Palm Bay itself is mostly single-family homes on a vast grid of lots, so most 5-8 unit buildings in the metro sit in Melbourne, Cocoa and Titusville. The aerospace boom has made all of them easier to lease.
In short: LendingStreet finances 5 to 8 unit rental buildings in Palm Bay, Melbourne, West Melbourne, Cocoa, Titusville and across Brevard County with DSCR loans that qualify on rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum and a 1.0x standard minimum DSCR. On the Space Coast, wind insurance and non-homestead taxes are the expenses that most affect the ratio.
Palm Bay grew from a huge planned subdivision, and its housing is overwhelmingly single-family, with some duplexes. True 5-8 unit buildings are rare inside city limits.
Older small apartment buildings are more common in Melbourne near downtown and Eau Gallie, in Cocoa and Rockledge along the Indian River, and in Titusville near the Kennedy Space Center.
For investors who want to stay in Palm Bay, a group of duplexes or single-family rentals financed together on a blanket portfolio loan is often a better fit than hunting for a rare five to eight unit building.
Most of the small buildings in Melbourne and Cocoa are one- or two-story concrete block from the 1950s through the 1970s. Many have been updated, but older roofs, windows and electrical panels still show up in inspections.
| Area | Typical stock | What to check |
|---|---|---|
| Palm Bay | Mostly single-family and duplexes | Few 5-8 unit buildings |
| Melbourne and Eau Gallie | Older small buildings | Roof age, flood zone |
| Cocoa and Rockledge | Older buildings near the river | Wind coverage |
| Titusville | Small buildings | Aerospace demand |
L3Harris is headquartered in Melbourne, and Northrop Grumman, Collins Aerospace, Blue Origin, SpaceX and Space Force operations at Cape Canaveral employ thousands. Launch activity has driven population and rent growth across the county.
Engineers, technicians and contractors moving to the area for aerospace jobs have pushed rents up across Brevard County. Buildings close to the Melbourne airport, the L3Harris campus, Cape Canaveral and the Kennedy Space Center tend to lease fastest.
Patrick Space Force Base and the Port Canaveral cruise terminals add more demand, from military personnel to cruise and hospitality workers.
This example is illustrative and not a quote. An investor buys a six-unit older building near downtown Melbourne for $870,000. The 6 units rent for an average of $1,325 each, or $7,950 a month in total. Taxes are budgeted at $1,250 a month and insurance at $750.
At 75% LTV the loan is $652,500, estimated principal and interest on a 30-year term is about $4,562, and the full payment is about $6,562, for a DSCR of about 1.21x. At 70% LTV the loan drops to $609,000, the payment to about $6,258 and the DSCR rises to about 1.27x, with $43,500 more brought to closing.
Wind insurance is a big expense. A building with a newer roof and documented mitigation could improve the ratio.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $870,000 | $870,000 |
| Loan amount | $652,500 | $609,000 |
| Down payment | $217,500 | $261,000 |
| Estimated principal and interest | $4,562 | $4,258 |
| Property taxes (monthly) | $1,250 | $1,250 |
| Insurance (monthly) | $750 | $750 |
| Total monthly payment | $6,562 | $6,258 |
| Gross monthly rent | $7,950 | $7,950 |
| DSCR | About 1.21x | About 1.27x |
Rentals do not get the homestead exemption or Save Our Homes cap. Non-homestead property gets a 10% annual cap on non-school assessments, and the value resets after a sale. Budget on your price.
Florida doc stamps and intangible tax apply at closing.
A building owned by the same person for many years can have an assessed value far below market, and the first bill after your purchase will reflect your price. Use the Brevard County property appraiser's millage for the city where the building sits.
The borrower pays doc stamps on the note and intangible tax on the mortgage, which add to cash needed at closing on top of title and recording costs.
Brevard County is exposed to Atlantic hurricanes. Wind premiums are high, and areas near the Indian River Lagoon and canals may be in flood zones. A newer roof and wind mitigation features help.
Insurers rely on wind mitigation reports and inspections of the roof, electrical, plumbing and HVAC. A building with impact windows or shutters, a newer roof and hurricane straps can price much better than one without.
Barrier island towns such as Indialantic and Satellite Beach face higher wind and flood exposure than the mainland. Check the FEMA flood zone and get an elevation certificate if one exists.
Parts of Palm Bay and unincorporated Brevard use septic systems and wells. State rules aimed at protecting the Indian River Lagoon have led to septic upgrade requirements in some areas. Ask about sewer connection and septic condition.
Converting from septic to sewer can cost thousands of dollars per unit. If a building is on septic, ask whether a sewer connection is available nearby and whether the county or city plans to require it.
Confirm zoning allows the building's unit count, and check for open code cases or unpermitted work before closing.
Our DSCR loans treat a Florida building of five to eight units as residential, 1 to 8 units, rather than commercial. That means qualification on the property's rent instead of your personal income, with no tax returns or W-2s, and title held in an LLC as a matter of course.
Minimum loan size is $150,000 and there is no stated cap. Program maximums are 80% LTV on a purchase and 75% LTV on a cash-out, with rate-and-term up to 80% on some programs; expect less on many 5-8 unit files, since leverage varies by program and balance. The usual floor is a 1.0x ratio and a 620 score, with sub-1.0 options for thin-margin buildings. Cash-out seasoning also varies by program.
Our investor loans are business-purpose loans on non-owner-occupied property. A complete package gets a faster answer, so gather the items below and send them through the form below, or call (877) 298-1001. The Florida 5-8 unit DSCR page covers statewide issues; buildings of nine or more units belong on our commercial and multifamily pages.
Very few. Palm Bay is mostly single-family homes and duplexes. Most small apartment buildings in the metro are in Melbourne, Cocoa and Titusville.
Aerospace and defense employers, launch activity at Cape Canaveral and Kennedy Space Center, Patrick Space Force Base and the cruise port.
Yes. Atlantic hurricane exposure keeps premiums high, though wind mitigation features and a newer roof help.
They can. Some areas face septic upgrade or sewer connection requirements to protect the Indian River Lagoon.
Yes. The program covers all of Brevard County.
Not with our DSCR program. Properties with 1 to 8 units are financed as residential investment property, qualified on rent. Nine units and up is commercial.
Yes. LLC borrowers are standard on our DSCR loans, and you sign for the loan personally as part of the process.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so every unit must be rented to tenants.
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