Many investors want to know how lenders decide what rent counts on a rental property. They are concerned that a low rent figure may shape their DSCR loan review. This guide explains what lenders may look for so you can move forward with confidence.
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How Do Lenders Decide What Rent Counts on Your Loan?
SHORT ANSWER
A licensed appraiser sets the rent figure on many files, using comparable rentals rather than your own estimate. A signed lease can supply the figure instead when a tenant already lives in the home. Each lender program decides which figure it uses when both a lease and an appraiser opinion exist. Smart Loan Savings Educational Content
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| DSCR Loan Rent Document Factor | DSCR Loan Rule or Source |
|---|---|
| DSCR Loan Who Sets the Rent Number | A licensed appraiser, not you |
| DSCR Loan Rent on a Single Family Home | Form 1007 from the appraiser |
| DSCR Loan Rent With a Tenant in Place | Signed lease can supply the figure |
| DSCR Loan Rent on a Vacant Home | Appraiser opinion, no lease needed |
| DSCR Loan Rent on a 2 to 4 Unit Home | Form 1025 from the appraiser |
| DSCR Loan Lease Above the Appraisal | May not raise your rent figure |
| DSCR Loan When Rent Proof Is Ordered | With the appraisal, before closing |
| DSCR Loan Rent Form Changing in 2026 | Form 1007 folds into one new report |
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| DSCR Loan Rent Document Deep Dive | Underwriting Impact on Your DSCR Loan Profile |
|---|---|
| The Two Documents That Can Supply Your Rent Figure | Your own estimate does not set the rent used on the file. Two documents can supply that rent figure. The first is a signed lease when a tenant already lives in the home. The second is the appraiser’s opinion of market rent, reported on a form that depends on the unit count. On a one unit home the appraiser completes a comparable rent schedule, known as Form 1007. On a 2 to 4 unit home the appraiser uses Form 1025 instead. Fannie Mae publishes both forms, and appraisers use them on agency loans and on DSCR loans alike. Each lender program decides which figure it uses when both exist. |
| What the Appraiser Actually Does to Reach the Number | The appraiser does not guess at the rent. The form asks for comparable rental properties in the same market. The appraiser adjusts those comparables for differences in size, condition, and features, the same way a value appraisal works. The resulting figure reflects what similar homes have actually leased for recently. Leased comparables differ from what landlords nearby are currently asking. In a market where rents are climbing, the appraiser’s number can trail current asking rents by months. Build that trailing gap into your own numbers before you make an offer. |
| Why Your Own Rent Research Does Not Set the Figure | Many investors arrive with a rent number from a listing site or a local agent. A listing site reports asking rents, which are what landlords hope to get. The file uses the appraiser’s supported figure instead. On a conventional file, Fannie Mae multiplies the documented rent by 75%. Fannie Mae treats the other 25% as vacancy and upkeep. A DSCR program generally works from the full figure with no reduction. So the same appraisal can produce two different usable rents. A lease above the appraiser’s opinion may not raise the number either way. Ask your loan officer which figure the program applies. Conventional Home Loans Explained covers the wider set of rules behind that 75% treatment. |
| When the Home Sits Empty | A vacant home has no lease to supply a figure. That is routine on a purchase and it does not stall the file. The appraiser’s market rent opinion carries the number on its own. Some lender programs treat a vacant unit more conservatively on a refinance than on a purchase. Other programs apply the same treatment either way. No federal rule governs the difference, so the answer sits inside each program’s guidelines. Ask your loan officer how the program handles a vacant unit before you order the appraisal. |
| When the Rent Paperwork Has to Be in Hand | The appraiser produces the rent opinion during the appraisal visit. That means the lease needs to reach the file before your lender orders the appraisal. A lease that arrives afterward can require the appraiser to revisit the report. Revisions cost days, and days matter against a rate lock. Gather the signed lease, any renewal, and proof of the current rent early. If a tenant is on a month to month arrangement, tell your loan officer at application rather than at underwriting. Some programs treat month to month differently from a fixed term lease. A month to month difference is easier to plan around than to fix. |
| The Rent Form Itself Is Being Retired | Form 1007 has supplied rent opinions for decades. Fannie Mae and Freddie Mac are replacing their separate appraisal forms with one combined report. The rent opinion moves inside that combined report rather than sitting on a standalone page. Lenders have been allowed to use the new format since January 26, 2026. The new format becomes mandatory for loans sold to those two buyers on November 2, 2026. Either format can show up on your appraisal today. DSCR loans are not sold to either buyer, so no rule forces a DSCR program to switch. Ask your loan officer which format the program expects. The DSCR Mortgage Guide covers the product at a higher level. |
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| What Lenders Check | How DSCR Loan Rent Documents Affect Your Loan File |
|---|---|
| Signed Lease | A lease signed by you and the tenant supplies the rent figure when the home is occupied. Lenders check the signatures, the term dates, and the monthly amount. An unsigned draft does not count. |
| Rent on a Multi Unit Property | A 2 to 4 unit file reports a rent figure for each unit separately. One vacant unit inside an occupied building can pull the combined figure down. Have the lease for every occupied unit ready at application. |
| Utilities Included in the Rent | The appraisal form asks which utilities the rent covers. A rent that includes heat or water compares differently against a rent that does not. Tell your loan officer what your lease includes. |
| Proof the Rent Is Being Paid | Some lender programs ask for bank statements or deposit records showing the rent arriving. That request is more common when the lease sits above the appraiser’s figure. Pull recent statements before you apply. |
| Property Condition and Rent Readiness | The appraiser reports condition alongside the rent opinion. A home needing work can draw a lower rent figure than a comparable home in finished condition. Repairs finished before the visit show up in the report. |
| Access for the Appraiser | An occupied rental needs the tenant to allow the appraiser inside. Notice requirements for entry are set by your lease and by state landlord law. Arrange access early, since a missed visit delays the whole file. |
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| People Also Ask | Why These Questions Matter |
|---|---|
| How do lenders know what a rental property will rent for? | A licensed appraiser produces the market rent opinion as part of the appraisal, using comparable rentals in the same area. On a one unit home that opinion appears on Form 1007. A signed lease can supply the figure instead when a tenant already lives in the home. |
| What is Form 1007 on an appraisal? | Form 1007 is the Single-Family Comparable Rent Schedule, the Fannie Mae form an appraiser uses to report market rent. The appraiser supports the figure with comparable rentals that have actually leased recently. Fannie Mae and Freddie Mac are folding the form into one redesigned report on November 2, 2026. |
| Can you get a DSCR loan on a vacant property? | A vacant property has no lease, so the appraiser’s market rent opinion supplies the figure on its own. That is routine on a purchase rather than a problem. Some lender programs treat a vacant unit more conservatively on a refinance than on a purchase. |
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| Sources Used on This Page |
| Fannie Mae — Selling Guide, B3-3.8-01, Rental Income, covering the Single-Family Comparable Rent Schedule (Form 1007) for one unit properties, the Small Residential Income Property Appraisal Report (Form 1025) for 2 to 4 unit properties, and the Monthly Market Rent term used on Form 1007 | Uniform Appraisal Dataset 3.6 Frequently Asked Questions, covering the retirement of the standalone rent schedule form and the statement that estimating monthly market rent becomes part of the appraisal assignment inside the redesigned Uniform Residential Appraisal Report | Uniform Appraisal Dataset 3.6 and Forms Redesign implementation timeline, covering the November 2, 2026 mandatory submission date | Freddie Mac — Uniform Appraisal Dataset Lender Readiness Kit, covering the full list of appraisal forms being replaced, including the Single-Family Comparable Rent Schedule and the Small Residential Income Property Appraisal Report |
| Last Verified August 2026 |
| The redesigned appraisal report becomes mandatory for loans delivered to Fannie Mae and Freddie Mac on November 2, 2026, and the standalone rent schedule forms retire on that date for those deliveries. That date has moved before during this rollout. Non-agency programs are not bound by it and each program sets its own timing. Which rent figure a lender program uses when both a lease and an appraiser opinion exist is not published by any government body and changes without notice. Treatment of vacant units and month to month tenancies also varies by program. |
| Disclaimer |
| Smart Loan Savings is an educational resource and is not a lender or a broker. This page is provided for educational purposes only. The rent figure used on a specific file depends on the appraiser’s conclusion for that property and on the lender program handling the loan. Rent documentation requirements are set by each program and vary by program. Speak with a licensed mortgage professional about your own file. Smart Loan Savings Educational Content |