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Short-Term Rentals · 6 min read

Airbnb & short-term-rental DSCR loans

A short-term-rental (STR) DSCR loan qualifies an Airbnb or vacation property on its rental income rather than your tax returns. Instead of a long-term lease, STR programs can use market revenue data (such as AirDNA or a market-rent analysis) or the property’s own booking history to size the loan — up to 85% LTV, with no W-2s or DTI.

How STR income is underwritten

Where a standard DSCR loan uses a long-term lease, an STR DSCR loan uses projected or actual short-term revenue. Lenders typically reference a market data source (AirDNA-style comps) or a 12-month operating history to establish sustainable income, then apply the same DSCR math: revenue versus payment.

Best states for STR investing

Demand concentrates in tourism and no-income-tax markets — Florida, Tennessee (Nashville), Nevada (Las Vegas), the Carolinas’ coast, Colorado and Utah mountain towns, and Montana gateway towns. Local regulation matters as much as gross revenue, so confirm the city’s short-term-rental rules before you buy.

STR DSCR requirements

Expect a 620+ FICO floor, up to 85% LTV, 30- and 40-year terms, and the ability to close in an LLC. Because STR income is seasonal, lenders may apply a conservative haircut to peak-season revenue.

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Frequently asked questions

Can I get a DSCR loan for an Airbnb?
Yes. STR DSCR loans qualify short-term rentals on their rental income using market data or operating history — no tax returns required.
How is Airbnb income calculated for a loan?
Lenders use market revenue data (AirDNA-style comps) or the property’s actual booking history, then apply DSCR math: short-term revenue versus the payment.
What states are best for short-term rentals?
Tourism and no-income-tax markets like Florida, Tennessee, Nevada, the Carolinas, Colorado, Utah, and Montana — always subject to local STR regulations.
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