Los Angeles DSCR Loans
A median Los Angeles rental brings in $2,778 a month. The median home costs $929,572. That is a 3.59% gross yield, and at 6.95% it produces a DSCR of 0.47 with 20% down, so a DSCR loan in Los Angeles is a down-payment decision before it is a property decision.
Median Home Value
$929,572
Median Rent
$2,778
Gross Yield
3.59%
DSCR @ 20% Down
0.47
Sources: Zillow ZHVI, 2026-08-31 · Zillow ZORI, 2026-08-31 · Freddie Mac via FRED (MORTGAGE30US), 6.95% as of 2026-09-17
Los Angeles Rental Economics
Median household income in Los Angeles is $80,366. Roughly 3,857,897 people live in Los Angeles. Investors looking at Los Angeles are comparing a 3.59% gross yield against a 6.95% cost of borrowing. Where that spread is thin, Los Angeles gets bought for appreciation and held long term rather than bought for monthly cash flow, and the underwriting has to reflect that.
Gross Rental Yield
3.59%
Annual median rent measured against median home value in Los Angeles.
Down Payment for a 0.75 DSCR
56.0%
What Los Angeles financing typically needs to clear a 0.75 ratio.
Median Household Income
$80,366
Census income for Los Angeles.
What DSCR Financing Requires in Los Angeles
A DSCR lender sizes a Los Angeles loan against the rent rather than your personal income. On a median-priced Los Angeles property the ratio lands at 0.47 with 20% down and 0.56 with 35% down, so reaching a 0.75 ratio takes roughly 56% down and reaching 1.0 takes about 71%. These are median-property figures for Los Angeles. A specific deal moves with the rent an appraiser supports and with the taxes and insurance on that parcel.
| Down payment | DSCR in Los Angeles | Typical lender treatment |
|---|---|---|
| 20% | 0.47 | Below the 0.75 floor most lenders use |
| 35% | 0.56 | Below the 0.75 floor most lenders use |
Median-property figures for Los Angeles. Taxes and insurance modelled at 1.25% of value per year. A specific deal will vary with the rent and the parcel.
Submarkets Inside Los Angeles
Rental performance moves street by street inside Los Angeles. These are the areas investors ask about most often:
Los Angeles DSCR Questions
What is the median home value in Los Angeles?
The median home value in Los Angeles is $929,572 as of August 2026 (Zillow ZHVI). Median rent is $2,778 a month, a gross yield of 3.59%.
What down payment does a DSCR loan need in Los Angeles?
On a median-priced Los Angeles rental at a 6.95% rate, reaching a 0.75 DSCR takes roughly 56% down, and reaching 1.0 takes about 71%. The real number depends on the rent, taxes and insurance for that specific property.
Does DSCR lending work in Los Angeles?
Los Angeles is an appreciation market, not a cash-flow market. A median Los Angeles home costs $929,572 while the median rent runs $2,778, a gross yield of just 3.59%. At 6.95%, a median-priced Los Angeles rental returns roughly a 0.47 DSCR at 20% down. Leveraged DSCR financing here starts around 56% down.
Is Los Angeles a cash-flow market or an appreciation market?
With a gross yield of 3.59% against a 6.95% mortgage rate, Los Angeles leans toward appreciation. Monthly cash flow is thin at these yields, so most Los Angeles investors are underwriting the hold rather than the month.
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