Commercial 5+ Unit DSCR
Analyze multifamily underwriting economics: Effective Gross Income (EGI), Net Operating Income (NOI) and the expense-ratio check.
Some of the data behind these figures is out of date. The figures are illustrative until it is refreshed.
- ZIP-level homeowners premiums (calculator ZIP seed): last verified January 2022, past its 365-day review cycle.
Adjust the deal inputs — results update as you type.
How the number is built
- Start with scheduled rent
$12,000/mo across 8 units at full occupancy.
- Take out vacancy and collection loss
5% vacancy leaves $11,400/mo of effective gross income.
- Subtract operating expenses
$4,000/mo of expenses leaves $7,400/mo of net operating income.
- Divide by debt service
$83,906/yr on a 30-year loan gives 1.06x, read against the 1.25x benchmark.
Go deeper
- Effective Gross Income (EGI)
- $11,400/mo
- Operating Expenses
- $4,000/mo
- Net Operating Income (NOI)
- $7,400/mo
- Annual Debt Service
- $83,906/yr
A 5+ unit file is underwritten the commercial way, on the building's operating statement rather than on one rent figure:
- Effective gross income (EGI): gross scheduled rent, less vacancy and collection loss.
- Net operating income (NOI): EGI less operating expenses — taxes, insurance, management, maintenance and reserves.
- DSCR: annual NOI divided by annual debt service, the principal and interest on the loan over the amortization shown under Held fixed.
- Expense ratio: operating expenses as a share of EGI. When it looks understated, the tool flags the file so the tax, insurance, management and reserve line items get verified.
That is a different ratio from the 1–4 unit DSCR, which divides the qualifying rent by the full PITIA. Here taxes and insurance sit inside operating expenses instead of inside the payment.
The verdict reads PASS at or above the commercial-bank benchmark shown under Held fixed, MARGINAL when the building covers its debt service (1.00x or better) but sits under that benchmark, and FAIL below 1.00x. The benchmark is the convention this calculator applies, not one of Greenstreet's own published programs.
The published programs that take 5+ units price to their own floors for a multi-family file: Greenstreet Birch at 1.10x and Greenstreet Magnolia at 1.00x. Greenstreet Magnolia's published collateral includes “5-9 units”, “Mixed-use & commercial-zoned” and “Agricultural, co-op, leasehold”.
Larger multifamily and mixed-use properties require property-specific income, expense, valuation and program review, so treat the verdict here as a screen, not an eligibility decision.
Keep readingGlossary: NOIGlossary: EGIDSCR loan requirements: property typesFAQ: property typesDSCR Loan Requirements
Held fixed: 30-year amortization and the 1.25x commercial-bank benchmark. That benchmark is not one of Greenstreet's published 5+ unit programs.
Expense-ratio check: commercial buildings usually run 35-45% operating expenses against income; a much lower figure suggests understated costs.
Not a commitment: indicative only and subject to full underwriting.
Printed November 9, 2026 · http://127.0.0.1:45643/tools/commercial-dscr
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