DSCR Loan Cash Flow Stress Test 2027 Calculator
Stress-test your DSCR rental loan for 2027 — simulate vacancy spikes, rate increases, and expense surges to see if your debt service coverage ratio stays above 1.20x lender minimum.
What DSCR Stress Test Reveals
DSCR (Debt Service Coverage Ratio) = Net Operating Income ÷ Annual Debt Service. Lenders need 1.20x minimum (some 1.25x). Stress test multiplies vacancy/expenses/rates to see worst-case DSCR — passes if still ≥ 1.0x in scenario.
Three Stress Scenarios
Mild: +10% vacancy, +5% expenses, base rate. Moderate: +15% vacancy, +10% expenses, +50bps rate. Severe: +20% vacancy, +20% expenses, +100bps rate. Run all three — buy properties that survive moderate, finance differently if only mild passes.
When Properties Fail
Failing the stress test means: 1) Lender may not refinance at maturity (DSCR refi requires fresh DSCR check). 2) Tight personal cash flow if rental gap widens. 3) Bridge loan needed to weather downturn. Build cash reserves of 6+ months operating expenses for any property failing severe.
Why 2027 Matters
Rate environment uncertain — Fed signals + 75bps possible in 2027. Many DSCR refi loans amortize 30-year with 5-year reset clauses. Stress-test the reset NOW to know if you'll need to make principal paydowns or sell before reset.
Source: fanniemae.com Investment Property Cash Flow guidelines, lender DSCR benchmarks. Last updated: May 2026.