STR / Airbnb

Using AirDNA projections for STR qualification - how accurate are they?

CabinInvestorTN · 6d ago · 63 views

I am under contract on a cabin in Gatlinburg, TN that I plan to run as a short-term rental on Airbnb. My lender says they can use AirDNA projected income to qualify the DSCR instead of a lease.

Has anyone gone through this process? How close were the AirDNA projections to your actual revenue in year one? I want to make sure I am not overestimating income and ending up cash flow negative.

The AirDNA report shows ~5K/year gross which would put DSCR around 1.4. Seems aggressive but the comps in the area look strong.

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SmokyMtnHost 6d ago

I went through this exact process on a cabin in Pigeon Forge last year. AirDNA projected about 8K and I actually did 2K in year one - so about 10% below projections. Still more than enough to cover the mortgage.

One tip: make sure you budget for higher turnover costs and cleaning fees. Those eat into your margins more than you expect with STRs.

Using AirDNA projections for STR qualification - how accurate are they?

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