The Quick Read: Partly. A mid-term rental usually lands in the same DSCR investment-property loan family as an Airbnb, but the lender counts the income differently, and that difference decides the file. A furnished 30-plus day rental with a signed lease is typically reviewed on lease rent or appraised market rent, while a nightly-booked Airbnb leans on platform history or a projection.
- Same loan family, different income evidence.
- A lease or monthly agreement usually points the file toward the lease-based path.
- A furnished premium may not count toward qualifying.
- Whether a property is treated as short-term or long-term rental is lender-dependent.
- Clearing 1.00 coverage is not the same as positive cash flow.
What Counts as a Mid-Term Rental?
A mid-term rental is a furnished rental for stays of 31 days or more. BiggerPockets describes the typical renters as traveling nurses, corporate employees, and people relocating.
Short-Term Rental Calculator
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
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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.
Here is why that matters on a file. A mid-term rental runs on a lease or monthly agreement. A true Airbnb runs on nightly bookings. Lenders read those two income streams differently, and the whole question of financing turns on that gap.
There is a gray zone. Airbnb’s own monthly-stay pricing begins at 28 nights, which sits below the 30-day line many people use. A unit booked on Airbnb with a 30-night minimum and no lease is not a clean mid-term rental or a clean short-term rental. Some programs treat it one way and some the other.
Is a Mid-Term Rental Financed the Same Way as an Airbnb?
The product family is the same. The underwriting is not. Both are business-purpose investment loans, and both qualify primarily on property-level rental income covering the payment, subject to lender guidelines.
| Factor | Mid-term rental | Airbnb (short-term rental) |
|---|---|---|
| What the lender tests | Rent vs. full monthly obligation | Same ratio, different income basis |
| Typical income evidence | Lease or market rent | Platform history or projection |
| Documentation | Lease, deposits, appraisal rent | Payout statements, booking history |
| Hosting history expected | Not typically | About 12 months on STR programs |
| Main friction | Furnished premium may not count | Thin history, projection haircuts |
| Seasonality risk | Lower, stays are longer | Higher, nightly demand swings |
The ratio itself is simple: rent used for lender review divided by PITIA, which is principal, interest, taxes, insurance, and association dues. What changes is which rent figure goes in the numerator.
How Lenders Count Mid-Term Income
The lender picks the income basis, not the borrower and not the appraiser. Across the network, four types of evidence come up on furnished files:
1. The executed lease or monthly agreement. This is the cleanest evidence for a mid-term rental. When a lease is month-to-month or expired, the file typically falls back to the agreement rent or the appraised market rent. Lendmire’s page on cash-out with a tenant mid-lease covers how that works.
2. The appraisal rent schedule. The appraiser reports value plus a market rent figure. That rent is usually a long-term comparable.
3. Platform or bank history. Payout statements and deposit records show what the unit really earned. STR programs often look for about 12 months of hosting history.
4. A third-party projection. On a purchase with no history, some lenders will accept a projection, usually with a haircut.
Here is the catch for mid-term owners. A furnished unit’s appraised rent may come back as an unfurnished long-term comparable. That can understate what the unit actually earns. Reasoned inference, not a published figure: a property that looks strong on furnished-rent math can still be underwritten on the lower market rent, which means a lower coverage number, less leverage, or an adjusted price tier. Confirm the income basis before you write the offer, not after.
Lenders also don’t let the appraiser multiply a nightly rate by 30 and call it rent. Lendmire’s explainer How to Document Mid-Term Income When Converting a Rental to STR covers what supports the number.
The Appraisal Forms (and What They Don’t Do)
Form 1007 is the single-family rent schedule and Form 1025 is the 2-4 unit income form. Both are Fannie Mae form names used as industry shorthand. They don’t make agency rules apply to a DSCR file. DSCR loans are not agency products.
An appraisal vendor, Class Valuation, notes that the 1007 measures long-term monthly rent and cannot support nightly short-term income. That is the structural reason an Airbnb file needs more than a 1007, and the reason a furnished mid-term unit can come back light on rent. For 2-4 unit properties, the 1025 applies.
Program Numbers: Mid-Term vs. Short-Term Paths
Leverage depends on which path the lender puts the file on. Figures below reflect select wholesale-network guidelines, typical rather than universal, and subject to lender guidelines and credit approval.
On the lease-based path, a mid-term rental generally reviews like a standard rental. Purchases most often land at 75%-80% LTV, and select high-leverage programs reach 85% LTV with roughly a 700+ score. Cash-out refinances top out around 75% LTV, with about 6 months of seasoning as the common expectation. Coverage of 1.00 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.
On the short-term-rental path, purchase leverage tops out at 75% LTV, refinance runs around 70%, and cash-out on short-term-rental collateral is 70%. Expect a 640+ score and about 12 months of hosting history. The coverage floor is 1.00 on purchases and refinances. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Other items that apply either way: most programs want a score near 660, with a 620 floor in parts of the network and 700+ unlocking the strongest leverage tiers. Standard loan sizes run up to $3,000,000. Reserves vary by lender, leverage, loan size, and transaction type, commonly around 6 months of PITIA. Manufactured homes, log homes, and barndominiums are not offered.
Notice the tradeoff. A mid-term rental that fits the lease-based path can reach higher leverage than the same unit run as a short-term rental. That is a real reason to document the lease cleanly. It is also why mislabeling use is a bad idea: the occupancy and rental type on the application should match what the property actually does.
A Worked Example: Same House, Two Income Bases
Run the numbers on a furnished three-bedroom that an investor expects to rent to traveling nurses. These are modeled assumptions, expressed as ratios only.
On the investor’s furnished-rent math, the monthly rent covers PITIA at roughly 1.25x. The lender, though, has no platform history and decides to rely on the appraiser’s unfurnished market rent. On that basis coverage comes in at roughly 1.02x.
Same house, same loan amount, two different numbers. At 1.25x the file sits comfortably above the 1.00 start point many select programs use. At 1.02x it clears by a hair, and any bump in taxes or insurance during review can push it under. If it slips below 1.00, there are paths a lender may review: a select-lender sub-1.00 program with leverage and terms adjusted, an interest-only structure through select lenders, or a lower loan amount through a larger down payment. Qualification stays subject to lender guidelines, credit approval, and property review.
A larger down payment lowers the monthly payment and can lift the ratio, but it doesn’t erase leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
Coverage Is Not Cash Flow
DSCR compares rent to PITIA only. A file that clears 1.00 can still lose money. Furnishing, utilities, internet, cleaning, vacancy between tenants, repairs, management, and capex all sit outside the calculation.
Furnished mid-term units carry costs a bare long-term rental doesn’t, and the gap between tenants is real. Treat the coverage ratio as the lender’s test and run your own operating budget separately. The two answer different questions.
Local Rules and Classification Risks
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. That applies to mid-term rentals too. An HOA can restrict short stays or set minimum terms, and legal use is a core approval issue on any furnished-rental file.
Tax thresholds also differ by state, which affects whether a stay counts as lodging. Massachusetts, for example, taxes stays of 31 days or less. Other states draw the line elsewhere. Don’t assume 30 days exempts you from every rule.
Tenant status is another consideration. In most states an occupant past 30 days generally becomes a tenant with landlord-tenant protections, which affects lease structure. A mid-term lease may need a mid-term-specific agreement rather than a standard annual form.
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. One note from a CPA firm, AE Tax Advisors: short-term-rental tax treatment turns on an average stay of 7 days or less, so a mid-term rental is generally a passive rental activity.
Which Path Fits Your Situation?
Picture an investor buying a vacant furnished unit with no history. The lease-based path doesn’t exist yet, so the file leans on the appraisal rent schedule or a projection. Expect conservative treatment.
Say you own a long-term rental and plan to furnish it for nurses. Keep the old lease records, the new agreements, and deposit history. Those support a later refinance.
Consider a scenario where you list on Airbnb with a 30-night minimum and also on Furnished Finder. Furnished Finder is a lead-generation site, not a booking platform, per BiggerPockets investors. Payout history can end up thin or split across channels. Underwriters will ask how the stays are documented, so keep a clean ledger from day one.
A 2-4 unit property adds the 1025 and unit-level rents. It’s workable, but it’s one more document to get right.
What to Ask a Lender Before You Offer
- Does the program treat a furnished 30-plus day rental as short-term or long-term income?
- Which evidence is accepted: lease, market rent, platform history, or a projection?
- Is the furnished premium counted, or only market rent?
- How much hosting history is expected, and what happens with less?
- What leverage and coverage floor apply on that path?
- What reserves are required at this loan size and leverage?
- Does the property type and HOA allow the intended use?
If the answers come back unclear, the file isn’t ready. Get them in writing before the appraisal is ordered.
Key Terms Defined
DSCR: the ratio of qualifying rental income to the full monthly obligation of principal, interest, taxes, insurance, and association dues.
PITIA: principal, interest, taxes, insurance, and association dues, the payment side of the coverage ratio.
Market rent: the rent an appraiser estimates for the property, usually from long-term comparables.
Hosting history: the record of platform bookings and payouts that supports short-term-rental income.
Seasoning: the ownership period a lender expects before allowing a cash-out refinance.
Frequently Asked Questions
Can a furnished premium be used to qualify?
It depends on the lender and the income basis. Many files are underwritten on lease rent or appraised market rent, which may not reflect the furnished premium. Platform history can support a higher figure on short-term-rental programs, subject to lender guidelines.
Do I need a 12-month lease?
Not for the lender’s sake in most cases. A lease or monthly agreement is the evidence, and month-to-month or expired leases typically fall back to the agreement rent or market rent. The 12 months that matters is hosting history on short-term-rental programs.
Can I buy a mid-term rental in an LLC?
Often yes, subject to program terms. Expect to provide entity documents along with credit, reserves, and the appraisal. Personal income documents like W-2s typically aren’t part of the file.
Is an Airbnb loan the same product as a mid-term rental loan?
Same family, different underwriting path. Both are DSCR investment loans.
Can I refinance later once I have history?
Yes, that’s a common plan. Clean leases, payout statements, and deposit records make the later file easier to document. Cash-out on standard rentals tops out around 75% LTV with about 6 months of seasoning, while short-term-rental collateral runs lower. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Where This Leaves You
A mid-term rental can be financed through the same DSCR family as an Airbnb, but the property has to be documented as what it is. Lendmire is a broker arranging financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. For the full picture on how these loans work, see the complete DSCR loans guide.
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. Program details change and every file is underwritten individually; this is not a commitment to lend.
About Lendmire
Lendmire (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
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References
1. BiggerPockets – Medium-Term Rentals
2. Class Valuation – Form 1007 and short-term rentals
3. Mass.gov – Room Occupancy Excise
4. AE Tax Advisors – Mid-term rental tax
5. BiggerPockets forum – Furnished Finder experience
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 Finance a Condotel With a DSCR Short-Term Rental Loan · How to Finance a First Short-Sale Airbnb With a DSCR Loan · How to Qualify a Suburban Texas Short-Term Rental on a DSCR Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.