Qualify on the rent, not your tax returns.
In Indiana, a DSCR loan finances a rental on the strength of its rent instead of your tax returns. HUD puts the 2 bedroom Fair Market Rent for the Indianapolis metro at $1,536 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Indiana up to $5 million.
Facts checked November 1, 2026. Not a commitment to lend.
DSCR loans by state
We lend DSCR in 35 states. Pick yours.
Every value links to its primary source. Details for each follow further down the page.
| Indiana fact | Value | Source |
|---|---|---|
| Security instrument | Mortgage | IC 32-30-10 |
| Foreclosure | Judicial | IC 32-30-10-8 |
| Transfer and recording taxes | No state deed transfer tax was identified; a $10 sales disclosure form fee is paid to the county auditor for most transfers | IC 6-1.1-5.5 |
| Security deposit | No statutory cap in the deposit return section | IC 32-31-3-12 |
| Notice for unpaid rent | 10 days, unless the parties agreed otherwise | IC 32-31-1-6 |
| Rent control | Preempted | IC 32-31-1-20(b) |
| Median listing price | $299,000 in September 2026 ($299,450 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $1,536, The Indianapolis metro | HUD User |
Full walk through: how DSCR is calculated.
Nine rules that open more Indiana deals.
Loan amount
Up to $5M
Credit
660 and up
Down
20 to 25%
Vesting
LLC ok
Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.
Before you run a Indiana deal, anchor the rent to public benchmarks instead of a listing agent's guess.
Median listing price
$299,000
September 2026, down 0.2% from $299,450 in September 2025
Quick math (computed from the figures above): Using the Indiana median listing price, $299,000, a 25% down payment is $74,750 and the loan is $224,250. A year of rent at the Fair Market Rent for the Indianapolis metro ($1,536) is $18,432, or 6.2% of that price. A year of rent at the Fair Market Rent for the Fort Wayne metro ($1,248) is $14,976, or 5.0% of that price.
Fair Market Rent is a HUD benchmark, not an appraisal.
The rent field starts at the HUD 2 bedroom Fair Market Rent for the Indianapolis metro. HUD also lists the Indianapolis metro at $1,536 and the Fort Wayne metro at $1,248. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Indiana listing was $299,000 in September 2026.
See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.
Enter rent, price and your quoted rate to see your DSCR.
Loan amount (L) = Price × (100 minus Down %) ÷ 100
P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12
P&I (40 year interest only) = L × r
PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA
DSCR = Monthly rent ÷ PITIA
Rent needed for a target DSCR = Target × PITIA
Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.
Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Indiana rents. Not a quote or a rate.
0.87DSCR
$1,536 / $1,775 = 0.87: fits programs down to 0.50.
0.70DSCR
$1,248 / $1,775 = 0.70: fits programs down to 0.50.
A two minute form gets the property in front of our team. You get a straight answer on the ratio and the structure.
Investors from any state can buy in Indiana.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
The largest Indiana rental markets, and what each city requires of short term rental hosts.
City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.
Know the Indiana landlord rules before you close. They shape your lease, your deposit and how fast you can act on unpaid rent.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit cap | No statutory cap in the deposit return section | IC 32-31-3-12 |
| Security deposit return | 45 days after termination and delivery of possession, with itemized notice | IC 32-31-3-12(a) |
| Pay or quit notice | 10 days, unless the parties agreed otherwise | IC 32-31-1-6 |
| Month to month termination | One month written notice (tenancy at will) | IC 32-31-1-1 |
| Rent control | Preempted. Local units may not regulate rental rates for privately owned real property unless authorized by state law. | IC 32-31-1-20(b) |
Not legal advice.
Use the actual tax bill, not the seller's homestead bill, when you run a Indiana rental.
The closing mechanics and transfer costs that land on a Indiana settlement statement.
Run through these Indiana rules before you write an offer on a rental.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Indiana is highlighted. We also lend DSCR in Michigan, Ohio and Kentucky next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Indiana.
PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.
Book a free callInvesting across state lines? We lend DSCR in these neighbors of Indiana too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Indiana property and rent. We run the ratio and lay out terms before you offer.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076 | Arizona License MB-2009671 | View NMLS Consumer Access