Yes, Form 1025 includes a rent schedule for two-to-four-unit properties. One-unit rentals may use Form 1007. Confirm the actual program's format and rent rules. Assumed rent of $2,500 divided by $2,300 in monthly costs is 1.09. That is math, not loan eligibility or offered terms.
Key takeaways
- Match form and unit count.
- Confirm the accepted rent.
- Keep tax rules separate.
Which rent report does the property need?
DSCR means debt service coverage ratio. It compares accepted rent with monthly loan costs. Program rules vary; the examples here are not loan offers.
A rental purchase can look workable on a lease and different on an appraisal. Understanding which rent the lender will accept helps you ask better questions before paying for a report. This guide separates the appraisal forms, illustrative ratio arithmetic and Nevada tax-abatement rules, because they answer different questions.
Start with the property and rental use, confirm the lender's documentation requirements, and test the payment against a lower rent assumption. None of the examples establishes a program approval or a guaranteed result.
What does a DSCR loan appraisal actually decide?
The lender uses appraisal and rental documentation to assess the collateral and the income evidence. Confirm the requirements for the property and loan program before ordering.
The value affects how much may be borrowed against the property. Rent records help show the income the program may accept. In these examples, DSCR is accepted rent divided by PITIA. PITIA means principal, interest, taxes, insurance and association dues. Ask what counts in each part of your program's ratio. An appraisal alone is not a loan approval.
Which form carries which job depends on the property. Here is the working set.
| Form | Full name | Used for | What it gives the lender |
|---|---|---|---|
| 1004 | Uniform Residential Appraisal Report | One-unit property | Opinion of value |
| 1007 | Single-Family Comparable Rent Schedule | One-unit rental | Opinion of monthly market rent |
| 1025 | Small Residential Income Property Appraisal Report | Two-to-four-unit property | Value and market rent per unit |
| 216 | Operating Income Statement | When required by the loan program | Income and expense detail |
Does Form 1025 include a rent schedule?
Yes. Legacy Form 1025 has a rent schedule for the subject property and a review of nearby rentals. It shows actual rent and the appraiser's market-rent view for each unit. This is the report for two-to-four-unit homes. Form 1007 is a separate rent attachment for one unit. Ask which format the lender accepts.
| Property and use | Documentation to ask about | Question for the lender |
|---|---|---|
| One unit, long-term rental | Value report and a market-rent schedule, such as legacy Form 1007; current lease if occupied | Which rent is accepted if the lease and appraisal differ? |
| Two-to-four units | Legacy Form 1025 or the accepted newer format; unit-level lease and occupancy information | How is accepted rent determined for each unit? |
| Short-term rental | The accepted rent or revenue records; legal-use and occupancy details | Does this program use long-term rent, documented short-term rental revenue or another approved method? |
| Vacant or unusual lease | Available lease history and the documentation the investor requires | Is this property/use eligible, and what evidence is needed before an appraisal is ordered? |
Occupancy means who uses the property, such as a tenant or an owner. These questions help you prepare; they are not a universal loan checklist. Do not upload records here. Ask for the lender's secure way to share leases, tax returns or other private files.
Where does the rent number come from?
From comparable rentals, chosen by the appraiser, not from your pro forma and not from the listing.
The appraiser compares rental evidence. They consider size, condition, bedrooms, features and location. Some properties have few useful rental comparisons. Ask how the evidence supports the rent view. A listing or a rent forecast does not prove the result.
Two program requirements to confirm
Confirm the rent treatment and the acceptable age of the report with the actual lender or investor.
If the program uses the lower rent. Some programs compare the lease with appraised market rent. If the lower amount controls, a higher lease does not lift accepted income. The form itself does not set that rule. Ask which requirement applies and what happens when the two figures differ.
How old is too old
Ask how old the report can be and when an update is needed. Fannie Mae has rules for agency loans. Those rules do not set a non-agency DSCR program's policy. Check the program's dates and plan the order around the closing timeline.
Want the rent number checked before you are under contract?
Start with the property state and unit count. Say whether it is leased, vacant or used for short stays. Ask which report and rent records the program needs. A conversation is not an appraisal, approval or promise of supported rent.
Ask an appraisal questionWhat happens when the rent opinion lands below your lease?
If the program uses a rent below your lease or projection, the calculated ratio drops. Ask how this could affect the proposed structure while there is still time to review your options.
Work an illustrative Las Vegas purchase. A tenant is in place on a signed lease at 2,750 dollars a month. The Form 1007 opinion comes back at 2,500 dollars. Monthly PITIA on the structure being quoted is 2,300 dollars.
Ratio on the lease. 2,750 divided by 2,300 is 1.20.
Ratio on the rent schedule. 2,500 divided by 2,300 is 1.09.
Under this assumed rule. A program using the lower figure would calculate 1.09. Against an assumed 1.15 threshold, that ratio is below the threshold. Neither threshold nor treatment is an offer of program terms.
Keep the same assumed 1.15 target. At $2,300 in costs, the rent needed would be 1.15 times $2,300: $2,645. Compared with $2,500, that is a $145 monthly rent gap. Or hold rent at $2,500 and divide it by 1.15. The modeled cost ceiling is $2,173.91, which is $126.09 less than $2,300. These figures test the assumptions; they do not set actual terms.
Options to discuss if the ratio is below the target
The math sizes the gap. It does not list every way to solve it. Ask which changes are allowed and whether the file meets the actual requirements.
- Review the rent evidence. Ask about the reconsideration process if there is a factual error or relevant comparable evidence. A request does not guarantee a different opinion.
- Review the payment assumptions. Ask whether an allowed change in down payment or structure could change the calculation. Consider the complete costs and risks, not just the ratio.
- Review the purchase terms. A price renegotiation depends on the parties and the transaction; a low rent opinion does not establish that a seller will change the price.
- Ask about alternatives. Another available program may have different requirements. Do not assume reduced-ratio, no-ratio or interest-only terms are available for the file.
At an illustrative 1.25 coverage threshold, $100 less monthly rent supports $80 less in monthly housing costs (PITIA). This is arithmetic, not offered loan terms.
How much does a low rent opinion cost in dollars?
Exactly the rent gap divided by the coverage threshold. That is the whole conversion. It is worth memorising, because it turns an abstract disappointment into a budget.
So a rent schedule landing 150 dollars under your lease removes 120 dollars a month of supportable housing cost at 1.25. The arithmetic is 150 divided by 1.25. Read across the table below to size any scenario without a rate.
| Qualifying rent | At DSCR 1.00 | At DSCR 1.20 | At DSCR 1.25 |
|---|---|---|---|
| 2,200.00 | 2,200.00 | 1,833.33 | 1,760.00 |
| 2,400.00 | 2,400.00 | 2,000.00 | 1,920.00 |
| 2,413.00 (assumed monthly rent; not a tax-abatement threshold) | 2,413.00 | 2,010.83 | 1,930.40 |
| 2,600.00 | 2,600.00 | 2,166.67 | 2,080.00 |
| 2,800.00 | 2,800.00 | 2,333.33 | 2,240.00 |
The stress test to run before you write the offer
Test a lower rent as well as the rent you expect. For example, reduce rent by 10%, then divide by the same assumed ratio target. The 10% is a chosen test, not a measured error rate or a lender rule. Use the full cost estimate. This test does not approve a payment or loan amount.
Clark County's 2026/2027 three-bedroom rental-abatement table lists $2,139 after the standard utility allowance. Property facts and the assessor's determination matter.
How do Clark County rental tax abatements affect the budget?
Taxes are part of the housing cost. But a tax-abatement rent limit is not the rent used for loan approval. Check the county tax-abatement page and the property records before assuming a cap.
The current county figure includes a utility adjustment
The county's 2026/2027 tax-year table lists $2,139 for three bedrooms. The state's April 6, 2026 memo, Table II, starts with $2,413 in FY 2026 HUD gross fair market rent. It takes off $274 for the standard utility allowance. The gross HUD number is not the county's net-utility rent limit.
| Figure | Amount | Scope |
|---|---|---|
| FY 2026 HUD gross fair market rent used in the state table | $2,413 | Includes the standard tenant utility component |
| Standard utility allowance in state Table II | $274 | Deducted in that table; the assessor may use an appropriate regional allowance |
| County 2026/2027 published rental limit | $2,139 | Tax-abatement screening figure, not an appraisal or a loan's accepted rent |
NAC 361.607 sets the claim rules. It uses rent without utilities and an April 1 to March 31 lookback. The annual claim is due by June 15. Ask the assessor which utility allowance and treatment fit the actual property and all its units.
Some eligible rentals can get a 3% cap. The general cap can be up to 8%. These are not promises that taxes rise by those amounts each year. A rent change does not create an automatic tax result. Do not choose rent or a holding period from a fixed 3%-versus-8% growth model. Ask the assessor and your tax adviser about the actual case. A newer HUD year does not by itself replace the county's tax-year table.
How do you challenge a DSCR appraisal?
Ask the lender about a reconsideration of value, often called an ROV. This is a request to review a report for errors or new evidence. Federal banking regulators issued guidance on July 18, 2024. A request does not promise a changed value or rent.
The guidance lists useful types of evidence. These include other comparable properties, property facts and information missed or reported wrongly. Bring facts, not just the number you hoped to get. Ask how your lender accepts and reviews a request.
What actually moves a rent opinion is therefore specific.
- Better rent comparables. Recently leased properties, closer to the subject, closer in size and condition, with the lease dates and the actual contract rents.
- Corrected property facts. A missed bedroom, a converted garage, a finished casita, an updated kitchen, a pool the report did not list.
- Documented lease terms. A lease that includes appliances, landscaping or utilities is not comparable to one that does not, and that difference is adjustable.
Ask your lender for the ROV process in writing before you need it. Programs differ on who may submit one and on how many are allowed.
When can you receive a copy of the appraisal?
The federal copy rule generally covers an application for a first-lien loan. It applies to a home with one to four units. Business use alone does not remove the rule. The CFPB states:
“A creditor shall provide an applicant a copy of all appraisals and other written valuations”
CFPB, Regulation B §1002.14(a)(1)
For a covered application, copies are generally due promptly when complete or three business days before consummation, whichever is earlier. Consummation is when you become bound to the loan. The rule allows certain timing waivers. The lender can charge for the appraisal, but not for the copy. Ask which timing rules apply to your case.
What changes on November 2, 2026?
Fannie Mae lists November 2, 2026 for its agency UAD 3.6 mandate. UAD is the Uniform Appraisal Dataset. The new report holds rental information within it, rather than using the same legacy form-number setup.
A non-agency DSCR program does not have to adopt the agency format on that date. Ask which format, rent details, report age and reviews your program needs. A format mismatch can add work or delay. No fixed reorder time is promised.
What if the property is vacant, or the lease is unusual?
Tell the lender about a vacant property, room rental, lease to a relative or other unusual use. Ask about the actual program before ordering. A market-rent opinion alone does not make the property or income eligible.
Short-term rental revenue is not the same as monthly market rent
A Form 1007 rent opinion is not a nightly rate times 30. Monthly property rent and a furnished rental business's revenue may measure different things. Ask which method the DSCR investor accepts and what records support it.
Fannie Mae has a September 2, 2026 short-term rental topic for agency loans. Purchase and refinance files need different records. Its rules allow specific long-term rent or validated short-term rental data paths. That is not a promise of a non-QM DSCR program. A projected nightly rate does not become accepted loan income just because it appears in a forecast.
For a vacant purchase, test a lower rent as well as your expected rent. Ask what records the lender needs. The short-term rental DSCR guide covers related questions. Confirm the current investor's rules for your file.
Which questions are settled before you order?
Tick what you have checked. Use unticked items as questions for the lender. This is optional planning, not a loan decision or consent to contact. These boxes are separate from the inquiry form.
DSCR loan appraisal: FAQ
Does a DSCR loan require an appraisal?
Ask what the actual program needs before ordering. Rental loans often need a value report and rent records. Legacy Form 1007 is a rent attachment for one unit. Form 1025 includes rental information for two to four units. A newer report may use a different format.
What is Form 1007 and who fills it out?
The appraiser fills it out. Form 1007 compares rental properties and supports an opinion of monthly market rent. That rent can differ from a lease. The lender decides whether the form and rent meet the actual program rules.
The lease against the rent schedule
Which rent does the lender use if my lease is higher than the appraised market rent?
Ask which rent the program accepts. If the lower of lease rent and appraised rent controls, the lower figure is used. In an example, $2,500 divided by $2,300 in costs is about 1.09. At $2,750 rent, it is about 1.20. These are math examples, not offered terms or an approval.
What it costs and what to do
How much does a low rent opinion actually cost me?
For this model, divide the rent gap by the assumed ratio target. At 1.25, $100 less rent supports $80 less monthly cost. At 1.20, it supports about $83.33 less. A $150 rent gap at 1.25 means $120 less cost in the model. These are assumed figures, not loan terms.
Your rights, the process and the timing
Can I dispute a DSCR appraisal or rent schedule?
Ask the lender about its reconsideration of value process. The federal July 18, 2024 guidance describes a request to review errors or new evidence. Useful items can include other rental comparisons, corrected property facts and missed lease terms. A request does not guarantee a changed result.
Am I entitled to a copy of the appraisal on a business-purpose DSCR loan?
The copy rule generally covers an application for a first-lien loan. It applies to a home with one to four units. Business use alone does not remove the rule. Copies are generally due promptly when complete or three business days before consummation, whichever is earlier. Certain timing waivers are allowed. The lender can charge for the appraisal but not the copy. Ask how the rule applies to your case.
Nevada and the awkward cases
How does HUD fair market rent affect a Las Vegas rental?
Do not confuse the tax rent limit with the appraisal rent. For three bedrooms, Clark County lists $2,139 for the 2026/2027 tax year. The state table starts with $2,413 in FY 2026 HUD gross rent, less $274 for utilities. The claim, lookback, utility details and assessor review matter. There is no automatic tax cliff or loan-income rule here.
What happens if the property is vacant when I buy it?
Ask which rent method and records the program accepts for a vacant property. A market-rent opinion alone does not prove eligibility. Test a lower rent and confirm the records, format and timeline before ordering.
The bottom line
Your lease rent is not always the income a loan uses. Ask which form and rent method apply. Compare the lease with the rent evidence and test a lower rent. These steps prepare you for a lender conversation. They do not approve the loan.
The Valley West take Ask about the report before you pay for it. Start with the state, units, rental use and timing. Valley West Mortgage, company NMLS #65506, can discuss what information is needed next. The actual lender and investor must confirm the rules.
About this guide
Before you order the DSCR loan appraisal
Have an appraisal question before ordering?
Tell us what you want to finance and which appraisal question is open. A loan officer can discuss the next information needed. This inquiry does not promise a supported rent, loan approval, written report or turnaround time.
Discuss my rental scenarioAcross Valley West: Want the ratio itself broken down step by step? Work through how the rent opinion feeds the ratio on our conventional lending site. For a separate rental-property coverage inquiry, contact Valley West Insurance. No insurance quote is included in these assumed payment figures.
Keep reading
- DSCR loans in Las Vegas, start to finish
- Run your own ratio on the calculator
- What a DSCR file has to show
- How much you need to put down
- Interest-only, and what it does to the payment
- Short-term rentals and the rent question
- Pulling equity back out later
Sources
Forms and agency rules
- Fannie Mae Form 1007: the one-unit comparable rent schedule.
- Fannie Mae Form 1025: the two-to-four-unit report with unit rent data.
- Agency rental-income context: not a universal DSCR rent rule.
- Agency short-term rental rules: September 2, 2026 purchase and refinance guidance, not a non-agency DSCR promise.
- New agency report format: the UAD 3.6 mandate date is November 2, 2026.
Federal rules
- Business-purpose exemption: the actual purpose and facts matter.
- CFPB appraisal-copy rule: scope, timing, copies and permitted waivers.
- Federal value-review guidance: July 18, 2024 guidance on requests and evidence.
Nevada tax sources
- Clark County tax abatement: the 2026/2027 rent table and claim context.
- State April 6, 2026 memo: Table II's utility adjustment for Clark County.
- NAC 361.607 and NRS 361.4724: rental tax-claim rules. Ask the assessor about the actual property.
Article history
- September 4, 2026: first published in WordPress.
- October 17, 2026 revision: clarified Form 1025 and rental-use questions. Corrected the county tax-table context and removed the fixed tax forecast. Updated the source links, plain-language answers and inquiry wording. Added an optional pre-order checklist.
Sources checked for this revision: October 17, 2026. Public guidance does not approve an individual loan or set a program's terms.
This article is for general information and is not legal, tax or investment advice. Valley West Mortgage is an independent mortgage lender, NMLS #65506, licensed in Nevada. Equal Housing Opportunity. Valley West Mortgage is not affiliated with, or acting on behalf of or at the direction of, HUD, the FHA, the VA, the Consumer Financial Protection Bureau, the Federal Reserve, Fannie Mae, Freddie Mac or any other government agency or government sponsored enterprise. Federal, state and agency material is cited here only as published public guidance.
DSCR products commonly serve investment-property financing. Business-purpose classification, occupancy, related-party tenancy and property eligibility require the actual program's review. Appraisal practice, coverage-ratio thresholds, rent treatment and reconsideration-of-value procedures vary by lender and by property. Nevada property-tax abatements depend on facts the county assessor determines, and a claim must be submitted. Loan examples use assumed figures; published tax-table amounts are identified with their dates and sources. They are not an offer of credit, a rate quote, a preapproval or a commitment to lend, and no interest rate is quoted anywhere on this page.
