Can Airbnb income qualify for a DSCR loan?

THE NUMBERS

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

What income evidence is accepted?

The strongest file is twelve months of platform earnings statements for that exact address — Airbnb, Vrbo or a manager's statement — because it is the property's own performance. Where the property has no history, or is converting from a long-term lease, underwriters use market data such as AirDNA for comparable units in the same submarket. Some lenders will only use the appraiser's long-term rent schedule for a property with no STR history; practice varies, and the desk will tell you which basis your file is on before the appraisal is ordered.

Revenue basis or market rent — which is used?

Whichever the file supports, and it matters. A well-run short-term rental often produces one and a half to two times its long-term rent, which is the whole reason for the strategy; a poorly located one produces less than the lease it replaced. When both a lease-based and a revenue-based figure exist, a conservative underwriter takes the lower. Bring both numbers to the first conversation so nobody is surprised at underwriting.

How is seasonality handled?

By using the full twelve months, not the good ones. A mountain or beach property that earns most of its revenue in four months still gets divided by twelve, which is why a peak-season screenshot never moves an underwriter. Files with fewer than twelve months of history are more likely to see a haircut applied to the annualised figure, and operating costs — cleaning, supplies, management, higher utilities and insurance — sit outside the DSCR calculation but should sit inside your own model. Practice on haircut size varies by lender.

What does the short-term rental add-on cost?

Thirty-seven and a half basis points over the same cell a long-term rental would price at, on the current sheet. It stacks with the other adjustments in the normal way — a cash-out short-term rental carries both, a condo carries the condo add-on as well. A property converting from long-term to short-term is underwritten on the evidence available at application: if the STR history is not there yet, the file usually prices on lease or market rent and can be revisited at a later refinance.

What local restrictions should you check first?

Check them before the appraisal, not after. Many cities cap or licence short-term rentals, some allow them only in an owner-occupied primary residence, and plenty of HOAs and condo boards ban rentals under thirty days outright. A property that cannot legally operate as a short-term rental will be underwritten as a long-term one — and if the long-term rent does not carry the payment, the file does not work. The desk asks for the licence or a copy of the ordinance where the market is known to regulate.

Does the DSCR maths change?

No. DSCR is still monthly income divided by PITIA — principal, interest, taxes, insurance and any HOA dues. The only change is the numerator: net monthly short-term revenue instead of contract rent. Insurance is usually higher on a short-term rental and belongs in the PITIA figure at its real cost, not the long-term quote, or the DSCR you calculate at home will not match the one underwriting produces.

A worked example — twelve months of host history

The same property on a long-term lease at $3,400 would produce a 0.82 DSCR — a sub-1.00 file at +62.5 bps and a 70% cap. Illustrative only.

WHAT WE NEED FROM YOU

• Twelve months of platform statements. Airbnb, Vrbo or the manager's statement for this address.
• Short-term rental licence. Or the local ordinance where the city regulates.
• HOA or condo rules. Minimum-stay language decides whether the strategy is legal.
• Short-term rental insurance quote. The real premium, which is higher than a landlord policy.
• Taxes and HOA dues. Current bills for the PITIA calculation.
• Entity documents. Articles, operating agreement and EIN letter.

FREQUENT QUESTIONS

Do I need a full year of Airbnb history?

It is the strongest evidence. Without it, market STR data or the appraiser's long-term rent schedule is used instead, and treatment varies by lender.

Is gross or net revenue used?

Net of platform fees. Cleaning, supplies and management sit outside the DSCR calculation but should sit inside your own model.

What if my property only earns in summer?

The full twelve months are divided by twelve. A peak month does not get annualised.

How much more does an STR loan cost?

37.5 basis points over the equivalent long-term rental cell on the current sheet.

What if my city bans short-term rentals?

The file is underwritten on long-term rent instead, and it only works if that rent carries the payment.

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