San Diego DSCR Loans
San Diego is a rental market in San Diego County where the median home value is $985,158 and the median rent is $3,036 a month. That is a 3.70% gross yield, and it is the figure that decides whether a DSCR loan makes sense in San Diego at all. At today's 6.95% rate a median-priced San Diego rental returns about 0.49 at 20% down.
Median Home Value
$985,158
Median Rent
$3,036
Gross Yield
3.70%
DSCR @ 20% Down
0.49
Sources: Zillow ZHVI, 2026-08-31 · Zillow ZORI, 2026-08-31 · Freddie Mac via FRED (MORTGAGE30US), 6.95% as of 2026-09-17
San Diego Rental Economics
Median household income in San Diego is $104,321. Roughly 1,385,061 people live in San Diego. Investors looking at San Diego are comparing a 3.70% gross yield against a 6.95% cost of borrowing. Where that spread is thin, San Diego 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
3.70%
Annual median rent measured against median home value in San Diego.
Down Payment for a 0.75 DSCR
54.0%
What San Diego financing typically needs to clear a 0.75 ratio.
Median Household Income
$104,321
Census income for San Diego.
What DSCR Financing Requires in San Diego
A DSCR lender sizes a San Diego loan against the rent rather than your personal income. On a median-priced San Diego property the ratio lands at 0.49 with 20% down and 0.58 with 35% down, so reaching a 0.75 ratio takes roughly 54% down and reaching 1.0 takes about 70%. These are median-property figures for San Diego. A specific deal moves with the rent an appraiser supports and with the taxes and insurance on that parcel.
| Down payment | DSCR in San Diego | Typical lender treatment |
|---|---|---|
| 20% | 0.49 | Below the 0.75 floor most lenders use |
| 35% | 0.58 | Below the 0.75 floor most lenders use |
Median-property figures for San Diego. Taxes and insurance modelled at 1.25% of value per year. A specific deal will vary with the rent and the parcel.
Submarkets Inside San Diego
Rental performance moves street by street inside San Diego. These are the areas investors ask about most often:
San Diego DSCR Questions
What is the median home value in San Diego?
The median home value in San Diego is $985,158 as of August 2026 (Zillow ZHVI). Median rent is $3,036 a month, a gross yield of 3.70%.
What down payment does a DSCR loan need in San Diego?
On a median-priced San Diego rental at a 6.95% rate, reaching a 0.75 DSCR takes roughly 54% down, and reaching 1.0 takes about 70%. The real number depends on the rent, taxes and insurance for that specific property.
Does DSCR lending work in San Diego?
San Diego is an appreciation market, not a cash-flow market. A median San Diego home costs $985,158 while the median rent runs $3,036, a gross yield of just 3.70%. At 6.95%, a median-priced San Diego rental returns roughly a 0.49 DSCR at 20% down. Leveraged DSCR financing here starts around 54% down.
Is San Diego a cash-flow market or an appreciation market?
With a gross yield of 3.70% against a 6.95% mortgage rate, San Diego leans toward appreciation. Monthly cash flow is thin at these yields, so most San Diego investors are underwriting the hold rather than the month.
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