PITIA (Principal, Interest, Taxes, Insurance & Association Dues)
Bottom Line Up Front (BLUF): PITIA stands for Principal, Interest (or Interest-Only payment), Property Taxes, Landlord Hazard/Flood Insurance, and HOA/Condo Association Dues. Property management fees and utilities are excluded from standard 1–4 unit residential DSCR PITIA.
Underwriting Formula / Rule
PITIA = Monthly P&I (or IO) + (Annual Taxes ÷ 12) + (Annual Insurance ÷ 12) + Monthly HOA.
Wholesale Shelf Benchmark
Interest-Only (IO) 10-year options reduce the "P" to $0 during the IO period, boosting DSCR coverage.
Frequently Asked Underwriting Questions
Are property management fees subtracted in a 1–4 unit DSCR calculation?
No. Standard 1–4 unit DSCR uses gross rent divided by PITIA without deducting management or maintenance reserves.
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