Florida · DSCR rental loans

Florida DSCR Loans: Rates, Requirements and the Costs That Decide the Ratio

A Florida DSCR loan qualifies a rental on its debt service coverage ratio (DSCR), the rent divided by the full monthly payment, and in Florida the costs that sink the ratio are insurance, HOA dues and a property tax bill that resets when you buy. The average Florida HO-3 homeowners premium was $2,779 in 2023, 60% above the national average, and a rental pays full millage with none of the seller's homestead savings.

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City of Tampa tax rate (2025): 19.84 mills ≈ 1.98%
Avg Florida HO-3 premium (2023): $2,779
Doc stamps + intangible tax on a loan: 0.55% of the loan
Non-homestead assessment cap: 10% a year (non-school); 5% if Amendment 3 passes

Florida figures from the sources below, updated October 23, 2026. Not an offer.

Florida costs

Insurance and the post-sale tax bill are where Florida DSCR deals break.

DSCR lenders divide rent by principal, interest, taxes, insurance and HOA dues (PITIA). In Florida the last three lines move more than the rate does, and one of them changes the day you close.

WORKED EXAMPLE · TAMPA SINGLE-FAMILY RENTAL

Purchase price: $375,000
Loan at 75% LTV, 7.25%, 30 years: $281,250
Monthly rent: $2,400
Principal & interest: $1,919
Property tax (19.8428 mills × price ÷ 12): $620
Insurance ($2,779 ÷ 12): $232
HOA: $0
PITIA: $2,771

DSCR0.87

Price and rent sit at Tampa's typical single-family value and rent (Zillow, September 2026); insurance is the 2023 Florida HO-3 average, before any flood or wind-only policy. $2,400 ÷ $2,771 = 0.87. Underwrite on a homeowner-style 0.84% tax rate (Hillsborough's average for owner-occupied homes) and the DSCR looks like 0.99 — the reset is why that number is wrong. Each $100 of monthly HOA dues would cut the ratio by about 0.03. Closing adds $1,547.05 in doc stamps and intangible tax. Illustrative only — not a rate quote.

Property tax rate: Florida homeowners paid 0.78% of value in 2024, 27th among states, but homesteaded owners get exemptions and a 3% annual assessment cap that a rental never gets. Inside the City of Tampa, the 2025 millage is 19.8428: $19.84 per $1,000 of taxable value, or about $7,441 a year on a $375,000 rental.
Your tax bill resets when you buy: For non-school levies, the assessment on non-homestead residential property of nine units or fewer can rise at most 10% a year. After a change of ownership, it is reset to just value at the next assessment date, so the seller's bill is not your bill. Underwrite on millage times price.
Amendment 3 on the November 3, 2026 ballot: If at least 60% of voters approve it, the yearly cap on assessment increases for non-homestead property, rentals included, falls from 10% to 5% from January 1, 2027. It covers non-school levies only: school taxes stay uncapped and based on just value, and the cap limits assessed value, not millage. The same amendment raises the non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028, so a homesteaded seller's bill would understate yours by even more.
When taxes are due: Florida taxes are paid in arrears for the calendar year. Bills go out around November 1, paying in November earns a 4% discount, and unpaid taxes become delinquent April 1.
Insurance cost: The average Florida HO-3 premium was $2,779 in 2023, against $1,737 nationally. Hurricane exposure is one driver; litigation was the other: Florida had 10% of US homeowners claims in 2023 but more than 72% of claim-related lawsuits.
Insurance market direction: The December 2022 reforms ended one-way attorney fees and banned assignment of post-loss benefits on new policies. Since then 18 new property insurers have entered and more than 185 rate filings came in flat or lower. Citizens Property Insurance Corp. shrank from 1.41 million policies in October 2023 to 254,413 on October 9, 2026, and cut multiperil rates 8.8% on average for 2026.
Wind mitigation credits: Florida law requires insurers to give discounts for fixtures and construction techniques shown to reduce windstorm losses, documented on the uniform mitigation verification form (OIR-B1-1802). A current inspection can lower the insurance line, and lift your DSCR, before closing.
Flood insurance: Citizens requires flood coverage in special flood hazard areas, on homes with $400,000 or more of dwelling coverage in 2026, and on all of its policies from January 1, 2027; condo unit-owner policies are exempt. If either applies, add a flood premium to your PITIA.
Hurricane deductible: Insurers must offer hurricane deductibles of $500, 2%, 5% and 10% of the dwelling limit, and can drop the $500 option at limits of $250,000 or more. On a $300,000 dwelling limit, 2% is $6,000, 5% is $15,000 and 10% is $30,000. The deductible isn't in PITIA, but it comes out of your cash after a storm, so ask for quotes at each level and hold reserves to match.
Roof age: For homeowners' policies, insurers can't refuse to issue or renew solely because a roof is less than 15 years old. An older roof gets an inspection first, and one with 5 or more years of useful life left can't be refused on age alone. The statute is written for homeowners' policies, so ask how a landlord insurer treats the roof's age before you price the deal.
Condo insurance: The average Florida condo unit-owner (HO-6) policy cost $1,146 in 2023, against $658 nationally, and unit policies don't cover the building structure. That premium sits on top of your dues, which already fund the association's own insurance, maintenance and reserves. A landlord policy on a rented unit is quoted separately.
HOA dues in the ratio: Dues hit the DSCR dollar for dollar. In the Tampa example below, $300 a month of dues takes the ratio from 0.87 to 0.78, and $500 takes it to 0.73. Get the current budget and any approved special assessment in writing before you offer.
Doc stamps and intangible tax: Florida taxes the loan: documentary stamp tax of $0.35 per $100 on the note or mortgage, plus a one-time 2-mill (0.2%) intangible tax on mortgages on Florida real estate. On a $281,250 loan that is $984.55 + $562.50 = $1,547.05, paid once at closing.

Markets

Single-family yields run 7–8% across Florida; condo values are falling everywhere.

Single-family rents and values from one dataset, so the yields compare like for like, plus the 12-month change in typical condo values. Condo values fell in all eight metros, by 3.2% to 7.1%, which matters if you're weighing a condo's lower price against its dues.

Metro	Single-family rent	Single-family value	Gross yield	Condo value, 12 mo
Miami–Fort Lauderdale–West Palm Beach	$3,433	$569,000	7.2%	−3.2%
Tampa–St. Petersburg	$2,390	$373,000	7.7%	−6.9%
Orlando	$2,434	$400,000	7.3%	−6.3%
Jacksonville	$2,074	$360,000	6.9%	−5.5%
North Port–Sarasota–Bradenton	$2,536	$423,000	7.2%	−5.2%
Cape Coral–Fort Myers	$2,145	$350,000	7.4%	−6.0%
Lakeland	$2,071	$299,000	8.3%	−7.1%
Port St. Lucie	$2,627	$398,000	7.9%	−4.2%

Swipe the table to see every column →

Source: Zillow Observed Rent Index (single-family, smoothed), Zillow Home Value Index (single-family and condo series, middle tier, smoothed and seasonally adjusted), metro areas, September 2026 vs September 2025, downloaded October 19, 2026. Gross yield = 12 × rent ÷ value. Listing-based rents and all-home values describe different houses, so use the yield to compare markets, not to price a deal.

Florida rules

Florida rules that change a rental deal.

Condo milestone inspections: Condo and co-op buildings three or more habitable stories tall need a milestone structural inspection by December 31 of the year they turn 30, and every 10 years after; local officials can require it at 25 years in areas such as near salt water. Ask for the report before you buy a unit.
Reserve studies and the end of waived reserves: Those buildings also need a structural integrity reserve study at least every 10 years, and for budgets adopted on or after December 31, 2024, owners can no longer vote to skip or cut those reserves. The money can come from regular dues, special assessments, lines of credit or loans, and every dollar of dues lands in your PITIA.
HOAs are everywhere: Florida had about 50,100 community associations housing 9.5 million residents in 2024, more than twice Texas's 22,900. Before you commit, get the current dues, any pending special assessment and the association's leasing rules in writing, because all three decide whether the rental works.
Non-warrantable condos and condotels: Condos that fall outside agency guidelines (non-warrantable units) and condotels are harder to finance, but some DSCR lenders, such as Defy and Angel Oak, publish programs for them. Tell the lender what kind of unit you're buying when you apply.
What makes a condo non-warrantable: Fannie Mae's condo rules (Selling Guide, October 2026) rule out a building that needs critical repairs, including unfunded work over $10,000 per unit due within 12 months, or that carries a special assessment for a critical repair not yet fixed. One owner holding more than 20% of the units in a building of 21 or more, or hotel-style daily rentals, also disqualify it. A building facing major work after a milestone inspection or reserve study can land here. One published DSCR matrix caps non-warrantable condos at 75% LTV, and condotels at 75% with a DSCR of 1.00 or more and 65% between 0.75 and 1.00.
Rental bans adopted after you buy: A condo amendment that bans rentals, changes the rental term or limits how often units can be rented binds only owners who consent and owners who buy after it takes effect. HOA amendments adopted after July 1, 2021 work the same way, with one exception: an HOA can still ban or regulate rentals shorter than 6 months, or more than three rentals a calendar year, for every owner. Restrictions already in force on the day you buy bind you, so read the current documents.
Vacation rentals: the state baseline: A home rented more than three times a year for stays under 30 consecutive days is a transient public lodging establishment. State law bars cities from banning vacation rentals or limiting rental duration unless the rule was adopted on or before June 1, 2011. Rentals of six months or less owe 6% state sales tax plus any county tourist development tax.
Miami, Miami Beach and Fort Lauderdale: Miami Beach prohibits short-term rentals in all single-family homes and in many multifamily buildings. The City of Miami bars them in single-family homes and duplexes in T3 and T4-R zones and requires a certificate of use and a state lodging license. Fort Lauderdale requires registration ($880 for up to four units) and an inspection. Check current rules before you buy.
Orlando, Orange County and Tampa Bay: The City of Orlando allows home sharing only when the resident lives on site; whole-home rentals aren't allowed in residential zones. Unincorporated Orange County allows short-term rentals of 179 days or less only in commercial, industrial and certain planned-development districts, and single-family rentals under 30 days only in R-3. Unincorporated Hillsborough County requires a $200 annual registration from January 1, 2027. Confirm the rules for the exact address.

Florida DSCR loan questions

What does DSCR mean for a Florida rental?

DSCR is the debt service coverage ratio: the monthly rent divided by principal, interest, taxes, insurance and HOA dues. In Florida, insurance and dues are the lines to watch. In the Tampa example, $852 of the $2,771 monthly payment is tax and insurance, and the ratio is 0.87 before any HOA; $300 a month of dues would take it to 0.78.

How does Florida insurance affect a DSCR loan?

Insurance is part of the payment the rent must cover. Florida's average HO-3 premium was $2,779 in 2023, or $232 a month, before flood or wind-only coverage. A wind mitigation inspection that documents storm-resistant features, or a property outside a flood zone, can cut that line. Get a real landlord quote before you make an offer.

Will my Florida property taxes go up after I buy a rental?

Very likely, if the seller lived there. Homesteaded owners get exemptions and a 3% annual cap on assessment increases. When you buy, the assessment resets to just value at the next assessment date, and a rental gets no homestead exemption. After that, non-school assessments can rise up to 10% a year.

How would Amendment 3 affect property taxes on a Florida rental?

If at least 60% of voters approve it on November 3, 2026, non-school assessments on non-homestead property, rentals included, could rise at most 5% a year instead of 10%, starting in 2027. School taxes would stay uncapped and tied to just value, and millage rates could still change. The cap limits assessed value, not your tax bill, so keep underwriting on the full millage.

Can a Florida condo association ban rentals after I buy?

Not retroactively, under state law. A condo amendment that prohibits rentals, changes the rental term or limits how often units can be rented applies only to owners who consent and to owners who buy after it takes effect. Restrictions already in the documents when you buy do bind you, so read the declaration and rules before you count on rental income.

Why can't some Florida condos get a regular mortgage?

Because the building fails agency condo rules. Fannie Mae won't buy loans in projects that need critical repairs, carry an unresolved special assessment for one, have one owner holding more than 20% of units in a building of 21 or more, or operate like a hotel. Those units are non-warrantable. Some DSCR lenders, such as Defy and Angel Oak, publish programs for them, usually at lower leverage.

What hurricane deductible will a Florida rental carry?

Insurers must offer $500, 2%, 5% and 10% of the dwelling limit, though they can drop the $500 option at limits of $250,000 or more. On a $300,000 dwelling limit, a 2% deductible is $6,000 and 5% is $15,000. It isn't part of PITIA, so it won't change your DSCR, but it comes out of your pocket after a storm, so hold reserves for it.

Can I get a DSCR loan on a Florida condo?

Yes, but the building matters. Ask early whether the lender treats the building as warrantable; some DSCR lenders publish programs for non-warrantable condos and condotels. In Florida, also check the milestone inspection, the structural integrity reserve study and any special assessment, because higher dues lower your DSCR.

What Florida taxes are due when I close a DSCR loan?

Two taxes apply to the loan: documentary stamp tax of $0.35 per $100 on the note or mortgage, and a 0.2% intangible tax on mortgages on Florida property. On a $281,250 loan, that is $1,547.05. Deed stamps on the purchase are a separate tax at $0.70 per $100 in most counties; your contract sets who pays.

Can I use a DSCR loan for a Florida vacation rental?

Many lenders finance short-term rentals and size the loan on projected or trailing bookings. State law bars local bans adopted after June 1, 2011, but rules adopted on or before that date still apply, and cities such as Miami Beach and Miami restrict where they can operate. Confirm zoning, licensing and registration for the address first.

Do I need flood insurance on a Florida rental?

It depends on the flood zone and your wind insurer. Citizens requires flood coverage in special flood hazard areas, on homes with $400,000 or more of dwelling coverage in 2026, and on all of its policies from 2027. Lenders set their own rules too. Budget a flood premium for any coastal or low-lying property.

Can a Florida DSCR loan finance my second home?

No. DSCR loans are business-purpose loans for property you rent to others; neither you nor your family can use it as a residence or a personal vacation home. If you plan to stay there yourself, look at a residential second-home mortgage instead.

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Sources and methodologyUpdated October 23, 2026

Figures are market ranges from published lender terms and public data on the dates shown. They describe the market and are not an offer. Your terms depend on the property, your credit and your experience.