The Quick Read: A DSCR lender treats the Rabbu report as supporting evidence of gross booking income, not as the coverage figure. The lender applies its own reduction, checks the result against the appraiser’s rent conclusion, and divides what is left by the full monthly PITIA. Acceptance depends on the lender and the program.
- The report estimates gross revenue. It does not show what the cabin nets.
- Lenders reduce the gross figure for vacancy, fees, and seasonality. The reduction differs by lender.
- The appraiser’s rent figure can override the projection.
- Peak-heavy cabin income is the hardest case to carry through a projection.
- Log-built cabins fall outside the network’s DSCR programs entirely.
What Is a Rabbu Projection, Exactly?
Rabbu is a short-term rental analytics tool. It looks at comparable listings near a property and estimates what the property could earn as an Airbnb-style rental. The output is built from average daily rate, occupancy, and seasonality in the comp set. Bedroom count, amenities, and location shape which comps the tool pulls.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Two things matter for underwriting. The figure is gross, so it sits before platform fees, cleaning, management, and utilities. And it is an estimate from other people’s listings, not a record of what this cabin earned.
Who Decides the Number?
The lender and the program decide. The report is one input among several. Across the wholesale network, DSCR programs establish short-term income through a few different paths, and a Rabbu report only fits some of them.
| Income path | When it applies | Typical treatment |
|---|---|---|
| Host history | Property already operating | Strongest evidence |
| Market projection | Purchase with no history | Reduced by lender factor |
| Appraiser rent schedule | Long-term rent fallback | Often lower for cabins |
Many programs will not take a projection from every data provider. Some lenders accept one tool and not another. An investor who builds a purchase strategy on a report the lender does not use has a problem before the file starts. Ask which sources the lender accepts before paying for any report. Lendmire’s piece on what counts as short-term rental income for a lender covers the income paths in more detail.
How Underwriting Counts the Projection, Step by Step
The mechanics run the same way on most files. A DSCR loan qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The steps below show where the Rabbu figure fits.
1. Pick the income evidence. With host history, the lender prefers it. With no history on a purchase, the projection becomes the fallback.
2. Pull the report. Output depends on the comp set. Thin comparable data produces a weaker projection, and cabins in thin markets are the likely weak spot.
3. Apply the lender factor. The lender reduces the gross annual figure for vacancy, fees, and seasonality. This is a common reason two lenders can put different coverage numbers on the same cabin. The exact reduction is lender-specific.
4. Convert to monthly. The lender divides the adjusted annual figure by twelve.
5. Reconcile with the appraisal. The appraiser’s conclusion can replace the projection.
One point on the ratio itself. Clearing 1.00 does not mean the cabin produces positive cash flow. Repairs, vacancy, management, utilities, and capex all sit outside the calculation.
When the Appraiser Overrides the Projection
The appraisal sets value, and the rent schedule sets the coverage input. Form 1025 covers 2–4 unit properties. A cabin is usually a one-unit property.
The rent schedule for a single-family investment property is Form 1007. Form 1007 reflects conventional leasing, so it often comes in below short-term potential on a cabin. Some appraisers add a labeled short-term income addendum, and some lenders accept that.
The conflict plays out the same way on most files. The projection says one thing and the appraiser supports less. The lender underwrites on the lower figure. A projection never outranks the appraisal on its own.
Where the Rule Breaks: Cabin-Specific Edge Cases
This is where cabin files separate from ordinary short-term rentals. Most cabin problems are comp problems, seasonality problems, or eligibility problems.
Log construction is not offered. DSCR on log homes is not offered in the network. Manufactured homes (single- and double-wide) and barndominiums are not offered either. Confirm the construction type before ordering any projection, because a stick-built cabin and a log cabin are different files.
Thin comps. In a remote area, the tool may stretch its radius or mix cabins from different tiers. A cabin with a hot tub, a view, or trail access does not compare cleanly with a basic two-bedroom. A wide comp set can inflate the projection, and the appraiser’s own comps can pull it back down.
Seasonality. A cabin that earns most of its income in a few peak weeks can look strong on an annual total. Lenders spread that total across twelve months. The weak months do not disappear, and a peak-heavy file is the one most likely to land lower after the factor.
Projection above host history. When a cabin has history and the projection runs well above it, the lender tends to weight the history. A projection far above the trailing record invites a tighter ratio.
Fees. Some programs count gross income and some net certain costs. Ask which one applies to your file.
Local rules. 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. Some programs also ask for a short-term rental addendum.
For a deeper look at rural properties, see Lendmire’s walkthrough of a DSCR projection report for a rural cabin rental.
Worked Example: Same Projection, Three Outcomes
The table below uses modeled assumptions, not market data. Each row starts from a cabin whose unadjusted projection covers PITIA at about 1.30x.
| Scenario | After lender factor | Coverage read |
|---|---|---|
| Flat demand, comps hold | Reduced, appraiser agrees | Low 1.0x range |
| Peak-heavy income | Reduced, seasonality weighted | Below 1.00x |
| Appraiser supports less | Lower figure used | Below 1.00x |
The pattern is the point. A 1.30x projection does not mean a 1.30x qualifying ratio. On a peak-heavy cabin, it can fall under 1.00x once the lender is finished. A 1.00 coverage floor is where select programs start, and stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
What the Network’s Short-Term Rental Programs Expect
Short-term rental collateral carries tighter terms than a standard rental. Typically, a purchase goes up to 75% LTV. A refinance runs around 70%, and cash-out on short-term-rental collateral is 70%. A standard rental cash-out tops out around 75%.
Most programs want a credit score of 640 or better on short-term rental files. On many files, about 12 months of hosting history is the expectation. A purchase with no history leans on appraiser and projection evidence, and acceptance is a program-by-program question. The coverage floor is 1.00 on purchases and refinances. Reserves commonly run about 6 months of PITIA and step up above $1,500,000. These are typical ranges from select lenders and are subject to lender guidelines, not commitments to lend.
How to Prepare the Projection Before Underwriting
A clean projection file removes preventable gaps. Bring these items:
- Comp set. Choose comps that match bedrooms, property type, and amenity tier. Drop outliers.
- Conservative tier. Use the lower or average tier of the tool’s output, not the optimistic one. An aggressive number invites a harder look.
- Seasonal view. Show monthly income, not just the annual total.
- Stress test. Cut the projection and weight the slow season. If the cabin still clears the ratio, the file is stronger.
- Documents. Gather entity documents, insurance quote, and any host statements. Insurance quotes on rural cabins can stale-date, so get them current before the file goes in.
Before the appraisal, send the appraiser comparable cabins with the same amenities. If the appraised rent comes in low, ask for a reconsideration with documented in-area comps.
What If the Numbers Don’t Work?
You have a few options. A lower purchase price improves the ratio. A larger down payment lowers the payment and can lift the ratio. It does not erase leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
Another option is to qualify on long-term market rent and skip the projection. The cabin has to cover the payment that way. A separate path takes coverage below 1.00 through select lenders in the network, with leverage and terms adjusted.
Common Reasons Cabin Files Stall
- The lender does not accept the data provider’s report.
- The appraiser’s rent comes in below the projection.
- The comp set mixes amenity tiers or stretches too far.
- Peak-season income carries the whole annual figure.
- The property is log-built, manufactured, or a barndominium.
- Reserves documentation is incomplete.
Key Terms Defined
Projection: An estimate of gross booking income built from comparable listings.
Lender factor: The reduction a lender applies to gross income for vacancy, fees, and seasonality.
Form 1007: The appraiser’s rent schedule for a single-family investment property.
PITIA: Principal, interest, taxes, insurance, and any HOA dues. It is the denominator of the DSCR calculation.
Host history: A record of actual bookings and income from a property already operating.
Frequently Asked Questions
Does every DSCR lender accept a Rabbu report?
No. Acceptance varies by lender and program, and some lenders use a different data provider. Ask the lender which sources it takes before you order a report.
Can the report replace the appraisal?
No. DSCR loans still need an appraisal, and the appraiser sets value. The appraiser’s rent figure can also override the projection.
Is the projection my qualifying income?
Not on most files. The lender usually reduces the gross figure first, so the qualifying income is lower than the report shows.
Does a high ratio mean the cabin makes money?
No. The ratio compares rent to PITIA only. Repairs, vacancy, management, utilities, and capex are outside it. Tax treatment varies; consult a qualified professional.
Can I finance a log cabin?
No. Log homes are not offered through the network’s DSCR programs. Manufactured homes and barndominiums are also not offered.
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. The brokerage arranges DSCR financing through select lenders in its network across 41 markets, including Washington, D.C. For the full program picture, read the complete DSCR loans guide.
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About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Qualify a Suburban Short-Term Rental on DSCR From Out of State · How to Document Airbnb Income for a DSCR or Conventional Lender · Second Home vs DSCR Loan for a Cabin or Rural Airbnb
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.