Debt Service Coverage Ratio

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A financial metric used in real estate to measure a property’s ability to cover its debt obligations. The Debt Service Coverage Ratio (DSCR or DSC) is calculated by dividing the net operating income by the debt service payment and is often expressed as a multiple (i.e. a DSCR of 1.20x). The DSCR is used by banks to determine the maximum loan amount offered to a borrower and to assess the probability that a borrower might default on the loan.

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Spencer Burton
Spencer Burton
Born and raised in the Northwest United States, Spencer Burton has over 15 years of residential and commercial real estate experience. In his current position, Spencer sources and analyzes new investments for a $45bn real estate fund. Spencer Burton holds a Bachelor of Arts in International Affairs with an emphasis in economics from Florida State University and a Master of Professional Studies in Real Estate with a concentration in finance from Cornell University.

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