Washington DC mid-term rental financing is the compliance-aware path between long-term DSCR holds and nightly Airbnb under DC’s 90-night STR cap and licensing rules. Mid-term rentals (MTR) — furnished 30–90 day stays — capture corporate, federal, and medical assignment demand without the enforcement risk of illegal nightly STR.
Hub: investment property financing Washington DC · Rules: DC STR license rules · National: Airbnb DSCR
MTR vs STR vs long-term — DC split
| Strategy | Stay length | DC compliance | DSCR fit |
|---|---|---|---|
| Long-term lease | 12+ months | Rent control research | Default DSCR |
| Mid-term furnished | 30–90 days | Often outside nightly STR cap | Select MTR programs |
| Nightly STR | 1–29 days | License + 90-night primary residence rules | STR-specific |
DC 90-night STR cap — why investors pivot to MTR
DC’s short-term rental framework limits many hosts to 90 nights per year when the property is not a licensed commercial STR or does not qualify for extended hosting. Practical impact for investors:
| STR profile | 90-night cap impact | MTR alternative |
|---|---|---|
| Owner-occ house hack | 90 nights on secondary unit — insufficient for scale | Furnished 30–90 day leases on basement |
| Non-owner-occ investor | STR license required; enforcement active | MTR structured as lease, not nightly booking |
| Condo investor | HOA often bans all short stays | MTR if bylaws allow ≥30-day stays |
| Rowhouse investor (whole unit) | License + cap on unlicensed hosting | Corporate furnished 45-day average |
Full rules: DC STR license rules 2026
MTR stays of 30+ days structured as written leases typically fall outside nightly STR licensing — verify classification with counsel and DHCD rental registration rules before scaling.
Corporate and federal demand drivers (2026)
DC MTR demand is structural — not seasonal tourism:
| Demand source | Typical stay | Corridors | Rent premium |
|---|---|---|---|
| Congressional staff rotations | 60–120 days | Capitol Hill, Navy Yard | 1.30x–1.50x LTR |
| Federal contractor assignments | 30–90 days | Navy Yard, Shaw, Crystal City spillover | 1.25x–1.45x LTR |
| Medical/residency rotations | 30–60 days | Columbia Heights, Petworth | 1.20x–1.40x LTR |
| Corporate relocation (temp) | 30–90 days | Dupont-adjacent, Georgetown fringe | 1.35x–1.55x LTR |
| Remote worker furnished | 30–60 days | Shaw, Brookland | 1.20x–1.35x LTR |
Why DC investors pivot to MTR
- 90-night cap limits pure Airbnb scale on many owner profiles
- Federal contractor rotations support furnished premium near Capitol Hill and Navy Yard
- Furnished premium often 1.25x–1.55x long-term rent on same rowhouse unit
- Rent control on qualifying long-term units — MTR structure differs; verify with counsel
- Transfer tax on acquisition still applies — recordation guide
Neighborhood fit (2026)
| Corridor | MTR demand driver |
|---|---|
| Capitol Hill | Congressional and staff rotations |
| Navy Yard | Contractor and corporate |
| Shaw | Downtown-adjacent assignments |
| Petworth | Remote worker furnished demand |
Hold spokes: DSCR Capitol Hill · DSCR Navy Yard
Worked example: Capitol Hill furnished MTR
- Acquisition: $595,000 rowhouse — upper unit MTR, legal basement long-term
- Transfer tax (2.2%): $13,090 — included in all-in basis
- Furnish upper: $35,000
- MTR gross upper: $4,100/mo on 45-day average bookings
- Basement long-term: $1,750/mo
- Total gross: $5,850/mo
- Appraised value: $885,000 post-furnish + lease history
- DSCR refi at 74% LTV: $654,900 @ 8.85% — ratio ~1.12 with 6-month MTR history
- Hard money retired: month 10 — acquisition on hard money DC at 10.75% IO
Split rent roll — MTR unit documented separately from basement long-term lease. Rent control applies to basement LTR unit — rent control guide.
MTR vs LTR DSCR comparison — same Capitol Hill asset
| Metric | Long-term hold | MTR furnished |
|---|---|---|
| Upper unit rent | $2,800/mo | $4,100/mo |
| Basement rent | $1,750/mo | $1,750/mo |
| Total gross | $4,550/mo | $5,850/mo |
| Furnish cost | $0 | $35,000 |
| DSCR @ 72% LTV | ~1.04 — thin | ~1.12 — clears |
| Management intensity | Low | Moderate — turnover every 45 days |
| Compliance | Rent control on basement | MTR lease structure + STR cap avoidance |
Financing stack
- Acquire on hard money DC — 8.99%–13.5% IO
- Furnish + build booking history — executed 30+ day leases preferred; 6-month lookback for refi
- Refi on DSCR DC or cash-out DC — 5.75%–10.5%
Transfer tax on buy: recordation guide
DC MTR risks
| Risk | Mitigation |
|---|---|
| STR license confusion | Counsel on MTR vs STR classification |
| 90-night cap violation | Structure as 30+ day lease, not nightly |
| Rent control on basement LTR | Separate compliance — rent control guide |
| Condo restrictions | Many DC condos ban all short stays — read bylaws |
| HP districts | Furnished exterior changes may trigger review |
| Booking history too short | Build 6-month track before refi application |
| Furnish scope overrun | Budget $30K–$45K for quality corporate furnish |
Related
- PadSplit financing DC
- House hacking DC
- DC rent control guide
- Navy Yard DSCR — condo MTR lane
Start your DC MTR file
- Pre-qualify
- Submit refi intent — lease history, licensing status
- Call (833) 264-7776
DC mid-term rental — 90-night cap + MTR file gates (2026)
DC MTR files fail when nightly STR is run without license under 90-night cap, or condo bylaws ban sub-30-day stays.
- Worked refi: Capitol Hill — $5,850/mo gross (MTR upper + LTR basement) → 74% LTV at 8.85%
- 90-night cap: MTR 30–90 day leases avoid nightly STR enforcement risk
- Corporate demand: Federal contractor · congressional staff · medical rotations
- Acquire: Hard money DC · 8.99%–13.5% IO
Underwriting anchor: Capitol Hill rowhouse — $4,100/mo MTR upper + $1,750/mo basement LTR — build 6-month booking history before DSCR application. MTR DSCR 5.75%–10.5% · (833) 264-7776.
Pre-Qualify for DC MTR Financing · (833) 264-7776
Non-owner occupied investment property only. Rates and terms subject to change.