Investment property loans that qualify on rent.
In Rhode Island, 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 Providence metro at $1,879 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Rhode Island 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.
| Rhode Island fact | Value | Source |
|---|---|---|
| Security instrument | Mortgage with statutory power of sale | webserver.rilegislature.gov |
| Foreclosure | Nonjudicial sale under a power of sale mortgage is permitted, with publication once a week for 3 successive weeks and mailed notice to the mortgagor | R.I. Gen. Laws § 34-27-4 |
| Transfer and recording taxes | Real estate conveyance tax of $3.75 per $500 of consideration over $100, plus an additional $3.75 per $500 on the portion of residential consideration above $800,000 (threshold inflation adjusted from tax years beginning January 1, 2026; section last amended effective October 1, 2025) | R.I. Gen. Laws § 44-25-1 |
| Security deposit | Max one month's rent | R.I. Gen. Laws § 34-18-19 |
| Notice for unpaid rent | Rent must be 15 days in arrears before the written demand; the tenant then has 5 days from mailing to cure, and the landlord may file no earlier than the sixth day | R.I. Gen. Laws § 34-18-35 |
| LLC formation fee | $150 | R.I. Gen. Laws § 7-16-65 |
| Median listing price | $569,900 in September 2026 ($584,308 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $1,879, The Providence metro | HUD User |
Full walk through: how DSCR is calculated.
Nine rules that open more Rhode Island 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.
Rent is the number that qualifies a DSCR loan, so start with what Rhode Island rentals actually command.
Median listing price
$569,900
September 2026, down 2.5% from $584,308 in September 2025
Quick math (computed from the figures above): Using the Rhode Island median listing price, $569,900, a 25% down payment is $142,475 and the loan is $427,425. A year of rent at the Fair Market Rent for the Providence metro ($1,879) is $22,548, or 4.0% of that price. A year of rent at the Fair Market Rent for the Newport metro ($2,507) is $30,084, or 5.3% 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 Providence metro. HUD also lists the Providence metro at $1,879 and the Newport metro at $2,507. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Rhode Island listing was $569,900 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 Rhode Island rents. Not a quote or a rate.
1.06DSCR
$1,879 / $1,775 = 1.06: covers the full payment.
1.41DSCR
$2,507 / $1,775 = 1.41: covers the full payment.
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 Rhode Island.
No commitment · Under 2 minutes
We will reach out shortly to run your numbers.
Most Rhode Island 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.
These Rhode Island statutes set the ground rules for every lease you sign on a financed rental.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit | Max one month's rent. Itemized refund within 20 days after the later of termination, delivery of possession, or the tenant giving a forwarding address. | R.I. Gen. Laws § 34-18-19 |
| Pay or quit | Rent must be 15 days in arrears before the written demand. The tenant then has 5 days from mailing to cure, and the landlord may file no earlier than the sixth day. | R.I. Gen. Laws § 34-18-35 |
| Month to month notice | 30 days written notice (10 days week to week, 3 months year to year) | R.I. Gen. Laws § 34-18-37 |
Not legal advice.
Use the actual tax bill, not the seller's homestead bill, when you run a Rhode Island rental.
Who closes your loan, which security instrument you sign and what the state charges to record it.
What it costs to form and keep an LLC in good standing with the Rhode Island Secretary of State.
Check each of these on any Rhode Island rental you plan to finance.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Rhode Island is highlighted. We also lend DSCR in Massachusetts, Connecticut and New Hampshire next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Rhode Island.
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 Rhode Island too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Rhode Island 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