Mississippi is home to gorgeous flowering magnolias and rich foods. Earthy bluegrass music and rustic river towns. Mississippi is the birthplace of the Blues and Barq's Rootbeer.

History, culture, music, and tradition all come together to create the Magnolia State. Oprah Winfrey and Elvis Presley spent their first years here, and the Gulf Coast beckons many to visit or put down roots.

With the right DSCR loan, Mississippi real estate's low purchase prices and affordable rent can help real estate investors put down their own roots.

The Mississippi real estate market has steadily grown over the past few years, and Visio Lending is here to assist.

We'll help find the best rental properties and DSCR loans to start your portfolios and generate income.



Why Invest in Mississippi Real Estate?

Mississippi offers real estate investors a stable market to get their footing with their first investment properties. Building a real estate portfolio requires initiative and drive, but a stable market certainly helps.



Steady Market Growth

The Mississippi rental market is steadily growing, creating a high demand so investors can capitalize on steady rental income streams.

It's also affordable, with low property prices helping new investors enter the market.



Economic Development

Mississippi has a strong commitment to economic development. They offer tax incentives and business-friendly policies to help real estate investors start their rental business.

The favorable environment for businesses also draws in more job opportunities, in turn bringing in more renters.



A Landlord-Friendly Approach

While there are rules and regulations in place to protect Tenants' rights, there is a lack of rent control laws, and landlords have the power they need to set lease terms and handle evictions.

If you're interested in rental property in Mississippi, it's a good idea to review the current Landlord-Tenant laws to protect your investment.



Mississippi's Housing Market

DSCR Loans Mississippi


Mississippi's low prices demonstrate the perfect opportunity to start building a real estate portfolio, especially with residential property.

Zillow shows us that the current average home value in Mississippi is 176,655, a 2% increase from 2022. Their Market Overview also reveals the following:

  • 0.988 Median sale-to-list ratio (as of June 30, 2023)
  • 21.9% of sales over list price (as of June 30, 2023)
  • 55.6% of sales under list price (as of June 30, 2023)
  • 13 Median days to pending (as of July 31, 2023)

Debt Service Coverage Ratio (DSCR)

DSCR basically evaluates a property's cash flow. A DSCR of 1.0x reveals properties that pay their debt obligations but don't really turn a profit.
Less than one shows that the investor is taking a loss; over one demonstrates that the investor has a steady rental income and can likely invest further. 

How the DSCR Loan Ratio is Calculated

To determine DSCR, lenders will look at a property's net operating income and divide it by debt obligations like loan payments, utilities, and insurance.

Why Mississippi Investors Prefer DSCR Loans

Investors in Mississippi and across the US appreciate DSCR loans for their maximum loan-to-value ratio and reliance on potential cash flow over personal financial history.

DSCR lenders don't look at a borrower's personal income; rather, the direct lender will estimate a property's potential rental income and compare that to average costs.

This metric, called DSCR, helps lenders ensure the property will have sufficient cash flow to cover its debts.

Requirements for DSCR Loans

Lenders look for a DSCR of 1.00 (often higher) and a minimum credit score of 680 when determining eligibility, though some will go lower.

Previous property management is a plus but not a deciding factor.

While DSCR loans do have a slightly higher interest rate, 1-2%, the LTV means most borrowers can expect a minimum down payment of 20% and better loan terms.

The attractive terms of DSCR loans also make them a great way to refinance hard money loans.


Understanding Mississippi's Rental Market

Mississippi has a median rent of $1,423, but investors should look at city-specific medians when evaluating a potential rental property.

The median rent has dipped from the last year, but it is steadily on the rise once more, with a current difference of $73.

Mississippi has a low rent average, ranking 54th out of 56 states and territories. However, a low purchase price and loan amount make up for the low rent, leading to an affordable option for investors and renters alike.

Top Spots for Investment Properties

When searching for rental properties, investors have a lot to consider: median home value, list prices, average mortgage payment, and more.

To help narrow down the options, Clever has put together a list of the top five cities in Mississippi for rental properties:

  • Jackson
  • New Albany
  • Gulfport
  • Saltillo
  • Hattiesburg

Closed DSCR Loans Mississippi

Check out some of Visio Lending's recently closed DSCR loans in Mississippi.


Jackson LTR


  Jackson, MS

  • $170,000 Loan Amount
  • Cash-Out Refinance
  • LTR 
  • DSCR: 1.23
Gulfport STR


  Gulfport, MS

  • $380,000 Loan Amount
  • Purchase
  • STR
  • DSCR: 1.01
Tupelo LTR


  Tupelo, MS

  • $175,857 Loan Amount
  • Purchase
  • LTR
  • DSCR: 1.20
map of Mississippi

Our DSCR Loans in Mississippi have:

  • · Full 30 year terms, no balloons for rental residential properties

  • · The ability to finance in an LLC

  • · No tax documents or personal income verification

  • · Real estate investor-friendly loan programs

  • · Interest only loan options


Contact Us to Start Your Loan