South Florida is one of the highest-demand short-term rental markets in the United States. Miami Beach, Brickell, Wynwood, Fort Lauderdale, and the Keys draw visitors year-round, and investors who own short-term rental properties in these markets generate income that can significantly exceed what a long-term lease would produce. The question for investors is how to finance these acquisitions. DSCR programs have adapted to this market.
The Income Documentation Challenge
A conventional investment property loan qualifies the borrower on personal income. A standard DSCR loan uses a market rent appraisal or an existing lease to establish the property's income. Neither is designed for the short-term rental, where income is not contracted through a lease and varies by season, platform, and the property's reviews and positioning.
The short-term rental DSCR program addresses this through alternative income documentation. For properties with an existing short-term rental history, the lender may accept 12 months of verified rental income from booking platforms — Airbnb, VRBO, or other — documented through platform income statements or bank statements showing deposit history. For properties being acquired as new short-term rentals, some lenders use third-party analytics projections for comparable properties; others default to the long-term market rent appraisal.
Market Eligibility: Where Short-Term Rental DSCR Works in South Florida
Miami Beach is one of the highest-demand short-term rental markets in the country, with strong income projections and lenders familiar with the market. Brickell and Downtown Miami have significant short-term rental activity in newer condo developments. Fort Lauderdale is an established market with Las Olas and beachfront properties commanding premium rates. Wynwood and Midtown Miami have growing demand from visitors to the arts and dining district.
The Florida Keys present a seasonal market with very high peak-season rates and lower off-season activity, requiring careful seasonal analysis. Municipal regulations on short-term rentals vary by city and neighborhood. Miami Beach has specific short-term rental licensing requirements. Some condo associations prohibit short-term rentals entirely. Rafael and the borrower's real estate attorney verify local compliance before structuring the loan.
If you are acquiring a South Florida short-term rental property, Rafael runs the DSCR analysis under both the short-term income and the long-term appraisal basis — so you know which methodology produces the stronger qualification.
Request Strategy CallHow the DSCR Calculation Works for Short-Term Rentals
The DSCR is calculated by dividing the income figure the lender accepts by the monthly mortgage payment (PITIA). When the lender uses short-term rental income projections, the income figure is typically the annual projected gross revenue divided by 12, sometimes adjusted by a vacancy or occupancy factor. When the lender defaults to long-term market rent, the DSCR calculation is identical to a standard investment property DSCR loan.
Minimum DSCR requirements for short-term rental programs are typically consistent with standard DSCR programs — 0.75 or above — but some lenders apply higher minimums given the income variability inherent in short-term rental operations. Rafael presents the DSCR calculation under each available methodology so the borrower understands the basis for qualification before committing to a lender.
LLC Ownership and Short-Term Rentals
Most serious short-term rental investors hold their properties inside LLCs for liability and tax reasons. DSCR programs support this structure. The LLC is the borrowing entity, the investor is the personal guarantor, and the property's rental income is the qualifying basis.
For foreign national investors acquiring South Florida short-term rental properties through a US LLC, the DSCR program accommodates both entity ownership and the absence of US personal income documentation in a single program.
Frequently Asked Questions
Rafael Amaro · NMLS 1976196 · Wealth Growth Partners · Boca Raton, FL · Sponsored by Premier Lending, Inc. NMLS #238143 · This briefing is for informational purposes only and does not constitute legal, tax, or financial advice. Program availability, qualification requirements, and down payment minimums are subject to change and vary by lender. Consult qualified legal and tax counsel regarding entity structuring and US estate tax obligations.