DSCR loans underwritten on projected or actual short-term rental income. AirDNA, prior operating history, or third-party STR rent appraisals all accepted. Compatible with Texas city-level STR regulations.
Short-term rental (STR) financing is the DSCR variant designed for properties operated as Airbnb, VRBO, or similar nightly-rental businesses. The underwriting framework is identical to standard DSCR — rent divided by PITIA, tier-priced against the DSCR ratio — but the "rent" source comes from STR revenue rather than a long-term lease. Three methods are commonly accepted for documenting that revenue.
STR financing in Texas requires careful attention to municipal regulation. Each major metro has different rules:
We check the subject address against city ordinances and HOA restrictions before quoting. STR financing in a restricted zone is usually a non-starter regardless of cash flow.
| Loan amounts | $150K – $3M |
| Property types | SFR, condo, condotel, 2–4 unit |
| Max LTV — purchase | 75% |
| Max LTV — cash-out | 70% |
| Min DSCR | 1.0 standard, 1.10 for best pricing |
| Income documentation | AirDNA, prior operating history, or STR rent appraisal |
| Min FICO | 680 |
| Rates | +0.25–0.75% over standard long-term DSCR |
Yes. Most DSCR lenders have STR-specific underwriting that accepts AirDNA market projections, 12–24 months of prior STR operating history on the same property, or a third-party STR rent appraisal (an extension of the standard 1007/1025 with STR market analysis). The DSCR is calculated against projected gross annual STR revenue divided by 12 — same framework, different rent source.
Three accepted methods. (1) Prior 12–24 months of actual operating history on the subject property — bank statements showing Airbnb / VRBO deposits, plus the platform's host dashboard exports. (2) AirDNA market report for properties without operating history, projecting revenue based on comparable STRs in the same submarket. (3) Third-party STR rent appraisal — a specialized appraiser with STR market data documenting projected annual revenue. Most programs accept any of the three; some prefer specific combinations.
Yes — Austin, Dallas, and Fort Worth all regulate short-term rentals at the city level (registration, occupancy caps, zoning restrictions). A property in a restricted zone may not be eligible for STR DSCR even if it cash-flows. We check the subject address against city STR rules before quoting, and route the file to lenders comfortable with the specific regulatory profile.
Some investors prefer this — qualify on the conservative long-term rent number to keep the loan clean, then actually operate as STR for higher cash flow. Most DSCR lenders allow this; the loan documents typically don't restrict use mode as long as the property remains non-owner-occupied investment property. Just confirm your specific program's post-close occupancy and use language.
STR DSCR programs price 0.25–0.75% higher than standard long-term rental DSCR, reflecting income volatility. Max LTV is typically 75% on purchase (vs 80% on long-term rental DSCR) and 70% on cash-out refi. Strong markets with documented operating history close to long-term-DSCR pricing; new-acquisition STRs on AirDNA projections only price at the upper end.
Send us the address, projected revenue (AirDNA or operating history), and intended purchase price. We'll confirm STR eligibility against city regulations and quote the file.