Florida rental loans fall inside these ranges, and because we compare several lenders, a rule that sinks one program often doesn't apply at another.

Guidelines change often and vary by lender, credit and property. Check the ratio with our DSCR calculator, or see how 30-year, 40-year, interest-only and ARM terms change the payment and DSCR.

Why Investors Are Buying Rentals in Florida

• Tourism is a major demand driver: Walt Disney World, Universal Orlando and SeaWorld anchor the Orlando market, and Florida welcomed roughly 143 million visitors in 2024.
• PortMiami, which bills itself as the Cruise Capital of the World, reported a record 8.56 million cruise passengers in its latest fiscal year and cites more than 340,000 jobs tied to the port.
• Publix Super Markets, founded in Winter Haven in 1930, employs more than 260,000 people across 1,446 stores in eight Southeast states.
• NASA's Kennedy Space Center on the Space Coast has a workforce of more than 10,000 and works with about 100 private-sector partners as a multi-user spaceport.
• The 12-university State University System serves more than 430,000 students, including the University of Central Florida in Orlando (70,674 students in fall 2025, the largest in the state), and MacDill Air Force Base in Tampa hosts U.S. Central Command and U.S. Special Operations Command.

Florida Rental Markets Worth a Closer Look

Florida is several rental markets in one state, each with its own price points, insurance costs and tenant base. Here's how investors usually break it down — underwrite the exact address before you offer.

Want a quick read on what a Florida property should rent for before you write an offer? Try our free DSCR rent estimate tool.

Florida Rent Benchmarks

Lenders qualify DSCR loans using the lower of the current lease or an appraiser's market-rent estimate, so it helps to know where local rents sit before you make an offer. HUD's Fair Market Rents are a useful, neutral starting point:

Source: HUD Fair Market Rents, FY2027 schedule (effective October 1, 2026). Fair Market Rents are a government benchmark, not an appraisal; actual market rent for a specific property may be higher or lower.

How Much Can a Miami-Dade County Rental Support?

A quick way to size a deal is to work backward from the rent. Using the HUD 3-bedroom benchmark for the Miami-Dade County area and some simple assumptions, here's roughly what purchase price that rent can carry with 20% down:

Benchmark rents can support a typical home in the area, which is why many investors here qualify at or above a 1.00 DSCR. Assumptions: 30-year fixed at a 7.25% example rate, with taxes and insurance estimated at 1.5% of the price per year. The median value is from U.S. Census QuickFacts. These are illustrations only — request a quote for numbers on your property.

Plug your own Florida price, rent, HOA dues and insurance quote into the DSCR calculator, or see whether an interest-only or 40-year term helps a tight deal reach 1.00.

Florida Prepayment Penalty Rules for DSCR Loans

Florida is one of the states where lenders may include a standard prepayment penalty on investment-property (business-purpose) loans. Choosing a prepayment penalty usually lowers your rate; choosing no penalty gives you the freedom to sell or refinance at any time. We'll price both ways so you can compare.

Florida-Specific Costs and Rules for Investors

Property taxes on rentals

Florida's homestead exemption (up to $50,000, with only the first $25,000 applying to school taxes) and the Save Our Homes cap (assessment increases limited to the lesser of 3% or CPI) apply only to an owner's permanent residence, and renting the unit disqualifies it. Non-homestead property such as rentals and second homes gets an automatic 10% annual cap on assessed value increases for non-school levies; the cap does not apply to school taxes. A sale or change of ownership or control resets the property to full market value the following year. Amendment 3 on the November 3, 2026 ballot (60% approval needed) would lower the non-homestead cap to 5% for non-school taxes starting January 1, 2027. Source: Florida Department of Revenue: Property Tax Information for Homeowners (PT-113).

Insurance, hurricane and flood risk

Florida insurers must offer hurricane deductible options of $500, 2%, 5% or 10% of the dwelling limit, applied once per calendar year to all hurricane losses with the same insurer group, and standard hurricane coverage does not include flooding. Citizens Property Insurance, the state-created insurer of last resort, now requires residential policyholders to carry flood insurance, phased in by replacement cost so that all personal residential policies must have it by January 1, 2027. A property is generally ineligible for Citizens if a private insurer offers comparable coverage within 20% of the Citizens premium. See Florida Department of Financial Services: Florida's Hurricane Deductible.

Short-term rentals and lodging tax

Florida taxes transient rentals of six months or less, including single-family homes, condos and vacation houses, at the 6% state sales tax plus any county discretionary sales surtax. Counties may add a local tourist development tax, and most counties self-administer it, so it is reported and paid to the county rather than the state. Owners and anyone who collects rent on their behalf must register with the Department of Revenue, with each rental location registered separately. Leases longer than six months are exempt. Details: Florida Department of Revenue: Sales and Use Tax on Rental of Living or Sleeping Accommodations (GT-800034).

Landlord-tenant law

Long-term rentals are governed by the Florida Residential Landlord and Tenant Act (Part II of Chapter 83, Florida Statutes). Florida law does not cap the amount of a security deposit. After the tenant moves out, the landlord has 15 days to return the deposit if no claim is made, or 30 days to send written notice by certified mail of an intent to claim part of it (s. 83.49, F.S.). Read more: Florida Statutes s. 83.49: Deposit money or advance rent.

Eviction notices and ending a tenancy

For unpaid rent, a Florida landlord serves a written 3-day notice to pay or leave, and the 3 days don't count Saturdays, Sundays or court-observed holidays. For a lease violation the tenant can fix, the notice gives 7 days to cure. A month-to-month tenancy is ended with at least 30 days' written notice before the end of a monthly period (60 days for year-to-year). Sources: Fla. Stat. § 83.56 and § 83.57.

No local rent control

The 2023 Live Local Act removed the narrow emergency path that once let Florida local governments adopt rent control, and state law now preempts local regulation of residential tenancies covered by the landlord-tenant act. Rent increases are governed by your lease. Sources: SB 102 (2023) and Fla. Stat. § 83.425.

No state income tax, but closing taxes add up

Florida has no personal income tax, so net rental profits face only federal tax. The trade-off shows up at closing: a new mortgage pays documentary stamp tax of 35 cents per $100 plus a 2-mill intangible tax, so a $300,000 DSCR loan carries roughly $1,650 in those two taxes alone. Sources: Florida Department of Revenue and Fla. Stat. § 199.133.

Buying in an LLC

Florida LLCs file Articles of Organization with the Department of State's Division of Corporations (Sunbiz) for $125: a $100 filing fee plus a $25 registered agent designation fee. Start here: Florida Sunbiz: start an LLC. Talk to your attorney or CPA about the right structure for your situation.

Florida County Property Appraiser Offices

In Florida, each county's Property Appraiser sets assessed values. Use these official sites to look up a property's value, exemptions and parcel details before you make an offer.

Other counties: The Florida Department of Revenue's Find a County Official page links to each county's property appraiser, tax collector and value adjustment board. View the directory.

More Free Resources for Florida Investors

• HUD Fair Market Rents — rent benchmarks by county and ZIP code
• U.S. Census QuickFacts: Florida — population, income, and housing data
• FEMA Flood Map Service Center — look up the flood zone for any address
• Florida Department of Revenue: Sales and Use Tax on Rental of Living or Sleeping Accommodations (GT-800034) — short-term rental tax rules
• Florida Sunbiz: start an LLC — form or look up an entity

Florida DSCR Loan Options & Free Tools

Florida investors use DSCR financing for more than a basic 30-year purchase. Explore the option that fits your plan:

Florida DSCR Loan FAQs