Rental qualifier
Model offset, add-back, or dimming strategies to qualify rental income.
Save + compare
Unlock the full calculator suite
Create a free account to save scenarios, compare options, and share results inside a secure dashboard with your broker team.
- Save unlimited scenarios and track changes over time
- Compare rate options side by side with broker feedback
- Export reports for underwriting or renewal planning
Need the trust details before you share anything? Review Privacy, Disclosures, Security, and Editorial policy.
Interactive calculator
Rental qualifier
Quantify rental income contribution and effective debt service for investor deals.
Calculation notes
Methodology for the rental qualifier
Estimate the maximum rental property purchase price you can qualify for based on projected rental income, expenses, and DSCR requirements.
See how different down payment amounts affect both DSCR and the mortgage amount you can access for investment properties.
Compare single-family, multi-unit, and purpose-built rental scenarios with their different income, expense, and lender treatment.
Use it before searching for investment properties to narrow your price range to what actually cash-flows under lender rules.
Inputs to check
- Rental income
- Mortgage payment estimate
- Operating expenses
- Borrower income and debts
Assumptions
- Minimum down payment for rentals is 20-30% depending on property type and units.
- DSCR minimums range from 1.10x to 1.25x for residential investment properties.
- Rental income must be supported by market rent data, appraisal, or signed leases.
- Multi-unit (5+ doors) often requires commercial lending with different underwriting criteria.
Related tools
How this calculator works
Estimate the maximum rental property purchase price you can qualify for based on projected rental income, expenses, and DSCR requirements.
See how different down payment amounts affect both DSCR and the mortgage amount you can access for investment properties.
Compare single-family, multi-unit, and purpose-built rental scenarios with their different income, expense, and lender treatment.
Use it before searching for investment properties to narrow your price range to what actually cash-flows under lender rules.
Inputs you will need
- Rental income
- Mortgage payment estimate
- Operating expenses
- Borrower income and debts
Assumptions and limitations
- Minimum down payment for rentals is 20-30% depending on property type and units.
- DSCR minimums range from 1.10x to 1.25x for residential investment properties.
- Rental income must be supported by market rent data, appraisal, or signed leases.
- Multi-unit (5+ doors) often requires commercial lending with different underwriting criteria.
Example scenarios
Single-family at 20% down
$500K purchase, 20% down ($100K), $400K mortgage at 5.00%. $2,500/month rent, 35% expenses, NOI = $1,625. DSCR with $2,147 payment = 0.76x — below minimum. Needs higher rent, lower price, or larger down.
Triplex at 25% down
$750K triplex, 25% down ($187.5K), $562.5K mortgage at 5.00%. Gross $4,800/month, 40% expenses, NOI = $2,880. Payment $3,017 — DSCR 0.95x. Close but needs improvement.
Down payment sensitivity
Same at 35% down: mortgage drops to $487.5K, payment $2,615. DSCR improves from 0.95x to 1.10x — now passes. Extra $75K down makes the deal work.
6-plex commercial lending
Commercial mortgages use different DSCR thresholds (1.20x+) and cap rates. $1.2M, 30% down, 6.5% cap, NOI $78K. Mortgage $3,800/month — DSCR 1.71x, strong file.
Related tools
Pressure-test the file before you submit it
Investor scenarios usually break on documentation, ratios, or lender fit. Use the guides and broker path below to confirm the file still works after the real constraints show up.
Guides
Read the Canada-specific playbook before you commit to the next step.
Execution
Use the broker workflow, rates pages, or secure dashboard to move from estimate to action.
Save and compare scenarios
Create a free account to save scenarios, compare options side by side, and share results with your broker team.
Want to verify how Pragmatic handles your data and guidance? Review Privacy, Disclosures, Security, and Editorial policy.
Frequently asked questions
What down payment is required for rental properties?
Investment properties typically require minimum 20% down. Multi-unit (3-4 units): some lenders require 25-30%. 5+ units: commercial lending with different rules. Larger down payment = smaller mortgage = better DSCR = easier qualification.
How do lenders treat rental income differently?
For investment properties, DSCR is the primary test — property-focused. Rental income offsets property expenses; surplus positive cash flow can be added to personal income. For owner-occupied with suite, 50-80% of projected suite rent is added to qualifying income.
What expenses do lenders deduct?
Property taxes, insurance, utilities (if owner-paid), maintenance (5-10% of rent), vacancy (3-5%), management (5-10%), condo fees. Mortgage payments are NOT deducted for DSCR — they are the denominator. Capital improvements and depreciation are also excluded.
Can I use projected rent from a property I do not own?
Yes. Lenders accept market rent appraisals or appraiser letters. For multi-unit with existing tenants, current leases and rent rolls are used. For vacant properties, the lower of market rent or actual below-market lease rent is typically applied.