The Short Answer: Yes

Short-term rental properties can qualify for DSCR loans — but not all DSCR lenders treat them the same. Some programs specifically accommodate STR income; others require you to use a more conservative long-term rent estimate. Knowing the difference saves you time and positions you for the best possible terms.

How Lenders Underwrite STR Properties

The core challenge with short-term rentals is income variability. Unlike a long-term tenant with a signed lease, Airbnb income fluctuates with season, occupancy, and platform dynamics. Lenders handle this in three main ways:

  • Market rent approach: The appraiser provides a long-term market rent estimate (Form 1007). Lenders use this conservative figure regardless of actual STR income. Common for standard DSCR programs that don't have a specific STR overlay.
  • Actual STR income (12-month average): Some lenders accept documented Airbnb/VRBO income from the past 12 months, averaged and normalized. Requires Airbnb host statements or 1099-K showing income history.
  • AirDNA market data: A handful of programs use AirDNA projected annual revenue data — which can be higher than long-term market rent in strong STR markets — to determine qualifying income.

Which Approach Is Best for You?

If your property is already operating as an STR with strong revenue history, a lender who accepts actual income or AirDNA data will produce a better DSCR and more favorable terms. If the property is new or unproven as an STR, the market rent approach may be more attainable and still sufficient to qualify.

What You'll Need to Qualify

  • Property designated as non-owner-occupied
  • STR permitted under local zoning and HOA rules
  • 12 months of platform statements (if using actual income)
  • 620+ credit score
  • 20–25% down payment
  • DSCR ≥ 1.0 (using whichever income method the lender accepts)

Check Local STR Regulations First

Before applying, verify that short-term rentals are permitted by local ordinance and any HOA. Lenders will not fund a property where STR operation is prohibited — and this has become an increasingly common issue in markets that have enacted STR restrictions.

Practical Takeaway

If your Airbnb produces strong income, a DSCR loan designed for STRs can unlock favorable terms that conventional financing simply can't offer. The key is finding the right lender program — and that's exactly what we can help with. Reach out to discuss your STR and find the best-fit option.