Disclaimer: Rate data is updated weekly. Last updated: April 14, 2026. Rates change daily — always contact lenders directly for a current quote. DSCRFinder.com does not guarantee rate accuracy from third-party lenders.
DSCR Loan Rates in Tennessee — April 2026
Tennessee offers one of the most investor-friendly environments in the US: no state income tax, landlord-friendly eviction laws, moderate property taxes, and two of the hottest rental markets in the Southeast — Nashville and Memphis.
As of April 14, 2026, the national 30-year fixed rate for primary residences is 6.40% (Bankrate). DSCR loans in Tennessee typically run 7.15% to 8.75%.
April 2026 Tennessee DSCR Rate Table
| Borrower Profile | DSCR | FICO | Down Payment | Rate Range | |---|---|---|---|---| | Best-qualified | 1.25+ | 740+ | 30%+ | 7.15% – 7.50% | | Strong | 1.25+ | 720–739 | 25% | 7.50% – 7.75% | | Standard | 1.0–1.24 | 680–719 | 20–25% | 7.75% – 8.25% | | Moderate | 0.75–0.99 | 660–679 | 20% | 8.25% – 8.50% | | Challenging | Below 0.75 | Below 660 | 20% | 8.50% – 8.75%+ |
Tennessee DSCR Market by City
Nashville
Nashville has seen explosive growth driven by corporate relocations (Amazon, Oracle, AllianceBernstein), tourism, and a thriving healthcare sector. Home prices have appreciated significantly, compressing DSCR ratios in core neighborhoods. Suburban markets (Murfreesboro, Franklin, Hendersonville) offer better DSCR ratios of 1.00–1.20. Nashville is also a major STR market — Airbnb demand from music tourism is very strong.
Memphis
Memphis is one of the highest-yielding rental markets in the entire country. Very affordable purchase prices combined with stable rental demand (medical sector, logistics, FedEx HQ) produce DSCR ratios of 1.20–1.50+ in many neighborhoods — among the best in the Southeast. Memphis is a top market for buy-and-hold DSCR investors prioritizing cash flow.
Knoxville
University of Tennessee drives strong student rental demand. Suburban Knoxville offers solid DSCR ratios of 1.10–1.30 with lower purchase prices than Nashville.
Chattanooga
Chattanooga has reinvented itself as a tech hub (first US city with gigabit internet). Growing population and affordable prices produce DSCR ratios of 1.10–1.30.
Tennessee Market Fundamentals
| Market | Median Price (SFR) | Typical Monthly Rent | Est. DSCR | |---|---|---|---| | Nashville suburbs | $380,000 – $500,000 | $2,100 – $2,800 | 1.00 – 1.20 | | Memphis | $140,000 – $220,000 | $1,100 – $1,600 | 1.20 – 1.50 | | Knoxville | $260,000 – $360,000 | $1,600 – $2,100 | 1.05 – 1.25 | | Chattanooga | $260,000 – $360,000 | $1,600 – $2,100 | 1.10 – 1.30 |
Tennessee Landlord-Tenant Law
- No state income tax — significant cash flow advantage
- No rent control statewide
- Eviction process — 14-day notice for non-payment; resolution typically in 3–5 weeks
- Property taxes — 0.66%–0.91% effective rate, among the lowest in the US
- Landlord-friendly courts — especially outside Davidson County (Nashville)
How to Get the Best DSCR Rate in Tennessee
- Memphis offers the best cash flow fundamentals in the state — ideal for DSCR qualification
- Low property taxes mean less PITIA drag than most other states
- No state income tax improves investor net returns
- For Nashville STR deals, confirm local short-term rental permit requirements
- Compare lenders with our lender comparison tool
Related: Current DSCR Rates April 2026 | DSCR Rates by State | DSCR Calculator | Compare Lenders
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