💸 Top 5 States Dominating DSCR Investing in 2025 🚀

🌎 Where Smart Investors Are Buying in 2025: The Best DSCR Loan Markets 🏡

💰 Best States for DSCR Investors in 2025

If you’re a real estate investor using Debt Service Coverage Ratio (DSCR) loans, 2025 is shaping up to be a prime year for scaling portfolios—especially in select high-growth states. DSCR loans allow investors to qualify based on property income rather than personal income, making them ideal for those with multiple rentals or unconventional income streams.

At Medallion Funds, we work with over 600 lenders nationwide to find the best DSCR loan programs. Here’s where savvy investors are finding the most opportunity this year.

🏆 Top DSCR States for 2025

1. Texas

No state is seeing stronger rent growth and population migration than Texas. Cities like Katy, Austin, and Dallas continue to attract employers and families, keeping occupancy high and DSCR ratios healthy.
Why it’s hot: Business-friendly laws, no state income tax, and steady housing demand.

2. Florida

Sunshine, tourism, and short-term rentals continue to drive cash flow. Tampa, Orlando, and Jacksonville are investor favorites thanks to booming job markets and consistent rent demand.
Why it’s hot: Strong rental yields and thriving hospitality market.

3. Arizona

Phoenix and Tucson have matured into investor magnets due to massive migration from California. DSCR investors love the consistent cap rates and high rental coverage.
Why it’s hot: Low property taxes and strong rent-to-value ratios.

4. Georgia

Atlanta’s economy and growing suburbs make it one of the most balanced DSCR markets in the Southeast. The affordability factor keeps investors coming back.
Why it’s hot: Steady growth with strong rent appreciation.

5. North Carolina

Charlotte and Raleigh have become the new tech and finance hubs of the South, creating demand for both single-family and multifamily rentals.

🧭 Why DSCR Loans Are Gaining Ground in 2025

As interest rates stabilize and rental demand stays strong, DSCR loans continue to dominate the investor lending space. These programs are particularly popular among investors who:

·Own multiple properties

·Want to avoid income documentation

·Focus on cash-flowing rentals or short-term rentals

With flexible underwriting and no personal income verification, DSCR lending is becoming the go-to financing option for portfolio growth.

🔍 States on the Watchlist

While the five above are leading the pack, Tennessee, Nevada, and South Carolina are quickly rising. Their affordability and job market expansion make them appealing for out-of-state investors.

💡 Final Takeaway

For 2025, the best DSCR states all share one thing: strong rent growth backed by economic expansion. Whether you’re buying your first investment property or scaling a 20-unit portfolio, aligning with an experienced mortgage brokerage like Medallion Funds ensures you secure the right financing strategy for each market.

📞 Ready to explore DSCR loan options?
Visit www.BillRappOnline.com or call 281-222-0433 to get matched with the best DSCR lender for your next deal.

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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory