Rental property financing built on rental income.
A DSCR loan in Louisiana is an investment property mortgage that qualifies on the rent the property earns, not your personal income. HUD puts the 2 bedroom Fair Market Rent for the New Orleans metro at $1,480 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Louisiana 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.
Pulled from state statutes, state agencies, the Census Bureau and FRED. Each row links to its source.
| Louisiana fact | Value | Source |
|---|---|---|
| Security instrument | Mortgage (Louisiana civil law); no deed of trust | legis.la.gov |
| Foreclosure | Judicial, typically by executory process, an expedited court procedure available when the mortgage is in an authentic act importing a confession of judgment | La. C.C.P. art. 2631 |
| Security deposit | No statutory cap | La. R.S. 9:3251 |
| Notice for unpaid rent | 5 days written notice to vacate; tenant may waive notice in the lease | La. C.C.P. art. 4701 |
| LLC formation fee | $125 | static.sos.la.gov |
| Median listing price | $270,000 in September 2026 ($278,500 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $1,480, The New Orleans metro | HUD User |
Full walk through: how DSCR is calculated.
The guidelines that set our Louisiana DSCR loans apart.
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 Louisiana rents and prices sit right now.
Median listing price
$270,000
September 2026, down 3.1% from $278,500 in September 2025
Quick math (computed from the figures above): On a Louisiana home at the Louisiana median of $270,000, 25% down comes to $67,500, leaving a $202,500 loan. A year of rent at the Fair Market Rent for the New Orleans metro ($1,480) is $17,760, or 6.6% of that price. A year of rent at the Fair Market Rent for the Baton Rouge metro ($1,149) is $13,788, or 5.1% 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 New Orleans metro. HUD also lists the New Orleans metro at $1,480 and the Baton Rouge metro at $1,149. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Louisiana listing was $270,000 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 Louisiana rents. Not a quote or a rate.
0.83DSCR
$1,480 / $1,775 = 0.83: fits programs down to 0.50.
0.65DSCR
$1,149 / $1,775 = 0.65: 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 Louisiana.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
Most Louisiana DSCR deals land in these markets. Check the city rules before you buy.
City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.
A DSCR loan underwrites the rent, so the rules that govern collecting it matter. Here is what Louisiana law says, with the statute for each.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit cap | No statutory cap | La. R.S. 9:3251 |
| Security deposit return | Within one month after the lease terminates. Act 63 of 2026 (HB 292) amends La. R.S. 9:3251(A) to let the landlord send the itemized statement of any amount kept within an additional 15 days after the one month point. Effective August 1 2026. | legis.la.gov |
| Pay or quit notice | 5 days written notice to vacate; tenant may waive notice in the lease | La. C.C.P. art. 4701 |
| Month to month termination | Notice at least 10 calendar days before the end of the month | La. Civil Code art. 2728(2) |
Not legal advice.
Use the actual tax bill, not the seller's homestead bill, when you run a Louisiana rental.
What to expect at the closing table in Louisiana, from the instrument you sign to the taxes on transfer.
What it costs to form and keep an LLC in good standing with the Louisiana Secretary of State.
Run through these Louisiana 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.
Louisiana is highlighted. We also lend DSCR in Texas, Arkansas and Mississippi next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Louisiana.
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 Louisiana too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Louisiana 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