Published market hub · October 2026

Charlotte, NC: a typical house misses 1.20x; the lender's ratio passes under about $250,200, and a house cash flows under about $225,200

At typical rent ($1,950, across rentals of all kinds, apartments included, not a house rent), a house at the typical price ($389,648) comes in at 0.77x, short of the 1.20x cushion. At the typical price, a house needs about $3,036 a month in rent to clear 1.20x. At $1,950 a month, the lender's 1.20x ratio works up to about $250,200 (a $187,700 loan); positive cash flow after a 25% set-aside for vacancy, repairs and management needs about $225,200.

The numbers

DSCR is the monthly rent divided by the full monthly payment (principal, interest, taxes, insurance and any HOA dues). At 1.20x the rent is 20% more than the payment. We use 1.20x as a cushion; many DSCR lenders accept as low as 1.00x. A lender sizes the loan on the lease or the appraiser's estimate of market rent (Form 1007), often the lower of the two, not on a city figure.

Typical rent

$1,950/mo

A typical asking rent across rentals of all kinds, apartments included, not a house rent. This page has no 3-bedroom figure, so every ratio on this page uses this rent. A specific house can rent for more or less than this figure, so run the numbers on that house's own rent.

Max monthly payment

$1,625/mo

Typical rent ($1,950/mo) divided by 1.20 (a 1.20x DSCR). Taxes and insurance are included in this payment; budget vacancy and repairs on top. Check it against your own numbers.

Typical home value

$389,648

The typical home value for the city as a whole.

Rent-to-price

6.0%

A year of rent divided by the typical home value. Higher means the rent does more of the work.

A typical house

0.77x DSCR

A house at $389,648 renting for $1,950 a month falls short of 1.20x and loses about $1,068 a month after a 25% set-aside for vacancy, repairs and management. The lender's ratio works near $250,200 (36% lower); a house that rents for more, or a bigger down payment, also gets there.

Price that works

up to about $250,200

The most a house can cost at 1.20x if it rents for $1,950 a month. That clears the lender's ratio; to also cover a 25% set-aside for vacancy, repairs and management, the price needs to be near $225,200. At 1.00x, many lenders' floor, it is about $300,200, though lenders often charge more or lend less there. Every price here assumes the house rents for $1,950; check its own rent.

Assumptions for every price on this page: 25% down and a 7.5% 30-year rate. Property taxes about 0.8% and landlord insurance about 0.7% of the price a year, a rough estimate for Charlotte rentals (Mecklenburg County and City of Charlotte tax rates; the insurance share is a national estimate). No HOA dues; add them if the house has them.

  • Repairs, flood exposure, or HOA dues can reduce cash flow.

ZIP codes

Where to start

No ZIP code with both figures clears 1.20x at its median price.

ZIP codeMedian priceMedian rentPrice that worksVerdict
28208~$335,000~$1,770/moup to ~$227,100Median house misses 1.20x (0.81x); 1.20x needs a price about 32% under the median
28217~$449,450~$1,634/moup to ~$209,700Median house misses 1.20x (0.56x); 1.20x needs a price about 53% under the median
28227~$430,000~$1,675/moup to ~$214,900Median house misses 1.20x (0.60x); 1.20x needs a price about 50% under the median
28273~$365,000~$1,555/moup to ~$199,500Median house misses 1.20x (0.66x); 1.20x needs a price about 45% under the median
28203~$659,950~$2,342/moup to ~$300,500Median house misses 1.20x (0.55x); 1.20x needs a price about 54% under the median

Price that works: the most you could pay at 1.20x on that ZIP's median rent, on the assumptions above. A ZIP works when its median price is at or under that price and a 75% loan on it reaches the common $100,000 minimum; otherwise the verdict gives the ratio at the median price and what is missing. ZIP codes without both a median price and a median rent are not listed.

Monthly read · October 2026

What we would do this month

The short answer

At typical citywide rent, a typical-priced house does not work for the cushion investors want. A house needs to cost less or rent for more, based on its own numbers. Treat that as a first check, not a decision on a specific property.

What to do next

For a purchase, use the house’s own rent and full payment to set the price you can afford.

Ask the lender how it will determine rent, what payment it will use, and what loan terms and closing costs apply.

These are market numbers. A specific house needs its own rent, tax and insurance numbers, and the example deal is an illustration, not a loan quote.

When a specific house's rent covers its full payment with the 1.20x cushion, Sphinx Capital's loan application is the next step. Continue to application

Earlier monthly reads

Each used that month's numbers; the figures above are current.

  • September 2026: At typical rent, a typically priced Charlotte house's rent covers 71% of its full payment (0.71x), under the 1.20x cushion; here is the price that works.

Buy, refinance, or hold

What to do if you are buying, refinancing, or holding

Buying

Look for houses priced under about $250,200 that rent for at least $1,950 a month, or houses that rent for more; a house at the typical price ($389,648) misses 1.20x at this rent. Buy only when the property’s own rent supports the full monthly payment, with the purchase price low enough to leave room for taxes, insurance, vacancy, and repairs.

Refinancing

For a refinance, verify the property’s current rent, appraisal, loan terms, and closing costs before relying on the city figures.

Holding

For a property you already own, check current rent against the full monthly payment and budget for vacancy and repairs.

Application next step

Found a property here that works on your numbers?

Continue into Sphinx Capital's loan application when the rent on a specific property covers its full monthly payment with the 1.20x cushion. DSCRInfo will carry this market context into the application start.

If you apply with Sphinx Capital from this page, DSCRInfo may receive referral compensation. See disclosures

Risks

What could make this market stop working

  • The city’s $1,950 typical rent is not a lease for a specific property; verify that house’s rent.
  • New listings were down 7.5% year over year even as active listings rose, so available choices may vary.

Buying conditions

What else we see

  • Metro active listings were up 10.3% year over year, the median listing price was down 3.1%, and homes spent a median 64 days on market in September 2026. Use the added time to verify the house’s rent and negotiate a purchase price that fits its full payment.

About these numbers

How this page is built

Updated October 27, 2026. City rent and home value, ZIP code prices and rents, and listing activity come from public sources, including U.S. federal and government datasets and public property listings. They show whether a market is worth a look, not whether a specific house works.

Every county in North Carolina, with rent, property tax, insurance, vacancy and jobs: North Carolina rent, property tax and insurance by county.

Application next step

Ready to apply?

Apply with Sphinx Capital once the market numbers and your property's numbers agree.