Short-term rentals
DSCR loan for Airbnb and short-term rentals
A DSCR loan for an Airbnb-style property may use short-term rental income, long-term market rent, or a conservative income estimate depending on the lender. Model the deal with cautious revenue and full operating expenses before relying on the ratio.
What makes STR DSCR different
Short-term rental revenue can be volatile. Seasonality, platform fees, cleaning costs, management fees, furnishing reserves, local restrictions, and occupancy swings can all change net operating income.
Inputs to check
- Stabilized monthly revenue after seasonality.
- Vacancy or occupancy assumption.
- Management fee, cleaning coordination, utilities, and platform-related costs.
- Insurance and local tax assumptions.
- Whether the lender uses STR income or market rent.
Conservative modeling tip
Run one scenario with expected STR income and one scenario with long-term market rent. If the property only works in an aggressive STR scenario, underwriting risk is higher.
Compare STR revenue against a DSCR screen.
Open Airbnb DSCR calculatorEducational information only. Confirm STR underwriting rules with a licensed lender.