How STR income gets measured
With a traditional lease, rent is a single, contractual number. A short-term rental has variable nightly revenue, seasonality and higher operating costs. Wholesale lenders handle this in a few different ways: some rely on the property’s own booking history, some accept third-party market data on comparable short-term rentals, and some use the appraiser’s long-term market rent instead.
The method matters. A property that looks strong on its actual booking history may barely qualify on long-term rent, and the reverse can happen in markets with uneven seasonality. Part of shopping an STR loan is finding the lenders whose income method fits the property.
Documentation commonly requested
- Twelve or more months of platform payout statements or property management reports, if the property has history
- A short-term rental market analysis for newly acquired properties, where the lender accepts one
- Evidence that local rules permit short-term rental use
- Insurance appropriate for short-term rental activity
Pricing considerations
Short-term rental programs often carry their own adjustments and may cap leverage below what the same lender offers for long-term rentals. Because the income figure can be discounted for expenses, the DSCR you calculate from gross bookings may be higher than the DSCR the lender calculates. Run the numbers conservatively.
Still business-purpose
A short-term rental financed with a DSCR loan must be an investment property. If you plan to use it as your own vacation home for part of the year, it falls outside what we arrange.
Factors that weigh most on this loan
| Factor | Why it matters here |
|---|---|
| DSCR ratio | The income method drives the ratio. |
| Loan-to-value | STR leverage caps are often lower. |
| Credit score | Combines with STR adjustments. |
| Prepayment penalty | Still a meaningful lever on STR pricing. |
Common questions
Can a brand-new short-term rental qualify without booking history?
Some wholesale lenders accept a market-based projection for properties without history; others require actual bookings or fall back to long-term market rent. We match the property to lenders whose method fits.
Do I need a permit to get an STR DSCR loan?
Lenders generally want to see that short-term rental use is legal in the location. Where local rules require a permit or license, expect to provide it.