Sacramento DSCR Loans
Can a DSCR loan work on a median Sacramento rental at today's 6.95% rate? The median home value is $473,797 and the median rent is $2,056, a 5.21% gross yield that returns roughly 0.68 at 20% down.
Median Home Value
$473,797
Median Rent
$2,056
Gross Yield
5.21%
DSCR @ 20% Down
0.68
Sources: Zillow ZHVI, 2026-08-31 · Zillow ZORI, 2026-08-31 · Freddie Mac via FRED (MORTGAGE30US), 6.95% as of 2026-09-17
Sacramento Rental Economics
Median household income in Sacramento is $83,753. Roughly 524,802 people live in Sacramento. Investors looking at Sacramento are comparing a 5.21% gross yield against a 6.95% cost of borrowing. Where that spread is thin, Sacramento 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
5.21%
Annual median rent measured against median home value in Sacramento.
Down Payment for a 0.75 DSCR
28.5%
What Sacramento financing typically needs to clear a 0.75 ratio.
Median Household Income
$83,753
Census income for Sacramento.
What DSCR Financing Requires in Sacramento
A DSCR lender sizes a Sacramento loan against the rent rather than your personal income. On a median-priced Sacramento property the ratio lands at 0.68 with 20% down and 0.81 with 35% down, so reaching a 0.75 ratio takes roughly 28% down and reaching 1.0 takes about 50%. These are median-property figures for Sacramento. A specific deal moves with the rent an appraiser supports and with the taxes and insurance on that parcel.
| Down payment | DSCR in Sacramento | Typical lender treatment |
|---|---|---|
| 20% | 0.68 | Below the 0.75 floor most lenders use |
| 35% | 0.81 | Meets the 0.75 floor many lenders use |
Median-property figures for Sacramento. Taxes and insurance modelled at 1.25% of value per year. A specific deal will vary with the rent and the parcel.
Submarkets Inside Sacramento
Rental performance moves street by street inside Sacramento. These are the areas investors ask about most often:
Sacramento DSCR Questions
What is the median home value in Sacramento?
The median home value in Sacramento is $473,797 as of August 2026 (Zillow ZHVI). Median rent is $2,056 a month, a gross yield of 5.21%.
What down payment does a DSCR loan need in Sacramento?
On a median-priced Sacramento rental at a 6.95% rate, reaching a 0.75 DSCR takes roughly 28% down, and reaching 1.0 takes about 50%. The real number depends on the rent, taxes and insurance for that specific property.
Does DSCR lending work in Sacramento?
Sacramento needs a real down payment for a DSCR loan to work. The median home value of $473,797 against a median rent of $2,056 produces a gross yield of 5.21%. At 6.95%, that supports about a 0.68 ratio at 20% down, so a DSCR approval in Sacramento generally means roughly 28% down for a 0.75 ratio.
Is Sacramento a cash-flow market or an appreciation market?
With a gross yield of 5.21% against a 6.95% mortgage rate, Sacramento leans toward appreciation. Monthly cash flow is thin at these yields, so most Sacramento investors are underwriting the hold rather than the month.
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