DSCR Loans in Pompano Beach, FL: Short-Term Rental Permit, Taxes and the Rent Math

Short answer

Yes, investors may qualify for a DSCR loan on a Pompano Beach rental using the property's rent instead of personal income: at the Q3 2026 median house price of $507,500 and HUD's $3,216 benchmark rent for a 3-bedroom, taxes and insurance take about $1,329 of that rent each month (example only). Short-term income only counts if the property holds Pompano Beach's annual short-term rental permit, which needs state, county and city registrations, a clean code and lien record, and a multi-department inspection. DSCR loans are business-purpose loans for non-owner-occupied property, subject to credit approval and property eligibility.

DSCR in one line, and the Pompano Beach market

The full requirements (ratio, down payment, credit, reserves, prepayment terms) are in our Florida DSCR requirements guide. In short, DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance and association dues). Many lenders look for 1.0 or higher, and a higher ratio can improve pricing.

DSCR is a business-purpose loan. You sign a business-purpose and occupancy statement, and you cannot live in the property. For a home you will live in, start with our Pompano Beach mortgage broker page.

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

• Houses: 159 sales at a median of $507,500 (up 1.5% from a year earlier), a median of 67 days to contract and 4.6 months of supply. 49 sales were cash.
• Townhouses and condos: 238 sales at a median of $275,000 (up 10.0%), 86 days to contract and 9.1 months of supply. 133 sales were cash.

Houses are a financed market: about two of three buyers borrowed, so a DSCR pre-approval with a clean rent analysis competes well. Condos are the opposite: more than half sold for cash and supply sits above nine months. That gives a buyer room to negotiate, but only if a DSCR lender will finance the building, which in Pompano often means checking an older beachside tower's inspections and reserves first.

Pompano Beach's short-term rental permit: what the lender will ask for

Pompano Beach defines a short-term rental as a dwelling rented by the day, week or month for a term of six months or less in a calendar year, and requires an annual permit to operate one in a residential zoning district. As of November 2026, per the city's website, application checklist and Chapter 153 of the city code:

• Before you apply: a Florida DBPR Transient Public Lodging Establishment license, a Florida Department of Revenue certificate of registration in the owner's name, a Broward County Tax Collector tourist development tax account, and business tax receipts from both Broward County and the City of Pompano Beach.
• Owner only. The permit is issued only to the owner shown in the Broward County Property Appraiser's records, one owner and one property per permit. A new owner needs a new permit, so on a purchase you apply after the deed records. Budget a gap before nightly income starts.
• Clean record. You must show no pending code violations and no unsatisfied liens on any Pompano Beach property you own.
• Plans and lease. A site plan showing property lines, parking spaces, pools, spas, garbage storage and fences; an interior floor plan with bedrooms, exits and fire extinguishers; and your standard rental agreement.
• Inspection. Once approved, an inspection is scheduled with several city departments, by appointment with your local designated representative, who must have a 24-hour phone number.
• Fees: $675 for a single-family home or duplex, $750 for a triplex or quadplex, $375 to renew. Permits run October 1 to September 30; a late renewal adds 25%, and a withdrawn application keeps a $100 fee.
• Revocation risk. Two or more code violations within 90 days, repeated off-street parking violations, or ignoring three city contact attempts can cost you the permit or the renewal.

Condos: the association can restrict or ban short stays on its own, and many oceanfront buildings do. Read the declaration before you count nightly income.

Guest taxes and Broward property taxes in Pompano Beach

Tourist Development Tax. Broward County charges 6% on rent for stays of six months or less, as of November 2026. The person who receives the rent charges it, collects it and files it; returns are due on the 1st and late if not postmarked by the 20th, with a minimum $50 penalty. Add Florida's 6% sales tax and Broward's 1% surtax for 2026 and a short stay carries 13% in taxes on top of rent. The guest pays it, so it is not part of your DSCR, but the city will not issue the permit without the tax accounts.

Property taxes. The Broward County Property Appraiser lists 2026 proposed operating millage for a Pompano Beach address of 5.1920 (city), 0.5000 (Pompano Beach EMS), 5.6658 (county), 6.2940 (school board, two levies), 1.2391 (North Broward Hospital District), 0.4500 (Children's Services Council), 0.2301 (three South Florida Water Management District levies) and 0.0270 (Florida Inland Navigation District). That totals about 19.60 mills, roughly 1.96% of taxable value, before voted debt levies.

There is no homestead on a rental. Under Florida Statutes 193.1554, a rental of nine or fewer units is reassessed at just value on January 1 after you buy, then annual increases are capped at 10% for non-school levies. Underwrite taxes on your price, not the seller's bill.

Flood maps and insurance near the Intracoastal

Pompano's 2026 flood mailer, as of November 2026, says a new set of FEMA flood maps for areas near tidal water bodies took effect July 31, 2024. If a seller's flood quote or elevation certificate predates that, ask for a new one.

• Discount: the city says most flood policyholders are eligible for a 20% premium discount through its floodplain management program.
• Waiting period: a new flood policy usually takes 30 days to take effect, so order it early in the contract period, not the week of closing.
• Site visits: the city's Building Division (954.786.4669) gives flood zone information and can visit a site to discuss property protection.

Your lender can require flood insurance on the building, and DSCR lenders typically do in high-risk zones. Insurance, not taxes, is usually the line that breaks a beachside condo deal: the master policy shows up in the dues. See what a flood zone means for your loan and run the building through the condo questionnaire for reserves and SIRS status.

Example only: DSCR math with Pompano Beach numbers

Example only, not a quote or an approval. Prices are the city's Q3 2026 medians. Rents are HUD's FY2026 Fair Market Rents for the Fort Lauderdale HMFA (Broward County), used only as a long-term benchmark. Taxes use the 19.60 mills above on the full price. Insurance and HOA dues are assumptions.

House at $507,500, 3 bedrooms, rent $3,216:

• Taxes about $9,946 a year, or $829 a month. Assumed insurance: $500 a month. Taxes plus insurance: $1,329.
• At a 1.0 DSCR, PITIA can be $3,216, leaving about $1,887 a month for principal and interest.
• At a 1.25 DSCR, PITIA can be $2,573, leaving about $1,244.

Condo at $275,000, 2 bedrooms, rent $2,333:

• Taxes about $5,389 a year, or $449 a month. Assumed HOA dues $750 and HO-6 policy $125 a month. Total: $1,324.
• At 1.0, about $1,009 a month for principal and interest. At 1.25, about $542.

On HUD's benchmark rent, Pompano's median house has far more room than a median house in Boca Raton. The condo math depends almost entirely on dues: every $100 of extra dues or a special assessment comes straight out of the principal-and-interest room. Rates vary daily; call for today's pricing to turn that room into a loan amount.

How we work a Pompano Beach DSCR file

QMS Lending is an independent mortgage broker in Miami, FL (NMLS #1781090), founded in 2018, with access to 100+ lenders, including DSCR lenders with different rules on short-term income, condos and LLC vesting. Our order of work:

• Check the address: flood zone on the 2024 maps, open code cases and liens, the condo's inspection and rental rules, and whether the city permit is realistic.
• Build PITIA with taxes on your price, real wind, flood and HO-6 quotes, and full dues.
• Run the ratio on long-term rent first, then on documented short-term rent once the permit and the association allow it.

Need to renovate first? A bridge loan can come first, with a DSCR refinance after. Comparing markets? See DSCR loans in Fort Lauderdale, DSCR loans in Hollywood or DSCR loans in Boca Raton. Call 305-425-1990 in English or Spanish. Michael Fernandez, NMLS #1491775, President; 4.9 stars across 200+ Google reviews. Business-purpose loans only. Subject to credit approval and property eligibility. Equal Housing Opportunity.