Using Airbnb Income to Qualify for a Mortgage

The STR Income Problem

You've got an Airbnb pulling in $6,000 a month. You want to buy another one — or refinance this one. You go to a traditional lender and they say: "We need two years of tax returns showing rental income."

But your Schedule E shows a loss because of depreciation. Or you just started hosting 8 months ago. Or your income is seasonal and the monthly average doesn't tell the real story.

This is the gap DSCR loans with STR income solve.

How Lenders Evaluate STR Income

Most DSCR lenders that accept short-term rental income use a conservative haircut — typically 75% of your gross STR revenue.

Why 75%? Lenders discount STR income because:

It's variable month-to-month

Occupancy isn't guaranteed

Platform fees, cleaning, and management eat into gross revenue

Seasonal markets can see 40-60% income swings

The formula:

Conservative Monthly Income = (Annual Gross STR Income x 0.75) / 12

Then: DSCR = Conservative Monthly Income / Monthly PITI

Example: Beach House in Fort Lauderdale

MetricAmount

|--------|--------|

Annual Airbnb Gross Revenue$72,000 Conservative (75%)$54,000/year Monthly (Conservative)$4,500 Monthly PITI$3,200 **DSCR****1.41**

That's a strong deal. The property qualifies easily even with the 25% haircut.

What Documentation Do Lenders Need?

This varies by lender, but here's the standard package:

Required:

Trailing 12-month platform statements — Airbnb, VRBO, or your booking platform's income summary

Current lease or booking schedule — shows upcoming reservations

Property photos — current listing photos showing the property's condition and amenities

Often requested:

AirDNA market report — third-party data showing comparable properties, ADR (Average Daily Rate), occupancy rates, and revenue potential in your market

Profit & loss statement — even informal, showing revenue minus expenses

Operating expense breakdown — cleaning, management fees, supplies, insurance, utilities

Good to have:

Superhost or Premier Host status — signals track record

Guest reviews — lenders like seeing 4.5+ ratings

Year-over-year growth — if income is trending up, document it

What About New STR Properties?

If you're buying a property to operate as a short-term rental and don't have income history, lenders typically accept:

AirDNA projections — third-party market data estimating revenue for comparable properties in the same zip code

Comparable STR listings — screenshot active listings in the area showing nightly rates and occupancy

1007 Rent Schedule — a standard appraisal form that estimates market rent (some lenders will accept this as a baseline)

Not all lenders accept projected income — some require 3-6 months of actual operating history. This is where having multiple capital programs matters. We know which ones work for acquisitions vs. refinances.

Markets Where STR Lending Is Strongest

STR-friendly DSCR loans work best in markets with:

Year-round demand (Miami, LA, Hawaii)

Strong tourism (Nashville, Austin, Scottsdale)

Business travel (NYC, Dallas, Chicago)

Event-driven markets (Las Vegas, Orlando, New Orleans)

Watch out for markets with restrictive STR regulations. Some cities limit short-term rentals by zone, require permits, or cap the number of days you can rent. Lenders may discount or reject properties in heavily regulated markets.

Common Mistakes

Using gross income without the haircut. Lenders will apply 75% automatically — don't assume your full Airbnb revenue qualifies.

Ignoring seasonality. If 60% of your income comes in 4 summer months, lenders will average it across 12 months. Make sure the average still works.

Not having AirDNA data. This is cheap ($20-30 per report) and dramatically strengthens your file. Get it before you apply.

Forgetting platform fees. Airbnb takes 3%. VRBO takes up to 8%. Your gross booking revenue is not your gross income.

Run Your STR Numbers

Our STR Signal tool takes your annual STR income, applies the conservative 75% calculation, and tells you exactly where your DSCR lands. You'll know in seconds whether your property qualifies — and which programs fit.