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Program 02
Rental / DSCR in Raleigh
Raleigh rental financing, qualified on the property: DSCR loans.
Hold your rentals with financing that underwrites the asset, not just you. DSCR as low as 0.75, rates from 5.5% interest-only, and 30-year fixed options for single properties or whole portfolios. Business-purpose only, and rates and structure are set in underwriting.
0.75
min DSCR
5.5%
rates from
30-yr
fixed avail.
80%
max LTV
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
No tax returns or personal income docs in most cases. We qualify on the property's cash flow, so you can scale your portfolio without the paperwork drag of conventional lending.
Who it's for
Buy-and-hold investors
Single rentals and portfolios
Short-term rentals considered
Rate/term and cash-out refi
Typical terms
Loan amount$100K to $3M
Max leverageUp to 80% LTV
DSCRFrom 0.75
CreditFrom 640
Term30-yr fixed / 5-7-10 ARM
RateFrom 5.50% IO*
PrepayFlexible structures
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Rental / DSCR in Raleigh, answered.
Where in the Triangle does a DSCR rental actually cash flow?
East and south of Raleigh, not the west-side suburbs. As of June 2026, Zillow's rent index ran 0.58% of value a month in Zebulon and 0.62% in Smithfield, versus 0.28% in Cary and 0.27% in Chapel Hill. Wendell, Garner, and Knightdale sit in between at 0.47% to 0.52%. Cary and Apex are appreciation and school-district markets, not DSCR markets; the yield lives in the lower-cost eastern Wake towns and Johnston County.
Sources: files.zillowstatic.com
How does Wake County's revaluation cycle change my DSCR carry math?
The tax line moves in a step, not a slope. Wake County reappraises property in one large jump rather than annually. The 2024 revaluation raised residential values 53% in a single reset, and the next revaluation is effective January 1, 2027, with the county then shifting to a two-year cycle starting 2029. A DSCR loan underwritten to today's tax bill across a multi-year hold should model that 2027 step, not assume the current bill holds flat.
Sources: wake.gov
Can I underwrite a Raleigh rental near NC State by the bedroom?
Not past four unrelated tenants, absent a zoning determination. Raleigh's housing code defines a "family" as at most four unrelated people living together in a dwelling unit; a household of more sits outside that use unless the parcel's zoning permits a group-living use like a boardinghouse, which is capped at six people with rentals over 30 days. A five-bedroom house leased by the room to five unrelated students near campus exceeds the ordinance. Underwrite at four unrelated tenants unless the borrower can show the zoning determination.
Sources: udo.raleighnc.gov
Does a short-term rental in Raleigh need city registration before we can count that income toward DSCR?
It needs a zoning permit, not a registration, and North Carolina law forbids the latter. Raleigh's short-term rental ordinance (TC-8-20) requires an annually renewed zoning permit, currently the FY27 commercial zoning permit fee of $278, and allows whole-house rentals with no owner-occupancy requirement in ten zoning districts. North Carolina's NCGS 160D-1207(c) separately bars cities from requiring general rental registration. Wake County's 6% room occupancy tax still applies to the stay itself, monthly, due the 20th. Run the numbers with the DSCR calculator.
Sources: cityofraleigh0drupal.blob.core.usgovcloudapi.net, wake.gov
If my Triangle portfolio spans Raleigh and Durham, can I use one tax number for both?
No, and blending them is the most common carry-math error we see here. On the fiscal 2025-2026 rates that put all three counties on one footing, a Raleigh (Wake County) address ran a combined $0.8721 per $100, a Durham address $0.9913, roughly 14% higher on the same value, and a Chapel Hill (Orange County) address $1.1383, about 30% higher. Wake revalued in 2024; Durham and Orange both revalued in 2025. Each county sets its own rate, revaluation year, and appeal calendar, so a scattered-site Triangle deal needs county-by-county underwriting. See our portfolio loans for how we structure multi-property Triangle deals.
Sources: ncdor.gov
Does holding a Raleigh rental in an LLC instead of my own name cost more in property tax?
No. North Carolina taxes all real property at the same local rate, with no homestead assessment cap and no investor surcharge to model. An owner-occupant and an LLC-held rental on the same Wake County parcel pay the identical $0.9091 per $100 combined rate for tax year 2026. That's different from states that cap the annual assessment growth on an owner-occupied home and let a non-owner-occupied rental float free: in North Carolina, the entity on title doesn't change the tax line, only the county's revaluation cycle does. Talk to your CPA about how that affects entity choice for the rest of your file.
Does my credit score or the property's rent decide a Raleigh DSCR loan?
Both, but the rent does most of the work. Credit starts at 640 on a DSCR loan and we do pull it. The gate that actually moves the file is DSCR from 0.75, measured on the property's rent rather than your tax returns. That is why the east-Wake towns underwrite more easily than the west side: rent runs 0.47% to 0.58% of value a month in Zebulon, Wendell, Garner and Knightdale against 0.28% in Cary. A strong score on a Cary door can still miss the ratio that a 640 file clears on a Zebulon door. Subject to underwriting.
Sources: files.zillowstatic.com
How much do I need to put down on a Raleigh DSCR rental?
20% at the most aggressive. We lend up to 80% LTV, so on a $436,000 Raleigh house, roughly the city's median home value as of June 2026, that is up to $348,800 from us and $87,200 from you (436,000 x 80% = 348,800). Closing costs and the tax escrow sit on top of that. If the rent will not carry the debt at full leverage, the fix is more money down, not a looser ratio. Subject to underwriting.
Sources: files.zillowstatic.com
Is there a minimum loan size for a DSCR loan in Raleigh?
$100,000, running up to $3 million. That floor matters more here than in an expensive metro, because the Triangle doors that cash flow best are the cheapest ones: Zebulon, Wendell, Garner and Knightdale run 0.47% to 0.58% of value in rent a month precisely because the entry basis is lower. A low enough purchase can land under $100,000 at 80% LTV, which is usually solved by putting several doors into one loan rather than by stretching leverage. Our portfolio loans start at five properties. Subject to underwriting.
Sources: files.zillowstatic.com
Is there a prepayment penalty if I sell a Raleigh rental before the 2027 revaluation?
There can be, and the structure is flexible. DSCR loans carry flexible prepay structures set in underwriting rather than one fixed penalty, so tell us up front if the plan is a three-year hold instead of a thirty-year one. That matters in Wake County specifically: assessed values are frozen between revaluations and the next one is effective January 1, 2027, which is when a lot of Triangle owners re-run the carry math and decide to sell or refinance. Line the prepay structure up with that date rather than finding it afterward. Subject to underwriting.
Sources: wake.gov
More Rental / DSCR questions, answered on the program page
Resources
Guides for Rental / DSCR
Rental / DSCR · 5 min read
What Is a DSCR Loan? How Investors Qualify on Rental Income
Read the guide Strategy · 6 min read
Financing the BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat
Read the guide Rental / DSCR · 5 min read
DSCR vs Conventional Loan: Which Is Better for Investment Property?
Read the guide Rates & Costs · 5 min read
Hard Money Loan Rates and Costs, Explained
Read the guide More in Raleigh
Other programs in Raleigh
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About the local figures on this page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-13.
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