Debt yield

Annual NOI divided by loan amount. A lender metric that's independent of interest rate and amortization.

Debt yield = NOI ÷ loan amount. Unlike DSCR, it doesn't change with rate or amortization period — it answers 'what's the cash-on-cash return I'd earn if I owned the loan?' Commercial lenders typically require 8-10%+ debt yield as a floor. In rate-sensitive deals (variable rates, balloon refinances), debt yield is a more conservative sizing metric than DSCR because it can't be gamed by stretching amortization.