DSCR Loans in Delray Beach: Seasonal Rentals, City Rules and Rent Math

Short answer

Yes, investors may qualify for a DSCR loan on a Delray Beach rental using rent instead of personal income, and with the Q3 2026 median house at $760,000, HUD's $2,920 benchmark rent for a 3-bedroom has to cover about $1,183 a month in property taxes before the loan payment (example only). In single-family zoning, Delray presumes a home that turns over more than six times a year is a transient residential use, which is prohibited there, so seasonal leases of a month or more fit better than nightly rentals. DSCR loans are business-purpose loans for non-owner-occupied property, subject to credit approval.

DSCR in brief, and Delray Beach prices in Q3 2026

A DSCR loan qualifies the property, not your tax return. The lender divides monthly rent by PITIA (principal, interest, taxes, insurance and association dues); many want 1.0 or higher. Our Florida DSCR requirements guide lists the down payment, credit, reserve and prepayment rules, and our DSCR loans page covers the program.

It is a business-purpose loan: you sign that you will not live in the home. A Delray condo you plan to use for part of the winter is a second home, not a DSCR rental. For that, start at our Delray Beach mortgage broker page.

Florida Realtors data published by MIAMI REALTORS for the City of Delray Beach, third quarter of 2026:

• Single-family homes: 126 sales at a median of $760,000 (up 0.3% year over year), 32 days to contract, 4.7 months of supply; 69 of the 126 closed in cash.
• Townhouses and condos: 139 sales at a median of $320,000 (up 15.1%), 51 days to contract, 5.7 months of supply; 81 closed in cash.

More than half of Delray buyers in both segments paid cash. A financed DSCR buyer competes best with a clean pre-approval, a short appraisal window and proof of reserves ready at offer.

Delray's vacation rental rule: the six-turnover test

Delray Beach does not run a vacation rental license. It regulates short stays through its Land Development Regulations, using a concept called Transient Residential Use (TRU).

• Ordinance 21-26, which the City Commission passed on April 21, 2026, put back the turnover test from the city's 2009 Ordinance 29-09. Under it, in single-family, rural residential and planned residential districts, a dwelling unit that turns over occupancy more than six times in one year is presumed to be a TRU, and therefore prohibited.
• The same six-turnover presumption applies in the RL and RM districts. The RM (medium density) district lists TRU as a permitted use, subject to LDR Section 4.3.3(ZZZ).
• Owners and their family are exempt no matter how much time they spend at the unit. Hardship waivers go to the Community Improvement Director, and violations are enforced under Section 10.99 of the city code.

Why can Delray do this? Florida Statutes 509.032(7)(b) bars local rules that prohibit vacation rentals or regulate how often they are rented, but it does not apply to rules adopted on or before June 1, 2011. City staff told the Planning and Zoning Board in February 2026 that the later three-turnover limit could not be enforced for that reason, which is why the city went back to the 2009 language.

Practical reading: in a single-family neighborhood, plan on six or fewer tenancies a year. Before you buy, ask Development Services (561-243-7040) to confirm the zoning district and how the rule applies to that parcel, in writing.

Seasonal leases: taxes, permits and how lenders count the rent

Delray's winter season suits a different model: a few furnished leases of one to several months each. That keeps turnovers under the six-a-year presumption, but it brings guest taxes.

• Tourist Development Tax: the Palm Beach County Tax Collector charges 6% on revenue from transient rentals of six months or less. Anyone offering them must register a TDT account online.
• State sales tax: the TDT is in addition to state sales tax, which the Tax Collector lists as 6.5% in Palm Beach County.
• Landlord permits: the city's landlord page says Delray Beach no longer requires landlord permits or renewals, because of state legislation effective October 1, 2023.
• Business Tax Receipt: the city's 2026 fee schedule lists $190.30 per business type and an apartment fee of $7.74 per room (kitchens and bathrooms excluded), for an October 1 to September 30 year. Ask the BTR office whether your rental needs one.

How lenders count seasonal income varies. Many DSCR lenders size the loan on the appraiser's long-term market rent. Some accept a 12-month history of short-term or seasonal income from bank deposits or platform statements. A house that rents for a strong winter but sits empty in summer can look weak on a monthly average, so we shop the program that matches how you will actually rent it.

Delray Beach property taxes on a rental

The Palm Beach County Property Appraiser's 2026 proposed rates for Delray Beach (district 12) are 6.4371 mills for city operations plus 0.0289 for debt service, 6.4660 mills for the city. Countywide levies that every Delray owner pays include:

• Palm Beach County 4.5210 (operating and debt), School Board 6.2870, Health Care District 0.6561, Children's Services 0.4908, South Florida Water Management District 0.2301 and F.I.N.D. 0.0270.

Those rows add up to about 18.68 mills. Treat that as a floor: properties in the downtown Delray Beach DDA pay another 1.0000 mill, and other special districts or non-ad valorem fees may apply. Your TRIM notice or the appraiser's site shows the exact list for a folio.

A rental gets no homestead exemption. Florida caps yearly assessment increases on non-homestead residential property with nine or fewer units at 10% (F.S. 193.1554), but a new buyer starts near market value, so do not underwrite on the seller's current bill.

Delray's coastal location also matters. The city's flooding page warns of tidal flooding, storm surge and heavy rainfall, and says a city analysis found 85% of waterfront parcels need seawall upgrades. On a waterfront house, ask about the seawall's condition and pull the FEMA flood zone before you lock in the insurance number.

Example only: DSCR math with Delray Beach numbers

HUD's FY2026 Fair Market Rents for the West Palm Beach-Boca Raton area are $1,788 (studio), $1,901 (1 bedroom), $2,254 (2), $2,920 (3) and $3,388 (4). They are benchmarks, not the appraiser's rent, but they keep the first pass honest.

• Median house, $760,000: at about 18.68 mills, taxes run roughly $14,195 a year, or $1,183 a month. With $2,920 of rent, about $1,737 is left for principal, interest and insurance at a 1.0 ratio. At $3,388 for a 4-bedroom, about $2,205 is left.
• Median condo, $320,000: taxes run roughly $5,977 a year, or $498 a month. Against $2,254 for a 2-bedroom, about $1,756 remains for principal, interest, insurance and association dues.

At the median house price, the ratio usually needs a larger down payment or above-benchmark rent. Condos are closer, but association dues and building insurance can swing the result, and some lenders will not lend in buildings with rental limits or open safety repairs.

Rates vary daily; call 305-425-1990 for today's pricing and a ratio run on your property. Figures assume taxable value near the price.

How QMS handles a Delray Beach DSCR loan

Quality Mortgage Solutions is an independent mortgage broker in Miami, FL (NMLS #1781090), founded in 2018 and led by President Michael Fernandez (NMLS #1491775). We shop 100+ lenders and work in English and Spanish.

• Tell us how you plan to rent: annual lease, seasonal or a mix. That decides which DSCR programs fit.
• Send the address so we can check the zoning district against the six-turnover rule and any condo rental limits.
• Have your LLC documents, reserves and any rental history ready. We order the rent schedule with the appraisal.

Comparing Delray with Boca? See our Boca Raton DSCR guide or West Palm Beach DSCR guide. Buying 5 or more units or mixed-use? That is a commercial loan. Call 305-425-1990. Subject to credit approval.