DSCR Loans in Florida

Last updated: May 2026

Florida is one of the most active DSCR loan markets in the country, and it's easy to see why. No state income tax, year-round rental demand from tourists and new residents alike, and a population that has been growing faster than almost any other state for the past decade. But investing here comes with its own set of wrinkles — especially around insurance — that directly affect your DSCR numbers. Here's what you need to know before running the math on a Florida investment property.

Why Florida is a top DSCR market

Start with the tax picture: Florida has no state income tax. That means every dollar of rental profit stays in your pocket — unlike states like California or New York where state taxes can take a meaningful bite. For investors running multiple properties, that difference compounds fast.

Then there's the demand side. Florida added over 300,000 new residents per year between 2020 and 2025, driven by remote work flexibility, retiree migration, and businesses relocating from higher-cost states. That population growth feeds directly into rental demand — both long-term leases and short-term vacation rentals. Tourism alone brings in over 130 million visitors annually, making Florida one of the few states where STR income is genuinely strong enough to support DSCR underwriting in many markets.

Florida property taxes and your DSCR

Florida's average effective property tax rate sits around 0.86%, which is actually below the national average of roughly 1.1%. That sounds great on paper — but the reality is more complicated for investors. The Homestead Exemption, which shields up to $50,000 of assessed value for primary residences, does not apply to investment properties. You pay the full assessed rate, period.

Rates also vary significantly by county. Broward County runs around 1.1%, Miami-Dade sits near 0.97%, Orange County (Orlando) is about 0.95%, and Duval County (Jacksonville) comes in around 0.93%. These differences matter because property taxes are the “T” in your PITIA calculation. A higher tax bill directly increases your monthly debt obligation, which pushes your DSCR ratio down. Always pull actual tax records for the specific property — county averages only get you so far.

Insurance: Florida's biggest DSCR challenge

If there's one thing that makes Florida DSCR math harder than other states, it's insurance. Florida has the highest property insurance rates in the nation — investors typically pay between $4,000 and $6,000 per year, and coastal properties can run even higher. That's $330 to $500 per month in insurance alone, which is a significant hit to your cash flow.

Hurricane and windstorm coverage is mandatory for properties near the coast, and flood insurance is required in many zones across the state — especially in South Florida, Tampa Bay, and coastal areas along the Gulf and Atlantic. Some private insurers have pulled out of Florida entirely in recent years, leaving Citizens Property Insurance Corporation (the state's insurer of last resort) as the only option for some properties. Citizens policies have gotten more expensive and harder to get, adding another layer to the planning process.

The bottom line: always get insurance quotes before you run your DSCR numbers on a Florida property. A deal that looks like it cash-flows beautifully with a $150/month insurance estimate can fall apart when the real quote comes back at $450.

Florida landlord-tenant laws

Florida is widely considered a landlord-friendly state, which is good news for investors counting on stable rental income to support their DSCR. State law preempts local rent control — meaning no city or county in Florida can impose rent caps. You set your rent based on the market.

The eviction process is also relatively fast. For non-payment of rent, landlords can serve a 3-day notice, and if the tenant doesn't pay or vacate, the eviction process typically takes 15 to 30 days through the courts. Compare that to states like New York or California where evictions can drag on for months. Florida also places no cap on security deposit amounts, and landlords are not required to pay interest on deposits — though you must return the deposit within 15 to 60 days after the lease ends, depending on whether there are deductions.

Top Florida markets for DSCR investors

• Jacksonville: One of the most affordable major metros in the state. Strong rent growth, a large military presence (Naval Station Mayport, NAS Jacksonville), and a diversifying economy make Duval County attractive for long-term rental DSCR deals.
• Tampa Bay: Population has boomed, the job market is diverse (finance, healthcare, tech), and rent growth has been among the strongest in the Southeast. Properties here tend to pencil well for DSCR, though prices have climbed.
• Orlando: The tourism engine (Disney, Universal, convention traffic) drives a massive short-term rental market. But Orlando is also a growing tech and healthcare hub, so long-term rentals have strong demand too. STR-friendly DSCR programs are particularly relevant here.
• Miami: High entry prices, but also high rents and strong international demand. Miami works best for investors who can put more down and are comfortable with higher price points. Condo investing is common here but brings condo warrantability requirements into play.
• Cape Coral / Fort Myers: More affordable entry points with a rapidly growing population. The Southwest Florida market has rebounded well since Hurricane Ian, and investors are finding solid rent-to-price ratios — just factor in the higher insurance costs in this area.

Florida-specific DSCR considerations

• Short-term rental income: Many DSCR lenders accept Airbnb and VRBO income for Florida properties, using either actual booking history or projected revenue from platforms like AirDNA. This is especially important in Orlando, Miami, and coastal markets where STR income can be substantially higher than long-term rents.
• Condo warrantability: Florida has a huge condo market, but DSCR lenders require a warrantability review before financing a condo. After the 2021 Surfside collapse, Florida passed stricter condo inspection and reserve laws — which means some older condo buildings may have trouble meeting lender requirements or may have rising HOA fees to fund reserves.
• HOA costs: HOA fees are common throughout Florida, especially for condos and properties in planned communities. These fees are part of your PITIA calculation and directly lower your DSCR. Always confirm the current HOA amount and check for any upcoming special assessments.
• Wind mitigation inspections: A wind mitigation report documents hurricane-resistant features of the property (roof shape, opening protection, roof-to-wall connections). Properties with strong wind mitigation features can qualify for meaningful insurance discounts — which improves your DSCR by lowering the insurance portion of PITIA.