CalculateRealEstateROI

Risk Management

Debt Coverage Cushion

DSCR margin above the lender minimum, expressed as headroom in basis points.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Higher cushion = more room for rent or expense surprises before default.

Examples

  • 1.45 DSCR vs 1.20 minimum = 25bps × NOI cushion.

Common mistakes

  • Buying at exactly the DSCR minimum.

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