Buying self-storage almost always means working with a lender, and even "cash buyers" still care because the next owner will likely finance the purchase. If your goal is to get deals funded without endless back-and-forth, you need to understand the numbers lenders are underwriting right now in 2026, not what worked five or ten years ago.
The 2026 lender targets that show up again and again
These are the ranges I keep seeing across bank conversations, broker quotes, and industry lending commentary:
- Loan-to-Value (LTV): commonly 65% to 75%, with stronger deals earning the higher end and "story deals" getting pushed down. SBA can go higher, but it comes with extra rules and paperwork.
- Debt Service Coverage Ratio (DSCR): typically 1.25x to 1.35x, depending on lender type and how stable the income is.
- Stabilized occupancy: many lenders get comfortable once a property is around 85%+ occupied and trending correctly.
- Cap rates: self-storage cap rates have been sitting around the mid-5% range recently, with quality and location driving the spread.
- Loan size: lenders still tend to prefer larger loan amounts, since small deals often take nearly the same effort to underwrite. (Not a hard rule, but it affects appetite.)
Why these metrics matter more in 2026 than they used to
The current rate environment has reduced room for sloppy underwriting. A deal that "looks fine" on price can still get clipped if the cash flow does not cover the payment with enough breathing room.
That is why DSCR has become the silent gatekeeper. You can argue rent growth all day, but if the underwritten cash flow does not clear the lender's DSCR minimum, the deal stalls or the loan amount shrinks.
How to make your deal easier to fund
Most financing problems are preventable if you package the deal the way lenders think:
- Show stability first: clean trailing numbers, realistic expenses, and clear proof of demand
- Explain the upside without fantasy: rent increases should match the market, not your hopes
- Prove management competence: lenders back operators, not spreadsheets
- Bring liquidity: reserves matter more when the deal is value-add
- Stay conservative on timing: lease-up is rarely as fast as the pro forma claims
Closing thought
In 2026, getting a self-storage loan approved is less about cleverness and more about discipline. Stay inside lender comfort ranges, keep the story simple, and focus on deals that already have strong fundamentals before you try to "fix" anything.