Possibly. Some DSCR lenders finance eligible short-term-rental properties, while others use only long-term market rent or exclude certain locations and property types. The lender may require appraisal market rent, documented operating history, third-party market data, or a combination.

What matters most

  • Local zoning, licensing, HOA rules, and rental restrictions are separate from mortgage approval.
  • Projected gross revenue is not the same as net operating cash flow after vacancy, management, cleaning, utilities, and repairs.
  • Seasonality and limited operating history can make income support more conservative.

How to use this answer

Verify legal rental use before relying on short-term revenue. Ask the lender which rent source controls and whether the property needs an active history. Then test the investment with conservative occupancy and complete expenses—not only the best month shown by a market report.

A simple example

A vacation-rental report projects $60,000 in annual revenue, but the lender may qualify the property using a lower market-rent figure or a discounted average. The investor should also subtract operating expenses that may not appear in the lender’s DSCR formula.

What to review before you decide

  • Confirm the loan program, occupancy, property type, and timeline.
  • Review the complete payment and cash-to-close estimate, not one number in isolation.
  • Verify current program rules and lender requirements before moving money or signing a contract.

Frequently asked questions

Questions readers often ask next.

Can projected Airbnb income be used?

Some programs allow specific short-term-rental evidence, while others do not. The accepted source and calculation vary.

Does an HOA ban affect the loan?

It can affect the intended rental strategy and property eligibility. Review association documents before the financing contingency expires.

Sources

Sources used for this article.

  1. Rental income and expenses: real estate tax tips — Internal Revenue Service • Accessed August 17, 2026
  2. Regulation Z: exempt business-purpose transactions — Consumer Financial Protection Bureau • Accessed August 17, 2026