PulseReal rankings
DSCR-friendly rental markets in Minnesota
Minnesota 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 70 Minnesota 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 | Edina, MN | 0.52 | $1,442/mo | $226,750 | -$555/mo |
| 2 | St. Louis Park, MN | 0.43 | $1,267/mo | $221,500 | -$646/mo |
| 3 | Otsego, MN | 0.34 | $1,386/mo | $276,500 | -$930/mo |
| 4 | Austin, MN | 0.28 | $815/mo | $182,950 | -$678/mo |
| 5 | Brooklyn Park, MN | 0.28 | $1,150/mo | $245,000 | -$899/mo |
| 6 | Bloomington, MN | 0.23 | $1,220/mo | $282,500 | -$1,115/mo |
| 7 | Plymouth, MN | 0.19 | $1,418/mo | $350,000 | -$1,450/mo |
| 8 | Isanti, MN | 0.17 | $1,058/mo | $293,700 | -$1,245/mo |
| 9 | White Bear Lake, MN | 0.17 | $1,215/mo | $350,000 | -$1,488/mo |
| 10 | Blaine, MN | 0.16 | $1,475/mo | $434,000 | -$1,868/mo |
| 11 | Ramsey, MN | 0.16 | $1,510/mo | $397,450 | -$1,710/mo |
| 12 | Bemidji, MN | 0.15 | $860/mo | $255,000 | -$1,115/mo |
| 13 | Big Lake, MN | 0.15 | $1,162/mo | $342,500 | -$1,481/mo |
| 14 | Hugo, MN | 0.14 | $1,464/mo | $402,950 | -$1,777/mo |
| 15 | Maple Grove, MN | 0.13 | $1,609/mo | $446,250 | -$1,995/mo |
| 16 | Shakopee, MN | 0.12 | $1,213/mo | $345,868 | -$1,551/mo |
| 17 | Sartell, MN | 0.12 | $998/mo | $317,500 | -$1,426/mo |
| 18 | St. Francis, MN | 0.10 | $1,052/mo | $349,900 | -$1,607/mo |
| 19 | Hastings, MN | 0.09 | $972/mo | $330,500 | -$1,534/mo |
| 20 | Coon Rapids, MN | 0.08 | $1,208/mo | $374,950 | -$1,772/mo |
| 21 | Red Wing, MN | 0.08 | $881/mo | $285,000 | -$1,338/mo |
| 22 | Brooklyn Center, MN | 0.07 | $1,120/mo | $347,200 | -$1,649/mo |
| 23 | Richfield, MN | 0.07 | $1,150/mo | $355,000 | -$1,682/mo |
| 24 | Burnsville, MN | 0.06 | $1,297/mo | $410,900 | -$1,967/mo |
| 25 | Columbia Heights, MN | 0.06 | $989/mo | $317,000 | -$1,522/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. 70 markets were considered.
