DSCR Loan for Airbnb | Finance Your Airbnb Investment Property | Bayou Mortgage
DSCR Loan Guide

DSCR Loan for Airbnb

Airbnb income can qualify for a DSCR loan — but only on the right program. Here's how lenders evaluate Airbnb revenue, what data they use, and how to make sure your deal pencils before you make an offer.

✅ Airbnb income accepted on select programs✅ AirDNA data accepted✅ No personal income docs
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DSCR Loan Use Case

How Airbnb Income Qualifies on a DSCR Loan

Airbnb properties can be financed with a DSCR loan — but the way income is counted varies significantly by lender and program. Some programs count actual Airbnb revenue using third-party market data. Others allow the property to be used as an Airbnb but only count the long-term rental equivalent in the DSCR calculation.

The distinction matters because a property generating $4,800/month on Airbnb might only show $1,900/month in long-term market rent — dramatically changing the DSCR ratio and which programs you qualify for. Knowing which method applies to your deal before you're under contract is essential.

When Long-Term Market Rent Is Enough

If the property's long-term market rent already produces a qualifying DSCR (typically 1.0+), you don't need a specialized STR program. The property can operate as an Airbnb, and the lender simply uses what the appraiser says it would rent for on a 12-month lease.

This gives you the widest range of lender options at the most competitive rates — without the stricter requirements of STR-specific programs.

When You Need Airbnb Income to Qualify

If the property doesn't produce a qualifying DSCR on long-term market rent alone — common with properties in high-cost vacation markets — you'll need an STR-specific program that accepts Airbnb revenue data.

These programs use AirDNA projections or actual booking history to calculate income, which better reflects real Airbnb performance. The tradeoff is stricter credit, more down payment, and fewer lender options.

STR Data

How Lenders Use AirDNA for Airbnb DSCR Loans

AirDNA is the industry-standard data provider for short-term rental market analytics. DSCR lenders that accept STR income use AirDNA to estimate a property's projected annual revenue, occupancy rate, and average daily rate — independent of what a seller or borrower claims.

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Lender pulls AirDNA report for the property addressThe report shows projected annual gross revenue, estimated occupancy, and average nightly rate based on comparable active listings in the market.
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Annual revenue is converted to monthly incomeProjected annual revenue is divided by 12 to produce the monthly STR income figure used in the DSCR calculation.
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Some lenders apply a haircutTo account for income variability, some programs apply a 75–85% factor to the AirDNA projection before using it in the DSCR ratio. A $5,000/month projection might be counted as $3,750–$4,250 in the calculation.
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Existing STRs can use actual booking historyIf the property has been operating as an Airbnb for 12+ months, some lenders prefer actual revenue data over projections — which can be stronger or weaker depending on the property's performance.
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AirDNA Is Not the Seller's Numbers

Sellers and listing agents sometimes present revenue figures that don't hold up to AirDNA analysis — particularly in markets where STR performance has softened. The lender uses AirDNA, not the seller's claimed income. Run your own AirDNA check before making an offer to avoid qualifying surprises at underwriting.

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Bayou Mortgage Can Pull AirDNA Before You Offer

We can review AirDNA data for any property you're considering before you go under contract — so you know whether the projected income supports a qualifying DSCR on STR-specific programs or long-term market rent programs.

Program Options

Airbnb DSCR Loan Options: Which Program Fits Your Deal

ScenarioBest Program TypeNotes
LTR market rent qualifies on its own
Standard DSCR
Widest lender options, best rates
Need Airbnb revenue to reach 1.0 DSCR
STR-specific DSCR
Uses AirDNA — stricter credit/down
Existing Airbnb with 12+ months history
STR with actual income
Actual revenue may exceed AirDNA
Vacation market, no comparable LTR
STR-specific DSCR
LTR market rent may not exist meaningfully
HOA prohibits STR
Not eligible for STR programs
Standard LTR DSCR only — if it qualifies
What You Need

Airbnb DSCR Loan Requirements

Standard Requirements

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Credit score 680+ for STR programsStandard DSCR programs start at 620, but STR-specific programs typically require 680–700+. See credit score guide.
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Down payment 25–30%STR properties require more equity than standard DSCR. See down payment guide.
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DSCR 1.0+ on qualifying income methodWhether using LTR market rent or AirDNA data, the ratio must meet the program minimum.
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Reserves 6–12 monthsSTR income variability means lenders want more cash cushion after closing.
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Property legally eligible for STRNo HOA prohibition, local permit obtainable, zoning allows STR use.

If Using AirDNA / STR Income Method

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AirDNA market reportLender pulls this directly for most programs.
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12 months booking history (if existing STR)Actual revenue data may be used instead of projections.
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STR license or permit documentationRequired in regulated markets like New Orleans.
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No tax returns or W-2s requiredIncome documentation is based on the property, not the borrower.
Quick Reference

DSCR Airbnb Loan: Quick Reference

Key parameters for financing an Airbnb property with a DSCR loan.

FactorRangeNotes
Credit score
620+ standard / 680+ STR programs
Depends on income method used
Down payment
20–25% standard / 25–30% STR
Depends on program
Income used
LTR market rent or AirDNA
Whichever program applies
DSCR minimum
1.0+
Some STR programs require 1.10+
Reserves
6–12 months PITIA
Higher for STR programs
LLC vesting
Available
LLC guide

Guidelines vary by lender and program. Bayou Mortgage — NMLS #1845349. Equal Housing Lender.

Financing an Airbnb Property?

We'll pull AirDNA data and identify the right program before you go under contract — no credit pull required.

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Common Questions

DSCR Airbnb Loan FAQ

Can I use my current Airbnb earnings to qualify for a DSCR loan? +
If you own a property that's already operating as an Airbnb, some lenders will use 12 months of actual booking history in the DSCR calculation. This is different from using your personal Airbnb income on a tax return — it's the property's own revenue history, not your personal earnings, that matters for DSCR qualification.
What is AirDNA and how does it affect my loan? +
AirDNA is a data platform that tracks short-term rental performance across Airbnb, VRBO, and other platforms. DSCR lenders use AirDNA to get an independent, third-party estimate of a property's projected STR income — rather than relying on seller claims or borrower projections. The AirDNA projection for your specific property and market directly impacts the income figure used in your DSCR calculation.
What if the AirDNA projection is lower than the seller claims? +
The lender uses AirDNA, not the seller's numbers. If AirDNA projects significantly lower revenue than what the seller is claiming, your qualifying DSCR ratio will be lower — potentially below program minimums. This is why reviewing AirDNA data before making an offer is so important. Bayou Mortgage can run this analysis before you're under contract.
Can I buy a property that has never been an Airbnb and finance it for that purpose? +
Yes. For properties with no Airbnb history, lenders use AirDNA market projections for the area to estimate future STR income. You don't need an existing operating history — the market data stands in for it. The property just needs to be legally eligible for STR use (no HOA prohibition, permittable under local ordinance).
Is a DSCR loan better than a conventional loan for an Airbnb? +
For most investors, yes — especially self-employed borrowers. Conventional loans for investment properties don't count STR income for qualification and require full personal income documentation. DSCR loans qualify on the property's income, require minimal personal documentation, and on STR-specific programs, actually use Airbnb revenue in the calculation. The tradeoff is typically a slightly higher rate than conventional financing.