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A 6.95% mortgage rate changes coverage even when rent and expenses stay put. Freddie Mac's 30-year fixed average was 6.95% as of September 17, 2026. On an illustrative $300,000 loan, that payment is much larger than a stated 3.00% comparison case, and coverage on the same net operating income falls from about 1.61 to about 1.03. The 6.95% figure is a conventional survey print, not a DSCR loan quote.
By RentalAnalytics Editorial Team · Published September 23, 2026
Freddie Mac's weekly note says: "The 30-year fixed-rate mortgage averaged 6.95% as of September 17, 2026, up from last week when it averaged 6.76%." A year earlier the 30-year average was 6.26%. The 15-year average was 6.26% that week, up from 6.09%.[1] This is education, not a rate lock or a loan approval.
FRED series MORTGAGE30US shows "2026-09-17: 6.95" and "2026-09-10: 6.76".[2] That is the same survey family, not a second index. Freddie Mac limits the average this way: "The criteria include weekly conventional, single-family originations with conforming loan limits as set by FHFA."[1]
A DSCR product can price above or below 6.95%. The ratio's definition is in the DSCR explainer for rental investors. This page only changes the payment.
Coverage here is annual NOI divided by annual principal and interest. The scenario is illustrative, not a metro average or a quote. Survey rates are labeled. Every other dollar is an assumption you can replace.
Those costs are $938.08 a month. NOI is $2,037.92 a month, $24,455 a year. At 6.95% the payment on $300,000 is $1,985.84 a month, $23,830 a year.
Coverage is about 1.03. Cash left after principal and interest is about $52 a month. The cushion is thin because the payment moved up to the current survey rate.
The Cash Flow Analyzer uses that same fully amortizing formula and rounds displayed dollars, so the 6.95% payment shows as $1,986.
Income and expenses stay fixed. Only the rate on the same $300,000, 30-year loan changes. Annual NOI stays $24,455.
| Rate case | Monthly P&I | Annual P&I | DSCR | Monthly cash flow |
|---|---|---|---|---|
| 6.95%, 30-year PMMS as of Sept. 17, 2026 | $1,985.84 | $23,830 | 1.03 | $52 |
| 6.26%, 30-year PMMS one year earlier | $1,849.10 | $22,189 | 1.10 | $189 |
| 3.00%, stated comparison, not a survey print | $1,264.81 | $15,178 | 1.61 | $773 |
The 6.26% row is the year-ago 30-year survey print on this assumed loan, not the 15-year product, which was also 6.26% that week.[1] The 3.00% row is a stated assumption. The Freddie Mac page checked for this article does not show a 3% observation, and the row is not a claim that older loans all closed at 3.00%.
Annual principal and interest rises by $8,652 from the 3.00% case to 6.95%. Coverage falls by about 0.58 on the same NOI. The step from last year's 6.26% print to 6.95% costs about $137 a month on this balance.
At 6.95%, monthly PITI is $2,535.84: principal and interest, plus $400 of tax and $150 of insurance. Annual PITI is about $30,430. NOI already excluded tax and insurance, so dividing $24,455 by $30,430 gives about 0.80 and counts those bills twice. Use a PITI denominator only when the lender's numerator has not already removed them.
The Cash Flow Analyzer puts tax and insurance in operating expenses, then subtracts principal and interest. The $52 cash-flow line already includes both. Do not subtract PITI again under that line.
Cap rate is NOI divided by price, about 6.11% on these assumptions, at every rate in the table. The loan does not enter that formula. A property can look fine on cap rate and tight on coverage at the same time. Use the live Cap Rate Calculator for the unlevered view and the live Cash Flow Analyzer for the payment. Preview tools are not part of this walkthrough.
Type these assumptions over the sample values in the Cash Flow Analyzer. The sample rate is not the Freddie Mac survey. The tool has no DSCR field and does not approve loans.
Divide annual NOI by annual debt service for the ratio. The 6.95% principal-and-interest line displays as $1,986 because the page rounds to the nearest dollar. Replace the $3,200 rent with a lease or with comps you have. These expenses are audit assumptions, not a national operating statement.
Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed average at 6.95% as of September 17, 2026, and the 15-year average at 6.26%. That survey covers conventional conforming purchase applications. It is a public benchmark, not a DSCR product quote. Type your written loan quote into the model when you have one.
In this article's illustrative case, a $300,000 30-year loan costs $1,985.84 a month at 6.95% and $1,264.81 a month at a stated 3.00% rate. Net operating income stays $24,455 a year. Coverage is about 1.03 at 6.95% and about 1.61 at 3.00%. The 3.00% rate is an assumption, not a current survey print.
Use annual principal and interest in the denominator. This example's net operating income already subtracts property taxes and insurance. Dividing that NOI by full PITI counts those bills twice and drops the illustrative ratio from about 1.03 to about 0.80 at 6.95%. The check you mail can still be PITI. Keep that cash test on its own line.
No. The live Cash Flow Analyzer accepts the rate you type, along with price, down payment, term, rent, vacancy, taxes, insurance, maintenance, and a management fee. It itemizes net operating income and principal-and-interest debt service, then shows cash flow. It does not quote a lender, and the sample rate in the form is not the Freddie Mac survey.
No. It belongs only to the stated assumptions: a $400,000 price, a $300,000 loan, $3,200 monthly rent, 7% vacancy, $4,800 of taxes, $1,800 of insurance, $150 of monthly maintenance, and an 8% management fee. Change any input and the ratio changes. Do not treat 1.03 as a typical U.S. rental.
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