DSCR loans in Lawrence, MA

Local data for Lawrence investors

Median gross rent in Lawrence: $1,662, close to the Massachusetts median of $1,762. Median owner-occupied home value: $415,200, well below the Massachusetts median of $562,100. Those are citywide medians, so an individual address can sit well on either side of them. Annual median rent is about 4.8% of the median home value in Lawrence. That is a lean ratio that leaves little room for taxes, insurance and dues, but it blends every housing type, so a house on a specific street needs its own rent comparables.

A renter-heavy city, Lawrence has 71.9% of households renting (well above the Massachusetts median of 37%), which is good for demand and a reminder to check rent comparables carefully. Median household income of $60,433 (well below the Massachusetts median of $103,960) sets the ceiling for rent growth, and 61% of renters already spend 30 percent or more of income on rent.

Housing stock and vacancy in Lawrence

Apartments and small buildings carry real weight in Lawrence, about 73% of units, with duplexes through fourplexes at 44%. The typical home dates to 1950, which puts inspection, insurance on older systems and rehab cost near the top of the checklist.

Lawrence reports 2% of units vacant and a rental vacancy rate of 1.4%, a measure of how quickly a listed unit might lease.

What the data means for Lawrence buyers

A gross yield of 4.8% means Lawrence is a market where purchase prices run ahead of rent, so a 1.0 ratio generally takes a larger down payment or a property priced below the local median. Age is the main physical risk here: median year built 1950 points to deferred maintenance in a share of listings. Because 72% of households rent, vacancies tend to refill, and the pricing question is how much to charge relative to nearby units.

What costs can do to a Lawrence ratio

In Lawrence the median tax bill for an owner-occupied home is $3,422, or about 0.82% of value (Massachusetts overall: 1.07%). That bill is well below the Massachusetts median of $5,992. That is about 17% of a year of median rent gone to taxes before the loan is even counted.

Essex County carries a relatively high overall rating in FEMA's National Risk Index, where coastal flooding (very high), ice storms (very high) and riverine flooding (relatively high) rank highest.

Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Lawrence exclusions before trusting a premium estimate.

The ratio in Lawrence dollars

Take the median rent ($1,662), subtract median taxes spread over twelve months ($285), and you have $1,377 of room at a 1.00 ratio. A lender asking for 1.25 cuts that to $1,044. Real quotes for the address decide the rest.

Landlord and short-term rental rules in Lawrence

Before you underwrite a Lawrence rental, confirm with city hall and Essex County whether landlords must register, pass an inspection or hold a permit, especially for stays under 30 days, because those rules can change what income a lender will count. On lodging taxes, a Lawrence host should read this first. Massachusetts has required short-term rental operators to register with the Department of Revenue since July 1, 2019, and applies the room occupancy excise to rentals of 31 days or less, with local taxes and fees added where a city or town has adopted them.

After move-out, the Lawrence owner has 30 days to return the deposit or account for deductions. For Lawrence rent levels, note that rent control is prohibited statewide by the massachusetts rent control prohibition act (c. 40p), which bars rent-control schemes except voluntary ones.

Lawrence compared with nearby markets

Of the cities listed, Salem is the most expensive ($473,300 median value) and Lowell the least ($429,200); Lawrence sits at $415,200.

Tenants, jobs and anchors in Lawrence

Self-employed workers, incorporated or not, make up 5.7% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. Other workforce markers: government workers are about 8% of employment, 17% of adults hold a bachelor's degree or higher and 13% of commuters travel 45 minutes or more.

Lawrence offers interstate access via I-495 and air service through Lawrence Municipal Airport (Massachusetts) and Manchester-Boston Regional Airport, details that affect commute times and how easily a distant investor can inspect a property.

From a Lawrence listing to a loan

Bring the Lawrence numbers to a loan officer: the rent, the taxes, the insurance and your reserves. Apply online or ask for a quote, and use the calculator to preview the ratio.

More Massachusetts markets

• All Massachusetts DSCR loans
• DSCR loans in Salem, NH
• DSCR loans in Haverhill, MA
• DSCR loans in Lowell, MA
• DSCR loans in Hudson, NH
• Every market we cover

References

• Federal hazard index, MA
• Lawrence on Wikipedia
• Lawrence landlords: see M.G.L. c. 186, § 15B(1)(b), (1)(d), (2), (3), (4), (5)
• Lodging tax reference: Mass.gov TIR 19-3
• State rule cited for Lawrence hosts: Room occupancy excise
• Census ACS profile behind the Lawrence figures

We took the Lawrence data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Landlord rules for Lawrence rest on Massachusetts statutes and the CC BY 4.0 RedFlagLease dataset. Our check date is October 2026, so look for newer Lawrence rules before you commit.

Pre-offer checklist

On a Lawrence purchase, line up the lease, the tax estimate, the insurance quote and any association dues before the appraisal is ordered, and ask the appraiser's office what rent comparables they plan to use.

DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.