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✦Prime Rate:6.75%✦Fed Funds:3.64%✦5-Yr Treasury:3.88%↓✦10-Yr Treasury:4.25%↓✦30-Yr Treasury:4.83%↓✦30-Yr Mortgage:6.22%·Updated Mar 19, 2026✦Prime Rate:6.75%✦Fed Funds:3.64%✦5-Yr Treasury:3.88%↓✦10-Yr Treasury:4.25%↓✦30-Yr Treasury:4.83%↓✦30-Yr Mortgage:6.22%·Updated Mar 19, 2026
Rates

Tennessee DSCR Loans: No Tax Returns, 1.2 DSCR Min, Rates from 5.80%

Rental property financing for Tennessee investors qualified on property cash flow, not personal income, W-2s, or tax returns. Serving Nashville, Memphis, Knoxville, Chattanooga and the rest of Tennessee. If the property cash-flows at 1.2× the mortgage, you may qualify.

  • 1.2 DSCR minimum
  • Credit is lender underwriting
  • Best-tier from 5.80%
  • 21–30 day close

Indicative as of August 1, 2026. Not a quote. Lenders set final pricing at underwriting.

See If You QualifyCalculate Your DSCR

Can I get a DSCR rental loan in Tennessee?

Yes. DSCR loans in Tennessee qualify investors based on property cash flow with a 1.2 DSCR minimum. Credit and equity injection are lender underwriting. PeerSense does not set a FICO floor. No tax returns, W-2s, or DTI calculation required. 1–4 unit residential and 5+ unit multifamily eligible. Governed best-tier floor 5.80% from rate-floors.json.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated August 1, 2026.

Indicative only, as of August 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense does not lend and does not set pricing. What these terms mean.

Tennessee Rental Market Snapshot

State-level data DSCR underwriters use to size Tennessee rental deals.

Median Home Price
$325K
Statewide single-family
Gross Rental Yield
6.0–9.0%
Annual rent / price
Eviction Timeline
30–45 days
landlord-friendly
Rate Adjustment
neutral
vs national baseline

Tennessee is one of the strongest DSCR markets in the South thanks to no state income tax, no rent control, and three distinctly different city economies. Nashville is a tightening LTR market with strict STR registration. Memphis is the highest-cap-rate large metro in the country. Gatlinburg and Pigeon Forge cabin STRs routinely clear 2.0+ DSCR. Knoxville sits in the middle on UTK demand and growing in-migration.

Major Tennessee Markets We Serve

Active DSCR deal flow across Tennessee's core rental markets. Same DSCR math statewide. Credit and equity injection are lender underwriting.

MetroMedian PriceGross YieldDSCR Investor Notes
Nashville$445K5.0–6.5%Tightest TN market, STR Type 1/2 permits restricted, premium LTR demand
Memphis$175K9.0–12.0%Highest cap rates of any large US metro, deep institutional and BRRRR competition
Knoxville$305K6.5–8.0%UTK student housing, growing in-migration, Smoky Mountains STR proximity
Chattanooga$285K7.0–8.5%VW manufacturing employment, downtown revitalization, growing STR market
Tennessee investor note:Tennessee has no state income tax and strong STR markets (Nashville, Gatlinburg, Pigeon Forge). STR DSCR often qualifies at higher coverage ratios.

Tennessee Eviction Timeline & Landlord Posture

How Tennessee courts handle non-payment evictions, material to DSCR loss-severity assumptions.

Posture
landlord-friendly
Typical Timeline
30–45 days
Rent Control
None / preempted

Tennessee allows a 14-day notice for non-payment under URLTA-counties or 30 days in non-URLTA jurisdictions. Detainer warrants typically resolved in 4–6 weeks. No state rent control, preempted by state statute.

Tennessee Rate Adjustment vs National Baseline

neutralover national baseline pricing

No state income tax and landlord-friendly process keep loss severity low; Nashville jumbo pricing tracks national curves.

Final pricing depends on DSCR, LTV, property type, and program. Credit is lender underwriting. Governed best-tier floor 5.80% from rate-floors.json as of August 1, 2026.

DSCR Lenders Active in Tennessee

The non-bank DSCR programs we see most frequently funding Tennessee rental deals. PeerSense matches your scenario across this lender set rather than locking you into one.

  • Kiavi
  • Visio Lending
  • Lima One
  • RCN Capital

PeerSense is independent, not a lender. Lenders listed are programs we have funded Tennessee deals through; specific terms vary by file.

Tennessee DSCR Loan Requirements

RequirementMinimumNotes
DSCR1.201.00+ exists on specialty programs. Credit and equity are lender underwriting.
CreditLender underwritingPeerSense does not set a FICO floor. Capture the score on the form.
EquityLender underwritingPurchase DSCR is commonly structured around 65 to 75% LTV. PeerSense does not set a typical down.
Property Type1–4 units or multifamilyCondos, townhomes, STRs OK where legal
Income DocsNoneNo tax returns, W-2s, DTI check
Reserves6 months PITIAChecking, savings, stocks qualify
Close Time21–30 daysCash-out refi: 14–21 days

Not a commitment to lend. Rates and terms subject to underwriting. See our full DSCR loan guide for the complete program.

Indicative only, as of August 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense does not lend and does not set pricing. What these terms mean.

Get Tennessee DSCR Loan Terms

DSCR Rental: Response within 24–48 hours. No obligation.

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