1.25 target
$4,000 rent / 1.25 = $3,200 maximum monthly debt service.
Payment sizing
DSCR Loan Payment Calculator
Use this calculator concept to estimate the maximum monthly debt service supported by rent at a target DSCR. Formula: maximum payment = monthly rent / target DSCR.
1.20 target
$4,000 rent / 1.20 = $3,333 maximum monthly debt service.