PulseReal rankings
DSCR-friendly rental markets in California
California cities where a median-priced rental best covers its mortgage, ranked by debt service coverage ratio (DSCR), the figure DSCR lenders qualify loans on.
Of 248 California markets with both rent and sale-price data, 0 clear a 1.25 DSCR on a median-priced home at a 7.25% rate with 25% down.
| # | Market | DSCR | Average rent | Median price | Cash flow |
|---|---|---|---|---|---|
| 1 | Seal Beach, CA | 0.34 | $2,031/mo | $427,000 | -$1,434/mo |
| 2 | Laguna Woods, CA | 0.28 | $1,809/mo | $420,000 | -$1,549/mo |
| 3 | Lake Wildwood, CA | 0.24 | $1,910/mo | $485,000 | -$1,886/mo |
| 4 | Desert Palms, CA | 0.22 | $2,006/mo | $517,000 | -$2,070/mo |
| 5 | Pine Mountain Club, CA | 0.22 | $1,324/mo | $337,500 | -$1,339/mo |
| 6 | Thousand Oaks, CA | 0.22 | $2,207/mo | $565,000 | -$2,250/mo |
| 7 | Walnut Creek, CA | 0.22 | $2,247/mo | $581,000 | -$2,330/mo |
| 8 | Alta Sierra, CA | 0.21 | $1,922/mo | $519,500 | -$2,111/mo |
| 9 | Plumas Lake, CA | 0.18 | $1,858/mo | $523,856 | -$2,200/mo |
| 10 | Silver Lakes, CA | 0.18 | $1,518/mo | $419,000 | -$1,756/mo |
| 11 | Discovery Bay, CA | 0.17 | $2,618/mo | $745,000 | -$3,182/mo |
| 12 | Salida, CA | 0.17 | $1,721/mo | $487,000 | -$2,064/mo |
| 13 | Antelope, CA | 0.16 | $1,712/mo | $495,000 | -$2,130/mo |
| 14 | California City, CA | 0.15 | $915/mo | $271,000 | -$1,184/mo |
| 15 | Crestline, CA | 0.15 | $1,227/mo | $357,500 | -$1,549/mo |
| 16 | Hercules, CA | 0.15 | $2,592/mo | $767,500 | -$3,355/mo |
| 17 | Mountain House, CA | 0.14 | $2,731/mo | $827,500 | -$3,657/mo |
| 18 | Spring Valley Lake, CA | 0.14 | $1,713/mo | $517,000 | -$2,285/mo |
| 19 | Temescal Valley, CA | 0.14 | $2,419/mo | $727,500 | -$3,209/mo |
| 20 | Twentynine Palms, CA | 0.14 | $975/mo | $295,000 | -$1,306/mo |
| 21 | East Niles, CA | 0.13 | $1,003/mo | $305,000 | -$1,352/mo |
| 22 | Oroville, CA | 0.13 | $887/mo | $275,000 | -$1,230/mo |
| 23 | Suisun City, CA | 0.12 | $1,737/mo | $540,000 | -$2,421/mo |
| 24 | Barstow, CA | 0.11 | $812/mo | $261,250 | -$1,194/mo |
| 25 | Vallejo, CA | 0.11 | $1,624/mo | $515,000 | -$2,333/mo |
How this ranking works
- DSCR is net operating income divided by annual principal and interest, on a median-priced home at the city's average rent.
- Most DSCR lenders want 1.25 or higher for their best pricing; some lend down to 1.0.
- Financing is 25% down at PulseReal's default investor rate over 30 years.
Every input and default is documented in the methodology. 248 markets were considered.
