- Purchases are usually sized on an AirDNA-style projection or long-term market rent; refinances on trailing-12-month booking income.
- Expect a haircut. One September 2026 lender matrix cuts gross STR rents by 20%, and 2023 programs used 75% of projections or 12-month averages.
- Long-term market rent from the appraiser's Form 1007 is the fallback, and it can be half of what the property earns as an STR.
- Lenders average a full 12 months, so a strong summer can't carry the file.
- No permit, no STR income. In New York City and Los Angeles, an investor-owned whole-home short-term rental isn't legal to begin with.
Three numbers a lender can start from
Lenders sizing a DSCR loan on Airbnb income start from one of three numbers, and which one depends mostly on whether you're buying or refinancing and how much short-term rental history the property has. After that, the math is the same as any rental: qualifying monthly income divided by PITIA, the full payment of principal, interest, taxes, insurance and HOA dues. These are business-purpose loans for investment property. A vacation home you'll use yourself needs a residential mortgage.
| Method | Where the number comes from | Typically used for | Common adjustment |
|---|---|---|---|
| Trailing 12 months (T12) | Actual bookings over the past year, from platform or manager statements | Refinances of operating STRs | 20% expense factor (eLEND, 2026); 75% of the 12-month average (AD Mortgage, 2023) |
| Projection (AirDNA or similar) | Third-party estimate of annual revenue from comparable listings, divided by 12 | Purchases and STRs without history | None for professional STR owners (Easy Street); 25% for newer operators in its 2023 terms |
| Long-term market rent | Appraiser's Form 1007 rent schedule, based on 12-month leases | Fallback when STR income can't be used | Usually none, but often far below STR income |
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On a purchase there's no history, so lenders lean on projections. Lima One underwrites short-term rentals using AirDNA and other data sources that look at actual STR income. Easy Street Capital qualifies purchases on AirDNA projections for investors it classes as professional STR owners: a successful STR in the same market, or three or more nationally. Angel Oak lists an automated AirDNA report among its documentation options. Some lenders won't use STR income on a purchase at all. eLEND's DSCR matrix, revised September 16, 2026, allows short-term rents on refinances only.
On a refinance, actual bookings win. Easy Street refinances on trailing-twelve-month actuals. HomeBridge's 2023 guidelines required 12 months of payment history from a third-party property manager, with the statement identifying the property by address. Without usable history, Easy Street falls back to long-term market rents, which it says are generally only half of a property's potential STR earnings.
The haircut: lenders don't underwrite your gross bookings
Short-term rentals cost more to run than leased homes: cleaning, supplies, furnishings, platform fees and the utilities a long-term tenant would pay. Lenders account for that by shrinking the income before they divide by PITIA. Published cuts vary:
- eLEND (September 2026): gross STR rents reduced by 20%. If your documentation shows actual expenses above 20%, the actual figure is used instead. When STR income is documented from more than one source, the lowest applies, and maximum LTV drops by 5 points.
- Easy Street Capital: 100% of AirDNA projected revenue for professional STR owners; its 2023 tear sheet took 25% off projections for newer operators. Easy Street also says most DSCR lenders use about 20% less than the projection.
- AD Mortgage (2023): 75% of the 12-month average rental income, or 75% of AirDNA values when there's no actual rent.
- Minimum DSCRs for STRs are rarely published. HomeBridge required 1.25 on STR purchases in 2023, and a third-party lender profile lists RCN Capital at 1.20 for short- and mid-term rentals.
Before you apply, ask every lender the same three questions: which income source, what haircut, and what minimum DSCR. The answers matter more than a quarter point of rate.
Management fees and platform fees
How a manager's cut enters the math depends on what the lender reads. If statements show gross bookings with each fee broken out, a lender using a flat expense factor applies the factor to gross, unless, as at eLEND, documented expenses above the factor replace it. If your manager reports only net payouts, the lender may treat that net figure as gross and apply its haircut on top, cutting your income twice. Ask your manager for statements that show gross revenue, each fee and the net payout.
Worked example: one house, three answers
A three-bedroom vacation home appraises at $400,000. You've run it on Airbnb for two years and want to refinance at 70% LTV, or $280,000, which is Lima One's published cash-out cap for short-term rentals. The rate is an illustrative 7.75% on a 30-year fixed, inside the 7–10% range LendingOne cited for STR loans in September 2026. Taxes are $375 a month and insurance $210.
| Feature | T12 bookings | AirDNA projection | Form 1007 market rent |
|---|---|---|---|
| Annual figure | $66,000 actual | $72,000 projected | — |
| Monthly gross | $5,500 | $6,000 | $2,500 |
| Adjustment | 20% expense factor | 25% haircut | None |
| Qualifying income | $4,400 | $4,500 | $2,500 |
| DSCR | 1.70 | 1.74 | 0.96 |
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The two STR methods land close together and clear any published minimum with room to spare. The long-term rent method fails a 1.00 minimum. At 0.96 you'd need a lender that accepts ratios below 1.00, usually with less leverage and a higher rate. To reach exactly 1.00 on $2,500 of rent, the loan would have to shrink to about $267,000 at the same rate and costs.
Two variations change the result. If your manager's statements show fees and costs equal to 28% of gross, a lender following the eLEND rule uses 28%: $5,500 × 0.72 = $3,960, a DSCR of 1.53. If you qualify as a professional STR owner at a lender that applies no haircut to projections, the full $6,000 gives 2.32, though the LTV cap, not the ratio, will usually limit the loan.
Seasonality: why the lender averages the whole year
A beach or ski property can earn most of its revenue in one season. Lenders protect themselves by averaging 12 months. eLEND requires a 12-month average for Airbnb and VRBO income to account for seasonality, and its appraiser's STR analysis has to factor in seasonality and vacancy. Fannie Mae's method multiplies the comparables' average rates by their average days rented. Here's how the $66,000 in the example might break down:
| Quarter | Bookings | Monthly average |
|---|---|---|
| January–March | $8,500 | $2,833 |
| April–June | $17,000 | $5,667 |
| July–September | $26,500 | $8,833 |
| October–December | $14,000 | $4,667 |
| Trailing 12 months | $66,000 | $5,500 |
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Annualize the summer quarter and you'd claim $106,000 a year. The lender sees $66,000. If the property was offline for a renovation or storm repair, document the dates and the work so the underwriter can see why a month is empty, rather than reading it as weak demand.
STR leverage runs a notch below long-term rentals
Even when the income clears, short-term rentals usually get less leverage. Lima One published up to 75% LTV on STR purchases and 70% on cash-out refinances, with a 700 minimum credit score and loans from $75,000 to $2.5 million. Easy Street publishes 80% and 75%. eLEND trims 5 points from its maximum LTV whenever STR income is used. Most lenders offer 80% on a long-term rental purchase.
A common sequence follows from those rules: buy on a projection, or on long-term rent if that's all the lender will use, then refinance once you have a year of bookings. Easy Street describes that path, a cash-out refinance a year later on trailing actuals. If you plan it that way, choose a first loan with a short prepayment penalty or none, so the exit cost doesn't eat the refinance.
Permits come first: no legal STR, no STR income
Lenders won't underwrite income the city says you can't earn. Fannie Mae requires the property to be legally permitted as a short-term rental, including local registration and licensing. eLEND's appraiser must show the property is in a short-term rental market with no code enforcement, county, city or HOA restrictions. Griffin Funding says your market must permit STR use. Two large cities show how far local rules can go:
- New York City: you can't rent an entire apartment or home for fewer than 30 days. Short stays are legal only if the host lives in the same unit with no more than two guests, and hosts must register with the Mayor's Office of Special Enforcement under Local Law 18.
- Los Angeles: home-sharing is allowed only in the host's primary residence, where they live more than six months a year, with a city registration number on every listing.
In both cities, an investor-owned whole-home STR isn't a legal business plan, so no lender will count its Airbnb income. Elsewhere, rules range from a simple registration to permit caps by neighborhood, and they change. Check the city or county code, any HOA covenants and the permit status before you make an offer, and ask each lender whether a permit or registration is a condition of closing.
Document the income before you need the loan
- Download annual earnings reports from each platform showing gross bookings, fees and payouts by month, and keep them for every year you operate.
- Run each property's payouts through its own bank account so deposits match the platform reports line for line.
- If you use a manager, keep 12 months of statements that name the property address and break out gross revenue, management fees and other expenses. Know your expense ratio; above 20%, some lenders use your actual number.
- Keep the STR permit or registration, your occupancy-tax registration, and the HOA's written approval if the community has one.
- Track occupancy and average daily rate yourself. If your results beat the AirDNA estimate, they're your case for a refinance on actuals.
- Report the property on your tax return consistently with your platform reports. An underwriter comparing the two will ask about large gaps.
One more decision to make early: once an eLEND file is submitted on short-term rents, it can't be switched to long-term rents. Decide which income story you're telling, and confirm the lender's method, before the appraisal is ordered.