Short-Term Rental Financing in Florida — DSCR Loans for Airbnb Properties

Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.

Florida's short-term rental market is one of the strongest in the country. Financing it correctly requires a loan built for investment income rather than personal income. DSCR loans are the tool most Florida STR investors use, and for good reason.

Why DSCR Fits Short-Term Rentals

DSCR stands for debt-service coverage ratio. The lender looks at the property's income relative to the mortgage payment. If the income covers the debt, you qualify — your personal income documents are not required.

That matters for STR investors who own multiple properties, are self-employed, or whose personal income doesn't look like a W-2. The property pays for itself. That's the underwriting model.

How Lenders Evaluate Airbnb Income

Some DSCR lenders accept market rent surveys based on long-term rental rates. That's the conservative approach. Others use short-term rental income projections from platforms like AirDNA or Rabbu to calculate expected revenue.

STR income projections typically show higher gross revenue than long-term rent, but also higher vacancies and operating expenses. Lenders usually apply a 50–70% gross revenue factor to arrive at net operating income. Ask your lender exactly how they're calculating the DSCR on your specific property.

What You Need to Qualify

DSCR lenders typically want a 620–680 minimum credit score. Loan-to-value ratios top out at 75–80% for investment properties. Most lenders require 6–12 months of reserves after closing.

Short-term rental properties need a legal check too. Florida HOA rules and local ordinances have tightened on STR use in some markets. Confirm the zoning and HOA status before you apply — a lender won't fund an STR in a building that prohibits them.

Building a Florida STR Portfolio with DSCR

DSCR loans don't count against your conventional loan limit. That means you can own multiple properties simultaneously without hitting the 10-loan conventional ceiling.

We work with Florida STR investors from single-property purchases to portfolio builds. Markets we finance regularly include Palm Beach, the Keys, Orlando, and the Emerald Coast. Bring us your target property and we'll run the DSCR numbers before you make an offer.