Can a brand-new build qualify as a short-term rental?

Often yes, using a market-data projection rather than the property's own history; specifics vary by lender.

Is AirDNA the only accepted data source?

It is commonly used and named because it is a recognised industry source, but acceptance of any specific provider varies by lender.

Does the desk discount the projection?

Most lenders apply some conservatism to a pure projection; the size and method vary by lender.

What if my lender won't use projections at all?

The file is underwritten on the appraiser's long-term rent schedule instead, and must carry the payment on that basis.

Does a low first-year performance breach the loan?

No. The projection sizes the original loan; it is not a performance covenant you must meet afterward.

LESSON 3 OF 65 MIN READ

How is a short-term rental qualified with no operating history?

A short-term rental with no operating history — a new purchase, a ground-up build, or a property just converted from long-term use — is typically qualified using third-party market data for comparable units in the same submarket rather than the property's own statements. AirDNA is a commonly used source for that comparable-set data, though which market data providers a lender accepts, and how conservatively the comparable set is trimmed, varies by lender. Some lenders will decline to use projected STR revenue at all for a property with no track record and will instead fall back to the appraiser's long-term rent schedule until history exists. Either way, the underwrite still runs the same DSCR test once a monthly income figure is settled on.

THE NUMBERS

Minimum DSCR	0.75 (0.75–0.99 prices at +62.5 bps, 70% LTV cap)
Maximum LTV	80% purchase or rate-and-term · 75% cash-out
FICO floor	660 (below that the desk does not lend)
Loan size	$100K – $3M single · $10M portfolio
Reserves	6 months PITIA · 12 months on a portfolio
Prepay options	5-4-3-2-1 par · 3-2-1 +25 bps · 1-yr +50 bps · none +87.5 bps
Typical days to close	21–30 days from a signed term sheet
Rate sheet	Silt Rate Desk — Market Composite Sept 2026 · effective 2026-09-01

ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.

Why can projections work at all?

A short-term rental market within a given submarket tends to produce a fairly narrow band of revenue per bedroom and per amenity set, which is what makes a comparable-set report a workable substitute for a track record that does not yet exist. The report pulls a set of similar listings — comparable bedroom count, similar amenities, same neighbourhood or a tight radius — and reports their trailing performance, which becomes the basis for the subject property's projected income.

What does a comparable-set report actually contain?

Typically a set of nearby listings matched on unit size, bedroom count and key amenities such as a pool or hot tub, with their trailing twelve-month occupancy and average daily rate, rolled up into a projected annual revenue figure for the subject address. The desk generally wants to see the comparable set itself, not just the headline number, so it can sanity-check whether the comparables are genuinely similar or whether the report has been built around a handful of unusually strong outliers.

How conservative is the figure that ends up in the file?

Underwriters commonly apply some discount to a pure market-data projection precisely because it has never been tested against the subject property's actual booking calendar, occupancy strategy or management quality. How large that discount is, and whether it is expressed as a flat haircut or as using a lower percentile of the comparable set rather than the average, varies by lender and is worth asking about directly before you rely on a specific number in your own model.

When does a lender skip projections entirely?

Some lenders limit projected STR income to properties that already operate as short-term rentals elsewhere in a portfolio, or to markets where the local ordinance clearly permits the use, and decline to project revenue on a brand-new conversion in an unfamiliar jurisdiction. In that case the file is typically underwritten on the appraiser's long-term rent schedule instead, and the loan only works if that long-term figure carries the payment on its own.

What should you do before ordering the appraisal?

Pull a comparable-set report yourself, confirm the property's zoning and any licensing requirement for the short-term use, and ask the desk directly which basis — projected STR revenue or long-term rent — the file will be underwritten on. That conversation before the appraisal is ordered avoids paying for a report built to the wrong basis and finding out only at underwriting that the numbers do not support the loan you were expecting.

How does this interact with the twelve-month rule?

Once actual host statements exist, the file typically moves from projection to the same trailing-twelve-month calculation used on any established short-term rental, and a subsequent refinance is usually underwritten on that real performance instead. A property that under-performs its market projection in year one is not in breach of anything — the projection informed the original loan sizing, it is not a covenant the borrower must meet.

Projected revenue for a new-build STR purchase

Property	3-bed / 2-bath new construction, no history
Comparable set	9 similar listings, same submarket
Comparable average annual revenue	$68,000
Discount applied by underwriting	−15%
Projected net revenue used	$57,800
Monthly qualifying figure — ÷ 12	$4,817 / mo
Taxes, insurance (STR policy), HOA	$980 / mo
Illustrative principal + interest	$2,450 / mo
DSCR — $4,817 ÷ $3,430	1.40

Discount size and comparable-set methodology vary by lender; this is one illustrative approach, not a quote or a commitment to lend.

WHAT WE NEED FROM YOU

Comparable-set market report. AirDNA or an equivalent source covering similar units in the submarket.
Zoning or ordinance confirmation. Evidence the short-term use is permitted at this address.
Short-term rental licence application. Where the jurisdiction requires one before operation.
Short-term rental insurance quote. Priced for the intended use, not a long-term landlord policy.
Entity documents. Articles, operating agreement and EIN letter.

FREQUENT QUESTIONS

Can a brand-new build qualify as a short-term rental?: Often yes, using a market-data projection rather than the property's own history; specifics vary by lender.
Is AirDNA the only accepted data source?: It is commonly used and named because it is a recognised industry source, but acceptance of any specific provider varies by lender.
Does the desk discount the projection?: Most lenders apply some conservatism to a pure projection; the size and method vary by lender.
What if my lender won't use projections at all?: The file is underwritten on the appraiser's long-term rent schedule instead, and must carry the payment on that basis.
Does a low first-year performance breach the loan?: No. The projection sizes the original loan; it is not a performance covenant you must meet afterward.

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