If you are financing a Florida rental with a DSCR loan, the appraisal does something a normal home appraisal does not: it tells the lender how much rent the property can command. That number drives your entire approval. I’m Joe Pistone & Team at CrossCountry Mortgage (NMLS# 2087918), and I help investors across all 67 Florida counties understand how the DSCR appraisal and the Form 1007 rent schedule work — so there are no surprises at underwriting.
What makes a DSCR appraisal different
A DSCR loan qualifies on the property’s cash flow, not your personal income. To measure that cash flow, the appraiser produces two things: an opinion of value, and an opinion of market rent. That second piece comes from a specialized form. Fannie Mae publishes the standard rent-schedule form used industry-wide on its single-family resources site.
Form 1007: the Comparable Rent Schedule
Form 1007 is the Single-Family Comparable Rent Schedule. The appraiser gathers recent rental comparables in the area, adjusts for differences, and concludes a fair market monthly rent for your property. For a two-to-four-unit building, the appraiser uses Form 1025 instead. This documented rent is the income figure your lender plugs into the DSCR formula.
How the rent schedule sets your DSCR
DSCR stands for debt-service-coverage ratio. It is calculated by dividing the property’s monthly rent by its full monthly payment, known as PITIA — principal, interest, taxes, insurance, and any association dues.
- DSCR of 1.0 means rent exactly covers the payment.
- DSCR above 1.0 means the property produces positive cash flow.
- DSCR below 1.0 means rent falls short of the payment — still financeable with some lenders, often at different terms.
Because the appraised rent is the numerator, the Form 1007 figure directly decides whether you clear the lender’s DSCR threshold. Learn more in our DSCR loan requirements guide.
What appraisers look at in Florida
Florida rental appraisals weigh location, condition, unit mix, and seasonal demand. Coastal and tourist markets can show stronger short-term rent potential, but most DSCR lenders base the schedule on long-term market rent. Documenting actual leases and keeping the unit in good condition helps the appraiser support a solid number.
| Item | Role in DSCR |
|---|---|
| Form 1007 market rent | Income (numerator) |
| PITIA payment | Debt service (denominator) |
| Appraised value | Sets loan-to-value |
| Actual lease | Compared to market rent |
Appraised rent vs your actual lease
Most Florida DSCR lenders use the lower of the appraised market rent or the signed lease. If your lease is above market, expect the DSCR to be figured on the appraiser’s number. Knowing this before you order the report lets you set realistic expectations and structure the deal. Our overview of Florida DSCR down payment and DSCR closing costs rounds out the picture.
Frequently asked questions
What is Form 1007 on a DSCR loan?
It is the Single-Family Comparable Rent Schedule the appraiser completes to estimate fair market rent, which the lender uses to calculate your DSCR.
How does the rent schedule affect my DSCR?
The appraised rent is the income side of the ratio. A higher supported rent produces a stronger DSCR and easier qualification.
Does a DSCR loan need a special appraisal?
Yes — it adds Form 1007 for a single-family rental or Form 1025 for a two-to-four-unit property to document market rent.
What if appraised rent is lower than my lease?
Lenders generally use the lower figure, so the DSCR is calculated on the appraiser’s market rent when your lease is above it.