Property Tax & Insurance Estimator

These are estimates based on statewide effective property tax rates and broad regional insurance risk tiers. Actual property taxes vary significantly by county, municipality, and individual assessment. Actual insurance premiums depend on the specific property, its age, construction type, proximity to hazards, and the insurance carrier. Always obtain a real tax bill and insurance quotes before finalizing your DSCR underwriting. These numbers are useful for initial screening, not for submission.

The effective property tax rate is the actual tax paid as a percentage of the property's market value — accounting for assessment ratios, homestead exemptions, and other adjustments. It differs from the nominal statutory rate, which may apply to an assessed value that's a fraction of market value. For investment properties, the effective rate is the more useful number because it reflects what you'll actually pay as a percentage of what you paid for the property.

In many states, owner-occupied properties receive a homestead exemption that reduces assessed value — sometimes by $25,000–$50,000 or more. Investment properties typically don't qualify. When estimating taxes on a rental property, use the full assessed value without any homestead exemption. In Florida, for example, owner-occupied homesteaders pay significantly less than non-homestead investors on the same property value.

Insurance premiums depend on geographic hazard risk (hurricane, tornado, wildfire, flood), property type, age and construction, distance to fire station, claims history, and the carrier's own risk appetite. States like Florida, Louisiana, and Texas have high baseline premiums due to hurricane exposure. California has high premiums in wildfire zones. The tool uses broad risk tiers (low/mid/high) based on state — actual quotes can vary 30–50% around these estimates.

No — flood insurance is separate from standard hazard insurance and is not included in this estimator. If a property is in a FEMA Special Flood Hazard Area (SFHA), flood insurance is required by lenders and can run $1,200–$3,600/year or more for standard NFIP policies. Private flood insurance may be higher or lower. Add flood insurance manually to your PITIA calculation if applicable.

Condos have two insurance components: the condo association's master policy (covers the building exterior and common areas — paid through HOA dues) and the unit owner's HO-6 policy (covers interior and personal liability). For DSCR underwriting, the HO-6 policy premium is what counts as insurance in PITIA. HO-6 premiums are lower than full SFR policies — typically 0.35–0.60% of unit value — because the structure coverage is shared through the HOA.

Call 2–3 insurance agents who specialize in investment properties. Give them the property address, year built, square footage, and confirm it's a non-owner-occupied rental. For short-term rentals, you'll need a specialty STR policy — standard landlord policies typically exclude STR activity. Get quotes before submitting the loan application so you have an exact premium for the PITIA calculation.

In most states, yes — the property is re-assessed at or near the sale price upon transfer of ownership. In California (Prop 13), property is assessed at purchase price and can only increase 2% per year. In states that reassess at sale, budget for the full market-value tax from day one of ownership. Some counties send the new tax bill 6–12 months after closing, so budget accordingly for the first year.