STR (Short-Term Rental)
A rental property leased on nightly terms, typically through Airbnb, VRBO, or similar platforms. DSCR underwriters use AirDNA market projections at a 75–80% haircut to estimate qualifying income. Subject to local zoning and STR registration requirements. See STR DSCR Guide →
Why it matters on a DSCR loan
The two make-or-break diligence items on an STR deal are qualifying income and legality: underwriters discount projected revenue rather than taking gross booking numbers, and a property in a city that restricts short-term rentals can be unfinanceable or unrentable regardless of its numbers. Verify zoning and permit or registration requirements before going under contract, not after. If the property has an operating history, organized booking statements can support stronger qualifying income than market projections alone.
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).