The Quick Read: A lender qualifies Airbnb income by choosing one income figure for the property, discounting it, and dividing it by the full monthly housing payment, and the figure usually comes from your trailing host history, a third-party market projection, or the appraiser’s long-term rent schedule, each with different strengths for a purchase or a refinance. “STR1007” is not an official form. It is shorthand for the appraiser’s rent schedule plus a short-term-rental income analysis. The deal lives or dies on which figure the lender counts.
- The test is property income divided by PITIA (principal, interest, taxes, insurance, and any HOA dues).
- Three income sources exist: trailing platform history, a market projection, and appraiser long-term rent.
- Form 1007 reports monthly lease rent only. It never reports nightly Airbnb income.
- On an STR purchase, leverage tops out at 75% LTV. On an STR refinance it is around 70%, subject to lender guidelines.
- Clearing 1.00 is not the same as positive cash flow.
What Does “STR1007” Actually Mean?
STR1007 is practitioner slang, not a form name. The phrase appears in a BiggerPockets thread where a lender mentions using “STR 1007 Data and/or AirDNA Income” on a refinance. Nobody publishes a document by that name.
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.
The real document is Form 1007, the Single-Family Comparable Rent Schedule. An appraiser fills it out to estimate what the home would rent for on a monthly lease. McKissock, an appraisal-education provider, says the form documents monthly rent for single-family homes, not nightly rent or business income.
So when someone says “STR1007,” read it as a workflow with two parts. The first part is the standard 1007 long-term rent figure. The second part is whatever short-term-rental income evidence the lender accepts: host statements, a market report, or an appraiser’s separate narrative on STR performance. For two-to-four-unit properties, the matching rent form is the 1025.
That split matters because the two parts produce different numbers. Long-term rent on a strong vacation property usually sits below the gross a good host earns. The lender decides which figure drives the file, and the appraiser does not.
Why Does the Form Not Show Airbnb Income?
Form 1007 was built for monthly leases, and its own publisher says so. Fannie Mae’s appraiser update states that the 1007 was not designed for appraising single-family properties used as short-term rentals. The form asks for indicated monthly market rent, so the appraiser must analyze comparables leased monthly. The update also calls multiplying a nightly rate by 30 incorrect.
Here is the one place agency material matters to you. DSCR loans are not agency products, and those rules do not set our programs. The forms are borrowed only because they are standardized. How STR income counts on a DSCR file comes from the lender’s program guidelines.
McKissock adds two points worth keeping. Appraisers value the real property, not the furniture or the business income. And the lender ultimately decides what income counts.
The Three Ways a Lender Counts Airbnb Income
Across the wholesale network we place files with, lenders land on three income sources. Most programs let you use one, and some compare more than one.
| Path | What it uses | Best fit | Main risk |
|---|---|---|---|
| Trailing history | Platform or payout statements | Existing host, refinance | Thin or off-season history |
| Market projection | Third-party STR report | Purchase, little history | Projection may be discounted |
| Appraiser long-term rent | Form 1007 or 1025 | Fallback, conversions | Often the lowest figure |
Trailing history is the strongest evidence because it shows what this property actually earned. Lenders generally want monthly detail that names the subject property. A year that includes a peak season helps a refinance.
A market projection estimates income from comparable listings in the area. AirDNA is one data vendor that produces these reports. Lenders usually discount the projection, since a forecast is not a deposit.
The appraiser’s long-term rent is the conservative floor. Some lenders use it only as a fallback. A few will use the lower of two figures. The discount amount, and whether a program takes the lower or the higher figure, varies by lender. That variation is the reason one property can qualify at one program and miss at another.
How Underwriting Treats the Income, Step by Step
Underwriting follows the same order on almost every STR file.
1. The lender picks the income source. Program rules decide it. An existing host with a year of history usually leads with statements. A buyer with no history usually leads with a projection or the appraiser’s rent.
2. The lender discounts the figure. Short-term revenue is volatile, so lenders count only a share of it. The share differs by program.
3. The lender builds the denominator. DSCR is qualifying income divided by PITIA. AirDNA’s financing guide defines it the same way, and that is how residential DSCR loans work.
4. The appraisal sets value and rent. The appraiser reports value, and commonly a rent schedule. Value drives the equity side of the test.
5. The loan size is capped twice. On a cash-out, the smaller of two limits wins. One is the LTV cap on appraised value. The other is the loan amount the discounted income can carry at your coverage floor.
That last point is where many investors get surprised. A property can have plenty of equity and still not support the loan, because the coverage test binds first. The strongest files clear both tests: enough equity and enough rental coverage.
DSCR qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your personal income and debt-to-income are generally not the test, though credit, reserves, and experience still matter.
Which Path Applies to You?
Match your situation to the likely path before you talk to any lender.
| Your situation | Likely income source | Watch for |
|---|---|---|
| Existing host, refinance | Trailing statements | Statements must name the property |
| Buying, no history | Market projection | Lender discount on projection |
| Converting long-term rental | Appraiser rent, then projection | Little proof of STR demand |
| Seasonal property | Full 12-month history | Off-season months pulling the average |
Refinances are where practitioners disagree most. In our network, expect refinance files to lean on actual history.
Hosting experience matters too. STR programs usually expect about 12 months of landlord or host experience. That is a program expectation and varies by lender.
The Math: Three Income Figures on One Property
Run the numbers on one modeled property, using three income sources and one payment. These are modeled assumptions, not market data, and they use ratios so the logic is clear.
- Raw projected revenue coverage: 1.40x.
- Counted income after the lender’s discount: 1.10x.
- Appraiser long-term rent coverage: 0.90x.
The headline projection looks comfortable at 1.40x. After the discount, the counted figure drops to 1.10x. If the lender instead uses the 1007 rent, the file reads 0.90x.
Same house, three answers. This is why an investor who underwrites on the nightly-rate headline often finds the number does not survive underwriting.
Now the floors. For short-term rentals, the programs we place files with typically start at 1.00 on purchases and refinances. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Stronger ratios generally open better pricing and leverage.
Returning to the modeled property: at 1.10x counted income, it clears a 1.00 floor. At 0.90x it would need that below-1.00 path, and the lender would adjust leverage and terms.
Two levers can move a borderline file. A larger down payment lowers the payment and can lift the ratio. A longer term or an interest-only period, which select lenders in the network offer, can also change the denominator. Neither erases leverage caps, credit floors, reserve rules, or property eligibility.
What Do the Leverage and Credit Numbers Look Like?
Short-term-rental collateral has its own limits, generally tighter than standard rentals.
- STR purchase: up to 75% LTV on the strongest files.
- STR refinance: around 70% LTV.
- STR cash-out: up to 70% LTV on short-term-rental collateral, compared with 75% on standard rentals.
- Credit score: expect a 640 minimum.
- Loan size: up to $3,000,000 on standard programs.
- Reserves: commonly around 6 months of PITIA, though they vary by lender, leverage, loan size, and transaction type.
These are typical ranges from select wholesale-network guidelines, not promises. Every file is underwritten individually, and programs change. The complete DSCR loans guide covers the general mechanics behind these ranges.
Not every property fits. Manufactured homes, log homes, and barndominiums are not offered in these DSCR programs, however strong the rental income looks.
What Documents Should You Gather?
Gather by scenario so you are not scrambling mid-file.
Existing host:
- An earnings export from the booking platform, or property-manager statements.
- Monthly detail covering about 12 months.
- Statements that identify the subject property.
- Bank deposits that tie back to the payouts.
Buyer with no history:
- A third-party market projection for the address.
- The appraisal, including the rent schedule.
- Proof of any prior landlord or host experience.
Converting a long-term rental:
- The existing lease history.
- The appraiser’s rent schedule.
- A projection showing what short-term demand looks like.
Screenshots usually do not satisfy a lender. If you run several properties on one account, the report must break out the subject property. If a property manager is involved, fees may be netted out of the income.
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 that cannot legally operate as a short-term rental may not be able to count that income.
When the Sources Disagree
Disagreement is normal, and the controlling figure depends on the program. A lender may take trailing history over a projection. It may take the lower of two figures. It may use the 1007 rent only as a fallback.
Some lenders treat STR income as business income. In that case the 1007 may not drive the number at all, and the lender’s own analysis does. McKissock’s article makes the same point from the appraiser’s side: the appraiser values the property, and the lender decides income.
You have three practical moves when numbers conflict. Ask which source the program treats as primary. Ask whether the program accepts a different source when history is thin. And compare programs, because discounts differ across the lenders a broker sees.
A genuine toss-up exists on seasonal properties. Trailing history can include slow months that drag the average, while a projection smooths them out but gets discounted. The stronger play depends on which one the program weighs more heavily.
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.
Mistakes That Sink STR Files
- Treating nightly rate times 30 as rent. The appraiser cannot use it, and the lender will not accept it as a shortcut.
- Assuming the appraiser decides income. The lender decides.
- Using net-operating-income math. Education sites often define DSCR as net operating income over debt service. Residential DSCR loans divide qualifying income by PITIA. The two ratios are not comparable.
- Equating 1.00 with profit. DSCR measures income against PITIA only. Cleaning, management, utilities, repairs, vacancy, and capital expenses sit outside it, so clearing 1.00 is not positive cash flow.
- Handing over statements that mix properties. The subject property must stand on its own.
One practitioner pattern is worth knowing. On STR files, the number that surprises people is rarely the payment. It is the gap between the income they expected the lender to count and the income the program actually counted. Running both before you make an offer prevents most of those surprises.
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.
Can You Use This for a Cash-Out?
Yes, though the loan size gets capped by the smaller of the two limits described above. Cash-out on STR collateral tops out around 70% LTV, and about 6 months of seasoning is the common expectation across the network. For a view of the income thresholds themselves, see how much rental income an Airbnb needs to qualify. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Key Terms Defined
DSCR (debt service coverage ratio): A ratio that compares the property’s qualifying income to its monthly housing payment.
PITIA: Principal, interest, taxes, insurance, and any HOA dues, which together form the monthly payment the income must cover.
STR1007: Informal shorthand for the appraiser’s rent schedule combined with a short-term-rental income analysis; it is not an official form.
Form 1007: The appraiser’s single-family rent schedule, which estimates monthly lease rent from monthly-lease comparables.
Trailing history: The past 12 or so months of actual platform or payout statements for the subject property.
Market projection: A third-party estimate of what a short-term rental should earn, built from comparable listings.
LTV (loan-to-value): The loan amount as a share of the property’s appraised value.
Frequently Asked Questions
Do I need operating history on the property to qualify?
Not always. A buyer with no history can often rely on a market projection or the appraiser’s rent, subject to the program. Refinances lean on actual history, and STR programs usually expect about 12 months of host experience.
Can I multiply my nightly rate by 30 to get monthly income?
No. Fannie Mae’s appraiser update calls that approach incorrect for the 1007, and lenders do not accept it as a shortcut. They count documented history, a discounted projection, or long-term rent.
What happens if my coverage falls below 1.00?
Options exist. Coverage below 1.00 is available through select lenders in the network, with leverage and terms adjusted. A larger down payment, a different term structure, or a different income source may also move the number, subject to lender guidelines and credit review.
Does a strong DSCR mean the property makes money?
No. DSCR compares income to PITIA only. Repairs, vacancy, management, utilities, and capital costs are outside the calculation, so you should model them separately.
Who decides which income figure counts?
The lender does. The appraiser reports value and rent, and, as McKissock explains, the lender ultimately decides income. Programs also differ on discounts and on which source takes priority.
Your Next Step
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. Lendmire is a broker that arranges financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. The site’s illustrative calculator can give you a rough estimate to start with.
Investors focused on short-term rentals can review DSCR loans for Airbnb and short-term rentals.
About Lendmire
Lendmire is a DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. BiggerPockets: financing an Airbnb short-term rental
2. McKissock Learning: Form 1007 and short-term rental appraisals
3. Fannie Mae Appraiser Update, June 2024
4. AirDNA: how to finance your vacation rental
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 Qualify for a DSCR Loan in Florida · How to Qualify for a DSCR Loan in Virginia · How to Qualify for a DSCR Loan in Texas
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
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.