The Quick Read: On a purchase, select lenders in the wholesale network will count a market-data or appraiser projection in place of booking history, but only at lenders that accept projections at all. Refinances generally want real bookings.
- Purchases are the “no history” lane; refinances and cash-outs on existing short-term rentals generally want actual hosting records.
- The projection is trimmed by the lender’s haircut, then divided by the full monthly obligation (PITIA).
- Short-term-rental purchases typically reach 75% LTV with a 1.00 coverage floor, subject to lender guidelines.
- Expect a 640+ credit score and a question about the borrower’s own hosting experience.
- Clearing the ratio does not mean the deal is profitable.
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.
Short-Term Rental Calculator
Run the STR numbers in your market
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 nightly rate, occupancy, taxes, and insurance for a more accurate picture.
Short-term rental income is documented with a 12-month history or a market data report. Program parameters update from Lendmire’s centralized guideline source.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Nightly rate, occupancy, taxes, and insurance are editable estimates. 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.
What Does “No History” Mean to an Underwriter?
It means two separate questions get asked. First: what will this property earn? Second: has this borrower ever hosted? A projection answers only the first. Experience is the borrower’s own track record; history is the specific property’s booking record. A buyer can have no history on the property and still be asked about experience, and across the network that expectation sits around 12 months of hosting.
This is why DSCR fits a first-time host better than conventional financing. DSCR loans are designed for non-owner-occupied investment properties, and they qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Conventional underwriting leans on the borrower’s personal income and documented rental experience, which a brand-new host cannot show. For the broader mechanics, see the complete DSCR loans guide.
How Is Projected Income Turned Into a coverage figure?
Underwriting follows a sequence. The projection is never used raw.
1. Pick the lane. The property is a purchase, or a conversion with no booking record.
2. Choose the income evidence. Options are an appraiser’s short-term-rental income analysis, a market-data projection from a vendor such as AirDNA Rentalizer or Rabbu, and platform or manager statements if any exist.
3. Build the projection. Vendor tools gather nearby comparable listings, weight the most similar ones more heavily, and adjust for seasonality and demand. Revenue is nightly rate plus cleaning fee, less service fees and discounts. AirDNA states that its revenue calculation leaves out Airbnb host fees and other additional fees, so projected gross is not net income.
4. Apply the lender’s haircut. The underwriter counts a percentage of the projected gross. That percentage differs from lender to lender, which is one reason the same property can pass at one program and fail at another.
5. Divide by PITIA. PITIA is principal, interest, taxes, insurance, and any HOA dues. The result is the coverage ratio.
6. Compare to the floor. On short-term-rental purchases, the network floor is 1.00.
7. Check the rest of the file. Credit, reserves, hosting experience, insurance, and HOA rules can stall a file even when the ratio clears.
One warning on formulas. Generic DSCR explainers use net operating income divided by annual debt service and cite 1.25 as typical. That is commercial underwriting. Investor programs generally divide rent used for lender review by PITIA and set their own floors.
How Do the Income Sources Compare?
Each source has a job and a weakness.
| Source | Produced by | Main risk |
|---|---|---|
| Market-data projection | Data vendor | Can run optimistic |
| Appraiser STR analysis | Appraiser | Can come in lower than vendor |
| Long-term rent fallback (Form 1007) | Appraiser | Understates nightly income |
| Actual booking history | Platform or manager | Not available on new listings |
The Form 1007 is a one-unit rent schedule, and the Form 1025 covers 2-4 units. Both estimate long-term rent. That is why a lender that accepts only the 1007 can make a strong Airbnb look weak on paper, and why a dedicated STR analysis or projection matters.
Not every lender accepts projections. Across the network, most programs have a defined view on which source they will use and how much of it counts. A few will use the lower of projected and actual income when both exist. Asking each lender which income basis it uses is the single most useful pre-offer question.
Purchase vs. Refinance
| Factor | Purchase | Refinance / cash-out |
|---|---|---|
| History needed | Projection can stand in | Actual bookings generally expected |
| Leverage ceiling | Up to 75% LTV | Up to 70% on STR collateral |
| Coverage floor | 1.00 | 1.00 |
| Credit | 640+ | 640+ |
Subject to lender guidelines, those are the typical ranges. Cash-out leverage on a short-term rental sits below purchase leverage, and a borrower pulling equity from a property with no bookings should expect pushback. For the cash-out side of the story, Lendmire’s piece Projected Airbnb Income vs Booking History on a Short-Term Rental DSCR Loan covers how the two compare.
One Property, Three Outcomes
Consider a hypothetical purchase at 75% LTV. The numbers here are illustrative assumptions, not market data. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
- Full projection over PITIA: coverage lands in the low 1.2x range, which leaves a comfortable cushion.
- Projection after a lender haircut: coverage drops toward 1.0x. Still clears a 1.00 floor, but with almost no cushion.
- Long-term rent fallback: coverage falls below 1.00x.
Same house, three answers. If it lands under 1.00 on the fallback, it falls below the 1.00 network floor, though select lenders in the network offer a separate path for coverage below 1.00, with leverage and terms adjusted. Whether a particular file qualifies depends on credit approval, property review, and lender guidelines. The alternative is to adjust the structure: a larger down payment lowers the payment and can lift the ratio, though it never erases credit floors, reserve rules, or leverage caps. The strongest files clear both tests, enough equity and enough rental coverage.
What Happens When the Projection and Other Figures Disagree?
The underwriter does not average them. Each program has its own rule, and the most common outcome is that the lower credible figure controls. If the vendor projection says one thing and the appraiser’s STR analysis says another, expect the lender to lean toward the more conservative number.
Projection quality matters here. RentalRecon’s review of AirDNA’s Rentalizer notes that published accuracy figures describe market-level data, not individual property projections. A test by Chalet found one projection nearly matched total revenue while getting the occupancy and nightly-rate mix wrong. Occupancy definitions matter too: AirDNA calculates occupancy as reserved days divided by active listing nights over twelve months, and a night counts as active only with a booking in the past 28 days. Treat these as reasons to test your comp set, not as proof either way.
A credible comp set matches property type, bedroom count, amenities, and location. If yours doesn’t, the number is soft, and a conservative lender will see that.
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.
Qualifying Is Not the Same as Profitable
DSCR compares rent to PITIA and nothing else. Repairs, vacancy, management, utilities, and capex sit outside the calculation. A file that clears 1.00 can still lose money.
First-season reality adds to this. A new listing has no reviews and no ranking, so early bookings often differ from a stabilized market projection. Reserves, commonly around 6 months of PITIA though they vary by lender, leverage, and loan size, are your cushion for that ramp-up.
Where the Rule Breaks
- Lender doesn’t accept projections. It may default to the 1007, which understates nightly income.
- Bank-statement loans. These underwrite the borrower’s deposits, so they say nothing about what the new property will earn.
- Property rights. HOA bans, rental caps, operator-controlled rental programs, and delinquent dues stall files regardless of ratio.
- Ineligible property types. Manufactured homes, log homes, and barndominiums are not offered in these programs.
- Existing STRs. A purchase of a property already operating as a short-term rental may use the seller’s booking history, which is a different path from a pure projection.
Lendmire’s article How to Document Seasonal Airbnb Income With No Operating History goes deeper on markets where the calendar swings hard.
Pre-Offer Checklist
Before writing an offer, run the property on both the projection and the long-term-rent fallback. Then ask any lender:
- Do you accept projected income on a purchase, and from which data source?
- What percentage of the projection counts?
- Do you use the lower of projected and actual income?
- What hosting experience do you expect from a first-time host?
- What reserves apply at this leverage and loan size?
Gather the projection report, comp list, credit information, entity documents if using an LLC (subject to program terms), and HOA rules. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Can I get a DSCR loan on an Airbnb with no rental history?
Yes, on a purchase, with a lender that accepts projected income. Purchases typically reach 75% LTV with a 1.00 coverage floor and a 640+ credit score, subject to lender guidelines. Refinances generally want actual bookings.
Does the appraiser decide the income?
Sometimes. Some programs use an appraiser’s STR analysis, others a market-data projection, and a few take the lower of the two. The method is set by the program, not by the borrower.
Is a first-time host treated differently?
Yes. The network typically expects around 12 months of hosting experience, and that can tighten on a no-history path. Experience is about the borrower; history is about the property.
What if the lender won’t accept projections?
It may fall back to the long-term rent estimate, which often understates a short-term rental. Lenders in a wholesale network may take a different view, so the routing question matters.
Is a ratio below 1.00 ever workable?
Coverage below 1.00 is available through select lenders in the network, with leverage and terms adjusted. 1.00 is where many select programs start, so below it, expect lower leverage and a closer review.
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 calculator on this page gives an illustrative estimate only, and nothing here is a commitment to lend.
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. AirDNA Help: how AirDNA calculates revenue
2. RentalRecon: AirDNA Rentalizer review
3. Chalet: the best Airbnb calculator test
4. AirDNA Help: how AirDNA calculates occupancy rate
This article is part of Lendmire’s short-term rental loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Super Jumbo DSCR Appraisal Escalation Rules Work for a Luxury STR · How to Get a Cash-Out Refinance on a Former Airbnb With DSCR · How Super Jumbo DSCR Loans Work for the Luxury Portfolio Investor
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.