Burbank DSCR Loans for Rental Property

The Rules in Force Today

Burbank has no local rent control in effect. Voters rejected a rent control measure, Measure RC, in November 2020, so on covered units the state’s AB 1482 sets the ceiling: no more than 5% plus regional CPI or 10%, whichever is lower, in any 12 months, measured from the lowest rent in the prior year, with no more than two increases in that period. Rent resets when a unit turns over, and the state law runs until January 1, 2030.

On top of that, the Burbank Tenant Protection Ordinance took effect August 31, 2024 and was amended by Ordinance 25-4,025, effective April 11, 2025. It covers units subject to AB 1482 and requires relocation of three months’ current rent for most no-fault evictions, and at least one month for an owner or relative move-in. It also tightens the rules for substantial-remodel evictions. A separate anti-harassment ordinance protecting all tenants was adopted March 11, 2025. Read the city’s FAQ for the exact terms before you plan a vacancy.

The 4% Soft Cap: Proposed, Not Adopted

On October 29, 2025, the City Council voted 3-1 to have staff draft a 4% “soft cap” on rent increases. As proposed, a tenant facing a larger increase could either accept it or take relocation equal to three months at the new rent, and it would apply to multifamily buildings built before February 1995. We found no sign it had been adopted as of June 2026 (the city’s tenant protection FAQ updated that month describes no rent cap), and we have not confirmed its status since. If you are buying an older multifamily building, check with the city for the current status before you finalize the rent assumptions in your offer. Underwriting a Burbank DSCR loan to rents you can document today, rather than planned increases, keeps the deal sound either way.

Testing a Downtown Condo Rental

The calculator starts at $788,000, the Burbank Center typical value in September 2026, renting at the citywide average of $2,752 with 25% down. Change the inputs to match the listing.

At Burbank prices a single condo rarely reaches 1.00 at 25% down; with these inputs the ratio is roughly half of what most lenders want. Making the numbers work here usually takes one or more of three things: substantially more down, two to four units so several rents carry one loan, or a long-term hold that carries the gap with a program that allows a low ratio. The calculator shows how far each lever moves the ratio.

Older Apartments and the 2030 Retrofit

Burbank adopted a mandatory soft-story retrofit ordinance in December 2025 for older wood-frame apartment buildings with tuck-under parking, with construction due by January 10, 2030. If the building you are buying is covered, the retrofit is a capital cost to price into the deal. Owners can pass the cost through to tenants at up to $51 per unit per month for up to 120 months, which recovers it gradually rather than at once. Budget the reserves for the work, and ask the seller for any engineering reports already done.

For a Burbank DSCR loan, the retrofit shows up in two places. The lender counts only the rent, so the pass-through helps the ratio only once it is actually billed and documented. And reserves after closing are measured in cash, so money set aside for the engineer and contractor is money that cannot also count as the months of payments a lender wants to see. Put both in the plan before you set the down payment. If the seller has already finished the work, ask for the permit sign-off, since that removes the question from underwriting and from your own budget.

Nightly Rentals: Plan on a Lease Instead

Burbank’s short-term rental rules were not verified for this page, so check with the city before you count on nightly income. DSCR programs differ on how they treat Airbnb or VRBO income, and long-term market rent is the most widely accepted basis, so plan on a standard lease.