Qualify on the rent, not your tax returns.
A Kentucky DSCR loan is a rental property mortgage sized on the rent, with no personal income documents. HUD puts the 2 bedroom Fair Market Rent for the Louisville metro at $1,276 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Kentucky 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.
| Kentucky fact | Value | Source |
|---|---|---|
| Security instrument | Mortgage | apps.legislature.ky.gov |
| Foreclosure | Judicial | AOC 141S; KRS ch. 426 |
| Transfer and recording taxes | $0.50 per $500 of value (about $1 per $1,000), paid by the grantor, collected by the county clerk at recording | KRS 142.050 |
| Security deposit | No statutory cap | KRS 383.580 |
| Notice for unpaid rent | 7 days written notice (URLTA jurisdictions) | KRS 383.660(2) |
| Rent control | Preempted | apps.legislature.ky.gov |
| LLC formation fee | $40 | sos.ky.gov |
| Median listing price | $307,775 in September 2026 ($309,900 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $1,276, The Louisville metro | HUD User |
Full walk through: how DSCR is calculated.
What PMG can place for a Kentucky rental, in short.
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.
These public benchmarks show where Kentucky rents and prices sit right now.
Median listing price
$307,775
September 2026, down 0.7% from $309,900 in September 2025
Quick math (computed from the figures above): Using the Kentucky median listing price, $307,775, a 25% down payment is $76,944 and the loan is $230,831. A year of rent at the Fair Market Rent for the Louisville metro ($1,276) is $15,312, or 5.0% of that price. A year of rent at the Fair Market Rent for the Lexington metro ($1,416) is $16,992, or 5.5% 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 Louisville metro. HUD also lists the Louisville metro at $1,276 and the Lexington metro at $1,416. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Kentucky listing was $307,775 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 Kentucky rents. Not a quote or a rate.
0.72DSCR
$1,276 / $1,775 = 0.72: fits programs down to 0.50.
0.80DSCR
$1,416 / $1,775 = 0.80: 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 Kentucky.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
The largest Kentucky 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 Kentucky 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 | KRS 383.580 |
| Security deposit return | No single return deadline. URLTA requires a separate deposit account and move in and move out damage listings. If the tenant leaves owing rent, landlord may apply the deposit after 30 days. If a refund is due and the tenant does not respond within 60 days of notice, landlord may keep it. | KRS 383.580(6),(7) |
| Pay or quit notice | 7 days written notice (URLTA jurisdictions) | KRS 383.660(2) |
| Month to month termination | 30 days written notice before the periodic rental date (URLTA jurisdictions) | KRS 383.695(2) |
| Rent control | Preempted. Only the General Assembly may enact legislation controlling rents on private property (KRS 65.875). Since March 6 2024, local governments also may not adopt or enforce any landlord or tenant ordinance that conflicts with state law (KRS 383.198). | apps.legislature.ky.gov |
Not legal advice.
Every dollar of tax raises the payment the rent has to cover. Here is how Kentucky assesses and taxes property.
The closing mechanics and transfer costs that land on a Kentucky settlement statement.
What it costs to form and keep an LLC in good standing with the Kentucky Secretary of State.
The Kentucky rules that touch your lease, your closing and your entity.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Kentucky is highlighted. We also lend DSCR in Indiana, Ohio, West Virginia, Tennessee and Missouri next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Kentucky.
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 Kentucky too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Kentucky 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