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Medford, OR DSCR LoansAppreciation Market

DSCR Loans in Medford, OR

Finance investment properties in Medford with a DSCR loan. Qualify based on rental income, not tax returns. Median rent at $1,450/mo with +3.5% annual growth.

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$1,450/mo
Median Rent
$380K
Median Home Price
+3.5%
Rent Growth (YoY)
225K
Metro Population

Market data updated 2026-01-30

Medford Market Snapshot

Why Invest in Medford?

  • Rogue Valley hub with healthcare as the dominant employment sector
  • Wine country and outdoor recreation attract tourism and lifestyle renters
  • More affordable than Portland or Bend with steady population growth

Key Economic Drivers

TechnologyHealthcareManufacturing
Median Rent
$1,450/mo
Rent Growth
+3.5%

Property Types We Finance

Single FamilyMulti-Family2-4 Units

Popular Investment Areas

DowntownEast MedfordAshlandCentral Point

Metro Population

225K

Medford metro area — a strong tenant pool for rental property investors.

DSCR Analysis

Example DSCR Calculation for Medford, OR

Here's how a typical DSCR loan works using Medford's actual market data.

Loan Structure

Purchase Price$380,000
Down Payment (20%)$76,000
Loan Amount$304,000
Interest Rate7.5%

Monthly Costs (PITIA)

Principal & Interest$2,126
Property Tax (0.97% rate)$307
Insurance$133
Total PITIA$2,566

DSCR Result

Monthly Rent
$1,450
÷
Monthly PITIA
$2,566
=
DSCR Ratio
0.57

Based on Medford's median home price of $380,000 and median rent of $1,450/month, a typical DSCR investment produces a challenging DSCR ratio. Investors may need a larger down payment (25-30%) to improve the ratio, or should target properties priced below the median. With a 20% down payment of $76,000, the monthly PITIA (principal, interest, taxes, insurance) comes to $2,566. The local property tax rate of 0.97% and annual insurance cost of $1,600 are factored into this calculation.

Estimated Cap Rate
2.6%
Medford's estimated cap rate is 2.64%, indicating a premium market where investors rely primarily on appreciation.
Market Comparison

Medford vs. Oregon Average

How Medford's rental market compares to the Oregon statewide average.

Median Rent
$1,450/mo
↓ 19.4% below state avg
Median Home Price
$380K
↓ 13.6% below state avg

Medford's median rent of $1,450/month is 19.4% below the Oregon state average of $1,800/month. Home prices at $380,000 are 13.6% below the state average of $440,000.

Investment Strategy

Medford Investment Strategy: Appreciation

Medford represents a smaller-market appreciation strategy where local fundamentals like technology and healthcare drive steady value gains. With $1,450/mo rents and $380K prices yielding a 4.58% ratio, investors benefit from both cash flow and modest appreciation. Target Downtown for premium tenants or East Medford for better cap rates.

DSCR Ratio
0.57
Cap Rate
2.6%
Vacancy Rate
7.3%
Tax Rate
0.97%

Short-Term Rental Regulations in MedfordModerate

Medford requires short-term rental operators to obtain permits and comply with local zoning regulations. Review current city and county ordinances before listing a property.

FAQ

DSCR Loan Questions for Medford

What's the typical DSCR requirement for Medford investment properties?
The DSCR is calculated by dividing monthly rental income by PITIA (Principal, Interest, Taxes, Insurance, Association fees). In Medford, with a 0.97% tax rate adding roughly $307/month to expenses, investors should target properties where rents exceed total monthly costs by at least 10-25%.
Is 20% down enough for a DSCR loan on a Medford property?
Total cash needed for a Medford investment property includes down payment (typically 20-25%), closing costs (2-4%), and reserves (6 months PITIA). For a median-priced property at $380K, plan for approximately $106,400 total cash to close and maintain required reserves.
What are the best neighborhoods for investment in Medford?
Investor-friendly areas in Medford include Downtown, East Medford, Ashland, Central Point. Check local STR regulations before purchasing vacation rental properties.
Are Airbnb properties eligible for DSCR loans in Medford?
Yes, DSCR loans can finance Medford Airbnb properties. Key requirements: valid STR permit/license, 20-25% down, proof of rental projections, and typically 9-12 months reserves. Consider whether STR or long-term rental better suits your investment goals.
What should I budget for property taxes in Medford, OR?
Property tax rates in Medford, Oregon average approximately 0.97% of assessed value. For a property at the median price of $380K, this translates to roughly $307/month in property taxes, which is factored into DSCR calculations.
What's driving rental demand in Medford?
Medford's vacancy rate of 7.3% is above national averages. Factor this into cash flow projections; strong property management is essential.
What appreciation rate can I expect in Medford?
Medford's historical appreciation has outpaced state and national averages, driven by Technology and Healthcare employment growth. While past performance doesn't guarantee future returns, Medford's rogue valley hub with healthcare as the dominant employment sector suggests continued upward pressure on values. DSCR investors should focus on total return (appreciation + income) rather than cash flow alone.

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