In real estate finance, the ratio of the net operating income of a property to the outstanding principal balance of the loan secured by the property. The debt yield is usually expressed as a percentage. Debt yield is the newest of three financial ratios mortgage lenders use to measure risk for a loan, in addition to debt service coverage ratio (DSCR) and loan to value ratio (LTV). In contrast to DSCR and LTV, debt yield is considered a more stable and reliable indicator of risk because it does not rely on fluctuating market variables or adjustable terms such as the fair market value of the property, cap rates, the amortization period, or the interest rate. A low debt yield means higher leverage and higher risk, while a higher debt yield means lower leverage and lower risk.