1st Advantage MortgageWashington is expensive and regulated, which makes the ratio the central test. A DSCR loan qualifies the rental on rent against payment, with no tax returns, and rewards investors who underwrite carefully.
High prices and a statewide cap on rent increases
In 2025 Washington enacted a statewide limit on how much a landlord can raise rent on an existing tenant during a year, and the cap is published each year by the state. For an investor, that changes the way you think about growth: model modest rent increases and stronger initial pricing for new tenants. Prices are high on the Puget Sound, so loan size and down payment are significant. The Inland Empire around Spokane, the Tri-Cities and Vancouver across from Portland offer different price levels and renter profiles.
Where Washington investors look
Technology and healthcare employers. High prices and heavy regulation make the ratio demanding.
Joint Base Lewis-McChord, a port and relatively more affordable housing, with military turnover.
An inland regional hub with healthcare, universities and an air force base.
A suburb of Portland across the river with commuter renters.
A university town on the north coast and an energy and agriculture economy in the southeast.
What you will probably be buying
Single-family houses, townhomes and condos dominate, with duplexes and small buildings in older neighborhoods and increasingly in newer middle-housing projects.
Costs and details to price in before you offer
The statewide limit on increases for existing tenants affects growth assumptions. Check the current published limit and exemptions.
Standard policies often exclude earthquake coverage. Wildfire exposure matters east of the Cascades.
Large loans and large down payments make the numbers sensitive.
Run it, then apply
Put the real tax and insurance figures into the calculator, check the requirements, and if this is your first rental read the first-time guide. Ready? Apply now or get a DSCR quote.
Nearby states
DSCR loans are business-purpose loans on investment property. Availability in Washington depends on the property, the borrower and the lender program, and this page is not an offer to lend. See our disclosures.
More Washington city guides
Local pages for 1 more Washington markets, each with neighborhoods, property types and checks specific to that city.
Frequently asked questions
Does Washington's rent cap affect my DSCR loan?
The lender underwrites current rent, not future increases. But the cap shapes your own projections of growth for existing tenants, so use conservative assumptions.
Is Tacoma a military-turnover market?
Partly, because Joint Base Lewis-McChord is nearby. Plan for tenants who leave when orders change.
Can I count Seattle ADU rent?
Depending on the lender, programs allow additional units, such as accessory dwelling units, to count. It depends on the program and how the appraiser documents it.