Disclaimer: Rate data updated April 14, 2026. Rates change daily — contact lenders directly for current quotes. DSCRFinder.com does not guarantee rate accuracy.
DSCR Loan Rates for Short-Term Rentals — 2026
Short-term rentals (Airbnb, VRBO, Booking.com) have become a major use case for DSCR loans. STR income can significantly exceed long-term rental income for the same property — but qualifying for a DSCR loan with STR income requires understanding how lenders calculate it and which lenders accept it.
As of April 2026, DSCR rates for short-term rental properties run 7.40% to 9.25% — typically 0.25%–0.50% above comparable long-term rental DSCR rates.
STR DSCR Rate Table — April 2026
| Borrower Profile | DSCR | FICO | Down Payment | STR Rate Range | |---|---|---|---|---| | Best-qualified | 1.25+ | 740+ | 30%+ | 7.40% – 7.75% | | Strong | 1.25+ | 720–739 | 25% | 7.75% – 8.00% | | Standard | 1.0–1.24 | 680–719 | 20–25% | 8.00% – 8.50% | | Moderate | 0.75–0.99 | 660–679 | 25% | 8.50% – 8.75% |
STR rate premium over long-term rental DSCR: +0.25%–0.50%
How DSCR Lenders Calculate STR Income
This is the most important thing to understand before applying for an STR DSCR loan. Lenders use different methods:
Method 1: Long-Term Market Rent (Most Common)
The lender ignores your Airbnb income entirely and uses the appraiser's long-term market rent estimate for DSCR qualification. This is the most conservative method and may result in a lower DSCR than your actual STR income supports.
Example: Your Airbnb earns $4,500/month. The appraiser estimates long-term market rent at $2,800/month. The lender uses $2,800 for DSCR qualification.
Method 2: AirDNA Market Income
Some lenders use AirDNA projected STR income — a data service that estimates short-term rental revenue based on comparable listings in the area. AirDNA-based DSCR calculation usually produces higher qualification income than long-term market rent.
Method 3: Actual STR Income History
A few lenders accept 12 months of actual Airbnb/VRBO income from your platform statements. This is the most favorable method for established STR operators.
Always ask your lender which method they use before applying.
STR DSCR Loan Requirements (2026)
| Requirement | Typical Range | |---|---| | Minimum DSCR | 0.75 to 1.0 | | Minimum FICO | 640–680 | | Down payment | 20%–25% (some require 25%+ for STR) | | Max LTV | 75%–80% | | Property types | SFR, condo (check warrantability), 2–4 unit | | Income documentation | AirDNA report, 12-month platform history, or market rent appraisal |
Best STR Markets for DSCR Loans in 2026
| Market | STR Income Potential | Regulatory Risk | DSCR Feasibility | |---|---|---|---| | Scottsdale, AZ | Very High | Low | Strong | | Las Vegas, NV | Very High | Low | Strong | | Nashville, TN | High | Medium | Good | | Asheville, NC | High | Low | Good | | Gatlinburg / Smoky Mountains, TN | Very High | Low | Strong | | Destin / PCB, FL | High | Low | Good | | Sedona, AZ | Very High | Medium | Good | | Orlando (Disney area), FL | High | Low | Good | | Savannah, GA | Medium-High | Low | Good | | Miami Beach, FL | Very High | High | Challenging |
STR Regulatory Risk — Critical for DSCR Investors
STR regulations are the biggest risk for STR DSCR investors. A property that qualifies based on STR income can become an underperforming long-term rental overnight if the city bans or restricts STRs.
Lower risk markets (STR-friendly laws): Arizona, Tennessee, Nevada, Georgia Higher risk markets (active STR restriction efforts): NYC, San Francisco, Miami Beach, many California cities
Before purchasing, verify:
- Current local STR permit availability
- Any pending legislation that could restrict STRs
- HOA rules (many condos prohibit STRs regardless of local law)
- Whether permits are transferable with property sale
DSCR Lenders That Accept STR Income
Not all DSCR lenders work with STR properties. When shopping lenders, ask specifically:
- Do you accept AirDNA income for STR DSCR qualification?
- Do you accept 12-month platform income history?
- What is the rate premium for STR vs. long-term rental?
- Are there restrictions on STR property locations?
Use our lender comparison and filter for STR-capable lenders.
Frequently Asked Questions
Can I use my Airbnb income to qualify for a DSCR loan? It depends on the lender. Some use only long-term market rent; others accept AirDNA projections or actual platform income. Shop lenders specifically for STR DSCR programs.
Do DSCR loans require a minimum occupancy rate for STRs? Some lenders require documentation that the property has achieved a minimum occupancy rate (often 65%+) over the prior 12 months for income to be used.
Are STR DSCR rates much higher than regular DSCR rates? The premium is typically 0.25%–0.50%. On a $400,000 loan, that's roughly $65–$130/month — usually more than offset by the higher STR income.
Can I convert a long-term rental to STR after getting a DSCR loan? Many DSCR loan agreements require the property to be used as an investment rental but don't restrict the rental type. Review your loan agreement — some lenders include STR conversion restrictions.
Related: Current DSCR Rates April 2026 | DSCR Rates Nevada | DSCR Rates Arizona | Compare Lenders
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