DSCR Loans in Savannah, GA: The Investor's Guide to Financing Rental Properties

Savannah, Georgia sits at a rare intersection for real estate investors — a historic Southern city with strong tourism, a growing port economy, and median home prices that still leave room for solid cash flow. If you're looking to finance rental properties here without handing over two years of tax returns, DSCR loans are built for exactly this situation.

This guide breaks down how DSCR loans work in Savannah, which neighborhoods deliver the best returns, and how to run the numbers before you buy.

What Is a DSCR Loan?

A Debt Service Coverage Ratio (DSCR) loan qualifies you based on the property's income rather than your personal income. The lender looks at one number: can this property's rent cover its mortgage payment and expenses?

The formula is simple:

DSCR = Gross Monthly Rent ÷ Monthly PITIA

PITIA stands for Principal, Interest, Taxes, Insurance, and Association dues. A DSCR of 1.0 means the rent exactly covers the payment. Most lenders want 1.20 or higher, though some will go as low as 1.0 or even 0.75 with compensating factors like a larger down payment.

Why DSCR Loans Work for Savannah Investors

Savannah's economy isn't riding on one industry. The Port of Savannah is the fourth-largest container port in the country and expanding. Gulfstream Aerospace employs thousands. The Savannah College of Art and Design (SCAD) brings a steady stream of students and faculty. Tourism — roughly 15 million visitors a year — feeds a massive short-term rental market.

All of this adds up to consistent rental demand across multiple tenant profiles, which is exactly what DSCR lenders want to see.

Savannah's Rental Market by the Numbers

Understanding local numbers is critical before running DSCR calculations. Here's where Savannah stands in early 2026:

• Median home price: $310,000–$340,000
• Median rent (single-family): $1,750–$2,000/month
• Median rent (2BR apartment): $1,350–$1,500/month
• Average property tax rate: 1.1% of assessed value (Chatham County)
• Vacancy rate: 5–7% (below the national average)
• Short-term rental average nightly rate: $175–$250 (depending on season and location)

These numbers matter because they determine whether a property will clear a 1.20 DSCR or not.

DSCR Calculation: A Savannah Example

Let's run the math on a realistic Savannah purchase.

Property: 3BR/2BA single-family home in Midtown
Purchase price: $320,000
Down payment: 25% ($80,000)
Loan amount: $240,000
Interest rate: 7.5% (30-year fixed)
Monthly P&I: $1,678
Property taxes: $293/month ($3,520/year)
Insurance: $175/month
Total PITIA: $2,146/month

Market rent: $1,950/month

DSCR = $1,950 ÷ $2,146 = 0.91

At 0.91, this property doesn't hit the 1.0 threshold most lenders require. You'd need to either find a property with higher rent potential, negotiate a lower price, or put more money down. If you increased the down payment to 30% ($96,000), the loan drops to $224,000, monthly P&I falls to $1,566, and total PITIA drops to $2,034. Now your DSCR is $1,950 ÷ $2,034 = 0.96 — closer, but still under 1.0.

This is why neighborhood selection matters so much. Some Savannah neighborhoods produce significantly higher rent-to-price ratios.

Best Savannah Neighborhoods for DSCR Loan Properties

1. Starland District / Thomas Square

This arts-driven neighborhood south of Forsyth Park has transformed over the past decade. Properties here are slightly less expensive than the Historic District but command strong rents from SCAD students, young professionals, and short-term rental guests.

• Typical purchase price: $275,000–$375,000
• Typical rent: $1,700–$2,200/month
• Investor angle: Duplexes and triplexes are available in this area, and multi-unit properties dramatically improve your DSCR. A duplex renting at $1,400/unit gives you $2,800/month against a single mortgage.

2. Midtown Savannah

Midtown offers a mix of bungalows and ranch-style homes with good school access. This is a long-term rental play targeting families and military families from nearby Hunter Army Airfield.

• Typical purchase price: $250,000–$330,000
• Typical rent: $1,600–$1,950/month
• Investor angle: Lower entry prices mean better DSCR ratios. A $260,000 home renting at $1,700/month can hit a 1.15+ DSCR with 25% down.

3. Historic District (for Short-Term Rentals)

Savannah's Historic District is one of the most walkable urban neighborhoods in the country. Tourists pay premium nightly rates. The city does regulate short-term rentals — you'll need a Short-Term Vacation Rental (STVR) permit and the property must be in an eligible zone.

• Typical purchase price: $400,000–$700,000+
• Projected STR income: $3,500–$6,000/month (after platform fees)
• Investor angle: Some DSCR lenders accept projected short-term rental income (often using platforms like AirDNA). With monthly income of $4,500+ against a $3,200 PITIA, DSCR ratios above 1.40 are achievable. But confirm STR eligibility before you buy.

4. Pooler and West Chatham

Pooler is Savannah's fastest-growing suburb. New construction, retail growth, and proximity to the port make this a strong rental market for families and logistics workers.

• Typical purchase price: $280,000–$360,000
• Typical rent: $1,800–$2,100/month
• Investor angle: Newer homes mean lower maintenance costs and better insurance rates, both of which improve your effective cash flow and DSCR.

5. Thunderbolt / Isle of Hope

These quieter areas east of downtown attract renters who want proximity to the water and marshlands. Smaller inventory keeps vacancies low.

• Typical purchase price: $300,000–$400,000
• Typical rent: $1,800–$2,200/month
• Investor angle: Stable, long-term tenants. Lower turnover means fewer vacancy gaps, which keeps your actual DSCR close to your projected DSCR.

Property Types That Work Best for DSCR Loans in Savannah

Single-Family Homes

The most straightforward DSCR play. Savannah's SFH rental market is tight, with vacancy rates in desirable neighborhoods dropping below 5%. Look for 3BR/2BA homes in the $250,000–$350,000 range for the best rent-to-price ratios.

Small Multifamily (2–4 Units)

Duplexes and triplexes are the DSCR sweet spot. Multiple income streams against one mortgage almost always produce higher DSCRs. Savannah's older neighborhoods — especially south of Victory Drive — have many 2–4 unit buildings from the early 1900s that have been converted or can be.

Short-Term Rental Properties

Savannah is one of the top tourism destinations in the Southeast. A well-located STR in the Historic District or along River Street can generate 2–3x the income of a long-term rental. DSCR lenders that accept STR income will typically use 75% of projected income from a service like AirDNA.

Condos and Townhomes

Condos can work for DSCR loans, but check the HOA — lenders will include HOA dues in your PITIA calculation, which can significantly lower your DSCR. Townhomes in Pooler and Richmond Hill are newer builds with lower dues ($100–$200/month) and tend to pencil better.

Savannah DSCR Loan Investment Strategies

Strategy 1: The Midtown Cash Flow Play

Buy a 3BR/2BA in Midtown for $260,000. Rent it at $1,700/month. With 25% down at 7.5%, your PITIA runs about $1,500/month. DSCR: 1.13. After property management (8–10%), you're netting $200–$300/month. Modest, but you're building equity in a growing market with someone else's money.

Strategy 2: The Duplex Stack

Buy a duplex in Starland or Midtown for $350,000. Rent each unit at $1,350/month ($2,700 total). PITIA at 25% down is about $2,050/month. DSCR: 1.32. This clears most lender thresholds and produces meaningful cash flow.

Strategy 3: Historic District STR

Buy a 2BR condo or row house in the Historic District for $450,000. Generate $4,000–$5,000/month in STR income. PITIA at 25% down is about $2,800/month. DSCR: 1.43–1.79. High income, but factor in furnishing costs ($15,000–$25,000), management fees (20–25% for STR managers), and regulatory risk.

Strategy 4: New Build in Pooler

Buy a new-construction 4BR home in Pooler for $340,000. Rent it to a port worker family at $2,100/month. PITIA at 25% down is about $2,000/month. DSCR: 1.05. Tight, but the low-maintenance new build reduces surprise expenses, and Pooler's growth trajectory supports appreciation.

DSCR Loan Requirements: What Savannah Lenders Typically Want

• Minimum DSCR: 1.0–1.25 (varies by lender; some allow sub-1.0 with higher down payments)
• Down payment: 20–25% minimum (30%+ for lower DSCRs or STR properties)
• Credit score: 660+ (best rates at 720+)
• Property types: SFH, 2–4 unit, condo, townhome
• Loan amounts: $100,000–$2,000,000+
• Rate type: Fixed or adjustable (5/1 ARM, 7/1 ARM common)
• No personal income verification — no W-2s, no tax returns, no DTI calculation
• Appraisal required with rental income analysis (Form 1007 or 1025)

Frequently Asked Questions

Can I use a DSCR loan for a short-term rental in Savannah?

Yes, many DSCR lenders accept projected short-term rental income. They'll typically use a third-party report (like AirDNA) and apply a discount — often using 75% of projected income. Make sure the property is in an eligible STVR zone and you can obtain the city permit before closing.

What DSCR ratio do I need for a Savannah investment property?

Most lenders prefer 1.20 or higher. Some will go to 1.0, and a few offer "no-ratio" or sub-1.0 DSCR programs if you put 30–35% down. The higher your DSCR, the better your rate and terms.

How do Savannah property taxes affect my DSCR?

Chatham County's effective tax rate runs about 1.1%. On a $320,000 home, that's roughly $3,520/year or $293/month added to your PITIA. Georgia does not offer a homestead exemption on investment properties, so budget for the full rate.

Can I buy multiple properties in Savannah with DSCR loans?

Yes. Unlike conventional loans, which cap you at 10 financed properties, DSCR lenders typically don't limit the number of properties. Each deal is evaluated on its own merits. Some investors build entire portfolios using nothing but DSCR financing.

Is Savannah a good market for real estate investors in 2026?

Savannah checks several boxes: population growth, diversified economy (port, military, tourism, education), relatively affordable housing, and strong rental demand. The port expansion alone is expected to create thousands of jobs over the next decade. Risks include hurricane exposure (factor in insurance costs) and potential STR regulation changes. Overall, it's one of the more balanced markets in the Southeast for rental property investing.

The Bottom Line

Savannah offers a compelling combination for DSCR loan investors — affordable entry points, strong rental demand across multiple tenant types, and an economy that isn't dependent on any single industry. The key is picking the right neighborhood and property type to hit your target DSCR ratio.

Run the numbers neighborhood by neighborhood. A property that doesn't pencil in the Historic District at $500,000 might work perfectly as a duplex in Starland for $350,000. DSCR lending is all about the math, and Savannah's market gives you enough options to find deals that work.