DSCR Loans in Massachusetts
Last updated: May 2026
Massachusetts presents DSCR investors with a paradox: extremely strong rental demand driven by world-class universities and a thriving biotech sector, paired with some of the most tenant-protective laws in the country. Boston metro rents are among the highest in the nation, which can support healthy DSCR ratios despite elevated acquisition costs. Secondary cities like Worcester, Springfield, and Lowell offer more accessible entry points with solid cash flow potential.
Property Tax
1.15%
State Income Tax
5.0% (plus 4% surtax above $1M)
Landlord Friendly
Less
Eviction Timeline
3 - 6 months
Property Taxes in Massachusetts
Property taxes vary substantially across Massachusetts municipalities. Boston's residential rate is about 1.06%, while Springfield averages roughly 1.87% and Worcester comes in near 1.54%. Cape Cod towns like Barnstable tend to hover around 0.8%, benefiting from high assessed values.
Insurance Costs
Typical investment property insurance in Massachusetts runs $1,500 - $2,400/yr. Coastal properties on Cape Cod, the Islands, and the South Shore carry elevated wind and flood premiums due to hurricane and nor'easter exposure. The state's aging housing stock, with many pre-1950 buildings, can also drive up insurance costs due to knob-and-tube wiring and outdated plumbing.
Landlord-Tenant Laws
Massachusetts is among the least landlord-friendly states in the region. The state banned rent control in 1994 via ballot measure, but eviction proceedings are slow and can take three to six months, especially during winter moratoriums. Last month's rent, first month's rent, security deposit, and lock-change fee are all allowed at move-in, but each has strict handling requirements.
Top Investment Markets in Massachusetts
Worcester
Second-largest city in New England with median prices roughly half of Boston and strong demand from healthcare and education workers.
Springfield
Most affordable metro in the state, with multifamily properties frequently hitting the 1% rule and cap rates above 8%.
Lowell
Historic mill city with UMass Lowell driving student demand and commuter rail access to Boston in under an hour.
New Bedford
Southcoast city with rapidly rising rents and median home prices still below $350K, plus a new commuter rail extension underway.
Brockton
Affordable gateway city south of Boston with diverse tenant demand and proximity to Route 24 employment centers.
DSCR Considerations in Massachusetts
High acquisition costs in Greater Boston mean investors often need 30-40% down to achieve a 1.0x DSCR. Gateway cities like Worcester and Springfield are where most DSCR deals pencil out with standard leverage. Massachusetts' strong tenant protections mean investors should budget for longer vacancy periods between tenants and higher legal costs.
Run the numbers for Massachusetts
Use our free DSCR calculator to see if your Massachusetts investment property pencils out.
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