DSCR Loans in Louisiana
Last updated: May 2026
Louisiana is a state of contrasts for DSCR investors. On one hand, it has some of the lowest property tax rates in the country and home prices that allow for low-cost entry. On the other, insurance costs — particularly in coastal parishes — can be punishing, and they've been climbing steeply since the 2020-2021 hurricane seasons. The state's economy leans on energy, petrochemicals, shipping through the Port of South Louisiana, and a tourism engine in New Orleans that few cities can match. Investors who understand the insurance landscape and underwrite it carefully can find strong cash-flow plays here.
Property Tax
~0.55%
State Income Tax
4.25% flat
Landlord Friendly
Moderate
Eviction Timeline
~20-40 days
Property Taxes in Louisiana
Louisiana has one of the lowest effective property tax rates in the nation at roughly 0.55%. The state offers a generous homestead exemption ($75,000 of assessed value), but this does not apply to investment properties. Effective rates vary: Orleans Parish (New Orleans) averages about 0.65%, East Baton Rouge Parish runs near 0.60%, and Caddo Parish (Shreveport) sits around 0.70%. Assessment ratios for residential property are set at 10% of fair market value.
Insurance Costs
Typical investment property insurance in Louisiana runs $2,500-$4,500/year. Insurance is the single biggest expense wildcard in Louisiana. After Hurricanes Laura, Delta, Ida, and the broader reinsurance crisis, premiums in southern parishes have surged — many investors in the New Orleans metro now pay $3,000-$4,500/year or more for wind and hazard coverage alone, with separate flood policies adding additional cost. Northern parishes like Caddo and Ouachita are significantly cheaper for coverage.
Landlord-Tenant Laws
Louisiana's landlord-tenant law is based on the Civil Code rather than a separate statutory framework, which makes it somewhat unique. There is no rent control. For nonpayment, landlords must provide a 5-day notice to vacate. If the tenant remains, the landlord can file for eviction, and the process typically takes 20-40 days. Security deposits cannot exceed one month's rent, and landlords must return them within 30 days.
Top Investment Markets in Louisiana
Baton Rouge
The state capital benefits from LSU, a large petrochemical corridor, and relatively moderate insurance costs compared to coastal areas, making it a balanced DSCR play.
New Orleans
Exceptional short-term rental income potential in the right neighborhoods (though STR regulations have tightened), with long-term demand supported by healthcare, port, and tourism jobs.
Shreveport
Northwestern Louisiana's largest city offers very low entry points and avoids coastal insurance premiums, though population decline requires careful tenant screening and location selection.
Lafayette
The hub of Cajun Country with an economy tied to energy services and a growing tech scene called the Silicon Bayou initiative, offering mid-range price points with solid rents.
Lake Charles
A major LNG and petrochemical investment corridor that has driven housing demand, though insurance costs here are among the highest in the state after recent hurricane damage.
DSCR Considerations in Louisiana
The make-or-break factor for DSCR in Louisiana is insurance. A property that looks like a home run on paper can fall apart when you plug in realistic insurance costs — especially south of I-10. Always get actual insurance quotes before finalizing DSCR projections, not estimates. The low property taxes are a genuine advantage, and northern Louisiana markets offer a much friendlier insurance environment. Louisiana's 4.25% flat income tax is competitive within the Southeast.
Run the numbers for Louisiana
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