Each week I run all 1–4 unit homes for sale in the city of Indianapolis through one test: would a 12-month lease cover principal, interest, taxes, insurance and HOA? That's DSCR 1.0, the test a DSCR lender uses.

Today's list (Oct 29):

- 20% down: 849 homes pass
- 25% down: 1,184 pass
- 30% down: 1,551 pass

That's out of 3,501 homes I could price, of 4,556 listed. Roughly 1 in 3 at 25% down. For comparison, the Sarasota metro was 1 in 25 this week.

Where they are, at 25% down. Five ZIPs hold almost half:
- 46201: 151 of 268
- 46203: 128 of 260
- 46218: 111 of 154
- 46219: 81 of 150
- 46208: 71 of 144

At the other end, 46260 has 3 of 83 and 46256 has 3 of 65.

What they are: 1,062 single-family homes, most priced $140k to $217k, typically 3 beds. 88 duplexes to fourplexes, around $219k. 30 condos, around $149k.

What it doesn't count: vacancy, repairs, capex and management. This is the lender's test, not cash flow. A home right at 1.0 still has to carry all of that on top.

Assumptions: 30-year loan at 7.25% (7.625% for 2–4 units). Taxes at 2% of price, since Indiana caps tax on rental property at 2% of assessed value. Insurance from Indiana defaults. HOA as listed. Rents are two independent estimates for a 12-month lease, never short-term. Site-built resale only, so manufactured homes and new construction are left out.

If you own rentals in 46201 or 46218: what are 3-bed leases actually getting right now?

Disclosure: I run NetsPositive, the screener these counts come from.