Jackson is Mississippi’s capital and largest city. As the state’s economic and political hub, it attracts a steady stream of students, government workers and medical professionals. The city also sits at the intersection of Interstates 20 and 55, making it a logistics crossroads for central Mississippi. Investors who buy rental property here benefit from a diversified tenant base and a relatively affordable cost of entry compared with many U.S. metros. According to the most recent analysis of 2025 housing data from Stacker/Redfin, the median sale price for single‐family homes in Jackson was about $268,945 with 435 homes sold each month, and there were approximately 1,718 active listings which equated to 4.0 months of supply and homes staying on the market for around 43.9 days. These statistics indicate a balanced market with enough inventory to give buyers some negotiating power without significantly depressing prices.
Rental housing also remains reasonably priced compared with other state capitals. RentCafe’s January 2026 market survey reports that the average apartment rent in Jackson is $1,100 and that studios average $837, one‑bedrooms $1,000, two‑bedrooms $1,137 and three‑bedrooms $1,286. Approximately 51 % of households rent and 49 % own their homes, illustrating a healthy rental pool for landlords. Neighborhood rents vary widely; Belhaven Heights averages about $915 per month while Northeast Jackson averages $2,050. For investors, those differences highlight the importance of understanding micro‑markets and tailoring financing to the property’s expected cash flow.
Debt Service Coverage Ratio (DSCR) loans allow real estate investors to qualify based on a property’s income rather than their personal salary or tax returns. That makes them particularly useful in Jackson, where many landlords run small businesses or have irregular incomes. A DSCR loan measures the property’s monthly rent versus principal, interest, taxes, insurance and association dues (often abbreviated as PITIA). A ratio above 1.0 means the rental income covers the property’s debt service. DSCR lenders typically want to see ratios at or above 1.0, although some will lend as low as 0.75 if borrowers bring higher down payments or have strong credit. By focusing on the asset’s performance instead of the borrower’s debt‑to‑income ratio, DSCR loans provide flexibility for experienced investors and newcomers alike.
Overview of Jackson’s Real Estate Investment Market
Jackson’s economy is diversified across government services, manufacturing and healthcare. The City Data profile notes that roughly 40,000 residents work in government jobs and nearly 500 manufacturers operate in the region, producing automobiles, metals, electronics, food products, apparel, wood products and more. Health care and telecommunications also play a large role, and the area has attracted high‑paying industrial operations thanks to its skilled labour pool and quality of life. Nissan’s auto plant and the growing aerospace sector underscore how manufacturing anchors the local economy. These diverse industries create steady demand for housing across the rental spectrum—from workers renting starter apartments near industrial parks to professionals seeking upscale homes near the University of Mississippi Medical Center.
From an investment perspective, the balanced supply noted earlier (four months of inventory) suggests that deals exist for buyers who act quickly. The city is also implementing revitalization projects in downtown and neighbourhoods like Fondren, which can drive appreciation over the long term. When selecting rental properties, investors should research sub‑markets. The northeast part of Jackson commands higher rents due to newer homes and proximity to shopping, while west and central neighbourhoods offer lower entry prices but may require more renovations. DSCR lenders evaluate these factors and look at local rents relative to mortgage payments to decide whether a property qualifies.
How DSCR Loans Work for Rental Properties
DSCR loans are designed for investment properties, not primary residences. Lenders calculate the ratio by dividing the property’s gross rent (or a percentage of market rent for vacant units) by the monthly debt service (PITIA). For example, a house that rents for $1,200 per month with a PITIA of $1,000 has a DSCR of 1.20. The higher the ratio, the more cushion the lender has to ensure the borrower can make payments even if expenses rise or tenants vacate. Many lenders set their minimum DSCR threshold at 1.0 for long‑term rentals. Some programs allow ratios down to 0.75 when paired with larger down payments or higher interest rates; others require a stronger 1.25 DSCR to qualify for the best rates. Because underwriting is based on the property, investors often avoid having to provide tax returns, W‑2s or pay stubs.
DSCR loan terms usually mirror conventional mortgages most are 30‑year fixed‑rate or adjustable‑rate products with options for interest‑only payments. Borrowers typically put down 20–25 % of the purchase price, though some lenders will go as low as 15 % or as high as 30 % depending on credit and DSCR ratio. Loan amounts can range from $50,000 up to several million dollars. Closing can be quick—three to four weeks—because lenders streamline documentation. DSCR loans can be used for purchases, refinances and cash‑out refinances, allowing investors to unlock equity for additional acquisitions.
What to Look for in a DSCR Lender
Not all DSCR lenders are alike. When evaluating options, investors should consider several factors:
- Experience in Mississippi: Local knowledge matters. Lenders who have funded deals in Jackson understand neighbourhood rents, property taxes, insurance costs and typical vacancy rates. They can underwrite more accurately and may offer better terms.
- Interest rates and fees: DSCR loan rates vary widely—from around 5.75 % on the low end to above 8 %. Origination fees can range from 0–3 %. Compare offers carefully, including prepayment penalties.
- Minimum DSCR threshold: Some lenders require 1.0 or higher, while others accept 0.75. A lower DSCR threshold provides flexibility but usually comes with higher rates or lower loan‑to‑value (LTV) limits.
- Loan‑to‑value limits: Most DSCR lenders cap LTV at 80 % for purchases and 75 % for cash‑out refinances. Some will lend up to 85 % with strong credit or reserves.
- Credit score requirements: Minimum FICO scores usually range from 620 to 660. Strong credit can unlock lower rates and higher LTVs. Borrowers with scores below 680 may face higher rates or larger down‑payment requirements.
- Property types: Verify that the lender will finance the asset you intend to buy. Most DSCR lenders handle single‑family rentals, duplexes and fourplexes; some also fund small multifamily (2–9 units), mixed‑use properties or vacation rentals.
- Customer service and speed: DSCR loans are prized for quick closings. Ask lenders about average processing times and how they handle appraisals and rent surveys.
Top DSCR Lenders in Jackson
#1 SelectHomeLoans.com (Top Choice)
For Jackson investors seeking a reliable partner, SelectHomeLoans.com is our top recommendation. The company specialises in DSCR loans and positions itself as a one‑stop shop for rental property financing. Why do we rank them first? First, they emphasise local underwriting. Their team analyses neighbourhood‑level rent data in metro Jackson and accounts for factors like flood insurance, property condition and vacancy risk. Second, they offer competitive rates and flexible programs. Borrowers can choose from 30‑year fixed or adjustable loans, including interest‑only options that boost monthly cash flow during the first years of ownership. Third, SelectHomeLoans.com stands out for customer service. Investors receive a dedicated loan officer who guides them from pre‑approval through closing, ensuring all documents are submitted correctly so deals close on time. The company also educates borrowers on DSCR calculation and helps them structure rent leases to maximise DSCR. Finally, SelectHomeLoans.com’s capital base allows it to fund loans quickly, often in less than a month. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296
Easy Street Capital
Easy Street Capital is a national private lender with a strong presence in Mississippi. Their DSCR loans start at interest rates around 5.75 % and allow up to 80 % LTV for purchases or refinances and 75 % LTV for cash‑out transactions. Unlike some lenders, they do not require a minimum DSCR, which can be helpful if your property barely breaks even in the first year. The minimum down payment is typically 15 % for purchases, though stronger credit or a higher DSCR may be required for high‑leverage loans. Easy Street underwrites primarily on the property’s cash flow, so borrowers generally don’t need to submit tax returns or W‑2s. The company funds long‑term and short‑term rental properties statewide, including Jackson and Gulfport, and it offers rehab and new‑construction loans if you plan to improve or build rentals.
Ridge Street Capital
Ridge Street Capital specialises in DSCR rentals and offers both long‑term and short‑term rental financing in Mississippi. Their long‑term program features interest rates as low as 6.25 %, up to 80 % LTV (75 % for cash‑out), zero origination points, a minimum DSCR of 1.0 and closings in 21 days. Borrowers need a credit score of 660 and should expect to document six months of reserves. For short‑term rentals (Airbnb/VRBO), Ridge Street’s program starts at 6.5 %, caps LTV at 80 %, charges 0–1 % origination, and requires a DSCR of 1.0 with a minimum credit score of 700. The company finances single‑family homes and small multifamily properties up to nine units. Ridge Street stands out for quick closings and no prepayment penalties after three years. They also provide DSCR vs. conventional mortgage comparisons, helping clients understand how the program fits into their overall investment strategy.
Express Capital Financing
Express Capital Financing offers DSCR loans tailored for Mississippi investors seeking high leverage and fast closings. The company’s asset‑based loans finance single‑family, multi‑family (2–9 units), condos and townhomes. Their program allows up to 85 % LTV for purchases, 80 % LTV for rate‑and‑term refinances and 75 % LTV for cash‑out refinances with loan amounts from $50,000 to $3,000,000. Their rent coverage ratio requirement is 1.0, meaning the property’s rent must at least equal the mortgage payment. Interest rates start at 5.875 % and borrowers need a minimum credit score of 650. Loans can close in as little as three weeks and there is flexibility on prepayment penalties. Express Capital offers 5/30, 7/30, 10/30 and 30‑year fixed terms, giving investors options to match their hold strategy. The company emphasises a streamlined application process with in‑house underwriting and funding.
CoreVest Finance
CoreVest’s DSCR program is a good choice for investors who value stability and clear guidelines. They provide 30‑year fixed‑rate DSCR loans for 1–4 unit properties, condos and townhomes with loan amounts starting at $75,000 and capped at $2 million. CoreVest requires a minimum DSCR of 1.0 and will lend up to 80 % of the property’s value. The program can be used for purchases, refinances and cash‑out refinances. Borrowers must supply a credit score around the mid‑600s and at least six months of reserves. Closing times vary but typically fall within 30–45 days. CoreVest’s national footprint and focus on rental portfolios make them a strong long‑term partner for investors building multiple properties.
Griffin Funding
Griffin Funding offers DSCR loans statewide and will consider ratios as low as 0.75 for experienced investors, though borrowers must have solid credit and reserves. Ideal DSCR is 1.25 or higher; lower ratios require 12 months of reserves and may carry higher rates. The company requires a minimum credit score around 620 and down payments of 20 %–25 %. Griffin Funding emphasises that DSCR loans are for investment properties only and do not involve tax returns or personal income verification. Their underwriting includes a property appraisal and rent schedule to verify the projected income. Borrowers can choose interest‑only or fully amortizing loans.
Foundation CREF
Foundation CREF’s DSCR rental loans have interest rates starting around 6.5 % with loan amounts from $75,000 to $2.5 million and 30‑year terms (adjustable 3/5/7/10‑year options). They lend up to 80 % LTV for acquisitions and refinances and will allow cash‑out refinancing up to 75 %. Foundation CREF works with single‑family rentals, duplexes, triplexes and fourplexes. Borrowers should expect to provide six months of reserves and a minimum credit score around 660. Closing can take 30–45 days. The company markets itself as flexible on property condition and willing to lend in tertiary markets like Jackson, making it a good option for investors acquiring distressed homes to renovate and rent.
Other Lenders and Brokers
Several other lenders offer DSCR loans in Mississippi. Biglaw Investor notes that some lenders, such as Malve Capital, accept DSCR ratios as low as 0.75 and offer rates starting around 5.9 %, with 30‑year fixed or adjustable terms and no prepayment penalties. Tidal Loans provides DSCR loans for long‑ and short‑term rentals, accepting DSCR ratios below 1.0, with credit scores starting at 620 and terms up to 30 years. HomeAbroad caters to foreign nationals and offers loan amounts from $100k to $10 million, with 25 % down, DSCR ratios starting at 1.0 (no‑ratio option available), LTV up to 75 % for purchases and 70 % for cash‑out, and closings in about 27 days. Each of these lenders may have higher rates or stricter reserves requirements, but they expand financing options for investors with unique circumstances.
DSCR Loan Rates, Terms and Qualification Factors
Although each lender sets its own guidelines, Mississippi investors can expect DSCR loan interest rates to range from approximately 5.75 % to 8 % depending on credit score, DSCR ratio, property type and market conditions. Rates at the lower end typically require DSCR ratios of 1.25 or above and strong credit, while rates above 7 % may apply to borrowers with lower DSCRs or credit in the low 600s. Loan terms are commonly 30 years, with some lenders offering 5/30, 7/30 or 10/30 hybrids or interest‑only periods. LTV limits are usually 80 % for purchases and 75 % for cash‑out refinances, though Express Capital offers up to 85 % for purchases. Borrowers should plan to provide 20–25 % down payments and maintain six months of reserves. Minimum credit scores generally fall between 620 and 660, and lenders may lower the DSCR requirement or raise the down payment if credit is weaker.
Common Mistakes When Using DSCR Loans
- Overestimating rent: Investors sometimes assume they can charge top‑tier rents without verifying market data. Lenders will order a rent survey or appraiser’s rent schedule, and if your projected rent is unrealistic, the DSCR may fall below qualification thresholds.
- Ignoring expenses: DSCR lenders use PITIA, which includes property taxes, insurance and association dues. Underestimating any of these costs lowers the DSCR ratio.
- Insufficient reserves: Many lenders require six months of reserves. Some borrowers allocate their cash for down payments and closing costs without leaving enough liquidity.
- Choosing the wrong property type: Not all properties qualify. Single‑family homes and small multifamily units are widely accepted, but rural or mixed‑use properties require specialised lenders like Tidal Loans.
- Not shopping around: DSCR loan rates and fees vary. Getting quotes from multiple lenders can save thousands of dollars and ensure you find the best fit.
- Failing to plan for vacancy: A DSCR of 1.0 leaves little margin for vacant months or unexpected repairs. Maintaining a DSCR above 1.2 provides a cushion.
DSCR Loans vs. Traditional Investment Property Financing
Traditional investment property mortgages typically require borrowers to document their personal income via tax returns, pay stubs and debt‑to‑income ratios. Lenders cap the number of financed properties, and underwriting can take weeks. DSCR loans, by contrast, evaluate the property’s cash flow and allow investors to build large portfolios without personal income verification. DSCR loans often have slightly higher interest rates and larger down payments than conventional loans, but they offer faster closings and more flexibility. DSCR lenders also tend to allow unlimited properties and can finance short‑term rentals, which many conventional lenders avoid. That said, DSCR loans are not for owner‑occupied properties, and some have prepayment penalties, so investors should review loan terms carefully.
Who Should Use DSCR Loans (And Who Shouldn’t)
DSCR loans are best for investors who:
- Have irregular or non‑traditional income (self‑employed, real estate professionals, retirees, etc.).
- Own or plan to acquire multiple properties and need financing that doesn’t limit the number of mortgages.
- Invest in cash‑flowing rental properties where rent exceeds debt service.
- Seek quick, streamlined closings without submitting extensive personal documentation.
DSCR loans may not be ideal for:
- Owner‑occupied property buyers (DSCR loans are strictly for investment purposes).
- Investors with properties that do not cash flow or have DSCR below 0.75. In those cases, conventional loans or bridge loans may be more appropriate.
- Borrowers who need the absolute lowest interest rate, as DSCR loans generally have higher rates than conventional mortgages.
Jackson‑Specific Investing Considerations
When investing in Jackson, pay attention to neighbourhood dynamics. Belhaven Heights and West Central Jackson offer more affordable rents, while Northeast Jackson commands premium rents above $2,000. Investors can find undervalued properties in transitional areas like South Jackson and renovate them for higher returns. Flood zones along the Pearl River may require expensive insurance, which can affect DSCR calculations. Also consider property taxes: Mississippi has relatively low property tax rates, but insurance premiums can be high due to storm risks. Finally, keep an eye on Jackson’s economic development initiatives. The city is courting new manufacturing and distribution businesses, which could create jobs and boost housing demand.
Conclusion
Jackson offers a compelling mix of affordability, cash flow and economic diversity for real estate investors. A strong DSCR loan can unlock opportunities to acquire and grow rental portfolios without wading through mountains of personal paperwork. While many lenders serve Mississippi, SelectHomeLoans.com stands out for its local expertise, flexible underwriting and commitment to customer service. They offer competitive rates, tailor programs to each property’s cash flow and close loans quickly so investors can seize opportunities. By using DSCR financing through SelectHomeLoans.com, investors can build wealth in Jackson’s dynamic housing market while maintaining control over their time and capital.
