I get this question more than almost any other from people buying their first or second rental. They found a house that pencils, it is empty, and somebody told them a lender needs a signed lease. On a DSCR loan, an empty house is normal.

The Short Answer

A vacant rental qualifies on market rent instead of a lease, and the appraiser sets that market rent.

When you order the appraisal on a DSCR purchase, the appraiser does two jobs. One is the usual value opinion. The other is a rent opinion: what this house should lease for today, backed by comparable rentals nearby. On a vacant house there is no lease to read, so expect that rent opinion to drive the ratio.

That is good news and a warning in one. Good, because you do not need a tenant lined up before closing. A warning, because a figure you do not control now decides whether the deal clears.

What the Rent Schedule Is

It is a one page comparison of your house against nearby rentals, ending in the appraiser's opinion of monthly market rent.

For a one unit property, Fannie Mae's Single Family Comparable Rent Schedule, Form 1007, is the standard form. The appraiser lists comparable rentals, usually with their lease amounts, distance, size, bedroom count, condition and whether utilities are included, then adjusts each one toward your house. For a two to four unit building, the rent analysis sits inside the small residential income property appraisal, Fannie Mae Form 1025. Either way, the result is a single number per unit.

The rent opinion comes from the same appraiser on the same visit as the value, so it is not a second inspection to schedule. Ask about it up front, and read it the day the appraisal comes back. If the rent and the value both land where you expected, the hardest part of a vacant property file is behind you, and everything after that is paperwork and insurance.

No lease, no problem. A thin rent comp, real problem.

Why the Rent Number Moves the Ratio

Every $200 of appraised rent moves the ratio about 0.12 on a typical $250,000 rental, which is the difference between a comfortable deal and a tight one.

Here is an example, with example numbers, not market data and not a quote. A $250,000 house, 25% down, a $187,500 loan on a 30 year amortization at Freddie Mac's 30 year fixed average of 7.18% from November 5, 2026, used only as a reference rate. That is a conventional loan average, not a DSCR rate and not a rate we are quoting. Add $250 a month of tax and $150 of insurance as example figures.

The interest only column uses a $175,000 loan at the same reference rate, a $1,047 payment plus the same tax and insurance. Notice what that does at $1,600 of rent: the fixed payment version sits below 1.00, and the interest only version clears it. Our DSCR floor is 0.50, so either version can be financed; the column just shows which structure lets the rent cover the payment.

Run the DSCR on your deal

Check the Rent Before You Offer

You can predict the appraiser's rent within a small range if you pull the same kind of comps the appraiser will.

• Leased comps, not listings. An asking rent on a listing that sat for 60 days is not market rent. Ask a local property manager what similar houses actually leased for.
• Same bedroom count and condition. A three bedroom with a new kitchen and a three bedroom with the original one are different rentals.
• Close by. The appraiser will start with the nearest leases, so you should too.
• A benchmark check. HUD's Fair Market Rent for the county and bedroom count is a quick sanity check. If your comp is far above it, be ready to explain why. Our HUD Fair Market Rents 2027 post shows how much those benchmarks moved this year.

One trap: the Census median gross rent for a city mixes every lease in town, studios included, so it usually sits far below what a three bedroom house rents for. Do not use it as your rent.

Vacant After a Rehab

If the house is empty because you just fixed it up, a DSCR refinance lets the new rent and the new value work for you right away.

Cash out on our DSCR loans goes up to 80% LTV with no ownership seasoning, so you do not have to wait months after buying to refinance out of short term rehab money. The appraiser values the finished house and writes a rent for the finished house. Our BRRRR with a DSCR loan guide walks through that sequence, and if the rehab money is the missing piece, our bridge loans page covers short term financing in Arizona.

When the Rent Comes In Low

A low rent opinion is fixable more often than investors think, as long as you have real comps or room in the structure.

1. Send better comps. If the appraiser missed recent leases that fit your house better, a reconsideration request with those leases is the first move.
2. Change the payment. Interest only (ten years on a 40 year term, or a 30 year term with interest only, up to 70% LTV on a purchase) lowers the payment the rent has to cover.
3. Change the loan size. A bigger down payment shrinks the payment, and a 100% gift can cover the down payment, the closing costs and the reserves.
4. Know the floor. Our ratio goes as low as 0.50, so a low rent opinion does not automatically end the deal. What it changes for your file is something we go over on a call.

In the example above, a rent opinion of $1,900 instead of the $2,100 you expected moves the ratio from 1.26 to 1.14 and leaves $2,400 a year off your projected income. Plan for that gap before you offer, not after the appraisal.

Short Term Rental Plans

If you plan to run the empty house as a short term rental, the rent that counts is a separate question, and it is confirmed per file.

Investors ask whether projected nightly income can replace the long term rent schedule on a vacant house. That treatment, and any short term rental eligibility, is not something I will promise in a blog post; it depends on the property and the file, and we confirm it on a call. Local rules matter too, and many cities limit short stays in houses the owner does not live in. Our Arizona short term rental DSCR post shows how one state handles it.

Where You Are Buying

Vacant property rules for the loan are the same in each of the 35 states where we place DSCR loans; what changes is the rent the market will support and the rules you face before you lease.

In Philadelphia, for example, a rental has to be certified lead safe or lead free before a new lease, which matters on a vacant house you want leased fast; our best Pennsylvania cities for rental property post scores eight more markets. For state by state rules, start with DSCR loans in Pennsylvania, Maryland, Connecticut, Massachusetts, Colorado, Mississippi, Kansas and Arizona. The full list is below the FAQ. If your income story is better told with deposits than with rent, our bank statement loans page is the other route.

Honest Caveat

The appraiser is an independent professional, and neither you nor I can tell them what rent to write.

My Vacant Property Checklist

1. Pull three leased comps with the same bedroom count, close by.
2. Compare them with HUD's county figure for that bedroom count.
3. Price the full payment with real tax and insurance quotes.
4. Find your break even rent, the rent that equals the full payment.
5. Decide your fallback, interest only or more down, before the appraisal.
6. Send us the deal. We tell you what rent it needs before you spend on an appraisal.

Sources

All sources checked November 11, 2026. Data changes, so confirm before you rely on it.

1. Fannie Mae, Form 1007 Single Family Comparable Rent Schedule. Appraiser's comparable rent analysis and market rent opinion for a one unit property (named only)
2. Fannie Mae, Form 1025 Small Residential Income Property Appraisal Report. Appraisal form for two to four unit properties, including the rent analysis (named only)
3. City of Philadelphia, Landlord Gateway: New landlords. Rental must be certified lead safe or lead free to execute a new or renewed lease
4. Pillar Mortgage Group DSCR program terms. DSCR as low as 0.50; cash out up to 80% LTV, no ownership seasoning; interest only 10 years on a 40 year term or a 30 year term with IO, 70% LTV purchase, 65% cash out; 100% gift for down payment, closing costs and reserves; loans up to $5 million; 35 states
5. Freddie Mac Primary Mortgage Market Survey. 30 year fixed average 7.18% as of November 5, 2026 (reference only)
6. Payment and ratio figures. Our arithmetic on example numbers using standard amortization formulas at the 7.18% reference rate; example numbers, not market data and not a quote

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