The Quick Read: A price sheet is a lender’s pricing grid, and you read it in a fixed order: income, coverage tier, leverage, adjustments, then the points-versus-prepayment trade. On a short-term rental, the first step decides everything after it, because the income figure sets your coverage band. That band picks the cell your file lands in.
Key takeaways
- The qualifying income figure, not the headline price, decides where a short-term rental lands on the grid.
- Lenders usually apply a haircut to projected nightly income. The payment side (PITIA) stays whole.
- On an investment-property purchase, short-term-rental leverage tops out at 75% LTV on the strongest files. Refinances run around 70%.
- Passing the coverage test does not mean the property cash-flows.
- Compare total cost over your hold period, not the note rate alone.
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 Is a DSCR Price Sheet?
A DSCR price sheet is a private pricing matrix. Each lender or investor publishes its own, and it starts from a base price for a reference file. It then adds or subtracts adjustments for every way your file differs from that reference.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Nothing in the market standardizes the sheet’s layout, so two lenders can show the same idea in very different formats.
The adjustment categories are consistent, though. Expect credit-score band, LTV, coverage ratio, loan purpose (purchase versus cash-out), property type, loan size, prepayment structure, and short-term-rental use. A short-term rental usually shows up as its own adjustment row or its own program, with tighter leverage than a long-term rental.
Brokers see many sheets side by side. Across the wholesale network Lendmire places files with, the same file can price differently from one lender to the next. The differences come from the stack of adjustments, not from any single number.
A price sheet is not a quote, and it is not a term sheet. This table separates the three.
| Document | What it is | What it tells you |
|---|---|---|
| Price sheet | A lender’s grid of options | Which cells exist and how they adjust |
| Quote | Pricing for your specific file | Where your file landed |
| Term sheet | A written offer on one loan | Conditions, reserves, and fees |
The sheet shows what is possible. The quote shows what you were offered. Treat them as different steps.
Key Terms Defined
PITIA: principal, interest, taxes, insurance, and any HOA dues. It is the full monthly obligation the rent has to cover.
DSCR (debt service coverage ratio): monthly qualifying income divided by monthly PITIA. A result of 1.00 means income equals the payment.
LTV (loan-to-value): the loan amount as a percentage of the property’s value or price.
Adjustment: a price add or subtract tied to one feature of your file, such as a lower credit band or short-term-rental use.
Lender credit: the reverse trade, where you take a higher rate in exchange for less cash due upfront.
Prepayment penalty: a fee for paying the loan off early, usually on a schedule that shrinks over time.
Haircut (income factor): a percentage the lender subtracts from projected short-term-rental income before calculating coverage.
The Six-Step Read
Read the sheet in this order. Skipping ahead to the price column is how investors misjudge their own file.
Step 1: Pick the income route
Short-term-rental income can be documented several ways. The main routes are your own booking history, a third-party market projection, or the appraiser’s long-term rent survey.
Each route produces a different number. Lenders on a purchase with no hosting history often fall back to long-term rent or a projection. Lenders on a refinance usually want booking statements. Most short-term-rental programs expect about 12 months of hosting history, so ask which route a lender accepts before you look at pricing.
Step 2: Apply the haircut
Projected nightly income is not the number that qualifies. The lender trims it for vacancy, cleaning, supplies, and platform fees. The size of that factor varies by lender, and some lenders apply little or none to experienced hosts.
Plan on the post-haircut figure. If you model your file on gross projections, you will overstate your coverage.
Step 3: Divide by the full PITIA
The haircut touches only the top of the fraction. Taxes, insurance, and HOA dues stay in the payment, so the denominator does not shrink. A larger down payment lowers the payment and can lift the ratio, but it does not lift leverage caps or credit floors.
Step 4: Land on the grid
Your coverage band, credit band, LTV, and loan purpose together pick a cell. Then the sheet adds its short-term-rental adjustment. Cash-out, multi-unit properties, and certain condos can add more.
Coverage bands matter. On most sheets, the strongest pricing and leverage go to files with comfortable coverage above the minimum. A coverage floor tells you where a program begins. It does not tell you where pricing is best.
The floor for this property type is 1.00 on a purchase, and it is 1.00 on a refinance. Some select lenders in the network also take coverage below 1.00, with leverage and terms adjusted. Those are separate paths, not one program with a moving floor.
Step 5: Choose the price and rate trade
Here the sheet lets you trade upfront cash against the ongoing cost. The CFPB’s consumer explainer on points and lender credits describes the mechanics in plain terms. One point equals 1% of the loan amount, and points can be fractional. The size of the rate reduction depends on the lender, the loan type, and the market.
That last part matters. A point does not buy the same reduction everywhere. So work out your break-even: how long you must hold the loan before the upfront cost pays for itself. If you may sell or refinance early, buying down the rate can lose money.
Step 6: Choose the prepayment structure
Prepayment is a rate-versus-flexibility trade. A longer penalty period usually brings better pricing, because the lender gets more predictable interest income. A shorter period, or none, usually costs more.
Many step-down schedules shrink each year, but some never reach zero inside the term. Read the schedule itself, not just its label.
Short-term-rental investors should weigh this carefully. If you plan to refinance after building a track record, an early payoff can trigger the penalty. Match the structure to your real exit plan.
The Anatomy of an STR Price Sheet
Most sheets have the same parts, even when the layout differs. This table shows what each part does and what to watch for on a short-term rental.
| Section | What it tells you | STR watch-out |
|---|---|---|
| Base price grid | Starting price by credit and LTV | Short-term-rental LTV rows sit lower |
| Coverage tiers | How coverage changes price | Check which income your tier assumes |
| Property-type adjustments | Add-ons for use and units | STR use is often its own line |
| Loan-purpose adjustments | Purchase versus cash-out | Cash-out leverage is tighter |
| Loan-size tiers | Pricing by balance | Small and large balances price differently |
| Prepayment options | Rate by penalty length | Early refinance can trigger it |
| Notes and overlays | Footnotes that change eligibility | Reserves, history, and property rules live here |
Read the footnotes first. They are where a cell that looks open turns out to carry a condition.
What the Network Allows on a Short-Term Rental
The leverage and credit figures below are typical ranges from select wholesale-network guidelines. They are not guarantees, and every file is reviewed individually.
- Purchase: on an investment-property purchase, short-term-rental leverage tops out at 75% LTV on the strongest files.
- Refinance: rate-and-term refinances run around 70% LTV on a short-term rental.
- Cash-out: short-term-rental cash-out tops out at 70% LTV, compared with around 75% on standard long-term rentals.
- Credit: a minimum score of about 640 is typical, and stronger scores open better cells.
- History: programs commonly expect about 12 months of hosting experience.
- Reserves: these vary by lender, leverage, loan size, and transaction type, commonly around six months of PITIA.
- Loan size: standard programs run up to $3,000,000, with smaller balances routed through select lenders.
Two tests apply at once. You need enough equity and enough rental coverage. A bigger down payment never fixes a leverage cap or a credit floor.
Some property types sit entirely outside these programs. Manufactured homes, log homes, and barndominiums are not offered through the network’s DSCR programs.
Lendmire’s complete DSCR loans guide covers the full program picture, including property eligibility.
A Worked Example: One Property, Three Income Assumptions
These are modeled assumptions, not market data. Picture one short-term rental with a fixed payment. The only thing that changes is how the lender counts its income.
| Income basis | Modeled coverage | What it does on the sheet |
|---|---|---|
| Gross projection, no haircut | About 1.50x | Looks strong, but few lenders use it |
| Projection after a 20% haircut | About 1.20x | A realistic coverage figure |
| Long-term rent survey only | Below 1.00x | Falls to a different path |
The haircut math is simple. A gross figure of 1.50x times 80% leaves 1.20x. That 0.30 drop can move a file from a stronger pricing band to a weaker one.
Now stack the adjustments on that 1.20x file. Start at the base cell for its credit band and LTV. Add the short-term-rental use adjustment. Add a cash-out adjustment if it is a cash-out. Then add or subtract for loan size and the prepayment option you pick. Each step nudges the price up or down, and the final cell is the sum.
The third row is the instructive one. If a lender qualifies you only on long-term rent, the file may land below 1.00x. A select-lender path takes coverage below 1.00 with leverage and terms adjusted. Qualification on that path is subject to lender guidelines, credit approval, and property review.
A thin file is not a dead file. It is a file that needs a different cell.
Lenders sometimes change terms during review. A file that dips into a lower coverage band can get a smaller loan or higher cost. Confirm every income option up front, so you are not surprised late.
Seasonality adds another wrinkle. Lenders may average income across the year, but your cash flow runs month to month. Lendmire’s piece Seasonal Income and the STR Cash-Out Refinance: How Twelve Months of Bookings Are Read goes deeper on 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.
Where the General Rule Breaks
The steps hold for most files. These edge cases are where they bend.
The appraisal does not show your nightly income. Appraisers use Form 1007 for single-family rent schedules and Form 1025 for 2–4 unit properties. The Nevada Real Estate Division’s hosted copy of a Fannie Mae appraiser update says the form calls for indicated monthly market rent. That means the appraiser analyzes comparables leased monthly. The form was not designed for short-term rentals.
Appraisers value the property, not the income. McKissock’s appraisal education explains that short-term-rental income is ultimately a lender decision. The form omits vacancy, services, and business expenses. Appraisers may use a data tool to estimate nightly income. This is why your income is documented separately from the appraisal.
A purchase with no history. Some lenders qualify a new acquisition on long-term rent. Others use a market projection with a haircut. A few want history regardless. Ask which one applies before you pick a lender.
Medium-term rentals. Stays of a month or more have no clean data tool behind them. They usually underwrite as long-term rent or as a short-term rental, depending on the lender. Ask directly how yours will be classified.
A second-home loan is not a workaround. Second-home rules limit how much you can rent the property out. They are not built for an investor running a full-time rental.
Legality is a gate. Night caps, zoning, licensing, and bans can make projected income unusable. 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. Lendmire’s article How DSCR Lenders Read Short-Term Rental Permits in Three Cities shows how that review works.
Not every lender does short-term rentals. Many DSCR lenders do not lend on them at all. The sheet you are holding may simply not have a short-term-rental row. If it does not, that lender is not your lender.
Why Your Quote Differs From the Sheet
This is the most common frustration, and it usually has a boring cause.
- The appraised value came in different. LTV is calculated on value, so a lower appraisal pushes the loan into a different cell.
- The lender used a different income basis. Your projection and theirs may not match.
- A haircut was larger than you assumed. Factors vary by lender.
- An overlay applied. Reserves, history, or property rules in the footnotes can change eligibility.
- Your coverage landed in a different band. A small shift in qualifying income can cross a line.
- You read a starting price as your price. The sheet’s lowest cell is for the cleanest file, not yours.
When the quote and sheet disagree, work backward through these six in order.
Comparing Two Sheets Fairly
Hold the file constant. Use the same credit band, LTV, income basis, and prepayment choice on both sheets. Then compare the full stack, not the best-looking cell.
Check the same five items on each: the haircut used, the history required, the leverage on the short-term-rental row, the prepayment options, and the reserve overlay. A sheet that looks better on price may demand more history or a bigger reserve.
Also check the effective date. A sheet is a snapshot, and any figure on it can change. Confirm terms against a live sheet before you commit.
Common Mistakes
- Treating the appraisal as proof of nightly income. It documents monthly rent.
- Qualifying on the raw projection. Plan on the number after the haircut.
- Assuming a passing ratio means positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, cleaning, and capex sit outside it.
- Chasing the lowest note rate. Points and prepayment structure change the real cost.
- Ignoring the footnotes. Overlays hide there.
- Skipping the legality check. Unusable income breaks every calculation above it.
What the Decision Looks Like in Practice
Start with your hosting history and the property’s legal status. Those two facts decide whether you are in a short-term-rental cell at all. Next, get the qualifying income number on a realistic basis, with the haircut applied.
Then ask what the file needs. If coverage is comfortable, spend your effort on the points and prepayment trade. If coverage is tight, look at how much down payment moves the ratio, and whether a select-lender path with adjusted terms fits. Interest-only periods and extended terms are available through select lenders and can change the payment side.
The strongest files clear both tests. They have enough equity and enough rental coverage. Anything less than both gets repriced or restructured, and a good broker will say so early.
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. Reach the team at 828-256-2183. Programs are subject to lender guidelines. This is not a commitment to lend.
Frequently Asked Questions
Does the DSCR price sheet use my Airbnb income or the appraiser’s rent number?
Neither one automatically. The lender picks the income route its program allows, which can be booking history, a market projection, or long-term rent. The appraiser’s Form 1007 documents monthly long-term rent only, so it cannot show nightly income.
How much will a short-term-rental haircut change my coverage?
It depends on the lender, because factors are not fixed across the market. As a modeled example, a 20% haircut turns 1.50x gross coverage into 1.20x. Ask each lender what factor it applies and to which income source.
Is a higher DSCR always better on the sheet?
Usually, yes, up to a point. Stronger coverage tends to open better pricing and leverage. But clearing the floor does not make the property profitable, since operating costs sit outside the calculation.
Should I buy points on a short-term-rental loan?
Only if you expect to hold the loan long enough to recover the cost. The rate reduction per point varies by lender, loan type, and market. If you may refinance once you have a booking track record, a longer prepayment period or heavy points can work against you.
What if my coverage lands below 1.00?
A purchase or refinance floor of 1.00 is where many select programs start. A separate path through select lenders in the network takes coverage below 1.00, with leverage and terms adjusted. Eligibility depends on lender guidelines, credit, reserves, and property review.
About Lendmire
Lendmire — NMLS# 2371349 — is a DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 2026.
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References
1. CFPB – Lender credits and points
2. Nevada Real Estate Division – hosted copy of Fannie Mae short-term rental appraiser update
3. McKissock – Form 1007 and short-term rental appraisals
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 to Refinance a Newly Leased Rental With a DSCR Loan · Can You Get a DSCR Loan After a Short Sale or a Lost Rental? · Can Short-Term and Long-Term Rentals Share One Portfolio DSCR Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.