San Jose DSCR Loans
San Jose yields 3.14%. That single figure, drawn from a $1,362,808 median home value and a $3,563 median rent, decides what a DSCR loan can do in San Jose at today's 6.95% rate, where 20% down returns about 0.41.
Median Home Value
$1,362,808
Median Rent
$3,563
Gross Yield
3.14%
DSCR @ 20% Down
0.41
Sources: Zillow ZHVI, 2026-08-31 · Zillow ZORI, 2026-08-31 · Freddie Mac via FRED (MORTGAGE30US), 6.95% as of 2026-09-17
San Jose Rental Economics
Median household income in San Jose is $141,565. Roughly 990,054 people live in San Jose. Investors looking at San Jose are comparing a 3.14% gross yield against a 6.95% cost of borrowing. Where that spread is thin, San Jose 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
3.14%
Annual median rent measured against median home value in San Jose.
Down Payment for a 0.75 DSCR
63.5%
What San Jose financing typically needs to clear a 0.75 ratio.
Median Household Income
$141,565
Census income for San Jose.
What DSCR Financing Requires in San Jose
A DSCR lender sizes a San Jose loan against the rent rather than your personal income. On a median-priced San Jose property the ratio lands at 0.41 with 20% down and 0.49 with 35% down, so reaching a 0.75 ratio takes roughly 64% down and reaching 1.0 takes about 76%. These are median-property figures for San Jose. A specific deal moves with the rent an appraiser supports and with the taxes and insurance on that parcel.
| Down payment | DSCR in San Jose | Typical lender treatment |
|---|---|---|
| 20% | 0.41 | Below the 0.75 floor most lenders use |
| 35% | 0.49 | Below the 0.75 floor most lenders use |
Median-property figures for San Jose. 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 Jose
Rental performance moves street by street inside San Jose. These are the areas investors ask about most often:
San Jose DSCR Questions
What is the median home value in San Jose?
The median home value in San Jose is $1,362,808 as of August 2026 (Zillow ZHVI). Median rent is $3,563 a month, a gross yield of 3.14%.
What down payment does a DSCR loan need in San Jose?
On a median-priced San Jose rental at a 6.95% rate, reaching a 0.75 DSCR takes roughly 64% down, and reaching 1.0 takes about 76%. The real number depends on the rent, taxes and insurance for that specific property.
Does DSCR lending work in San Jose?
San Jose is an appreciation market, not a cash-flow market. A median San Jose home costs $1,362,808 while the median rent runs $3,563, a gross yield of just 3.14%. At 6.95%, a median-priced San Jose rental returns roughly a 0.41 DSCR at 20% down. Leveraged DSCR financing here starts around 64% down.
Is San Jose a cash-flow market or an appreciation market?
With a gross yield of 3.14% against a 6.95% mortgage rate, San Jose leans toward appreciation. Monthly cash flow is thin at these yields, so most San Jose investors are underwriting the hold rather than the month.
How Ready Are You for a Mortgage?
Take our 2-minute assessment to get your personalized Mortgage Readiness Score. See where you stand and what to improve before applying.
Check Your Readiness ScoreReady to Finance a San Jose Property?
Get matched with San Jose investment property lenders in 60 seconds. Tell us the rent and the purchase price and we will show you what pencils.
Check San Jose OptionsEqual Housing Opportunity | No credit impact to get matched