Updated October 2026 · 6 minute read
A DSCR loan for an Airbnb works like any DSCR loan, except the lender has to decide how much of your short-term rental income to believe. This guide explains how lenders count STR income, what ratio and down payment they want, and exactly how much rent you need to hit a 1.25 DSCR.
- DSCR = qualifying monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, HOA).
- STR income comes from 12 months of booking history, or an AirDNA projection that many programs cut to 70%–80% of gross.1
- Minimum DSCR: usually 1.00–1.25; aim for 1.25+ in seasonal markets.12
- Rent needed for 1.25 = PITIA × 1.25. For an AirDNA-based STR at 75%, divide that by 0.75.
- Down payment 20%–30%, reserves 6+ months of PITIA.12
How lenders count STR income
| Income source | When it is used | How much counts |
|---|---|---|
| 12 months of booking history | Existing Airbnb or Vrbo with payout statements | Actual earnings from the platform or property manager |
| AirDNA projection | New STR with no track record | Often 70%–80% of projected gross1 |
| Long-term market rent (Form 1007) | Fallback, or compared with AirDNA | Appraiser’s monthly rent; usually lower than STR income1 |
Source: JVM Lending, DSCR loan for Airbnb short-term rentals (updated June 2026),1 which says most lenders use the higher of the valid sources. Programs differ, so ask each lender which method it uses.
The discount, often called a haircut, is the biggest difference from a long-term rental. A lender using 75% of a $6,000 AirDNA projection counts only $4,500 a month toward your DSCR.1
Rent needed for a 1.25 DSCR
Find your monthly PITIA in the first column. The bold column is the qualifying rent you need for 1.25; the last two columns show the projected STR gross that gets you there if the lender counts 80% or 70% of it.
| Monthly PITIA | Rent for 1.00 | Rent for 1.20 | Rent for 1.25 | STR gross for 1.25 at 80% | STR gross for 1.25 at 70% |
|---|---|---|---|---|---|
| $1,500 | $1,500 | $1,800 | $1,875 | $2,344 | $2,679 |
| $2,000 | $2,000 | $2,400 | $2,500 | $3,125 | $3,571 |
| $2,500 | $2,500 | $3,000 | $3,125 | $3,906 | $4,464 |
| $3,000 | $3,000 | $3,600 | $3,750 | $4,688 | $5,357 |
| $3,500 | $3,500 | $4,200 | $4,375 | $5,469 | $6,250 |
| $4,000 | $4,000 | $4,800 | $5,000 | $6,250 | $7,143 |
Our calculation: rent = PITIA × target DSCR; STR gross = rent ÷ share of gross the lender counts. All figures per month, rounded to the dollar.
Worked example
JVM Lending’s illustration: a $500,000 condo with 25% down and PITIA of about $3,700, where AirDNA projects $72,000 a year ($6,000 a month).1
| Step | Figure |
|---|---|
| AirDNA projected gross | $6,000 / month |
| Lender counts 75% | $4,500 / month |
| DSCR = $4,500 ÷ $3,700 | about 1.22 |
| Qualifying rent needed for 1.25: $3,700 × 1.25 | $4,625 / month |
| Projected gross needed: $4,625 ÷ 0.75 | about $6,167 / month ($74,000 a year) |
So this deal is about $2,000 a year of projected bookings short of 1.25. The usual fixes: a larger down payment to cut PITIA, a lower rate, or a lender that counts a bigger share of STR income.
STR DSCR loan requirements
| Requirement | JVM Lending1 | STR Specialist2 |
|---|---|---|
| Minimum DSCR | 1.00+ for best pricing; 1.00–1.25 typical | 1.0–1.30; aim for 1.25+, ideally 1.30+ |
| Credit score | 620 minimum at most lenders; 680–720+ for best rates | 640 minimum at most; 680+ for competitive rates |
| Down payment | 20%–25%; 25%–30% in seasonal or vacation markets | 20%–25%; 25%–30% for new or marginal deals |
| Reserves | 6+ months of PITIA | 6–12 months; 9–12 for ski, 6–9 for beach properties |
| Rental history | 12 months if the property already rents | Some lenders want 12+ months |
For the general DSCR loan rules that apply to long-term rentals too, see our DSCR loan requirements guide.
Seasonality and weak months
Lenders usually work from annual income divided by 12, but some also look at seasonal cash flow.2 A property that clears 1.25 on the year can fall below 1.00 in the off-season, and you still have to make the payment. Before you buy:
- Run DSCR month by month with the slowest months, not just the annual average.
- Keep reserves to cover the gap between peak and off-season.
- Budget STR costs the lender may not show you: cleaning, supplies, platform fees and management.
- Check local rules. A short-term rental permit or HOA ban can wipe out the income the loan is based on.
Check your DSCR before you apply
The DSCR Calculator Excel Template works out your ratio for rental and business loans from your income, expenses and loan terms, so you know where you stand before you apply. Excel and Google Sheets.
Questions
How do lenders calculate DSCR for an Airbnb?
They divide qualifying monthly rental income by the monthly PITIA payment (principal, interest, taxes, insurance and HOA). For a short-term rental, qualifying income usually comes from 12 months of booking history or, for a new property, an AirDNA projection that many programs cut to 70% to 80% of projected gross.
What DSCR do I need for a short-term rental loan?
Most lenders want 1.00 to 1.25 or higher, and 1.00 or above usually gets the best pricing. One STR lending guide recommends aiming for at least 1.25 and preferably 1.30 or more, especially in seasonal markets.
How much rent do I need for a 1.25 DSCR?
Multiply your monthly PITIA by 1.25. With a $3,000 PITIA you need $3,750 of qualifying rent a month. For an Airbnb where the lender counts 75% of projected gross, divide by 0.75: about $5,000 a month in projected bookings.
Can I use AirDNA projections for a DSCR loan?
Many DSCR programs accept AirDNA for properties without a rental history, but usually apply 70% to 80% of the projected gross as qualifying income. Some lenders use the higher of the AirDNA figure and a long-term market rent appraisal (Form 1007).
How much down payment and reserves for an Airbnb DSCR loan?
Typically 20% to 25% down, with 25% to 30% more common in seasonal or vacation markets, and 6 or more months of PITIA in reserves; ski and beach properties may need more.
Related guides
Sources
- JVM Lending: DSCR Loan for Airbnb Short-Term Rentals, updated June 2026
- STR Specialist: DSCR Loans for Airbnb, How Lenders Underwrite STR Deals, February 2026
Tahir Abbas
Founder of Softotech Solutions. Tahir builds Excel and Google Sheets tools for landlords and small businesses, including the free DSCR calculator on this site. Lender figures come from the sources above; this is general information, not lending advice.