DSCR loans for short-term rentals (STRs) aren’t underwritten like your normal mortgage. The lender usually doesn’t care what you earn from your job. They care whether the property’s income can cover the mortgage payment—and for STRs, the fight is always the same:
What income counts, and how do you prove it without turning your closing into a documentary film?
Here’s what lenders actually use.
First: what DSCR lenders are trying to measure
DSCR = cash flow ÷ housing payment (usually PITIA). In STR lending, the lender wants a defensible estimate of “income” that isn’t fantasy.
The 4 main “income methods” lenders use for STR DSCR
1) Appraiser market rent (most conservative, most common)
Even if you plan to Airbnb it, many lenders default to long-term market rent supported by the appraisal (often a market rent schedule).
Why they do it: It’s standardized and defensible.
Why it can hurt you: Miami STR revenue can be higher than long-term rent, so this method may make DSCR look weaker and reduce your max loan.
When this happens: New STR investors, no operating history, lender is conservative, condo/HOA risk.
2) STR rent via appraisal (STR-specific rent analysis)
Some lenders allow the appraiser to support STR income using available STR market data (varies by lender/appraiser competency).
Why they do it: It reflects actual STR economics better than long-term rent.
Why it can still be messy: Appraisers aren’t revenue managers. Data quality and adjustments vary.
This is where buyers get played: People assume “Airbnb numbers” are automatically accepted. They aren’t unless the lender’s guidelines explicitly allow it.
3) Third-party STR data (AirDNA-style) — sometimes accepted, often capped
Some DSCR lenders will consider third-party STR analytics to estimate revenue.
What they typically do to protect themselves:
- haircut the projected revenue (they assume vacancy/seasonality)
- cap income at a conservative percentage of the projection
- require consistency checks against local comps
How to use it smartly: Treat it as supporting evidence, not the foundation—unless your lender confirms in writing they underwrite STR DSCR this way.
4) Actual operating history (best case, but paperwork-heavy)
If the property already operates as an STR (or you own STRs), some lenders may use:
- 12+ months booking history
- bank deposits
- platform statements (Airbnb/VRBO)
- tax returns (sometimes, depending on lender)
Why this is strongest: It’s real performance.
Why it’s not always clean: Deposits must match statements, and underwriters will question inconsistencies, management fees, seasonality, and “one-time” spikes.
What lenders don’t love (even if it’s true)
These routinely trigger conditions, delays, or denial:
- screenshots of calendar revenue without statements
- “pro forma” spreadsheets you made yourself
- projections that ignore vacancies, cleaning fees, platform fees, repairs
- income that violates HOA or city rules (a huge Florida/condo issue)
Bluntly: if the STR is not permitted by the HOA/municipality, income is treated as unreliable—even if you could run it.
Florida-specific STR underwriting landmines
- HOA restrictions (minimum lease terms, approval requirements, rental caps)
- Seasonality (lenders assume weaker off-season performance)
- Insurance (STR insurance can be higher; that increases PITIA and lowers DSCR)
- Condos (project risk + rules + special assessments can add friction)
If you want to tie STR investing interest back into your broader funnel:
How to avoid delays (a practical checklist)
- Get your lender to confirm, before you apply, which income method they’ll use:
- market rent only?
- STR appraisal rent allowed?
- third-party STR data accepted?
- operating history accepted?
- Don’t hide management fees or rule violations—underwriting will find the weak points.
- Keep money movement clean (no mystery deposits right before closing).
- If condo: get HOA rules in writing early.
Bottom line
For Florida STR DSCR loans, lenders usually rely on appraisal-supported rent first, and only some lenders will give meaningful credit to STR-specific data or operating history. The fastest path to approval is choosing a lender whose STR income method matches your property—then documenting it cleanly from day one.
