DSCR Loans in West Palm Beach, FL: Rental Rules, Tourist Tax and the Rent Math

Short answer

Yes, investors may qualify for a DSCR loan on a West Palm Beach rental using the property's rent instead of personal income: at the Q3 2026 median house price of $599,500 and HUD's $2,920 benchmark rent for a 3-bedroom, taxes and insurance alone take about $1,469 of that rent each month (example only). Short-term income only helps if the unit holds the city's rental receipt and Certificate of Use, a state vacation rental license and a Palm Beach County tourist tax account. DSCR loans are business-purpose loans for non-owner-occupied property, subject to credit approval.

DSCR in one line, and the West Palm 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 occupy, see FHA in West Palm Beach or jumbo loans in West Palm Beach.

Florida Realtors data published by MIAMI REALTORS for the third quarter of 2026, as of October 2026:

• Houses: 222 sales at a median of $599,500, a median of 59 days to contract and 4.1 months of supply. 110 sales were cash.
• Condos and townhouses: 186 sales at a median of $316,000, 77 days to contract and 8.0 months of supply. 89 sales were cash.

Half of the house sales were cash, so investors compete with buyers who do not need an appraisal. A DSCR pre-approval with the rent already estimated makes your offer stronger. Condo supply of 8 months gives you more room to negotiate, but check the association's rental rules before you write the offer.

City of West Palm Beach rental rules a lender may ask about

Every rental in the city, long-term or short-term, needs a rental business tax receipt and a Certificate of Use. Per the city's rental tax application, as of October 2026:

• Rental receipt: $38.59 per single-family home, townhome or condo unit; $33.08 per apartment unit. Receipts expire every September 30.
• Zoning review first: $10 for one unit, $20 for multiple units. Only after zoning passes do you schedule inspections: a $25 code inspection, plus a fire inspection for 3 or more units under one roof (from $35 for 3 to 11 units). Condos do not get a fire inspection.
• Certificate of Use: $50 the first year, $20 a year after. COUs are not transferable, so as a new owner you apply in your own name after closing. Email applications take about 5 to 7 business days.
• Owners outside Palm Beach County must name a local agent in writing (City Code Sec. 22-31) before a receipt is issued.

Vacation rentals. The city's code (Sec. 94-611) defines a short-term vacation rental as one rented for a minimum of seven consecutive days, and the city asks for your State of Florida vacation rental license from DBPR. Florida Statutes 509.032(7) bars local rules that prohibit vacation rentals or regulate how long or how often they rent, unless the rule was adopted on or before June 1, 2011. How the city's seven-day minimum applies to your address is a question to confirm with Development Services (561-805-6700) before you count on nightly income. A condo or HOA can ban short stays on its own, regardless of city rules.

Palm Beach County tourist tax: you collect it, not the platform

Palm Beach County's Tourist Development Tax is 6% of rent on stays of six months or less, collected by the county Tax Collector. As of October 2026, per pbctax.gov:

• Plus state sales tax. Guests also pay 6.5% sales tax in Palm Beach County, so a short stay carries 12.5% in taxes on top of rent.
• Fees are taxable. Mandatory charges such as cleaning and pet fees are part of the taxable rent.
• Platforms do not remit the county tax. The Tax Collector states that online platforms do not remit TDT to it. The host, or the host's agent, registers, collects and files.
• Monthly returns. Returns are due on the 1st and late after the 20th, with penalties and interest. File a $0.00 return in months with no bookings, or late fees follow.
• Registration. Create an account in the TDT portal for each rental and get a short-term rental local business tax receipt for each one.

The tax is paid by the guest, so it does not go into your DSCR ratio. But lenders that count short-term income usually want a documented booking history, and clean TDT filings are the easiest way to show that income is real and legal.

Example only: DSCR math with West Palm 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 West Palm Beach-Boca Raton area, used only as a long-term benchmark. Taxes use 20.3961 mills, the sum of the 2026 proposed rates the Palm Beach County Property Appraiser lists for a city address outside the Downtown Development Authority (DDA parcels add 2.0000). Insurance and HOA dues are assumptions.

House at $599,500, 3 bedrooms, rent $2,920:

• Taxes about $12,227 a year, or $1,019 a month. Assumed insurance: $450 a month. Taxes plus insurance: $1,469.
• At a 1.0 DSCR, PITIA can be $2,920, leaving about $1,451 a month for principal and interest.
• At a 1.25 DSCR, PITIA can be $2,336, leaving about $867.

Condo at $316,000, 2 bedrooms, rent $2,254:

• Taxes about $6,445 a year, or $537 a month. Assumed HOA dues $650 and HO-6 policy $125 a month. Total: $1,312.
• At 1.0, about $942 a month for principal and interest. At 1.25, about $491.

Taxes reset at purchase on a rental, because there is no homestead. Under Florida Statutes 193.1554, the property is assessed at just value the January 1 after you buy, then non-school taxes are capped at 10% a year; the school board's 6.2870 proposed mills are not capped. A proposed constitutional amendment on the November 3, 2026 ballot would cut that cap to 5% from 2027 if 60% of voters approve. Rates vary daily; call for today's pricing to turn the principal-and-interest room into a loan amount.

What the numbers say, and how we work the file

At median prices and benchmark rents, the house has more room than the condo, because condo dues take a big bite. A condo deal at 1.25 usually needs a larger down payment, a lower price or rent above the benchmark that the appraiser supports. On houses, 4.1 months of supply means you can still negotiate price, which helps the ratio more than anything else.

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: zoning, receipt and COU status, condo or HOA rental rules, and flood zone.
• 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 where it is allowed.

Need to renovate first? A hard money loan in West Palm Beach can come first, with a DSCR refinance after. Comparing markets? See DSCR loans in Fort Lauderdale. 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. Equal Housing Opportunity.