Disclaimer: Rate data updated April 14, 2026. Rates change daily — contact lenders directly for current quotes. DSCRFinder.com does not guarantee rate accuracy.
DSCR Loan Rates in Houston — 2026
Houston is the largest city in Texas and offers some of the best rent-to-value ratios in the state. The energy sector, Texas Medical Center (largest in the world), Port of Houston, and a massive logistics industry create diverse, stable rental demand. Houston's lack of zoning makes it a uniquely dynamic real estate market.
Current DSCR rates in Houston range from 7.15% to 8.75%.
Houston DSCR Rate Table — April 2026
| Borrower Profile | DSCR | FICO | Down Payment | Rate Range | |---|---|---|---|---| | Best-qualified | 1.25+ | 740+ | 30%+ | 7.15% – 7.50% | | 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% |
Houston Submarket DSCR Guide
| Submarket | Price Range | Monthly Rent | Est. DSCR | Best For | |---|---|---|---|---| | Katy | $280,000–$400,000 | $1,900–$2,500 | 1.05–1.30 | Families, top schools | | Sugar Land | $320,000–$460,000 | $2,100–$2,700 | 1.00–1.20 | Corporate tenants | | Pearland | $270,000–$390,000 | $1,800–$2,400 | 1.05–1.25 | Medical Center workers | | The Woodlands | $380,000–$560,000 | $2,200–$3,000 | 1.00–1.20 | Executive rentals | | Spring / Humble | $220,000–$320,000 | $1,600–$2,100 | 1.10–1.35 | Best cash flow in metro | | Houston inner loop | $350,000–$600,000 | $2,000–$3,000 | 0.90–1.10 | Appreciation |
Houston's Key DSCR Advantage Over Dallas
Houston's purchase prices are generally 10%–20% lower than comparable Dallas suburbs, while rents are similar. This translates directly to better DSCR ratios. Katy and Pearland in particular offer some of the strongest DSCR fundamentals in all of Texas.
Harris County property taxes: 2.1%–2.2% — essentially the same as Dallas. Factor carefully.
Flood Zone Considerations
Houston is historically prone to flooding (Harvey 2017). For DSCR loans:
- Flood insurance adds $1,000–$3,000+/year to PITIA for properties in flood zones
- Verify FEMA flood zone designation before making an offer
- Properties outside flood zones avoid this premium entirely
- Many investors specifically target properties in Flood Zone X (minimal flood hazard) to avoid flood insurance costs
Houston-Specific DSCR Tips
- Spring and Humble offer the best cash flow fundamentals in the metro
- Texas Medical Center corridor (Pearland, Missouri City) provides stable healthcare worker rental demand
- Always verify flood zone status — it can make or break a Houston DSCR deal
- Houston has no zoning — understand what can be built nearby before buying
Related: DSCR Rates Texas | DSCR Rates Dallas | DSCR Calculator | Compare Lenders
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