Rent Coverage by State: October 2026
FAAS Funding data note, updated monthly • Sources: U.S. Census Bureau ACS 2024 1-year estimates; Freddie Mac PMMS via FRED
How well does a typical rent cover the cost of financing a typical home in each state? Each month we model a simple rental purchase: the state’s median home value, a 75% loan on a 30-year fixed schedule at the Freddie Mac 30-year benchmark rate of 7.40% (week of October 15, 2026), compared with 6.30% a year earlier, plus the state’s median property taxes. We then divide the median gross rent by that monthly cost. The result is a market-level coverage ratio, similar in spirit to the debt service coverage ratio (DSCR) lenders use for individual properties.
Key takeaways
- Nationally, the median gross rent of $1,487 covers about 69% of the modeled $2,140 monthly cost (coverage 0.69).
- Highest coverage: Mississippi (0.93), West Virginia (0.92), Louisiana (0.85), Alabama (0.84), Arkansas (0.81).
- Lowest coverage: Hawaii (0.41), District of Columbia (0.46), Montana (0.48), California (0.48), Massachusetts (0.50).
- Rate sensitivity: at a rate 1 point higher, the U.S. figure would fall to 0.64; at 1 point lower it would rise. Lower leverage, interest-only terms or above-median rents change the picture for an individual deal.
Market medians are not deals. Investors who qualify for DSCR loans typically target properties whose own rent covers the full payment, often at 1.00 to 1.25 or higher depending on the lender. You can test a specific property with our DSCR calculator.
State table
| # | State | Median rent | Median value | Modeled monthly cost | Coverage | Coverage at +1 pt | Rent for 1.25 |
|---|---|---|---|---|---|---|---|
| 1 | Mississippi | $990 | $186,500 | $1,070 | 0.93 | 0.85 | $1,338 |
| 2 | West Virginia | $883 | $170,800 | $960 | 0.92 | 0.84 | $1,200 |
| 3 | Louisiana | $1,064 | $223,200 | $1,258 | 0.85 | 0.77 | $1,572 |
| 4 | Alabama | $1,077 | $233,300 | $1,286 | 0.84 | 0.77 | $1,607 |
| 5 | Arkansas | $982 | $215,600 | $1,212 | 0.81 | 0.74 | $1,515 |
| 6 | Oklahoma | $1,044 | $222,100 | $1,293 | 0.81 | 0.74 | $1,616 |
| 7 | Florida | $1,812 | $396,900 | $2,310 | 0.78 | 0.72 | $2,888 |
| 8 | Indiana | $1,104 | $243,500 | $1,414 | 0.78 | 0.72 | $1,768 |
| 9 | Kentucky | $998 | $226,000 | $1,308 | 0.76 | 0.70 | $1,635 |
| 10 | South Carolina | $1,272 | $299,500 | $1,667 | 0.76 | 0.70 | $2,083 |
| 11 | Georgia | $1,506 | $343,300 | $1,996 | 0.75 | 0.69 | $2,494 |
| 12 | Texas | $1,475 | $313,200 | $1,969 | 0.75 | 0.69 | $2,461 |
| 13 | Delaware | $1,530 | $371,600 | $2,075 | 0.74 | 0.67 | $2,594 |
| 14 | Michigan | $1,168 | $254,200 | $1,569 | 0.74 | 0.69 | $1,961 |
| 15 | Kansas | $1,079 | $238,700 | $1,488 | 0.73 | 0.67 | $1,860 |
| 16 | Ohio | $1,090 | $239,800 | $1,490 | 0.73 | 0.67 | $1,862 |
| 17 | Pennsylvania | $1,252 | $277,600 | $1,709 | 0.73 | 0.68 | $2,137 |
| 18 | Missouri | $1,067 | $254,400 | $1,489 | 0.72 | 0.66 | $1,862 |
| 19 | Arizona | $1,672 | $426,000 | $2,364 | 0.71 | 0.65 | $2,956 |
| 20 | Virginia | $1,646 | $403,500 | $2,335 | 0.71 | 0.65 | $2,918 |
| 21 | New Mexico | $1,117 | $279,900 | $1,601 | 0.70 | 0.64 | $2,002 |
| 22 | North Carolina | $1,338 | $333,000 | $1,900 | 0.70 | 0.65 | $2,374 |
| 23 | Illinois | $1,322 | $280,700 | $1,908 | 0.69 | 0.64 | $2,384 |
| 24 | Iowa | $981 | $227,300 | $1,425 | 0.69 | 0.64 | $1,781 |
| 25 | Tennessee | $1,284 | $332,600 | $1,851 | 0.69 | 0.63 | $2,314 |
| 26 | Nevada | $1,709 | $455,500 | $2,544 | 0.67 | 0.61 | $3,180 |
| 27 | Maryland | $1,721 | $436,300 | $2,611 | 0.66 | 0.61 | $3,264 |
| 28 | Nebraska | $1,102 | $263,100 | $1,678 | 0.66 | 0.61 | $2,097 |
| 29 | Alaska | $1,444 | $376,500 | $2,286 | 0.63 | 0.58 | $2,858 |
| 30 | Minnesota | $1,291 | $344,600 | $2,081 | 0.62 | 0.57 | $2,602 |
| 31 | Wisconsin | $1,142 | $294,700 | $1,837 | 0.62 | 0.57 | $2,296 |
| 32 | North Dakota | $980 | $266,100 | $1,594 | 0.61 | 0.57 | $1,993 |
| 33 | Connecticut | $1,550 | $396,900 | $2,609 | 0.59 | 0.55 | $3,261 |
| 34 | Maine | $1,210 | $341,900 | $2,034 | 0.59 | 0.55 | $2,543 |
| 35 | Vermont | $1,319 | $352,800 | $2,251 | 0.59 | 0.54 | $2,814 |
| 36 | Colorado | $1,822 | $574,600 | $3,219 | 0.57 | 0.52 | $4,024 |
| 37 | New York | $1,634 | $449,800 | $2,881 | 0.57 | 0.52 | $3,601 |
| 38 | South Dakota | $999 | $289,600 | $1,749 | 0.57 | 0.53 | $2,186 |
| 39 | Idaho | $1,384 | $446,400 | $2,477 | 0.56 | 0.51 | $3,097 |
| 40 | Oregon | $1,597 | $497,500 | $2,908 | 0.55 | 0.50 | $3,635 |
| 41 | New Jersey | $1,800 | $496,000 | $3,355 | 0.54 | 0.50 | $4,194 |
| 42 | New Hampshire | $1,558 | $458,800 | $2,941 | 0.53 | 0.49 | $3,677 |
| 43 | Utah | $1,593 | $545,200 | $3,052 | 0.52 | 0.48 | $3,815 |
| 44 | Washington | $1,824 | $602,200 | $3,521 | 0.52 | 0.48 | $4,402 |
| 45 | Wyoming | $998 | $339,500 | $1,925 | 0.52 | 0.47 | $2,407 |
| 46 | Rhode Island | $1,418 | $455,700 | $2,774 | 0.51 | 0.47 | $3,467 |
| 47 | Massachusetts | $1,848 | $607,400 | $3,661 | 0.50 | 0.46 | $4,576 |
| 48 | California | $2,104 | $759,500 | $4,391 | 0.48 | 0.44 | $5,489 |
| 49 | Montana | $1,177 | $425,400 | $2,454 | 0.48 | 0.44 | $3,067 |
| 50 | District of Columbia | $1,931 | $733,400 | $4,191 | 0.46 | 0.42 | $5,239 |
| 51 | Hawaii | $1,942 | $875,900 | $4,747 | 0.41 | 0.37 | $5,934 |
| United States | $1,487 | $360,600 | $2,140 | 0.69 | 0.64 | $2,675 |
Methodology
- Rent: median gross rent (ACS table B25064), which includes utilities paid by renters and covers all rental unit types, including apartments.
- Value and taxes: median value of owner-occupied homes (B25077) and median real estate taxes paid (B25103).
- Financing: 75% loan-to-value, 30-year fixed, fully amortizing, at the latest weekly Freddie Mac Primary Mortgage Market Survey 30-year average. This is a conventional benchmark, not a DSCR loan quote; DSCR loan pricing varies by lender and borrower.
- Not included: insurance, HOA dues, vacancy, maintenance and management. Including insurance would lower every ratio, especially in states with high premiums.
- Interpretation: because rents and home values describe different housing stock, the ratio is a market indicator for comparing states and tracking change over time, not an estimate for any property.
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For informational purposes only. Not a rate quote, offer or commitment to lend. Figures are modeled estimates based on public data. Business-purpose financing only.