Multi-Unit
2–4 Unit Investment Property Loan Guide
How DSCR and rental property financing works for duplexes, triplexes, and fourplexes — DSCR calculation with multiple rental units, program requirements, and what lenders review.
How DSCR and rental property financing works for duplexes, triplexes, and fourplexes — DSCR calculation with multiple rental units, program requirements, and what lenders review.
DSCR loans are available for 2-4 unit investment properties. The key difference from single-family: the DSCR calculation uses the combined rent from all units. Lenders typically require 25% down for multi-unit DSCR, and the minimum DSCR may be slightly higher (1.15-1.25 vs. 1.00 for single-family). The combined rent from all units counts toward the numerator.
The DSCR formula is the same — but the rent numerator uses the combined rent from all units. If you're buying a triplex where Unit A rents for $1,200, Unit B for $1,100, and Unit C for $1,000, the total monthly rent is $3,300. That $3,300 goes into the DSCR numerator against a single PITIA.
Some lenders apply a higher vacancy factor to multi-unit — 15-25% vs. 5-10% for single-family.
2-4 unit DSCR typically requires 25% down minimum. Some programs may require 30% for 3-4 units.
The appraiser provides a rent schedule for each unit separately. Combined rent is used in DSCR.
Multi-unit properties often require higher reserves — 9-12 months PITIA vs. 6 months for single-family.
Use the calculator with combined rent from all units to estimate your DSCR.
Disclaimer: Educational only.
Last Updated: June 21, 2026