Southaven is part of the Memphis metropolitan area and sits just south of the Tennessee border in DeSoto County. Over the past two decades, it has transformed from a bedroom community into a thriving logistics and manufacturing hub. DeSoto County’s economic development agency identifies key target industries such as biomedical product distribution, e‑commerce logistics, food and beverage manufacturing and primary metals processing. Major employers include DeSoto County Schools with 3,872 workers, Amazon’s fulfilment center with 3,300 employees, Milwaukee Electric Tool’s distribution hub (3,000 employees), Baptist Memorial Hospital (1,750), Williams‑Sonoma’s distribution facility (1,000), FedEx Ground (800), and other manufacturers like Siemens and Ardagh. This industrial base coupled with easy access to Memphis International Airport and Interstate 55 supports a large population of renters.
Southaven’s housing market is moderately priced compared with the rest of the country. Redfin reports that the median sale price in December 2025 was $299,900, down 3.5 % year‑over‑year, and homes sold after about 28 days. Approximately 58 homes sold that month, indicating a market with moderate turnover. While Stacker hasn’t published a full 2025 recap for Southaven like it has for Jackson and Gulfport, the available data points to a competitive environment where properties move quickly but prices remain accessible.
Renters make up a smaller share of the population here than in Jackson or Gulfport. According to RentCafe, the average rent in Southaven is $1,411 as of January 2026. One‑bedroom apartments average $1,352, two‑bedrooms $1,405 and three‑bedrooms $1,553. The site notes that about 72 % of households are owner‑occupied and 28 % are renter‑occupied. Most apartments fall between $1,001 and $1,500 per month, which suggests stable demand from logistics workers and families who commute to Memphis but prefer Mississippi’s lower taxes. For investors, the combination of accessible purchase prices and solid rents can produce DSCR ratios above 1.0, making the city attractive for long‑term rental investments.
Southaven Real Estate Investment Landscape
Southaven’s growth is tied to its strategic location near Memphis’s transportation network. DeSoto County is within a day’s drive of 75 % of the U.S. population, making it ideal for distribution centers. Companies such as Amazon, Milwaukee Electric Tool and Williams‑Sonoma operate massive facilities here. The area also hosts numerous healthcare providers, including Baptist Memorial Hospital and Methodist Olive Branch Hospital. The result is a diverse workforce with steady incomes. Because property taxes and insurance rates are generally lower in Mississippi than in Tennessee, many families choose to rent in Southaven while working across state lines. Investors can target single‑family homes and small multifamily properties near industrial parks and hospitals to capture this demand.
How DSCR Loans Work for Southaven Rentals
DSCR loans in Southaven follow the same fundamental principles as those in Jackson and Gulfport. Lenders calculate the ratio of rent to PITIA to assess cash flow. A ratio of 1.0 means the property’s income equals its debt service; ratios above 1.2 are considered strong. Because Southaven has a high owner‑occupancy rate, vacancy risk may be slightly lower than in markets with higher renter concentration; nonetheless, lenders typically require DSCR of 1.0 or higher to qualify. Interest rates generally range from 5.75 % to 8.25 % and down payments from 20 %–25 %. Maximum LTV is usually 80 % for purchases and 75 % for cash‑out refinances, though some programs may go to 85 % for strong borrowers.
What Investors Should Look for in a DSCR Lender
When comparing DSCR lenders for Southaven properties, consider:
- Understanding of industrial and logistics markets: Lenders familiar with distribution hubs will recognise the stability of long‑term tenant demand from warehouse workers and trucking employees.
- Credit flexibility: Borrowers with credit scores below 680 should identify lenders that accept minimum scores around 620, though they may need to put more money down or accept higher rates.
- Loan amounts and portfolio size: Some lenders cap loan amounts at $2 million, while others fund up to $10 million. Investors building portfolios may prefer lenders with higher limits and no cap on the number of financed properties.
- Prepayment penalties: DSCR loans sometimes carry penalties for paying off early. Evaluate whether the lender offers penalty‑free options, especially if you plan to refinance when rates drop.
- Speed and customer service: DeSoto County’s competitive housing market means investors must close quickly. Choose lenders with in‑house underwriting and strong communication.
Top DSCR Lenders in Southaven
#1 SelectHomeLoans.com
SelectHomeLoans.com once again claims the top spot, thanks to its customised DSCR programs and deep understanding of DeSoto County’s logistics‑driven economy. They finance single‑family rentals and small multifamily properties, offer 30‑year fixed and adjustable loans with optional interest‑only periods and emphasise quick closingsoften under 30 days. The company’s underwriters assess rental comparables in Southaven’s subdivisions and adjust DSCR calculations to account for property taxes, insurance and HOA dues. Because the city has a lower renter percentage, SelectHomeLoans.com may accept slightly lower DSCRs if the borrower has strong reserves or multiple properties. Their customer service and ability to tailor loans make them a natural choice for investors seeking to scale. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296
Easy Street Capital
Easy Street Capital’s DSCR loans are attractive for investors seeking low rates and flexible underwriting. Their Mississippi program starts at 5.75 % with up to 80 % LTV for purchases and 75 % for cash‑out refinances. They don’t impose a minimum DSCR, which can benefit investors buying properties that need minor renovations to boost rents. Easy Street offers financing for long‑term rentals as well as short‑term and vacation rentals, though the latter may require higher credit scores. Their minimal documentation requirements and ability to close quickly make them a solid choice.
Ridge Street Capital
Ridge Street Capital offers DSCR loans for long‑term rentals with rates from 6.25 %, LTV up to 80 %, no origination points and minimum DSCR 1.0. Borrowers need a credit score of 660 and six months of reserves. Their program for short‑term rentals starts at 6.5 % and requires a 700 score. Ridge Street’s 21‑day closing time appeals to investors competing for fast‑moving properties. The company also educates borrowers on DSCR calculations and stresses the importance of maintaining a cushion above 1.0.
Express Capital Financing
Express Capital Financing offers high‑leverage DSCR loans with up to 85 % LTV for purchases, 80 % for rate‑and‑term refinances and 75 % for cash‑out. Their loans cover single‑family, townhomes and small multifamily properties with amounts from $50,000 to $3 million. Interest rates start at 5.875 % and the minimum credit score is 650. Express Capital’s quick closings and variety of term structures make them popular for investors who want maximum leverage.
CoreVest Finance
CoreVest’s 30‑year DSCR loan programme provides up to 80 % LTV with a minimum DSCR of 1.0. Their loan amounts range from $75,000 to $2 million. Borrowers must provide six months of reserves and mid‑600s credit scores. CoreVest emphasises stable cash flow and works best for investors seeking long‑term hold properties near Southaven’s industrial corridors.
Griffin Funding
Griffin Funding will consider DSCR ratios down to 0.75, though they prefer 1.25 for the best rates. Minimum credit scores start around 620 and down payments range from 20 % to 25 %. They do not limit the number of financed properties, making them good for portfolio investors. However, lower DSCRs require higher reserves, often a full year of payments.
Foundation CREF and Other Lenders
Foundation CREF offers DSCR loans with rates from 6.5 %, loan amounts $75k–$2.5M, 30‑year terms and LTVs up to 80 %. Other options include Tidal Loans, which accepts DSCR down to 0.75 with credit scores as low as 620; Biglaw Investor‑recommended lenders like Malve Capital that offer 30‑year fixed and ARM products starting around 5.9 %; and HomeAbroad’s program for foreign nationals which requires a 25 % down payment and offers 75 % LTV. These lenders broaden the choice set for investors with unique situations.
DSCR Rates, Terms and Qualification Factors in Southaven
Interest rates for DSCR loans in Southaven generally run from 5.75 % to 8.25 % depending on the lender and borrower profile. Lenders with lower DSCR tolerance or higher leverage may charge more. Typical down payments range 20 %–25 %, though Express Capital will go as low as 15 % for strong borrowers. Most programs require six months of reserves and a minimum credit score of 620–660. Maximum LTV is 80 % for purchases and 75 % for cash‑out refinances, though a few lenders go to 85 %. DSCR thresholds range from 0.75 to 1.25, with higher ratios securing better terms. Investors should anticipate closing costs of 2–4 % and potential prepayment penalties lasting 1–3 years.
Common Mistakes When Using DSCR Loans in Southaven
- Underestimating vacancy risk: Although Southaven has a high owner‑occupancy rate, rental properties near industrial parks can experience turnover when employers relocate or contract. Investors should budget for occasional vacancy.
- Not accounting for property taxes: Mississippi property tax rates are relatively low, but DeSoto County’s rates can vary by subdivision. Failing to budget correctly can lower DSCR.
- Overleveraging with high LTV: Borrowers may be tempted by 85 % LTV programs but should consider leaving more equity in properties to absorb market fluctuations.
- Ignoring maintenance: Industrial tenants may put heavier wear on homes. Budget for regular repairs and capital expenditures.
- Misjudging commuting patterns: Some tenants work in Memphis and value proximity to highways more than home amenities. Ensure your property’s location aligns with tenant demand.
DSCR Loans vs Traditional Financing for Southaven Investors
Conventional investment mortgages require extensive income documentation and may limit borrowers to ten financed properties. They can also be slower to close. DSCR loans offer an alternative: by focusing on property cash flow, they allow investors to build larger portfolios and close in weeks rather than months. However, DSCR loans carry higher interest rates and down payments and may include prepayment penalties. Borrowers with strong W‑2 income and few properties might secure better pricing through conventional loans, but those with multiple rentals or non‑traditional income sources often benefit more from DSCR financing.
Who Should Use DSCR Loans in Southaven
DSCR loans are ideal for investors who:
- Want to finance single‑family rentals or duplexes near logistics hubs and industrial parks.
- Need to qualify based on property income rather than personal income.
- Plan to build a portfolio of rental properties and need flexible underwriting.
They are less suitable for owner‑occupied purchases or properties with weak cash flow. Investors should ensure the property’s rent comfortably exceeds the mortgage payment and that reserves are available.
Southaven‑Specific Investing Considerations
When buying in Southaven, consider proximity to distribution centers. Homes near Amazon or Milwaukee Electric Tool may rent quickly to warehouse employees. Also look at school districts/families drawn by the county’s highly rated schools may pay higher rents. Because Southaven is part of the Memphis metro area, cross‑state comparisons matter; Tennessee has no state income tax but higher property taxes, while Mississippi has the opposite. Evaluate total cost of living for tenants. Finally, monitor major employer announcements; expansions by FedEx, Amazon or Siemens could spur housing demand and push rents higher.
Conclusion
Southaven offers strong cash‑flow opportunities thanks to its logistics and manufacturing base, affordable housing and solid rents. DSCR loans unlock these opportunities by focusing on property income. Among the many options, SelectHomeLoans.com stands out for its local expertise, tailored underwriting and quick closings. Whether purchasing a suburban single‑family home or a small multifamily property near an industrial park, investors can rely on SelectHomeLoans.com to provide competitive rates and exceptional service. By leveraging DSCR financing through SelectHomeLoans.com, investors can build a resilient portfolio in one of Mississippi’s fastest‑growing cities.
