What is the Form 1007 on a DSCR loan?

Form 1007 is the Single-Family Comparable Rent Schedule, an appraiser's estimate of market rent for the property based on comparable rentals. For two-to-four-unit properties the equivalent is Form 1025. Lenders use this market-rent figure, often alongside your actual lease, to set the income in your DSCR.

Does the lender use my lease or the appraised rent?

Many DSCR lenders qualify on the lower of your signed lease and the appraiser's market rent. If your lease is below market, that lower number can pull your ratio down; if your lease is above what the appraisal supports, the appraisal usually wins. Either way, the appraised rent is the figure to watch.

Qualifying

The DSCR Loan Appraisal and 1007 Rent Schedule, Explained

Your DSCR is only as strong as the rent the appraisal supports. Lenders order a market-rent estimate, the Form 1007, and often qualify on the lower of that figure or your lease. Here is how the appraisal really decides your ratio.

By Owen Brandt, Research Editor. Updated June 13, 2026.

Investors obsess over the rate and forget that the appraisal sets the rent, and the rent sets the ratio. On a DSCR loan, the appraisal is not just a value check. It also produces the market-rent figure that goes into your DSCR, and that number can make or break the file.

What the appraisal includes

The value. The standard appraised value of the property, which drives your loan-to-value.
The market rent, Form 1007. For a single-family rental, the appraiser completes Form 1007, the Single-Family Comparable Rent Schedule, estimating market rent from comparable rentals. For two-to-four-unit property, the equivalent is Form 1025.

Lease versus appraised rent

Here is the part that surprises borrowers: many DSCR lenders qualify on the lower of your signed lease and the appraiser's market rent. So if your lease is below market, the lender may still use the lower lease figure, dragging your ratio down. If your lease is above what the appraisal supports, the appraised rent usually caps the income. The market-rent figure on the 1007 is therefore the number to watch, because it sets a ceiling and sometimes the floor on your qualifying income. To see how the rent figure moves the ratio, read how much rent you need to qualify and how to calculate DSCR.

How to prepare for the rent side of the appraisal

Know the comparable rents. Pull recent rentals near the property so you are not surprised by the 1007 figure.
Have the lease ready. If the property is leased at or above market, provide the signed lease, since it supports the income.
Document short-term income separately. For an Airbnb, market rent on a 1007 may understate the income; see DSCR loans for short-term rentals for how lenders handle that.
Mind condition. A property in poor condition can appraise low on both value and rent, so address obvious issues before the appraiser visits.

Your next step

Estimate the market rent honestly, run it through the DSCR calculator, and confirm your overall standing with the pre-qualifier before you order the appraisal.