Debt Service Coverage Ratio (DSCR) is a financial metric used by underwriters to assess the capacity of an income-producing asset to service its debt. Instead of looking at a borrower’s personal income, the DSCR compares the property’s monthly income against its total debt obligations, including principal, interest, taxes, insurance, and HOA fees. 

Because an accurate DSCR depends on a realistic assessment of market rents, many institutions use a Rental AVM to instantly verify a property’s income potential. This automated approach replaces manual guesswork with data-driven valuations, ensuring the “income” side of the DSCR equation is precise and defensible during the underwriting process.