STR (Airbnb) Income + DSCR Analyzer

STR DSCR mechanics — how lenders actually qualify your Airbnb

STR (short-term rental) DSCR loans are a specialized non-QM product line. Unlike LTR DSCR — where the lender takes gross monthly rent from an executed lease and divides by PITIA — STR DSCR has to handle revenue that is both seasonal and volatile. The industry has settled on three techniques to deal with this:

1. AirDNA (or equivalent) market projections for new or unstabilized STRs, with a lender-applied haircut (20-30%) to reflect estimation risk
2. Trailing-12 booking history from Airbnb/Vrbo/direct, with a smaller haircut (0-20%) applied to verified revenue
3. LTR fallback requirement — the property must also qualify (sometimes at a relaxed DSCR floor) based on market LTR rents, so the lender has a rent-only safety net if the STR business collapses

The AirDNA haircut — why it exists and what it means

AirDNA is the industry standard for STR market data. Their Rentalizer product takes a property's address, bedroom count, and bathroom count, then generates projected annual revenue and occupancy based on comparable active listings in the market. Most STR DSCR lenders use AirDNA (or their internal model) for the revenue input when underwriting a newly-acquired or renovated STR.

Because AirDNA is a comp-based estimate — not verified history — lenders discount the numbers before running DSCR. A typical haircut table:

Scenario	Typical haircut
Verified T12 Airbnb revenue (12+ months same property)	0-10%
Verified T12 by same operator (different unit, same market)	10-20%
AirDNA projection on stabilized existing STR	20% (market standard)
AirDNA projection on new or renovated property	25-30%
Restrictive market (regulation risk)	30-40% or LTR-only

Occupancy assumptions

Most lenders accept AirDNA occupancy rates for the specific submarket. For new-to-market listings without history, many cap occupancy at 65-70% even if AirDNA says 80% — they know ramp-up from cold-start is real. The tool above lets you input your actual expected occupancy and stress-test against lower numbers. A useful exercise: compute DSCR at your expected occupancy, then at 10 percentage points lower. If the lower number still qualifies, the deal has margin of safety.

Seasonality — why blended ADR matters

A typical Smoky Mountain cabin might do $450/night from May through October (high season) and $175/night from November through April (low season). The flat ADR on a listing is the revenue-weighted average, which differs from the simple midpoint. Underwriting typically uses the 12-month blended gross — but your cash-flow stress testing should model high and low months separately to understand reserve requirements.

The tool above lets you input high- and low-season ADRs and the share of the year in high season — useful for building a realistic blended ADR input.

LTR fallback — the underwriting safety net

Nearly every STR DSCR lender requires a 1007 / 1025 appraisal form showing market LTR rents, and many require the property to qualify at LTR rents (usually at DSCR 0.75-0.90 minimum, sometimes 1.00). This is the lender's protection against:

• City STR bans (NYC, SF-style regulation)
• HOA STR bans imposed post-close
• Platform deplatforming (Airbnb/Vrbo delisting)
• Over-saturation of the local STR market

The practical implication: if you're buying a high-yield STR in a market with $1,500 LTR rents and $4,500 STR gross, the LTR fallback is what limits your loan size. You might pass the STR DSCR test at 75% LTV on strong projections but fail the LTR fallback, forcing a smaller loan.

STR-restrictive cities (financing-unfriendly)

Some cities have rules that make STR financing difficult or impossible:

• New York City — Local Law 18 effectively eliminated whole-unit STR rentals <30 days. Most lenders will only lend on LTR rents in NYC.
• San Francisco — STR limited to primary residences with occupancy caps and registration; investor STRs are largely prohibited.
• Santa Monica, LA (parts), West Hollywood — Strict owner-occupancy and registration requirements.
• Honolulu (most of Oahu) — Minimum stay requirements and caps that gut the STR economics.
• Portland (OR), Austin, Denver, Nashville — Non-owner-occupied STR restrictions vary; financing is available but haircuts are higher.

Always check both city and HOA STR rules before buying. Financing isn't available if the STR use is illegal, no matter how good the economics look.

STR-friendly markets in 2026

The most financing-friendly STR markets tend to be vacation destinations where state law pre-empts city restrictions:

• Tennessee Smokies (Gatlinburg, Pigeon Forge, Sevierville)
• Florida beaches (Destin, Panama City Beach, Anna Maria, 30A) — state pre-emption protects STRs in many cities
• Missouri Ozarks (Branson, Lake of the Ozarks)
• Low country / Outer Banks (Hilton Head, Myrtle Beach, Nags Head)
• Desert / mountain resort (Sedona, Joshua Tree, Big Bear, Park City, Breckenridge — check HOA rules carefully)

12-month history requirement — when it matters

A few STR DSCR lenders (the most aggressive) will close with zero STR history using AirDNA + 25-30% haircut. Most standard programs prefer or require 12 months of verifiable booking history (Airbnb/Vrbo statements). The middle ground: 3-6 months of history plus AirDNA often gets you access to the better-priced tier.

STR DSCR lender landscape

The active STR DSCR lenders in 2026:

• Visio — one of the most STR-experienced programs; uses 20% AirDNA haircut with LTR fallback
• Kiavi, LendingOne, A&D — standard STR DSCR programs, 20-25% haircuts
• Angel Oak, Churchill — non-QM STR with stricter LTR fallback requirements
• Easy Street Capital, Wildcat — STR-specialist shops, higher rates but more flexibility on history and haircuts

STR-specific underwriting documents

Expect to provide more documentation for STR DSCR than for LTR DSCR:

• 12-month booking statements from Airbnb/Vrbo/direct (if available)
• AirDNA Rentalizer report or equivalent market data
• Short-term rental permit or registration (where required)
• HOA letter confirming STR is allowed (for condos and HOA-governed properties)
• Property management agreement (if using a PM)
• Insurance binder with STR endorsement — standard homeowner policies exclude STR use and lenders require specialized coverage

Insurance — the overlooked line item

STR insurance is materially more expensive than standard rental insurance. Proper coverage includes commercial general liability (for guest injuries), loss of income (for storm / wildfire / regulatory shutdowns), and specific STR endorsements. Budget $200-$400/month for a typical $500k STR in a tourist market, vs $60-$120/month for the same property as an LTR. Underwriting will verify the STR policy at closing — inadequate coverage is a closing-day surprise that kills deals.

Cash-flow stress testing

STR cash flow is far more volatile than LTR. A hurricane, a local event cancellation, a negative review streak, or a platform algorithm change can drop monthly revenue 40-60% for a quarter. Stress-test your numbers against these scenarios:

• Occupancy drops 20 percentage points (68% to 48%)
• ADR drops 20% (supply increase or recession)
• 3-month closure (disaster or regulatory shutdown)
• PM fee increase (from 18% to 25% at renewal)

If DSCR under any of these scenarios stays above 0.80, you have enough margin to weather volatility. If any of them drops you below 0.60, reconsider the deal or build larger reserves (12+ months of PITIA in cash).

For the full guide to financing short-term rentals, see our short-term rental loan guide. To model vacation-rental BRRRR acquisitions, pair this calculator with the BRRRR strategy modeler. For STR owners with multiple vacation rentals considering a blanket loan, use the portfolio DSCR analyzer.