PulseReal rankings
DSCR-friendly rental markets in Louisiana
Louisiana 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 33 Louisiana 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 | Baton Rouge, LA | 0.73 | $886/mo | $112,000 | -$152/mo |
| 2 | Slidell, LA | 0.44 | $1,227/mo | $210,000 | -$603/mo |
| 3 | Sulphur, LA | 0.40 | $859/mo | $155,000 | -$478/mo |
| 4 | New Iberia, LA | 0.36 | $794/mo | $151,000 | -$494/mo |
| 5 | Harvey, LA | 0.33 | $1,012/mo | $199,900 | -$689/mo |
| 6 | Lake Charles, LA | 0.32 | $830/mo | $165,000 | -$571/mo |
| 7 | Terrytown, LA | 0.30 | $973/mo | $200,000 | -$718/mo |
| 8 | Alexandria, LA | 0.28 | $833/mo | $181,250 | -$669/mo |
| 9 | Bayou Cane, LA | 0.27 | $913/mo | $194,750 | -$723/mo |
| 10 | Youngsville, LA | 0.26 | $1,214/mo | $264,308 | -$1,002/mo |
| 11 | Zachary, LA | 0.25 | $1,121/mo | $247,990 | -$955/mo |
| 12 | Houma, LA | 0.24 | $750/mo | $168,075 | -$651/mo |
| 13 | Claiborne, LA | 0.21 | $969/mo | $232,500 | -$935/mo |
| 14 | Scott, LA | 0.18 | $851/mo | $210,000 | -$879/mo |
| 15 | Gretna, LA | 0.17 | $909/mo | $230,700 | -$985/mo |
| 16 | Broussard, LA | 0.15 | $886/mo | $278,595 | -$1,211/mo |
| 17 | Gardere, LA | 0.14 | $921/mo | $245,000 | -$1,080/mo |
| 18 | Gonzales, LA | 0.13 | $1,077/mo | $292,000 | -$1,298/mo |
| 19 | Haughton, LA | 0.13 | $918/mo | $255,000 | -$1,139/mo |
| 20 | Shenandoah, LA | 0.13 | $1,095/mo | $297,500 | -$1,329/mo |
| 21 | Kenner, LA | 0.12 | $987/mo | $270,000 | -$1,210/mo |
| 22 | Denham Springs, LA | 0.10 | $803/mo | $231,750 | -$1,069/mo |
| 23 | Luling, LA | 0.10 | $1,258/mo | $370,310 | -$1,710/mo |
| 24 | Carencro, LA | 0.09 | $758/mo | $222,990 | -$1,041/mo |
| 25 | Central, LA | 0.06 | $996/mo | $310,000 | -$1,491/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. 33 markets were considered.
