Conventional lenders require either W-2 income or documented rental history to qualify a property. A new Airbnb has neither — which means strong investments with real revenue potential routinely get denied for no reason other than the lender's inability to evaluate them.
STR DSCR loans solve this by using third-party short-term rental income projections from AirDNA — the industry's leading STR data provider — instead of actual lease history.
AirDNA analyzes actual Airbnb and VRBO listings in the property's specific submarket to generate a projected annual gross income. Lenders apply a 70–75% factor to that figure as the qualifying rental income and calculate DSCR from there.
Example: AirDNA projects $78,000/year gross STR revenue → Lender uses 75% = $58,500/year → $4,875/month qualifying income → PITIA is $3,800/month → DSCR = 1.28x ✓
Before you go into contract on an STR property, verify that short-term rentals are legally permitted in that specific jurisdiction. Cities like New York, Santa Monica, and many resort towns have strict ordinances that can prohibit Airbnb operation entirely. I'll run a quick permit check on any market you're considering before you spend time or money on an offer.
We finance STR DSCR loans nationwide. Some of the strongest markets we're currently seeing deals close in: Orlando, FL · Nashville, TN · Scottsdale, AZ · Gatlinburg/Smoky Mountains, TN · Destin/30A, FL · Las Vegas, NV · Myrtle Beach, SC · Breckenridge, CO · Sedona, AZ · Tampa, FL
No — AirDNA projections qualify properties that haven't operated as STRs yet. You're qualifying on market potential, not your personal operating history.
Yes. With 12+ months of documented STR income, some programs use actual revenue (with a haircut) instead of AirDNA — which can be advantageous if your property outperforms market averages.
If STRs are banned or heavily restricted in the jurisdiction, the loan won't work. I run a permit check on every STR deal before wasting your time on an application.
Get a same-day eligibility answer — no credit pull, no obligation.
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