Savannah's small multifamily stock is tied to its history. Large Victorian and early 1900s houses south of Forsyth Park were divided into two, three or four apartments decades ago, many lots downtown have a main house and a carriage house on the lane, and mid-century duplexes fill streets in Midtown and the Southside. Each type finances a little differently.
In short: LendingStreet offers DSCR loans for Savannah duplexes, triplexes and fourplexes that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum, and purchases go up to 80% LTV on some programs. Savannah rents are solid relative to prices, so many 2-4 unit buildings here clear a 1.0x DSCR at 70% to 75% LTV once taxes and insurance are counted. Converted historic houses need extra care on legal unit counts.
The Victorian District, Thomas Square, Starland and the streets around Forsyth Park have the city's largest concentration of older houses split into units, many with porches, high ceilings and wood construction. Downtown, main houses with carriage houses on the lane are common, and some carriage houses are legal separate units.
Midtown, Baldwin Park, Ardsley Park's edges and parts of the Southside have brick and block duplexes from the 1940s through the 1970s. Garden City, Port Wentworth and Pooler add newer duplexes and townhome-style buildings near port and logistics jobs.
Savannah's zoning ordinance, rewritten in 2019, allows two-family and small multi-family uses in many traditional neighborhood districts but not in single-family districts. Some older multi-unit houses are legal nonconforming uses. Confirm the legal unit count and zoning for the parcel with the city.
The downtown Landmark Historic District, the Victorian District and other local historic districts require design review for most exterior changes, such as windows, porches, siding, paint in some areas and additions. That review adds time to renovation plans, so build it into any value-add budget.
For a DSCR loan, only legal units count. A carriage house used as an apartment without approval will usually be excluded.
Tenants include SCAD and Savannah State students and staff, workers at Memorial Health and St. Joseph's/Candler, port and logistics employees, Gulfstream workers, service and hospitality staff downtown, and military families tied to Hunter Army Airfield. Georgia has no rent control, and landlord-tenant rules come from state law.
Units near SCAD buildings and Forsyth Park lease quickly, often on academic-year cycles. Midtown duplexes tend to draw longer-term tenants.
Rents across Savannah rose with the region's job growth, though new apartment construction around Pooler and the Southside has added competition. Get a rent survey for the specific blocks rather than relying on citywide figures.
This example is illustrative and not a quote. An investor buys a renovated duplex in Thomas Square for $495,000. The units rent for $1,700 and $1,600, for combined rent of $3,300 a month. Taxes are estimated at about 1.2% of the price a year, and insurance at $300 a month.
At 70% of the price, the loan is $346,500 and estimated principal and interest is about $2,364 a month. With taxes and insurance, the monthly total is about $3,159, giving a DSCR of about 1.04x. At 75% the ratio drops just below 1.0x, so a slightly larger down payment buys a useful cushion.
| Item | Amount |
|---|---|
| Purchase price | $495,000 |
| Loan amount (70%) | $346,500 |
| Combined monthly rent | $3,300 |
| Estimated principal and interest | $2,364 |
| Property taxes (monthly) | $495 |
| Insurance (monthly) | $300 |
| Total monthly payment | $3,159 |
| DSCR | 1.04x |
Georgia assesses property at 40% of fair market value, and Chatham County, the city and the school system levy taxes on that assessed value. Investors do not get homestead exemptions. Georgia's intangible recording tax applies to long-term notes, and a small transfer tax applies to sales.
Older wood-frame houses can cost more to insure, and some carriers ask about wiring, plumbing and roof age. Parts of the city are in flood zones, especially low areas near the river and marsh.
Tax bills can change when Chatham County updates values after a sale, so budget on your purchase price rather than the seller's current bill.
Larger converted houses and small apartment buildings with five to eight units are still residential for our programs, though maximum LTV can be lower, varies by program. See our Savannah 5-8 unit page. Owners of five or more small buildings can also combine them under a blanket loan, and buildings of nine or more units belong on our multifamily page.
Many Savannah 2-4 unit buyers renovate units as tenants leave and then refinance on higher rents. A bridge or fix-and-flip loan can cover a heavier renovation, followed by a DSCR loan once units are leased. Cash-out seasoning varies by program.
In historic districts, keep approvals and permits for every piece of exterior work. Appraisers and underwriters may ask for them, and unapproved changes can create problems at sale or refinance.
Send the address, rent roll, leases, legal unit count and any historic review approvals for recent work. If a unit is vacant, include your rent estimate. Call (877) 298-1001 or use the form below and we will show you the loan size that clears 1.0x.
Yes. DSCR loans use the combined rent of both units, with no W-2s or tax returns. Signed leases are the simplest way to document that rent.
Only if it is a legal unit. Approved carriage house apartments can count toward rent; unapproved ones usually do not. Check city records before you count that rent in your offer.
It does not change the loan, but exterior renovations in historic districts need approval, which adds time and cost. Ask the city's preservation staff early about what changes are likely to be approved.
No. Georgia has no rent control, and landlord-tenant rules come from state law, which covers deposits, notices and repairs.
Purchases go up to 80% LTV on some programs. Many Savannah 2-4 unit buildings clear 1.0x around 70% to 75%, depending mostly on rent, taxes and the insurance premium.
Yes. LLC borrowers are standard, and you sign for the loan personally. Many Savannah investors hold each building in its own LLC.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Only where Savannah's zoning and ward caps allow non-owner-occupied rentals. See our Savannah STR page.
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