Davenport is the largest city in the Quad Cities and the anchor of the Iowa side of the river. Investors here buy everything from Victorian houses on the bluffs to 1970s ranches on the northwest side, and they rent to tenants who work on both sides of the Mississippi.
In short: LendingStreet finances 1-8 unit rentals in Davenport, Bettendorf and the rest of Scott County with DSCR loans that qualify on the property's rent, not your W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and LLC borrowers are standard. The standard minimum DSCR is 1.0x, and a typical Davenport single-family rental clears it when taxes, insurance and any flood coverage are budgeted honestly.
The older core of the city sits on the bluffs above the river. The Gold Coast and Hamburg historic district west of downtown has large Victorian and Italianate houses, many divided into apartments. McClellan Heights and the Village of East Davenport on the east side mix historic homes with smaller cottages, and the Vander Veer Park area has early 1900s homes near the park and its conservatory.
Hilltop Campus Village around Palmer College of Chiropractic and St. Ambrose University has older houses and small multifamily that lease to students and young workers. The West End and central Davenport offer the lowest prices. Northwest and north Davenport, along with Bettendorf and Eldridge, have newer ranches, split-levels and subdivisions that lease to families.
| Area | Housing | Tenant base |
|---|---|---|
| Gold Coast, Hamburg, Vander Veer | Victorian and early 1900s homes, conversions | Mixed, many apartments |
| Hilltop Campus Village | Older houses and small multifamily | Students and young workers |
| West End, central Davenport | Smaller older homes, lowest prices | Working families |
| Northwest Davenport, Bettendorf, Eldridge | 1960s-2000s ranches and newer subdivisions | Families, commuters |
The Quad Cities straddle two states. Davenport and Bettendorf are in Iowa, while Rock Island, Moline and East Moline are in Illinois. Many tenants cross the river for work at the Rock Island Arsenal, the John Deere offices and plants in Moline, and other employers, so a Davenport rental draws from the whole metro.
A loan on an Iowa property follows Iowa rules for taxes, title and closing. If you also buy on the Illinois side, those properties follow Illinois rules, and our Illinois DSCR page covers that side of the river.
DSCR is the monthly rent divided by the monthly payment, meaning principal and interest plus property taxes, insurance and any HOA dues. A ratio of 1.0x means the rent pays the full payment. On a purchase we use the lease in place or the appraiser's market rent estimate; on a refinance we look at the current lease.
If a property comes in slightly under 1.0x, a sub-1.0 program or a larger down payment can close the gap.
Reserves are part of the file as well. Having a few months of the payment set aside shows the rental can ride out a vacancy or a furnace replacement, which is common in a city with this much older housing.
This example is illustrative and not a quote. An investor buys a three-bedroom ranch in northwest Davenport for $195,000 with a tenant paying $1,575 a month. Property taxes are budgeted at $335 a month and insurance at $120.
At 80% LTV the loan is $156,000 and estimated principal and interest is about $1,064, for a total payment of about $1,519 and a DSCR of about 1.04x. Dropping to 75% LTV makes the loan $146,250, the payment about $1,453 and the ratio about 1.08x. Both clear 1.0x; the lower leverage just adds cushion.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Loan amount | $156,000 | $146,250 |
| Estimated principal and interest | $1,064 | $998 |
| Taxes and insurance | $455 | $455 |
| Total monthly payment | $1,519 | $1,453 |
| DSCR | About 1.04x | About 1.08x |
The City of Davenport requires rental properties to be registered and inspected. Inspections cover the basics of safe housing: smoke and carbon monoxide detectors, working heat, safe electrical, egress from bedrooms, and sound stairs and railings. Older homes on the bluffs often need some work to pass the first time.
Ask the seller for the current registration status and the most recent inspection report. If the property has never been a rental, plan for the inspection before your tenant moves in. Bettendorf and the smaller Scott County towns have their own rules, so check with the city where the property sits.
Davenport is known for not having a permanent floodwall along much of its downtown riverfront. The city relies on open riverfront parks and temporary barriers, and the 2019 flood showed what happens when a barrier fails. Properties near the river, along Duck Creek and in some low areas carry flood risk.
If a rental is in a mapped flood zone, flood insurance is required and becomes part of the payment in the ratio. Most of the bluff-top neighborhoods sit well above the river, but always check the flood map for the specific parcel. Wind and hail deductibles are also worth reading closely on any Iowa policy.
Davenport has its own city assessor, while Bettendorf and the rest of Scott County are valued by the county assessor. Iowa revalues residential property every two years. Taxes are paid in arrears in two installments, so at closing you usually receive a credit from the seller for taxes that have built up but are not yet due.
Use the current bill and assessed value from the assessor's site when you underwrite. A seller who owned the home for decades may show a very different number than you will pay after a sale and revaluation.
Many Davenport houses sell below $190,000, which can put an 80% loan under our $150,000 minimum. Duplexes and fourplexes, rentals in Bettendorf or north Davenport, or several properties combined in one blanket loan solve that.
Iowa closings use an abstract of title reviewed by an attorney, so allow time for the abstract update. When you are ready, send the address, price, rent and entity name. Call (877) 298-1001 or use the form below to get a quote.
Yes. We lend on 1-8 unit rentals throughout Scott County, including Bettendorf, Eldridge, LeClaire and Blue Grass.
Yes. The loan qualifies on the property's rent, with a 620 minimum credit score and cash for closing and reserves.
Properties in Rock Island, Moline and East Moline follow Illinois rules; see our Illinois DSCR page for that side.
The city requires rental registration and inspections. Confirm the property's status before closing.
Yes. If the property is in a mapped flood zone, the premium is part of the monthly payment.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Consider a 2-4 unit property or combining several rentals in a blanket loan to reach the $150,000 minimum.
The standard minimum is 1.0x. Sub-1.0 programs exist for files that come in just under.
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