A short-term rental DSCR loan lets investors finance Airbnb, VRBO, and vacation-rental properties using the property's projected nightly income — even without an existing rental history. The qualifying math swaps a long-term lease for an AirDNA projection, opening the door to investors entering the STR space for the first time.

This guide explains exactly how STR DSCR loans work in 2026: how AirDNA income is calculated, what LTV and rates look like, the most lender-friendly STR markets, and the operating-permit checks that have to clear before close.

How STR DSCR Underwriting Differs from Long-Term DSCR

The core formula is the same: gross monthly rent ÷ PITIA. The difference is the income source. A long-term DSCR uses the in-place lease or appraiser-determined market rent. An STR DSCR uses the property's projected gross revenue from AirDNA, divided by 12 to produce a monthly equivalent.

Most STR DSCR underwriters apply a 75–80% factor to the AirDNA gross projection to account for vacancy, cleaning fees, platform commissions, and seasonality. So an AirDNA projection of $80,000 annual gross becomes a $5,333/month qualifying rent ($80,000 × 0.80 / 12). That's the number divided into PITIA to produce the qualifying DSCR.

STR DSCR Loan Requirements — 2026

Short-Term Rental DSCR Snapshot

The Most Lender-Friendly STR Markets

Not every STR market is created equal in the eyes of an underwriter. The strongest STR DSCR markets in 2026 are the ones with mature AirDNA data, established investor inventory, and predictable jurisdictional rules:

STR Permit Risk — Check This Before You Contract

The single biggest deal killer in STR DSCR financing is local STR ordinance non-compliance. Cities and counties have wildly different rules:

Our underwriting team verifies STR permit status as part of every STR DSCR file, but you should validate this before contracting to avoid wasting due diligence dollars.

STR DSCR Pricing — 2026

STR DSCR loans typically price 0.25–0.50% above standard SFR DSCR rates due to the income-volatility profile. Strong-credit STR borrowers (740+ FICO, sub-70% LTV) typically see 6.50–7.25% in mid-2026. Foreign national STR DSCR adds another 0.50–1.50% on top of the foreign national base premium.

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Frequently Asked Questions

Can I get a DSCR loan for an Airbnb with no rental history? +
Yes. We use AirDNA projected income (typically applying a 75-80% factor to the gross projection) as the qualifying rent. No operating history required.
What is the minimum credit score for an STR DSCR loan? +
660 minimum on most STR DSCR programs, vs 620 on long-term DSCR. Lower credit available case-by-case with stronger DSCR or higher down payment.
Do STR DSCR loans require AirDNA reports? +
Yes for properties without an existing operating history. For properties with 12+ months of operating history, the actual P&L can substitute for AirDNA.
Can I close my STR DSCR loan in an LLC? +
Yes. STR DSCR loans close routinely in LLCs. Most STR investors close in LLCs for liability protection given the higher tenant turnover.
What happens if my city changes its STR rules after closing? +
The loan stays in place — but your cash flow can be impacted. Underwrite for the worst-case rule change in markets with active STR-restriction policy debates (Austin, San Diego, parts of NYC).

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Related Resources

DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548), a licensed mortgage broker. Informational only; not a loan commitment. Equal Housing Lender.