Required NOI · DSCR Inverse
What NOI do I need to hit the DCR?
Instead of sizing the loan from NOI, work backward: for a target loan amount, rate and amortization, what stabilized NOI (and rent roll) does the deal need to clear the DCR bar?
35.0%
20%60%
Required NOI at 1.20x DCR
$718,373
Annual debt service: $598,644 · 1.20x × ADS
Required EGI (revenue floor)
$1,105,190
With opex at 35.0% of EGI
Assumes 60 units with uniform rent and no vacancy loss in the simple per-unit calc.
| Tier | DCR | Required NOI | Required EGI |
|---|---|---|---|
| MLI Select | 1.10x | $658,509 | $1,013,091 |
| MLI Standard (≥10 yr term) | 1.20x | $718,373 | $1,105,190 |
| MLI Standard (<10 yr term) | 1.30x | $778,238 | $1,197,289 |
Using 35.0% opex ratio to back EGI out of NOI. Higher opex ratios push the required rent roll higher.