DSCR Loans for Airbnb & Short-Term Rentals: 2026 Investor Guide

A short-term rental DSCR loan lets investors finance Airbnb, VRBO, and vacation-rental properties using the property's projected nightly income — even without an existing rental history. The qualifying math swaps a long-term lease for an AirDNA projection, opening the door to investors entering the STR space for the first time.

This is the complete STR DSCR resource for 2026: how AirDNA income is calculated and haircut, the full program details (LTV, rates, DSCR floors, reserves, prepay), which property types and borrowers qualify, the markets we fund, the operating-permit checks that have to clear before close, and what an STR file costs versus a long-term rental. If you already know your scenario, the quote form below takes 30 seconds.

Get an STR Quote in 30 Seconds

Short-term rental files are priced across our wholesale lender panel — including the handful of lenders that genuinely understand AirDNA underwriting rather than haircutting your income to death. Tell us the basics and a loan officer will come back with real programs for your property, not a generic rate card. No credit pull, no income docs, no obligation.

How STR DSCR Underwriting Differs from Long-Term DSCR

The core formula is the same: gross monthly rent ÷ PITIA. The difference is the income source. A long-term DSCR uses the in-place lease or appraiser-determined market rent. An STR DSCR uses the property's projected gross revenue from AirDNA, divided by 12 to produce a monthly equivalent.

Most STR DSCR underwriters apply a factor to the AirDNA gross projection to account for vacancy, cleaning fees, platform commissions, and seasonality. The factor is lender-specific — anywhere from 75% to 90% of gross — and it is the single biggest reason two lenders can quote the same property at different DSCRs. At an 80% factor, an AirDNA projection of $80,000 annual gross becomes a $5,333/month qualifying rent ($80,000 × 0.80 / 12). That's the number divided into PITIA to produce the qualifying DSCR.

Beyond the income source, an STR file differs from a long-term rental file in five practical ways:

• Income evidence. LTR: signed lease or appraiser's market rent (Form 1007). STR: AirDNA Rentalizer report, or 12+ months of actual platform statements if the property is already operating.
• Income factor. LTR uses the lease or market rent as reported. STR applies the 75–90% factor before the DSCR is run.
• Reserves. Plan on the high end of the 3–6 month PITIA range on STR — typically 6 months, versus 3 months on a long-term rental.
• Appraisal. The appraiser needs STR experience and STR rental comps, which lengthens the timeline in thin submarkets.
• Permit verification. The underwriter confirms the property is permitted or grandfathered for STR use in its jurisdiction — a step that simply doesn't exist on a long-term rental file.

None of these steps require personal income documentation. There are no W-2s, no tax returns, and no debt-to-income ratio on the borrower — the property carries the loan. If you're new to DSCR generally, the 2026 DSCR loan requirements guide covers the baseline before the STR overlays below.

Qualifying on AirDNA Projected Income

AirDNA projections are the reason STR DSCR loans exist. Without them, a property with no operating history would have no qualifying income at all. Here is how the projection moves from a report to a funded loan.

Step 1 — Pull the AirDNA Rentalizer report

The lender (or you) runs an AirDNA Rentalizer report on the subject property. It projects what the property would have earned over the last 12 months in its specific submarket based on actual comp data — not your assumptions. The report keys off the address, bedroom and bathroom count, and the performance of comparable active listings nearby, so a 3-bed cabin in Sevierville is benchmarked against other 3-bed cabins in Sevierville, not against a national average. If you already have a Rentalizer report from your own due diligence, send it with the quote request; if not, we pull it as part of the pre-qualification.

Step 2 — Apply the income factor

The lender takes the AirDNA gross projected revenue and applies a factor to account for vacancy, management, and platform fees. The factor is where lenders diverge: some use 75–80% of gross, others 80–90%. On the $80,000 example above, that is the difference between $5,000/month (75%) and $6,000/month (90%) of qualifying income — on the same property with the same report. This is why placing an STR file with the right lender matters more than it does on a long-term rental, and why we shop the file rather than quote from one rate sheet.

Step 3 — Calculate DSCR and price the file

Qualifying monthly STR income ÷ (principal and interest + taxes + insurance + HOA) = DSCR. Continue the example with a monthly PITIA of $4,200: at an 80% factor the DSCR is $5,333 / $4,200 = 1.27; at 75% it is 1.19; at 90% it is 1.43. Hit 1.0 or better and you qualify on the standard program. Between 1.10 and 1.24 the file prices in the standard tier; 1.25+ prices in the strongest tier, and 1.00–1.09 carries a tight-cash-flow adjustment (see pricing below). Run your own numbers in the DSCR calculator before you send the quote request.

When actual operating history replaces AirDNA

If the property has been operating as a short-term rental for 12 or more months, the actual profit-and-loss statement — supported by Airbnb, VRBO, or property-manager statements — can substitute for the AirDNA projection. Actual history is preferred when it is available, and on a refinance most lenders will use whichever figure is higher, the actual P&L or the AirDNA projection. A property that has been under-managed can therefore still qualify on its market potential; a property that outperforms its AirDNA comps qualifies on what it actually earns.

What the appraiser does on an STR file

STR appraisals require an STR-experienced appraiser who can pull AirDNA and STR rental comps in addition to the standard sales comps. In deep markets like Orlando or the Smokies that is routine; in thinner submarkets those appraisers can be scarce, and the appraisal becomes the long pole in the timeline. We pre-vet the appraiser pool before the order goes out so the file doesn't stall waiting on a rental analysis.

If the AirDNA projection comes in low

An AirDNA at 0.85 is not the end of the file. We have lenders that fund STR down to 0.75 DSCR — on our rate sheet the 0.75–0.99 sub-1.0 program carries a +0.875% adjustment and caps LTV at 70%. For strong-credit borrowers with roughly 30% down, no-ratio STR programs skip the AirDNA calculation entirely (rate sheet: +1.250%, LTV capped at 65%, 700+ FICO). The lower the DSCR, the higher the rate and the larger the down payment — a property at 1.20+ prices at the best available rate, while one at 0.85 typically prices 0.50–0.75% higher and requires 25–30% down.

STR DSCR Program Details — 2026

The table below is the program overview for our short-term rental DSCR loans as of September 2026. Every figure is indicative and the final terms are set at underwriting, but it is the right frame for sizing a deal before you contract.

A note on the LTV figure. The 80% purchase LTV is available on select STR programs and, per the LTV grid on our rate sheet, requires 700+ FICO and carries a +0.500% adjustment versus a 65% LTV file. The rate sheet's Short-Term Rental row lists 75% as the maximum LTV with a +0.000–0.250% rate adjustment — that is the typical outcome. Plan on 75% (25% down); treat 80% as an upside case for a strong file, not the baseline.

Rates and terms subject to change without notice. Final terms determined at underwriting. Loan products offered through participating wholesale lenders. Restrictions apply. Investment property loans for business purposes only. Equal Housing Opportunity.

STR DSCR Loan Requirements — 2026

What to have ready before you request a quote

An STR file moves fastest when the property-side documentation is in hand up front. You don't need any of it to get a quote, but you will need it to close:

• Property details — address, bed/bath count, and the purchase contract (or current loan statement on a refinance). If you have an AirDNA Rentalizer report already, include it.
• Permit and HOA status — the STR permit or registration (or the ordinance that exempts the property), and the condo CC&Rs if there is an HOA.
• Operating history, if any — 12 months of Airbnb/VRBO statements or a property-manager P&L for a refinance or an existing STR purchase.
• Funds — two months of statements showing the down payment and the 3–6 months of PITIA reserves.
• Entity documents — articles, operating agreement, and EIN letter if you are closing in an LLC.
• Insurance quote — a landlord or STR-endorsed policy; standard homeowner's policies typically exclude short-term rental use.

Eligible Borrowers: LLCs, Foreign Nationals, and ITIN Holders

Closing in an LLC or trust

STR DSCR loans close routinely in LLCs and trusts. Most STR investors close in an entity for liability protection given the higher tenant turnover, and vesting in an LLC does not change the AirDNA qualification, the LTV, or the pricing tier. The lender will want the entity documents and a personal guarantee from the members; the loan itself reports against the entity.

Foreign nationals

Short-term rental is a foreign-national-favorite asset class — Orlando, Miami, Las Vegas, and Park City in particular. Foreign nationals are eligible on STR DSCR with 65–70% LTV instead of 80%, and rates roughly 1.0–1.5% above standard STR DSCR pricing. No US tax returns and no US credit score are required: we close with a foreign passport, a foreign credit reference (or an alternative credit history), and proof of funds. See the foreign national loan program and the foreign national DSCR guide for the full requirements.

ITIN holders

Borrowers with an ITIN rather than a Social Security number qualify on ITIN-specific DSCR programs. Per our rate sheet, ITIN files carry a +0.500–0.875% adjustment and cap at 75% LTV; the AirDNA qualification works the same way.

STR Property Types: Cabins, Condos, Condotels, and Non-Warrantable Projects

Most lenders cap at warrantable condos and standard single-family homes. STR investing frequently involves property types outside that box, and the pricing and LTV shift with each one:

• Single-family vacation homes and cabins — the base case. Priced as SFR with the STR adjustment only. Includes A-frames and tiny-home programs in cabin markets like Gatlinburg, Pigeon Forge, and Broken Bow.
• 2–4 unit STR properties — eligible; 3–4 unit files carry a +0.125–0.250% adjustment and a 75% LTV cap on the rate sheet.
• Warrantable condos — +0.000–0.125% and 80% LTV if the project meets the standard warranty tests. Read the CC&Rs first: many HOAs prohibit short-term rental regardless of city law.
• Non-warrantable condos — a project that fails the agency tests (investor concentration, single-entity ownership, pending litigation, hotel-style amenities) is still financeable on DSCR, with a +0.375% adjustment and a 75% LTV cap and a smaller lender pool. Full detail in the non-warrantable condo DSCR guide.
• Condotels — hotel-condo units in resort projects (Orlando's Disney-corridor resorts, the Las Vegas Strip, Waikiki). Fannie and Freddie won't touch them; we have wholesale partners that specifically program them. Expect 70% LTV as the standard (some programs stretch to 75%) and a +0.500–0.750% adjustment on the rate sheet. The condotel DSCR guide covers project review and the rental-pool question.

Whatever the property type, the STR permit and the HOA rules are checked before the appraisal is ordered — a condo project that is warrantable but prohibits STR in its bylaws is not an STR deal.

STR Markets We Fund

We close DSCR loans in every US short-term rental submarket — beachfront condos, mountain cabins, single-family vacation homes, and multi-unit STR portfolios. Not every market is created equal in the eyes of an underwriter, though. The strongest STR DSCR markets in 2026 are the ones with mature AirDNA data, established investor inventory, and predictable jurisdictional rules. The city guides linked below cover local permit rules, typical AirDNA performance, and what a DSCR file looks like in each market.

What makes a market lender-friendly

• Orlando / Kissimmee / Davenport — The largest STR DSCR market in the U.S. Disney/I-4 corridor with thousands of permitted vacation-rental SFRs and resort condotels.
• Gatlinburg / Pigeon Forge / Sevierville (TN) — Smoky Mountain cabin market. AirDNA projections among the most reliable in the country.
• Asheville / Western NC — Mature STR market with strong year-round occupancy.
• Scottsdale / Sedona (AZ) — Premium STR pricing supported by deep AirDNA data.
• Myrtle Beach & the Grand Strand (SC) — Summer-heavy but strong full-year AirDNA averages.
• Park City / Moab (UT) — Premium ski-resort and national-park STR markets; verify permit availability.
• Coastal Alabama / Gulf Shores — Strong summer revenue concentration.

For market-by-market occupancy, ADR, and regulatory trends, see the 2026 STR Outlook report. Saturated coastal markets and cities with restrictive ordinances have compressed; the investor-friendly markets above still produce STR DSCRs in the 1.25–1.65 range.

STR Permit Risk — Check This Before You Contract

The single biggest deal killer in STR DSCR financing is local STR ordinance non-compliance. Cities and counties have wildly different rules:

• Owner-occupied requirement — Boston, San Francisco, parts of New Orleans require the owner to live on premises. Investor STRs not allowed.
• Permit caps — Some markets (Park City, Moab, Sedona) cap total STR permits. Check transferability of an existing permit before contracting.
• HOA prohibition — Many condo HOAs prohibit STR rentals regardless of city law. Read the CC&Rs.
• Zoning overlay — Some cities allow STR in certain zoning districts only.

In markets with mandatory permits — Honolulu, Santa Monica, New York City, Phoenix, Nashville, Orlando, and parts of New Orleans among them — the underwriter will verify the property is permitted or grandfathered for STR use, and you will need to provide proof of a valid permit or evidence that the property qualifies under the existing rules. We can usually navigate this with the right documentation; the key is telling us upfront where the property is and what permit status it holds. In unrestricted markets, no permit is needed for the DSCR loan itself.

Our underwriting team verifies STR permit status as part of every STR DSCR file, but you should validate this before contracting to avoid wasting due diligence dollars. And remember that a rule change after closing doesn't touch the loan — but it can touch your cash flow. In markets with active STR-restriction debates (Austin, San Diego, parts of NYC), underwrite for the worst-case rule change and confirm the property would still cover the payment as a long-term rental.

STR DSCR Pricing — 2026

STR DSCR loans price above an equivalent long-term rental file because short-term rental income is considered more volatile than 12-month lease income. How much above depends on the lender: on our current rate sheet, the Short-Term Rental (Airbnb) row carries a +0.000–0.250% adjustment versus a single-family long-term rental, with AirDNA accepted on most files. Lenders less comfortable with projected income price 0.25–0.50% above LTR DSCR — one more reason the lender selection on an STR file matters.

The base rate stacks from the FICO tier. On the current rate sheet: the strongest tier (760+ FICO, 65% LTV or lower, 1.25+ DSCR) quotes 6.50–7.25% on a 30-year fixed and 6.375–6.875% on a 5/1 ARM — the “from 6.375%” figure in the program table. A standard file (700 FICO, 75% LTV, 1.20 DSCR) runs 7.25–8.00%; the 620–660 tier runs 8.25–9.25% with LTV capped at 70–75%. Foreign national STR files add roughly 1.0–1.5% on top.

Adjustments that commonly stack on an STR file, from the same rate sheet:

• LTV: 75% adds +0.250%; 80% adds +0.500% and requires 700+ FICO.
• DSCR: 1.10–1.24 adds +0.125%; 1.00–1.09 adds +0.375%; 0.75–0.99 adds +0.875% (70% LTV cap); no-ratio adds +1.250% (65% LTV cap, 700+ FICO).
• Property type: condotel +0.500–0.750% (70% LTV); non-warrantable condo +0.375% (75% LTV); 3–4 unit +0.125–0.250% (75% LTV).
• Cash-out: +0.25 to +0.50% over rate/term, 75% maximum LTV.
• Points: roughly 0.25% rate reduction per 1.00 origination point; the break-even is usually 6+ years, so a buydown only makes sense on a long hold.
• Prepayment penalty: a 3–5 year step-down is typical on STR and can be waived for a fee; removing it raises the rate.

The income upside usually more than offsets the rate premium — STR cash flow is often 2–3x LTR cash flow in the same property. A Smoky Mountains cabin that would rent long-term for $1,800/mo can easily clear $5,000–$8,000/mo as an STR, which is why the STR DSCR clears comfortably even at a slightly higher rate.

Refinancing or Cashing Out an Existing Airbnb

Many investors refinance from a conventional loan to a DSCR loan to escape DTI constraints and access cash-out without income documentation — a common move when scaling the rental portfolio. Once the property is on a DSCR loan, additional acquisitions no longer compete with your personal income for qualifying room.

If you have owned and operated the property as an STR, the DSCR can be calculated on either your actual 12-month STR P&L or the AirDNA projection, whichever is higher. Cash-out refinances on STR properties cap at 75% LTV and price +0.25 to +0.50% over a rate/term refinance. The seasoning requirement is typically 3–6 months from purchase or from the start of STR operation, which makes the DSCR cash-out a natural fit for BRRRR strategies in cabin markets: buy, renovate, list, season, and pull the equity back out on the property's own income. The DSCR cash-out refinance guide covers seasoning and the equity math in detail.

The STR DSCR Process and Timeline

A clean STR file closes in 14–21 days — the same speed as a long-term rental DSCR. The sequence looks like this:

1. Quote (day 0). Property state, loan amount, credit range, transaction type, and property type via the form above. We pull the AirDNA Rentalizer if you don't have one and price the file across the lender panel.
2. Pre-qualification (days 1–2). You get program options with the DSCR, LTV, and rate for each; you pick the structure and we open the file.
3. Application and documentation (days 2–5). Contract, entity documents, funds and reserves, insurance quote, and the STR permit or HOA documentation.
4. Appraisal and permit verification (days 5–14). An STR-experienced appraiser completes the valuation and STR rental analysis while the underwriter confirms permit status.
5. Underwriting and closing (days 14–21). Conditions clear, closing disclosures issue, and you fund. Portfolio and condotel files can run longer if the project review is involved.

Why work through a broker on an STR file? Short-term rental DSCR isn't every lender's specialty. We shop your file across 50+ wholesale lenders — including the 8–10 that genuinely understand STR — and bring you the best structure. A direct lender has one rate sheet and one AirDNA factor; on an STR property, that single number can be the difference between a 1.19 and a 1.43 DSCR on the same report.

Frequently Asked Questions

Related Resources

• 2026 Short-Term Rental Market Outlook
• Current DSCR Loan Rates (updated weekly)
• DSCR Calculator — check your ratio
• DSCR Loans for Condotels
• Non-Warrantable Condo DSCR Loans
• DSCR Cash-Out Refinance Guide
• DSCR Loans for Foreign Nationals
• DSCR Loan Reserve Requirements
• 2026 DSCR Loan Requirements
• Airbnb DSCR Loans in Orlando
• Airbnb DSCR Loans in Gatlinburg & the Smokies
• DSCR Loans in Tennessee (Smokies STR)
• DSCR Loans in Orlando
• DSCR Loans in Arizona (Scottsdale, Sedona)
• DSCR Loans for Co-Living Properties

DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548), a licensed mortgage broker. Informational only; not a loan commitment. Rates and program terms change frequently and may not be available at the time of application. AirDNA is a registered trademark of AirDNA, LLC; Airbnb and VRBO are registered trademarks of their respective owners and are referenced here for educational purposes only. Equal Housing Lender.