DSCR Loan Rates and the Rental Market: Fall 2026 Update
DSCR loan rates don’t have one published national average. They depend on your DSCR, credit, down payment, and prepayment terms. For context, Freddie Mac’s 30-year conventional average was 7.32% on October 22, 2026. DSCR loans are non-QM investor loans and are usually priced differently than that benchmark.
Here’s what investors should know about rates, rents, and buying activity this fall, and what it means for your DSCR.
Key Takeaways
- Freddie Mac: 30-year fixed averaged 7.32% on Oct. 22, 2026, down from 7.40% a week earlier but up from 6.19% a year ago.
- Rents are mixed: Zillow shows asking rents up 2.7% year over year. Realtor.com and Apartment List both show down 0.4%.
- Investors are active: NAR says investors and second-home buyers were 20% of September sales, up from 15%.
- Higher rates lower DSCR on the same rent. Run the numbers before you offer.
- DSCR pricing varies by lender, which is why a broker can help.
Where Are Mortgage Rates in Fall 2026?
- Freddie Mac PMMS (Oct. 22, 2026): 30-year fixed 7.32%, down from 7.40% the week before. A year ago it was 6.19%. The 15-year averaged 6.68% (Freddie Mac).
- Mortgage News Daily: Its daily index showed a top-tier 30-year fixed at about 7.30% in its Oct. 22, 2026 update. MND said rates were holding near their lowest levels in nearly a month (Mortgage News Daily).
- September context: Freddie Mac’s 30-year average was 6.86% in September, up from 6.67% in August, as reported in MND’s existing home sales recap.
Important: These benchmarks track owner-occupied loans. They are not DSCR rates and not quotes from Coastal Funding. Use them to understand the direction of the market.
How Are DSCR Loan Rates Set?
DSCR loans are non-QM (non-qualified mortgage) loans. Lenders price them using factors like:
- DSCR ratio: Higher ratios usually get better pricing.
- Credit score: Higher scores usually help.
- Loan-to-value (LTV): A bigger down payment often lowers the rate.
- Prepayment penalty: Many DSCR loans offer lower rates in exchange for a longer prepayment penalty.
- Property type: Single-family, 2-4 units, condos, and short-term rentals may price differently.
- Loan purpose: Cash-out refinances often price a bit higher than purchases.
- Interest-only options: Available on some programs, with different pricing.
Because these factors vary so much, two investors can get very different DSCR rates on the same day. These are general industry practices, not Coastal Funding program terms.
What Is Happening With Rents?
Different reports measure rent in different ways, so they don’t always agree:
- Zillow (Sept. 2026): The typical asking rent was $1,932, up 2.7% from a year earlier. Zillow also said rental demand was up 19.2% year over year (Zillow Research).
- Realtor.com (Sept. 2026): Median asking rent for 0-2 bedroom units in the 50 largest metros was $1,694, down 0.4%, the slowest decline in three years. About 43.9% of listings offered concessions (Realtor.com).
- Apartment List (Sept. 2026): National median rent was $1,388, down 0.4% from a year ago, with multifamily vacancy falling to 7% (Apartment List).
What it means: National rent declines are slowing, and some measures show growth again. But your DSCR depends on your market rent. Use local comps and the appraiser’s rent schedule, not national headlines.
Are Investors Still Buying?
Yes. The National Association of REALTORS® reported for September 2026 (NAR):
- Existing-home sales rose 1.5% to a 3.99 million annual pace.
- Individual investors and second-home buyers made up 20% of sales, up from 15% a year earlier.
- Cash sales were 27%.
- Inventory reached 1.60 million homes, a 4.8-month supply, and the median price was $417,500, up 1.3% year over year.
More inventory and longer days on market (33 days) can give investors more room to negotiate.
How Do Higher Rates Change Your DSCR?
Here’s a simple example using a $300,000 loan, $2,600 rent, and $450 a month for taxes and insurance. The two rates are Freddie Mac’s averages from a year ago and today, used only to show the math, not DSCR rate quotes.
| 6.19% rate | 7.32% rate | |
|---|---|---|
| Principal & interest | $1,835 | $2,061 |
| Taxes + insurance | $450 | $450 |
| PITIA | $2,285 | $2,511 |
| DSCR ($2,600 rent) | 1.14 | 1.04 |
About $225 more a month cut the DSCR from 1.14 to 1.04. To get back above a higher ratio, an investor might put more down, negotiate a lower price, or look for a property with stronger rent. Learn the formula in How to Calculate DSCR.
What Should DSCR Investors Do Now?
- Run conservative numbers. Use real tax and insurance quotes.
- Compare prepayment options. A shorter penalty may cost more upfront but give you flexibility if rates fall.
- Consider short-term rentals carefully. AirDNA data shows slower new supply this year. See DSCR Loans for Airbnb.
- Plan your refinance. If you’re doing BRRRR, read our DSCR cash-out refinance guide.
- Compare loan types. See DSCR vs. Bank Statement vs. Conventional.
Get a DSCR Quote From Coastal Funding
Coastal Funding Corporation (NMLS 103035) offers DSCR investment-property loans nationwide. As a broker, we shop multiple lenders to help you find DSCR pricing and terms that fit your property and your plan.
Call (833) 457-6500 or visit www.cfcdscr.com.
About Coastal Funding Corporation
Coastal Funding Corporation (NMLS 103035) is a mortgage broker that offers DSCR investment-property loans nationwide. We compare options from multiple wholesale lenders so investors can find a DSCR program that fits the property and the plan. This article was written by our team and reviewed for accuracy as of the date shown.
Coastal Funding Corporation | NMLS 103035 | 534 S. Navy Blvd, Pensacola, FL 32507 | (833) 457-6500 | www.cfcdscr.com. Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property eligibility. Rates, terms, and programs are subject to change without notice. DSCR program terms described here are typical industry ranges that vary by lender, not Coastal Funding program terms. Market figures cited are third-party data as of the dates shown and are not quotes or offers from Coastal Funding Corporation. DSCR loans are for business-purpose investment properties only, not owner-occupied homes. Verify our license at NMLS Consumer Access.
Frequently Asked Questions
What are DSCR loan rates today?
DSCR rates vary by lender, DSCR, credit, loan-to-value, and prepayment terms, so there’s no single published average. For context, Freddie Mac’s 30-year conventional average was 7.32% on October 22, 2026, and DSCR loans are usually priced differently than that benchmark.
Are DSCR loan rates higher than conventional rates?
Often, yes. DSCR loans are non-QM investment loans, so they’re usually priced above owner-occupied conforming loans. A strong DSCR, higher credit score, and larger down payment can help.
Are rents going up or down in 2026?
It depends on the source. In September 2026, Zillow’s typical asking rent was up 2.7% year over year, while Realtor.com and Apartment List each showed rents down 0.4%, with declines slowing.
How do higher mortgage rates affect DSCR?
A higher rate raises principal and interest, which raises PITIA and lowers DSCR on the same rent. That can mean a bigger down payment is needed to hit a lender’s minimum ratio.
Are investors still buying homes in 2026?
Yes. NAR reported individual investors and second-home buyers made up 20% of existing-home sales in September 2026, up from 15% a year earlier.
How can I get a DSCR rate quote?
Call Coastal Funding Corporation (NMLS 103035) at (833) 457-6500 or visit www.cfcdscr.com. Pricing depends on your property, credit, and loan details.