The triple-decker is Boston's signature rental: three stacked flats, one per floor, built by the thousands in the early 1900s across Dorchester, Roxbury, Jamaica Plain and Somerville. Financing one is a combined-rent exercise, and the tax bill is where most first-time buyers get the numbers wrong.
In short: LendingStreet finances Boston-area duplexes, two-families, triple-deckers and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, and the standard minimum DSCR is 1.0x. Budget taxes without Boston's residential exemption, which applies only to owner-occupants.
Two- and three-family buildings make up a large share of Boston's housing outside downtown. Wood-frame triple-deckers line streets in Dorchester, Roxbury, Jamaica Plain and East Boston. Side-by-side and up-and-down two-families are common in Roslindale, West Roxbury, Hyde Park and Brighton. Brick rowhouses split into units turn up in the South End, Charlestown and South Boston, usually at much higher prices.
Just outside the city, Somerville, Cambridge, Quincy, Malden, Medford, Everett, Chelsea and Revere have similar stock, often near the Red, Orange or Blue Lines.
Boston rents are high, but so are prices. A two- or three-family that clears 1.0x at 80% LTV is less common here than in lower-cost cities, so many buyers plan on 70% to 75% leverage. The table below gives a general picture, not data; confirm rents with current leases and listings.
| Area | Typical building | What drives the numbers |
|---|---|---|
| Dorchester, Mattapan | Triple-deckers, two-families | Red Line access, condition of older wood frame |
| Jamaica Plain, Roslindale | Two- and three-families | Higher prices, strong rents near the Orange Line |
| East Boston, Chelsea | Triple-deckers, small brick buildings | Airport proximity, flood zones near the harbor |
| Allston, Brighton | Two-families, small multi-families | Student and young professional demand, Sept. 1 lease cycle |
| Quincy, Malden, Medford | Two-families | Lower prices than the city, Red and Orange Line access |
Most existing triple-deckers predate current zoning and may be legally nonconforming. That is usually fine for financing, but ask whether the building could be rebuilt as-is after a loss, and check the certificate of occupancy or the city's records for the legal unit count. An attic or basement unit that was never permitted cannot be counted as rent.
Boston has updated zoning to allow accessory dwelling units more broadly, and the state's MBTA Communities law requires many suburbs to zone for multi-family housing near transit. Both may open new options, but your loan is based on legal units that exist today.
Boston's residential exemption cuts a sizable amount off the assessed value of an owner-occupied home. Investment properties do not get it. If you are buying from an owner who lives in one of the units, the bill will rise after you close. Ask the assessor for the tax figure without the exemption and use that in your DSCR math.
Boston bills property tax quarterly on a fiscal year that starts July 1, and assessed values are updated each year. A building that sold recently at a high price may see its assessment move toward that price over time, so do not assume today's bill will hold. Your lender will escrow taxes and insurance in the monthly payment, which is why both lines sit inside the DSCR calculation.
Rent rules also matter. Local rent control has not been allowed in Massachusetts since a 1994 statewide vote, though proposals to bring it back come up from time to time. Check current state and city law before you assume you can move below-market leases to market rent.
This example is illustrative and not a quote. An investor buys a Dorchester triple-decker for $1,150,000. The three units lease for $3,200, $3,100 and $3,000, a combined $9,300 a month. Taxes without the residential exemption are budgeted at $1,100 a month and insurance at $350.
At 75% LTV, the loan is $862,500. Estimated principal and interest on a 30-year term is about $5,942, the total payment is about $7,392, and DSCR is about 1.26x. At 80% LTV, the loan is $920,000, estimated principal and interest is about $6,339, the payment is about $7,789 and DSCR is about 1.19x. Both clear the 1.0x standard minimum.
| Item | 75% LTV | 80% LTV |
|---|---|---|
| Loan amount | $862,500 | $920,000 |
| Estimated principal and interest | $5,942 | $6,339 |
| Taxes and insurance | $1,450 | $1,450 |
| Total monthly payment | $7,392 | $7,789 |
| Combined rent | $9,300 | $9,300 |
| DSCR | About 1.26x | About 1.19x |
Most triple-deckers were built long before 1978, so Massachusetts lead paint law applies. If a child under six lives in a unit, the owner must delead or bring it under interim control. Ask the seller for letters of compliance. Boston also requires rental units to be registered with the city and inspected periodically.
Older buildings bring other costs: knob-and-tube wiring, oil heat, porches that need rebuilding and roofs on three-story wood frames. Insurers look at these closely. Get an inspection and an insurance quote during your due diligence period.
Many Boston leases, especially near colleges in Allston, Brighton, Fenway and Mission Hill, start on September 1. If you buy in spring with units turning over, lenders may use market rent estimates for vacant units. Signed leases starting September 1 can help support the rent figure.
The cycle also affects timing. A building bought in July with two units turning over can sit partly empty until September, so plan reserves for that gap. If you are refinancing, closing after new leases are signed gives the appraiser stronger evidence of market rent.
If the building has five to eight units, it is still residential, but max LTV can be lower and varies by program; see our 5-8 unit Boston page. Nine or more units is commercial. If you own five or more Boston rentals, a blanket portfolio loan can put them under one note. To get a quote, send the address, price, rent roll and tax bill through the form below or call (877) 298-1001.
Yes. Triple-deckers qualify on the combined rent of all three units, with no W-2s or tax returns.
No. Our investor loans are business-purpose loans on non-owner-occupied property, and we do not finance a building where the borrower lives.
Combined monthly rent from both units divided by the total payment: principal and interest, taxes, insurance and any HOA.
Lenders can use a market rent estimate from the appraisal for a vacant unit, though programs differ.
Often, yes, if the seller had Boston's residential exemption. Investors do not get it.
No. Only legal units count. Check the certificate of occupancy and city records.
The minimum credit score is 620.
Yes. Cash-out goes up to 75% LTV and rate-and-term up to 80% on some programs; seasoning varies.
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