DSCR (debt service coverage ratio)

NOI divided by annual debt service. Lender's safety margin metric.

DSCR = NOI ÷ (annual mortgage P&I). A 1.0 DSCR means the property exactly covers its debt service from operations. Banks usually want 1.20+ on rental loans, 1.25+ on commercial. 'DSCR loans' size the loan to a target DSCR rather than to borrower income.