Refuge Investments

Debt Service Coverage Ratio (DSCR)

A ratio that measures the Net Operating Income and its capacity to satisfy the Debt Service obligation. DSCR is calculated by dividing the NOI by the total Debt Service obligation.

For example, if a property has an NOI of $450,000 and a Debt Service of $300,000 would provide a DSCR of 1.5, while a rating as low as 1.1 is often acceptable if a renovation is intended.