DSCR Loans in Missouri
Last updated: May 2026
Missouri is a standout for DSCR investors thanks to its low property taxes, strong landlord protections, and two major metros offering very different investment profiles. Kansas City delivers steady Midwest cash flow while St. Louis provides some of the lowest price-to-rent ratios in the country.
Property Tax
0.98%
State Income Tax
2.00-4.95%
Landlord Friendly
Very
Eviction Timeline
3-6 weeks
Property Taxes in Missouri
Missouri property taxes are well below the national average. Jackson County (Kansas City) effective rates average about 1.15%, St. Louis City (an independent jurisdiction) runs near 1.25%, and Greene County (Springfield) sits around 0.90%. Missouri reassesses every two years in odd-numbered years, so investors should anticipate periodic adjustments.
Insurance Costs
Typical investment property insurance in Missouri runs $1,750/yr. Missouri's position at the intersection of tornado alley and the New Madrid seismic zone creates a dual-risk profile. Earthquake endorsements are inexpensive but recommended for properties in the southeastern part of the state, while wind/hail premiums add cost across the western and central regions.
Landlord-Tenant Laws
Missouri is one of the most landlord-friendly states in the Midwest. There is no rent control, no statewide Just Cause requirement, and the state preempts local rent-control ordinances. Evictions require only a 10-day notice for nonpayment in Kansas City (by local ordinance) and as little as immediate filing in some circuits. Security-deposit caps are set at two months' rent.
Top Investment Markets in Missouri
Kansas City (MO side)
Midtown and east-side SFRs in the $100K-$180K range consistently produce DSCR ratios above 1.25 with Section 8 or market-rate tenants.
St. Louis City
Some of the lowest acquisition costs in any major metro ($50K-$120K for SFRs) with rents of $800-$1,200/mo; block-by-block due diligence is essential.
Springfield
Missouri State University and healthcare employers anchor demand; median prices under $180K in a low-crime metro.
Columbia
University of Missouri creates reliable student-rental demand; small multifamily near campus commands premium rents.
Independence/Lee's Summit
Eastern KC suburbs offer B-class neighborhoods with prices in the $150K-$220K range and strong school districts.
DSCR Considerations in Missouri
Missouri's low property taxes and landlord-friendly laws make it one of the easiest states in the Midwest to hit DSCR thresholds. The primary risk is insurance: get quotes early, especially for properties in tornado-prone western Missouri. St. Louis properties may show extraordinary DSCR ratios on paper, but lenders will scrutinize vacancy assumptions and property condition closely in neighborhoods with high distress.
Run the numbers for Missouri
Use our free DSCR calculator to see if your Missouri investment property pencils out.
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