STR Income Accepted

Short-Term Rental Loans

Airbnb, VRBO, and vacation rental financing — DSCR-based.

Loan Highlights

Loan Amount$100,000 – $2,500,000

Max LTVUp to 75% LTV

Interest RateStarting at 8.49%

Term30-year fixed

QualificationAirDNA or market data for income projection

PropertySFR, condo, townhome (non-OO, STR permitted)

What is an STR Loan?

A short-term rental (STR) loan is a long-term mortgage specifically underwritten for properties operated as vacation rentals, Airbnb listings, or VRBO properties. Unlike conventional mortgages — which require long-term lease agreements and do not recognize nightly rental income — STR loans qualify the property based on its projected or historical short-term rental revenue.

The NextRes STR loan is a 30-year fixed product with no income documentation requirements on the borrower side. We use data from AirDNA, historical platform revenue, or appraiser-prepared STR market analyses to establish the property's income-generating potential. That projected income is then divided by the annual PITI payment to calculate the DSCR, which drives loan qualification.

STR financing is one of the most underserved niches in real estate investing. Most conventional lenders, and even many private lenders, refuse to accept short-term rental income in their qualification models. NextRes has built a specialized underwriting track specifically for STR properties, giving you access to long-term, fixed-rate financing that most other lenders simply cannot offer.

How We Calculate Income

We use three methods to establish a property's short-term rental income, applying the one that produces the most accurate and defensible projection.

AirDNA Market Data

AirDNA is the industry-leading short-term rental analytics platform. We use AirDNA's projected annual revenue for the specific property and market to establish expected gross rental income. This is the most common method and works even for properties not yet operating as STRs.

Historical Occupancy & Revenue

For properties with an operating STR track record, we review 12 months of actual revenue from Airbnb, VRBO, or the host's platform. We typically use 90% of actual gross revenue to account for seasonal variance and platform fee changes.

Market Comparables

In markets where AirDNA data is limited or the property is unique, we use comparable STR properties in the same neighborhood or resort area to establish projected income. The appraiser provides this analysis as part of the STR appraisal.

STR vs. Traditional Rental DSCR

Why is STR financing harder to find than traditional long-term rental financing? Here is a side-by-side comparison.

Aspect	STR Loan (NextRes)	Traditional DSCR
Income type accepted	Short-term rental (nightly)	Long-term lease (monthly)
Income projection method	AirDNA / historical / market comps	Actual signed lease
Occupancy requirement	No minimum — projected income used	Typically needs tenant in place
Personal income docs	Not required	Not required (DSCR standard)
Financing availability	Limited — NextRes specializes here	Widely available from many lenders
Property restrictions	STR must be permitted by municipality	No restriction on zoning
LTV available	Up to 75%	Up to 80%

Eligible Markets

We lend on STR properties in resort destinations, vacation markets, urban STR hubs, and tourism destinations across 47 states. The property must be in a jurisdiction that permits short-term rental operation.

Resort Areas

Smoky Mountains, TN — Big Bear, CA — Sedona, AZ — Lake Tahoe, NV/CA — Outer Banks, NC

Coastal Markets

Florida Gulf Coast — Outer Banks, NC — Hampton Roads, VA — Hilton Head, SC — Cape Cod, MA

Urban STR Markets

Nashville, TN — New Orleans, LA — Austin, TX — Savannah, GA — Charleston, SC

Mountain Destinations

Aspen, CO — Park City, UT — Jackson Hole, WY — Breckenridge, CO — Blue Ridge, GA

Tourism Destinations

Orlando, FL — Gatlinburg, TN — Branson, MO — Myrtle Beach, SC — Gulf Shores, AL

STR Investment Strategy Tips

Confirm STR permitting before you buy

Many municipalities have enacted short-term rental restrictions, permit requirements, or outright bans. Always verify local ordinances before acquiring an STR property — and make sure the property has (or can obtain) the required permits. We cannot lend on properties where STR is prohibited.

Optimize for year-round demand, not just peak season

Properties near year-round attractions — national parks, lake towns with winter recreation, urban markets — outperform pure seasonal plays. Your DSCR calculation benefits significantly from year-round bookability, which also strengthens your loan file.

Factor in platform fees and management costs

Airbnb and VRBO charge 3–5% host fees. If you use a professional STR property manager, add 15–30% of gross revenue. These costs reduce your net income and your DSCR. We calculate DSCR on gross rental income against PITI, but understanding net margins helps you model returns accurately.

Build your track record with your first STR before scaling

The best borrowers we finance for portfolio STR lending have 1–3 properties with strong AirDNA performance data and actual revenue history. That track record supports higher leverage, better rates, and faster approvals on subsequent deals. Start with one, prove the model, then scale.

Short-Term Rental Loan FAQs

What is a short-term rental (STR) loan and how is it different from a regular DSCR loan?

An STR loan is a specialized DSCR loan designed for properties operated as short-term rentals (Airbnb, VRBO, Vacasa, and similar platforms) rather than traditional long-term leases. The core difference is how income is calculated: a standard DSCR loan uses an annual lease, while an STR loan uses projected nightly rental income from platforms like AirDNA, historical booking data, or market comparables. Because STR income is more variable and short-term in nature, most conventional lenders will not accept it — NextRes specializes in this underwriting.

What is AirDNA and why do you use it?

AirDNA is a data analytics company that aggregates short-term rental performance data from Airbnb, VRBO, and other platforms. For any given property address and market, AirDNA can project annual revenue, occupancy rate, and average daily rate based on comparable active STR listings in the area. We use AirDNA because it provides an objective, third-party income projection that doesn't require the property to already be operating as an STR. This lets buyers finance a vacant property or a property they plan to convert to STR use.

Does the property need to currently be listed on Airbnb or VRBO?

No. You can finance a property that is not yet operating as an STR using projected income from AirDNA or an appraiser's STR market analysis. This is one of the key advantages of our STR loan — you can purchase a property, finance it based on its STR potential, and then list it after closing. Existing STR operators with historical data can use that data for potentially higher income projections.

What municipalities are excluded from STR lending?

We cannot lend on properties in jurisdictions where short-term rental is outright prohibited by ordinance (not just regulated, but banned). Some cities — including certain neighborhoods in New York City, Santa Monica, CA, and others — have enacted near-total bans on STR operation. Before applying, confirm that the property is in a municipality that allows STRs. Our loan team can help you verify this, and we strongly recommend reviewing local ordinances as part of your due diligence.

Can I use an STR loan for a condo or HOA-governed property?

Yes, subject to HOA and condo association rules. Many condo buildings in resort markets allow STR operation. However, some HOAs prohibit short-term rentals regardless of local ordinance. You must confirm that the property's HOA or condo documents permit STR use. If the HOA prohibits STRs, we cannot finance the property as an STR loan — it would need to qualify under our standard DSCR rental program using long-term lease income.

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