On the Mississippi Coast, two rentals with the same rent can land on opposite sides of a 1.0x DSCR. The difference is usually how far the house sits from the water and what the wind and flood quote says.
In short: LendingStreet makes DSCR loans on 1-8 unit rentals in Gulfport, Biloxi, Long Beach, D'Iberville and the rest of the Coast, qualifying on the property's rent with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and cash-out up to 75% LTV, with a 620 minimum credit score and a 1.0x standard minimum DSCR. On the Coast, the insurance quote is the number to get first.
Gulfport and Biloxi anchor the market, and both are steady renter towns. Keesler Air Force Base in Biloxi and the Naval Construction Battalion Center in Gulfport bring a regular flow of military households, while the Port of Gulfport, Memorial Hospital and the casino resorts along Beach Boulevard in Biloxi add civilian demand.
Investors tend to split the area by distance from the beach. North of Interstate 10, in Orange Grove, Lyman and toward Saucier, newer slab homes rent to families and usually carry lower insurance. Closer in, East Gulfport, Handsboro and the streets around downtown have older cottages and duplexes. Long Beach and Pass Christian to the west and D'Iberville and Ocean Springs to the east each have their own price levels and city rules.
| Submarket | Typical rental stock | Insurance picture |
|---|---|---|
| North Gulfport, Orange Grove, Lyman | Newer 3-4 bed slab homes | Usually outside mapped flood zones; wind still priced in |
| East Gulfport, Handsboro, downtown | Older cottages, duplexes, small multi-unit | Mixed; some lots in flood zones |
| Long Beach and Pass Christian | Single-family, some raised homes | Closer to the water means higher wind and flood cost |
| Biloxi and D'Iberville | Homes and small buildings near Keesler | Varies street by street; check the flood map |
Harrison, Hancock and Jackson counties sit in Mississippi's coastal wind zone. Many standard carriers write wind coverage selectively here, and some homes end up with wind through the Mississippi Windstorm Underwriting Association, the state's wind pool, alongside a separate policy for everything else. Wind deductibles are often a percentage of the dwelling amount.
Flood is its own line. Homes in mapped flood zones generally need flood insurance, and premiums vary widely with elevation. A raised post-2005 home can price very differently from an older slab home two blocks away. Get the wind, hazard and flood quotes before you go under contract, not after.
Mississippi assesses owner-occupied homes at a 10% assessment ratio and other residential property, including rentals, at a 15% assessment ratio. Investors also do not get the homestead exemption. A seller who lived in the house was likely paying noticeably less tax than you will.
Budget the tax line on your purchase price at the non-homestead assessment ratio and the local millage, and confirm it with the Harrison County Tax Assessor. Gulfport and Biloxi residents also pay city millage on top of county and school levies.
This example is illustrative and not a quote. Home A is a newer three-bedroom north of I-10, bought for $235,000 and leased at $1,850 a month. Taxes are budgeted at $205 and wind and hazard insurance at $275; it is outside a mapped flood zone. At 80% LTV the loan is $188,000, estimated principal and interest is about $1,315, the total payment is about $1,795 and DSCR is about 1.03x.
Home B is a similar house closer to the water, bought for $260,000 and leased at $1,950. Taxes are $225, but wind, hazard and flood together come to $520. At 80% LTV the payment is about $2,199 and DSCR is about 0.89x. Dropping to 70% LTV brings the payment to about $2,018 and DSCR to about 0.97x, still short of 1.0x, so Home B would need more cash down, a higher rent or a sub-1.0 program.
| Item | Home A, 80% LTV | Home B, 80% LTV | Home B, 70% LTV |
|---|---|---|---|
| Loan amount | $188,000 | $208,000 | $182,000 |
| Estimated principal and interest | $1,315 | $1,454 | $1,273 |
| Taxes | $205 | $225 | $225 |
| Insurance (wind, hazard, flood) | $275 | $520 | $520 |
| Total monthly payment | $1,795 | $2,199 | $2,018 |
| DSCR | 1.03x | 0.89x | 0.97x |
Many Coast landlords rent to service members and civilian contractors. Housing allowances give those tenants predictable budgets, and permanent change of station orders mean leases often turn over on a set schedule. Leases with a military clause are common.
For a DSCR loan, a signed lease or a market rent estimate from the appraisal sets the qualifying rent. If you are buying a home that is vacant between tenants, the appraiser's rent figure is what the loan uses.
Beach traffic, casinos and events like Cruisin' The Coast create nightly demand, and some programs qualify short-term rentals on projected revenue. Coast cities regulate STRs differently, with permits, zoning limits and lodging taxes in several of them, and HOAs may ban rentals under 30 days. Check with the city or county before relying on nightly income; see our Mississippi short-term rental page for how the program works.
Purchase, rate-and-term and cash-out refinances are available on 1-8 unit rentals. Most investors close in an LLC and sign for the loan personally. Thirty-year terms are available. Closing is handled by a Mississippi closing attorney or title company, and the state has no real estate transfer tax.
Send the address, price, rent and your insurance quotes through the form below or call (877) 298-1001. We will run the ratio at a few loan amounts and show you where it clears. Our investor loans are business-purpose loans on non-owner-occupied property. For the statewide picture, see our Mississippi DSCR page.
The minimum loan is $150,000. On a lower-priced Coast house, investors often finance two properties, choose a duplex, or use a blanket loan once they own five or more rentals.
Yes. Every insurance premium on the property, including a wind pool policy and flood insurance, is part of the monthly payment used in the ratio.
Rentals in Mississippi are assessed at a 15% assessment ratio instead of 10%, and investors do not get the homestead exemption. The seller's bill usually understates what you will pay.
Yes. A signed lease with a market-level rent can be used, subject to the appraiser's rent estimate. Military clauses do not prevent a loan.
Yes. We lend on 1-8 unit rentals across Harrison, Jackson and Hancock counties and the rest of Mississippi.
Yes. Elevated homes are common on the Coast and often price better for flood insurance. The appraisal and insurance quote decide the numbers.
You can lower the loan amount, document a higher market rent, or look at sub-1.0 DSCR programs, which exist for some files.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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