Yes, you can use a DSCR loan to finance an Airbnb or VRBO property. The qualification process works the same way as a traditional rental DSCR loan, with one critical difference: how the lender determines the property's income. Instead of relying solely on a standard long-term rent appraisal, short-term rental DSCR loans use projected nightly rates and occupancy data to calculate the property's annual gross income, then compare that figure against the annual debt service.
That income calculation method is the single biggest variable in whether your Airbnb DSCR deal gets approved and at what terms. Understanding how lenders source and verify STR income puts you in a much stronger position at application.
How Short-Term Rental Income Is Calculated for DSCR
Lenders use two primary methods to determine short-term rental income for DSCR qualification:
AirDNA Market Data. Most DSCR lenders that accept STR income subscribe to AirDNA, a third-party platform that aggregates Airbnb and VRBO performance data by market, property type, and bedroom count. The lender pulls an AirDNA report for the subject property's zip code and comparable properties, which provides average daily rate (ADR), occupancy rate, and projected annual revenue. The lender then applies a vacancy and expense factor, typically 25% to 30%, to arrive at the net rental income used in the DSCR calculation.
Appraisal Rent Addendum (Form 1007). Some lenders require the appraiser to provide a market rent opinion based on comparable long-term rentals in the area, regardless of the borrower's STR strategy. This approach is more conservative because long-term rents are almost always lower than annualized STR income in desirable markets. However, it simplifies underwriting and reduces the lender's exposure to seasonal fluctuations.
A few lenders accept a hybrid approach, using the higher of the two income figures if the borrower can demonstrate an active STR operating history with at least 12 months of booking data from Airbnb or VRBO.