The Quick Read: For an investor turning a short-term rental into a 12-month lease, the appraiser’s long-term rent schedule or a signed lease is usually the income that matters, while booking history fits only if the property keeps operating as a short-term rental under a program that credits it. The two documents measure different businesses. One estimates what a tenant would pay each month, and the other records what guests already paid.
- The rent schedule (Form 1007 for one unit) is a forward-looking, monthly-lease opinion of market rent.
- Booking history is backward-looking proof of nightly-rental income, and it needs a seasoned operating record.
- If you are converting, the rent schedule and lease describe your new income; the old bookings describe your old one.
- Clearing the coverage test is not the same as positive cash flow, because repairs, vacancy, and management sit outside the math.
- Lender guidelines decide which basis counts, so model both before you commit to a path.
Here is the honest answer on who each option is for. The rent schedule suits the investor who has stopped hosting, or is about to, and wants the loan to match the lease the property will actually carry. Booking history suits the investor who is still hosting, has a full year of clean records, and wants the loan to credit what the property really earns. Mid-conversion investors sit between the two and should compare both numbers before choosing.
Side-by-Side
This table shows how the two income bases compare. The long-term column reflects what the wholesale network’s programs typically use for a standard rental. The booking-history column reflects published industry norms for short-term-rental underwriting, plus the network’s short-term-rental parameters. Details vary by lender and by file.
| Factor | Rent Schedule / Lease | Booking History |
|---|---|---|
| Review basis | Appraiser’s monthly market rent or lease | Trailing platform income |
| Direction | Forward-looking | Backward-looking |
| Core documents | Form 1007 or 1025, signed lease | Platform statements, deposits, tax records |
| Operating record needed | None for a market-rent opinion | Roughly 12 months of hosting |
| Property types | Standard 1-4 unit rentals | Short-term-rental-eligible properties |
| Typical credit | Around 660, with 620 floors in parts of the network | 640+ on most files |
| Entity vesting | LLC vesting common | LLC vesting common |
| Reserves | Commonly around 6 months of PITIA | Commonly around 6 months of PITIA |
| Main weakness | Can understate a strong STR | Needs history; seasonality can hurt |
PITIA stands for principal, interest, taxes, insurance, and association dues. It is the full monthly obligation the lender compares your rent against. On entity vesting, LLC-titled borrowers are common in this space, subject to lender program eligibility.
Reserves vary by lender, leverage, loan size, and transaction type. About 6 months of PITIA is common, conservative rate-and-term files at modest leverage under $1,500,000 can see reserves waived, and loans above that size typically step up to around 9 months. Treat the table as a map and expect the file to be underwritten individually.
What Each Document Actually Measures
A DSCR loan, short for debt service coverage ratio, qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The ratio is monthly qualifying income divided by monthly PITIA. The open question on any converted or converting property is which income goes in the top of that fraction.
Form 1007 is the appraiser’s single-family rent schedule. It records an indicated monthly market rent, built from comparable properties leased by the month. Form 1025 does the same job for two-to-four-unit properties and folds the rent analysis into an income-property appraisal. McKissock, an appraisal education provider, explains that the form captures monthly rent rather than nightly rent or business income. It also notes that appraisers value the real estate, not the furnishings or the hosting business.
Booking history is the paper trail of a hosting business. It usually means platform payout statements, the bank deposits that match them, and tax records. No appraiser produces it. You assemble it, and the lender decides how much of it to credit.
Two points follow from that. First, a property that hosts guests carries the same appraised value as an identical one that does not. Second, the lender, not the appraiser, decides which income counts. Both come from the same McKissock explanation.
Why the 1007 Struggles With Nightly Income
The 1007 was built for leases, so it handles short-term-rental income badly. The Nevada Real Estate Division’s copy of a Fannie Mae appraiser newsletter says the form was not designed for single-family properties used as short-term rentals. It calls for indicated monthly market rent, so the appraiser analyzes properties leased by the month. It adds that using short-term-rental comparables on the form would be incorrect.
That same document also calls the shortcut of multiplying a nightly rate by 30 incorrect. If someone proposes that math to hit a rent number, the form’s own guidance says it is not a valid way to build one.
An appraisal vendor, Class Valuation, makes a practical point. Leaning on the 1007 for a strong short-term rental often produces an artificially low coverage ratio. It suggests that short-term income belongs on a separate narrative addendum, which is commentary rather than a rule.
One contrast is worth a paragraph. Fannie Mae’s appraiser update says its Selling Guide is silent on whether a short-term rental counts as rental income. It also says the 1007 is required only when rental income helps qualify a one-unit investment property. Those are agency conventional-loan rules. DSCR programs set their own requirements, so treat that as background on why the form behaves the way it does, not as a rule for your file.
When the Rent Schedule Is the Better Fit
The rent schedule is the better fit when the property will be leased long term and you want the loan to reflect that. This is the converting investor’s main path, and it is the form designed for the job. Once the property is genuinely leased by the month, the tension with short-term use disappears. What remains is a clean, forward-looking income opinion.
It fits best in four situations:
- You have already converted. A signed 12-month lease and a market-rent opinion describe the income the property will actually earn. Old booking records describe a business you no longer run.
- You lack a full year of hosting. A partial record rarely carries a file by itself. Practitioners commonly say files with thin history fall back to a projection or a rent schedule, and the network’s short-term-rental parameters expect about 12 months of hosting.
- Your short-term market is soft. If occupancy swings hard or nightly rates have slipped, long-term rent can be the steadier number. The tradeoff is that a lease lacks the upside of a busy season.
- You want the broadest leverage. On an investment-property purchase, most files across the network’s standard programs land at 75%-80% LTV, which is 20%-25% down. Select high-leverage programs reach 85% LTV with roughly a 700+ score. Short-term-rental collateral runs lower, as covered below.
Documents are lighter, too. The 1007 and a lease are far easier to assemble than a year of platform exports. Order the rent schedule early and compare coverage on both bases before you commit to a path.
For leverage on a cash-out, standard long-term rentals top out around 75% LTV across most of the network, with about 6 months of seasoning as the common expectation. Seasoning is the waiting period a lender wants after you buy before you can refinance. A larger down payment lowers the monthly obligation and can lift the ratio. It never erases leverage caps, credit floors, reserve rules, or property eligibility. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
When Booking History Is the Better Fit
Booking history is the better fit when the property is still operating as a short-term rental and earns meaningfully more than a lease would. The loan can then credit the income the property actually produces. A rent schedule would leave that money unrecognized.
It fits best in these situations:
- A full, clean year of hosting. Programs that credit booking history generally want about 12 months of records. Across the wholesale network, the typical expectation is a 640+ score.
- A large gap between guest revenue and long-term rent. This is where a rent schedule can drag coverage below what the property really earns.
- A property you will keep hosting. If you are not converting, the lease number is simply the wrong lens.
- A well-documented operation. Statements, deposits, and tax records that agree with each other give the lender less to question.
Leverage runs tighter on this side. On short-term-rental collateral, purchase leverage tops out at 75%, refinance runs around 70%, and cash-out sits at 70%, while cash-out on a standard long-term rental tops out around 75%. The coverage floor on both short-term purchases and refinances is 1.00. These are typical guideline ranges from select lenders in the network, subject to lender guidelines.
Legality matters here more than anywhere else. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. A property without legal short-term use may not be able to count that income at all. A lease-based file sidesteps the question.
Three Hypothetical Files, Run Both Ways
These are modeled assumptions, not market data. Each shows coverage on a long-term basis against a booking-history basis for the same property.
Booking income far above the rent schedule. Say booking history supports coverage near 1.4x, while the rent schedule lands near 0.9x. A hosting investor would lean on the booking basis. A converting investor faces a real gap: the long-term number sits under 1.00 once the property is leased by the month.
The two land close together. Say both bases come in near 1.1x. Here the lease is the easier path, because it needs less paperwork and gives up almost nothing in qualifying income. Conversion costs little, and the simpler document set wins.
Booking income below the rent schedule. Say booking history supports about 0.95x, while the rent schedule supports about 1.15x. This case can come up in soft or heavily seasonal markets. The lease basis is the stronger file, and conversion improves the picture.
If your long-term number comes in under 1.00, you have options a lender would review. Sub-1.00 coverage is available through select lenders in the network, with leverage and terms adjusted. By contrast, 1.00 is where many select programs start. A larger down payment can lift coverage, and extended terms or interest-only periods are available through select lenders. None of that is a promise of approval, and every path stays subject to credit approval, property review, and lender guidelines.
Coverage also is not cash flow. The ratio compares rent to PITIA only. Repairs, vacancy, management, utilities, and capital expenses sit outside it, so a file that clears 1.00 can still lose money each month.
Edge Cases Worth Planning For
Mid-conversion. If you stop hosting partway through the process, the booking record stops growing and the lease record has not started. Decide which basis you are using before you cancel listings, then keep your documents consistent with that choice.
Two-to-four units. The appraisal form becomes the 1025, and documentation grows with unit count. Mixed short-term and long-term units are possible, and each unit may need its own treatment. McKissock notes the 1025 weighs both rental income and the comparables’ fair market value.
A low appraisal. Give the appraiser clean long-term comparables, and make sure the form reflects monthly leases. The form’s own instructions say adjustments should be made only for significant differences between comparables and subject. A low number built on weak comps is worth questioning with specific, better comps.
Tax and records. Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Other property rules. The network’s DSCR programs do not offer manufactured homes (single- and double-wide), log homes, or barndominiums. That is true whichever income basis you choose.
Key Terms Defined
Form 1007: the appraiser’s rent schedule for a single-family property, estimating monthly market rent.
Form 1025: the appraisal form for two-to-four-unit properties that includes the rent analysis.
Booking history: the record of guest payouts, deposits, and tax figures from running a short-term rental.
DSCR: the ratio of qualifying rental income to the full monthly obligation of the loan.
Seasoning: the waiting period between buying a property and refinancing it.
Narrative addendum: a separate written analysis an appraiser can attach to estimate short-term income.
The Balanced Verdict
If you are converting, start with the rent schedule and a lease. It is the document built for your new use, it takes less effort to produce, and it carries the broadest leverage. If you are not converting, or you are partway through and your hosting record is clean and strong, booking history can credit income the lease would miss. The right answer is the one that clears both tests: enough equity and enough rental coverage.
Neither option is the safe default for everyone. The only reliable method is to calculate coverage on both bases for the same property and compare the two numbers. For a broader grounding in how these loans work, see Lendmire’s complete DSCR loans guide. If your lender question turns on lease history versus hosting history in a different loan type, Lendmire has covered how that plays out on a bank statement loan and on a luxury DSCR loan.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. It is a mortgage broker arranging financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Programs change and every file is underwritten individually.
Frequently Asked Questions
Can I still use my booking history after I convert to a long-term rental?
Usually only if you are still operating as a short-term rental when the lender reviews the file. Once the property is leased by the month, the lease and rent schedule describe the income going forward. The old bookings show the past, and most programs base qualification on the current use.
Does a low 1007 number hurt me?
It can, if your coverage depends on a high rent figure. A low rent schedule lowers the ratio, and below 1.00 you would look at select-lender paths with leverage and terms adjusted. It is worth checking that the appraiser used true monthly-lease comparables, not nightly rates.
Do I need a signed lease to qualify?
Not always. The appraiser’s market-rent opinion can support the file, and a signed lease adds evidence of the income.
Does an LLC change which income basis I can use?
Entity vesting and income basis are separate questions. LLC-titled borrowers are common in DSCR lending, and either basis can apply, subject to lender program eligibility. The entity does not by itself make one basis better.
Is clearing 1.00 the same as profitable?
No. The ratio compares rent to PITIA only, so repairs, vacancy, management, utilities, and capital expenses sit outside it. Build your own cash-flow budget alongside the coverage number.
About Lendmire
As a non-QM mortgage broker (NMLS# 2371349), Lendmire facilitates DSCR investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income instead of personal income documentation, subject to lender guidelines, serving LLC-structured portfolios and self-employed borrowers who don’t fit conventional boxes. A two-time Scotsman Guide Top Mortgage Workplace (2025, 2026).
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References
1. McKissock on Form 1007 and short-term rental appraisals
2. Nevada Real Estate Division copy of the Fannie Mae short-term rental and Form 1007 update
3. Class Valuation on why Form 1007 cannot support short-term rental income
4. Fannie Mae appraiser update on short-term rentals and rental income
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: DSCR Cash-Out Refinance vs HELOC on a Rental · How to Refinance an Inherited Rental Before Title Clears the Estate · DSCR Cash-Out vs Conventional Investor Cash-Out for an LLC Rental
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.