Florida DSCR Rental Loans

Florida's rental demand is fueled by population growth, tourism, seasonal residents, and a steady stream of relocating professionals. Markets like Tampa, Orlando, Jacksonville, and South Florida maintain strong occupancy rates and rent growth that produce favorable DSCR ratios. No state income tax improves your after-tax cash flow on every property in your portfolio.

Insurance costs are the critical variable for Florida rental investors. Property insurance premiums have risen sharply statewide and can materially impact your NOI and debt service coverage ratio. Underwriting that doesn't account for current insurance costs will produce misleading projections.

Tourist-heavy areas like Orlando, the Gulf Coast, and the Keys also have large short-term rental markets, but our DSCR loans qualify on long-term rental income only, not nightly Airbnb or VRBO revenue. Year-round demand from relocating households and workers gives Florida DSCR investors a deep long-term tenant pool across the major metros.

Insurance is the single most important DSCR underwriting variable in Florida. After a wave of carrier insolvencies, premiums in coastal counties — Miami-Dade, Broward, Pinellas, Lee, Collier — climbed sharply, and while litigation reforms have since drawn private carriers back (Citizens Property Insurance, the insurer of last resort, has shrunk from a 1.41 million-policy peak in 2023 and cut its 2026 rates), coastal premiums remain far above pre-2020 levels. A Tampa or Cape Coral rental that produced a clean 1.30x DSCR in 2020 may run noticeably tighter today purely because of the insurance line item. We underwrite Florida deals using actual current quotes, not state-average assumptions, because the gap between the two has become large enough to break files.

Florida's short-term rental landscape is locally fractured. Resort communities near Disney permit STRs by zoning, while Miami Beach, Fort Lauderdale, and a growing list of municipalities impose strict bans, registration requirements, or minimum stay rules — what's legal in Kissimmee is often prohibited in Miami Beach. Our Florida DSCR loans sidestep that patchwork: we qualify on long-term rental income only and don't underwrite short-term-rental revenue, so model an STR-heavy submarket on a 12-month lease.