DSCR Loans for Airbnb & Short-Term Rentals (2026 Guide)

A DSCR loan short term rental qualifies on the property’s income, not your personal tax returns — but the number a lender uses can be either long-term market rent or your actual Airbnb revenue, and the choice moves your entire deal. Jaken Finance Group writes these loans at 5.75%–10.5% APR on 30-year fixed or ARM terms and closes in 14 business days. Understanding which income figure your program uses is the difference between a deal that pencils and one that gets declined.

Canonical reference: For the full qualification checklist, see DSCR Loan Requirements 2026.

Key stats at a glance

• Standard-profile DSCR market rates run ~6.125%–8.50% in 2026; STR-income qualification typically adds 0.25%–0.75% on top — DSCR Finder, 2026
• Minimum DSCR is 1.0 on standard programs; 1.25+ earns the best pricing tiers — DSCR Finder, 2026
• Max LTV is 75%–80% on purchase and rate/term, 70%–75% on cash-out; STR-actuals programs often cap 5 points lower — Jaken Finance Group, 2026
• Reserves run 3–6 months of PITIA, with STR deals frequently at the 6-month end — Jaken Finance Group, 2026
• Typical minimum FICO is 620, with 680+ unlocking the best pricing — DSCR Finder, 2026
• Condos price 0.25%–0.75% higher with 70%–75% LTV caps — Fannie Mae condo eligibility guidelines, 2026
• The 30-year fixed benchmark that anchors investor pricing is published weekly — Freddie Mac PMMS, 2026

The two income numbers: 1007 market rent vs STR actuals

Every DSCR deal comes down to a fraction: qualifying rental income divided by the PITIA payment. On a short-term rental you have two ways to fill the numerator.

Long-term market rent (Form 1007). The appraiser completes a Single-Family Comparable Rent Schedule (Form 1007) estimating what the home would rent for on a standard 12-month lease. This is the conservative number. It ignores nightly premiums entirely and treats your Airbnb like a plain long-term rental. Almost every DSCR program accepts it, and it carries no STR rate premium. For the mechanics of how the 1007 is built and how to challenge a low one, see DSCR Loan Appraisal & the 1007 Rent Schedule.

STR trailing-12-month actuals. STR-specific programs let you qualify on the property’s real short-term revenue. Acceptable documentation usually means one of:

• Twelve months of operating statements from Airbnb/VRBO (gross revenue, net of platform fees)
• A property-management ledger or PMS export covering the trailing 12 months (TTM)
• An AirDNA (or comparable market-data) projection when the subject has no operating history — usually a Rentalizer-style report keyed to the exact address

Lenders convert gross STR revenue to a qualifying figure by subtracting a vacancy/expense factor — commonly 20%–35% — to account for cleaning, supplies, platform fees, and seasonality. The result is still often well above the 1007 long-term number in strong markets.

Higher-of vs lower-of: how programs treat the two numbers

This is the detail that trips up most borrowers. Not every STR program lets you simply use the bigger number.

Program treatment	Which income is used	Typical rate impact	Typical max LTV
Long-term only (standard DSCR)	1007 market rent	No STR add-on	75%–80% purchase / 70%–75% cash-out
Higher-of (STR-friendly)	Greater of 1007 or STR actuals	+0.25%–0.75%	70%–75% purchase
Lower-of (conservative STR)	Lesser of 1007 or STR actuals	+0.125%–0.375%	75% purchase
STR-actuals only	Documented TTM STR income	+0.25%–0.75%	70%–75% purchase

The “higher-of” structure is the one investors want — it lets a strong STR carry a payment the long-term rent could never support. But it is priced accordingly and usually drops your max leverage by about 5 points. “Lower-of” programs exist for borrowers who want STR flexibility with less rate premium; they protect the lender by defaulting to the smaller figure if your actuals disappoint. Confirm which treatment applies before you assume the AirDNA number gets you approved. For how these adjustments feed into your rate sheet, see How DSCR Loan Rates Are Set.

Worked example: same property, two ways to qualify

A 3-bed single-family in a vacation market. Purchase price $450,000, 25% down, loan amount $337,500. PITIA at 7.25% (30-year fixed) works out to about $2,780/month (principal, interest, taxes, insurance).

Path A — Long-term qualified (1007). The appraiser’s Form 1007 estimates market rent at $2,650/month.

• DSCR = $2,650 / $2,780 = 0.95
• Below 1.0. This deal either moves to a sub-1.0 / no-ratio program at reduced leverage plus a rate premium, or the borrower increases the down payment to lower PITIA.

Path B — STR-actuals qualified. Twelve months of Airbnb statements show $86,000 gross revenue. The lender applies a 30% expense/vacancy factor: $86,000 × 0.70 = $60,200 net, or $5,017/month qualifying income. The STR program adds 0.50% to the rate (7.75%), raising PITIA to roughly $2,890/month.

• DSCR = $5,017 / $2,890 = 1.74
• Comfortably above the 1.25 best-pricing threshold. The same property that failed on long-term rent now qualifies with room to spare — even carrying the STR rate premium.

The lesson: on a genuinely performing short-term rental, the STR-actuals path can rescue a deal that dies on the 1007. On a marginal STR, the long-term number may actually be the safer route. Run both before you commit — the DSCR calculator does the arithmetic in seconds.

STR-specific risks lenders price for

Short-term rentals carry underwriting risk a long-term lease does not, and that risk shows up in your terms.

1. Regulation risk. A city that bans or caps STR permits can zero out your nightly revenue overnight. Lenders respond by requiring proof of a valid STR permit, or by refusing STR-actuals qualification entirely and defaulting to the 1007. Confirm your municipal and HOA rules first — a market-by-market comparison like Orlando STR vs LTR DSCR shows how much local rules move the math.
2. Seasonality. Beach and ski markets earn most of their revenue in a few months. That is why STR reserves sit at the 6-month end of the 3–6 month range — see DSCR Loan Down Payment & Reserves.
3. Property type. Many STRs are condos, which price 0.25%–0.75% higher with 70%–75% LTV caps. Read DSCR Loans for Condos before you assume the same terms as a single-family.
4. Revenue documentation gaps. No 12-month history means you lean on an AirDNA projection, which lenders discount more heavily than proven actuals.

Decision path: which qualification route fits your STR

1. Does your city and HOA allow short-term rentals? No → qualify on the 1007 long-term number only, and check whether a long-term hold still pencils. Yes → continue.
2. Do you have 12 months of STR operating history on this property? Yes → gather platform statements or PMS exports for the TTM-actuals path. No → order an AirDNA/Rentalizer projection and expect a heavier revenue discount.
3. Does the 1007 market rent alone hit DSCR ≥ 1.0 at your target leverage? Yes → the standard program is cheaper; take it. No → you need an STR-friendly “higher-of” program.
4. Is the property a condo? Yes → confirm project eligibility and budget the condo rate/LTV adjustment early.
5. Have you banked 6 months of PITIA in reserves? Yes → submit. No → build reserves or adjust the down payment before applying.

For the broader comparison of financing routes for nightly rentals, see DSCR vs Conventional for Airbnb & Short-Term Rentals. If you are refinancing equity out of a seasoned STR, DSCR Cash-Out Refinance covers the 70%–75% cash-out caps.

Sources

• DSCR Finder — rate and program data
• Freddie Mac Primary Mortgage Market Survey (PMMS)
• Fannie Mae condo project eligibility
• Consumer Financial Protection Bureau

Short-term rental income can vary sharply with season, local permitting, and platform policy. The qualifying figures, expense factors, and rate premiums described here are illustrative 2026 examples; your actual DSCR, LTV, and pricing depend on the property, its documented income, and full underwriting. Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.

Short-term rental DSCR — next step (2026)

Bring your address and either your 12-month STR statements or an AirDNA report, and we will run both the 1007 and STR-actuals numbers so you take the path that maximizes leverage without overpaying on rate.

Submit scenario · Pre-qualify · (833) 264-7776.