1st Advantage MortgageA DSCR loan in Lake Charles turns on rent versus payment. Citywide medians from the Census are $1,109 a month for rent, $214,300 for home value and $774 a year for real estate taxes.
Lake Charles rental market at a glance
For Lake Charles, the latest five-year ACS shows a median gross rent of $1,109 (close to the Louisiana median of $1,064) and a median owner-occupied value of $214,300 (close to the Louisiana median of $216,500). The gross rent-to-value ratio for Lake Charles works out to 6.2% (twelve months of median rent divided by median value), neither especially thin nor especially rich. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | Louisiana | Lake Charles | Difference |
|---|---|---|---|
| Tax as a share of home value | 0.55% | 0.36% | -34% |
| Annual property tax bill, median | $1,180 | $774 | -34% |
| Household income, median | $60,756 | $59,235 | -3% |
| Typical owner-occupied value | $216,500 | $214,300 | -1% |
| Persons per household | 2.49 | 2.46 | |
| Share in 2-4 unit buildings | 7.9% | 9.1% | +15% |
| Share of homes detached | 65.3% | 67.6% | +3% |
| Long commuters, 45 min plus | 15.2% | 4.1% | -73% |
| Degree holders, age 25+ | 27.0% | 29.1% | +8% |
| Workers on their own account | 10.6% | 11.1% | +4% |
| Renters paying 30%+ of income | 54.8% | 57.4% | +5% |
| Units sitting vacant | 14.4% | 21.3% | +47% |
| Typical construction year | 1983 | 1981 | |
| Annual rent divided by value | 5.9% | 6.2% | +5% |
| Residents (Census estimate) | 4,611,961 | 81,143 |
Roughly 39.1% of occupied housing in Lake Charles is rented, about 20% above the Louisiana median of 33%. Household income runs a median $59,235 (close to the Louisiana median of $60,756), while 57% of renters spend 30 percent or more of income on housing.
Property types and condition in Lake Charles
With 68% of units detached, Lake Charles is a single-family market first. Investors mostly buy houses, and the rent evidence comes from similar houses nearby. Median year built is 1981, so many homes are reaching the age when major systems need replacing.
The Census counts 21% of Lake Charles housing units as vacant, with a rental vacancy figure of 12.6%.
What stands out in Lake Charles
A 6.2% gross yield makes Lake Charles a market where the ratio is achievable but not automatic. A few hundred dollars of extra insurance or dues can decide a borderline file. With a 1981 median build year, the question for each property is when the roof and HVAC were last replaced. A 39% renter share is large enough to keep units leased, so location relative to jobs and schools drives rent more than the market as a whole.
What costs can do to a Lake Charles ratio
In Lake Charles the median tax bill for an owner-occupied home is $774, or about 0.36% of value (Louisiana overall: 0.55%). That bill is well below the Louisiana median of $1,180. Compared with annual median rent, the tax line is about 6%.
For hazards, FEMA's National Risk Index puts Calcasieu County at a relatively high overall rating, and its top-ranked hazards are lightning (very high), hurricanes (very high) and tornadoes (relatively high).
| Hazard in Calcasieu County, FEMA index | Level |
|---|---|
| Riverine flooding exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Hurricanes exposure | Very High |
| Lightning exposure | Very High |
| Social vulnerability score | Relatively High |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively High |
Insurance belongs in the ratio from day one, so get a landlord quote for the Lake Charles address and ask about roof age, wind or hail deductibles and flood cover.
A worked DSCR test for Lake Charles
Take the median rent ($1,109), subtract median taxes spread over twelve months ($64), and you have $1,044 of room at a 1.00 ratio. A lender asking for 1.25 cuts that to $823. Real quotes for the address decide the rest.
Rules a Lake Charles landlord should check
We have not confirmed a city-specific rental registration or nightly-stay permit program for Lake Charles, so check with the city and with Calcasieu Parish before you buy, and look at any HOA or condominium rules that can be stricter than the city's. On lodging taxes, a Lake Charles host should read this first. Louisiana treats short-term rentals furnished to transient guests as taxable sleeping-room rentals, and platforms such as Airbnb must collect and remit state and local sales tax on Louisiana bookings.
A Lake Charles landlord must handle the deposit within 30 days after move-out under Louisiana law. Louisiana sets landlord notice for month-to-month tenancies at Written notice at least 10 calendar days before the end of the month, which matters if you inherit a tenant with no lease end date.
Lake Charles in a Louisiana comparison
For a statewide comparison, the cities below range from $183,700 in Alexandria to $327,500 in Metairie on median home value, with Lake Charles at $214,300.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Metairie | 38% | $1,814 | $327,500 | 139,729 | $1,175 |
| Hammond | 54% | $1,209 | $221,400 | 21,539 | $1,061 |
| Alexandria | 48% | $898 | $183,700 | 44,060 | $931 |
| Lake Charles | 39% | $774 | $214,300 | 81,143 | $1,109 |
What fills Lake Charles rentals
Self-employment accounts for 11.1% of Lake Charles's workforce, so many local investors earn income that a standard payroll-based mortgage underwrites poorly. Other workforce markers: government workers are about 15% of employment, 29% of adults hold a bachelor's degree or higher and 4% of commuters travel 45 minutes or more.
The Lake Charles area is home to McNeese State University, University of Louisiana System and SOWELA Technical Community College. Students and employees at schools like these are a recurring source of rental demand. For getting around, Lake Charles has interstate access via I-10 and air service through Lake Charles Regional Airport and Chennault International Airport, which matters to commuters and to out-of-town owners planning a visit.
Next steps for a Lake Charles purchase
Run the Lake Charles rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Louisiana markets
- All Louisiana DSCR loans
- DSCR loans in Alexandria, LA
- DSCR loans in Hammond, LA
- DSCR loans in Metairie, LA
- Every market we cover
Source links
- La. R.S. 9:3251, 9:3252, 9:3254, the Louisiana deposit law
- Louisiana Department of Revenue FAQ
- American Community Survey tables, Louisiana
- National Risk Index entry, Calcasieu Parish
- Lake Charles on Wikipedia
We took the Lake Charles data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. RedFlagLease (CC BY 4.0) supplies the Louisiana landlord-tenant notes, and the statutes are linked. Reviewed in October 2026, with no promise that rules have stayed put.
Before you make an offer
Ask the seller for twelve months of utility bills and any lease on the Lake Charles property, confirm who pays water, trash and lawn care, and get the insurance quote before the inspection period ends so the ratio is tested on real numbers.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent number goes into a Lake Charles, LA DSCR calculation?
A signed lease or the appraiser's rent schedule supplies the rent, depending on the program, and $1,109 is the Census median for Lake Charles renters, only a benchmark.
Does the ratio in Lake Charles include taxes and dues?
Yes, the payment includes principal, interest, taxes, insurance and association dues. At the Lake Charles median rent of $1,109, a 1.25 ratio allows about $887 in total payment, of which roughly $64 a month goes to median taxes.
What do Lake Charles owners pay in real estate taxes?
Lake Charles owners report a median $774 in annual real estate taxes, an effective 0.36% (Louisiana: 0.55%). Your own bill depends on the assessed value after purchase.
Can nightly stays at a Lake Charles property support a DSCR file?
Possible where lender guidelines allow it, subject to Lake Charles and Calcasieu Parish rules and to the building's association. Lenders usually average a year of bookings and discount the result.
Are there deposit limits for Lake Charles rentals?
Under La. R.S. 9:3251, 9:3252, 9:3254: The deposit is due back within 30 days of move-out. Check the statute and your lease before collecting.
Is flood or storm risk a concern for a Lake Charles rental?
FEMA's National Risk Index rates the county's overall natural hazard risk as relatively high. That is a county-level view, so check the FEMA flood map and an insurance quote for the exact Lake Charles address.
Is an entity required for a LA DSCR loan?
No, but it is common. Entity borrowers supply articles, an operating agreement and an EIN letter, and the owners typically guarantee the loan. A Louisiana attorney can advise on structure.