Yes, increasingly — but it comes with more nuance than long-term rental income, and it's worth understanding before you assume a property's Airbnb numbers will sail through underwriting.

How short-term rental income gets evaluated. Rather than a simple monthly lease amount, lenders typically look at either: (1) a market rent estimate from a short-term rental data provider (like AirDNA), (2) the property's actual trailing 12-month short-term rental income if it has an operating history, or (3) sometimes a blended approach using both. Which method a given lender uses varies significantly — this is one of the more lender-specific parts of DSCR underwriting right now.

Why it's more scrutinized than long-term rent. Short-term rental income is inherently more volatile — seasonal swings, local regulation changes, platform policy shifts, and management quality all affect it in ways a signed 12-month lease doesn't. Lenders price and evaluate that volatility differently than they do stable long-term rent.

What helps your case:

• An established rental history with 12+ months of documented income, ideally from platform statements or a property management report
• A market that has clear, established short-term rental comparables (not a market where STR is a gray area or newly regulated)
• Conservative income assumptions — using average or even below-average monthly income rather than peak-season numbers

What can complicate it:

• Local short-term rental restrictions or licensing requirements — some lenders will ask for proof of legal STR operation before counting the income at all
• A brand-new property with no operating history, which forces the lender to rely entirely on market-rate estimates rather than actuals
• HOA or municipal rules that could shut down STR operation entirely, which is a real underwriting concern, not just a lifestyle one

A practical approach if you're planning to run a property as a short-term rental: ask your DSCR lender directly which income methodology they use before you get attached to a specific number. Some lenders will actually underwrite using conservative long-term rental comps even for a property you intend to run as an STR — worth knowing upfront so your expectations match their math.

The free K-DSCR Deal Analyzer currently models long-term rental income. If you're evaluating a short-term rental play, run the numbers using a conservative monthly average as your starting point.

Curious what your DSCR actually is on a specific property? The free K-DSCR Deal Analyzer calculates it instantly — income divided by your full PITIA payment, the same way most DSCR lenders read it.  

Contact Kay Wittmann DSCR Deal Specialist for more questions at (310) 903-7916 or email contact@ypdhomes.com