DSCR Loan Vacation Rental 2026: Qualifying with Short-Term Rental Income

Short-term rental properties generate higher gross income than long-term rentals in most markets, but that income is harder to document and not all DSCR lenders accept it. Investors buying Airbnb or VRBO properties need a DSCR lender that explicitly allows short-term rental income in their qualifying calculation -- and one who understands how to interpret the platform's earnings data.

How Lenders Calculate DSCR for STR Properties

For properties with at least 12 months of operating history, most STR-eligible DSCR lenders use the gross rental income from the platform's earnings report, apply an operating expense ratio (typically 25% to 35%), and divide the net operating income by the annual mortgage payment (PITIA). For properties without rental history, lenders use a market rent analysis from an appraiser rather than projected STR income. The appraiser must confirm the property is in an active short-term rental market to use STR comparables.

Lenders That Accept STR Income for DSCR

• ✦Visio Lending: accepts Airbnb/VRBO earnings with 12+ months history; uses platform report gross income
• ✦Lima One Capital: accepts STR income documentation; applies 25% expense ratio on gross collections
• ✦Kiavi: allows STR income with 12 months of platform history; AVM-based appraisal for qualifying properties
• ✦Angel Oak: accepts STR income with market rent analysis from licensed appraiser; 12 months history required
• ✦Many conventional DSCR lenders do NOT accept STR income -- confirm before submission

Documentation Requirements

Standard STR documentation includes the Airbnb or VRBO earnings report (generated from the platform dashboard) showing 12 months of gross collections, the property tax record confirming the property is in an STR-permitted zone, and evidence the property is currently listed and operating. Some lenders require a copy of the active listing. Municipalities increasingly restrict STR activity, and lenders are aware of this -- be prepared to document that STR is legally permitted in the jurisdiction.