DSCR Loans for Florida Short-Term Rentals (2026 Investor Guide)

Q: Can I use Airbnb income to qualify for a DSCR loan in Florida?

Yes — many DSCR lenders accept STR income projections from AirDNA or market rent analyses. Critical in vacation markets like Destin and Naples.

Q: What credit score do I need for a DSCR loan in Florida?

Most DSCR lenders require 680 minimum. Better rates at 720+, best pricing at 760+.

Q: Do DSCR loans have prepayment penalties?

Most carry 3–5 year prepayment penalties (declining schedule). Always read the terms, especially if you plan to sell or refinance within a few years.

Q: What is the minimum DSCR ratio lenders accept in Florida?

Most require 1.0 minimum. Some go as low as 0.75 with a larger down payment and higher rate.

Q: Can I finance a Florida condo with a DSCR loan for STRs?

Yes — but the condo must allow short-term rentals per HOA documents. We screen for this before you apply.

By Taylor “TJ” Tassone

Licensed Mortgage Broker in Colorado & Florida · NMLS #1299614

Florida welcomed over 140 million visitors in 2025, the most-visited state in the country. That tourism demand — concentrated in Destin, Naples, Cape Coral, Orlando, and the Keys — creates an exceptionally robust STR income environment. DSCR loans let investors finance these properties based on what the home earns, not what the investor earns.

Modern vacation rental home with pool in a sunny Florida setting

What Is a DSCR Loan?

DSCR = Gross Monthly Rental Income ÷ Monthly PITIA (Principal + Interest + Taxes + Insurance + HOA).

DSCR > 1.0: income covers expenses — most lenders approve. DSCR = 1.0: break-even. DSCR < 1.0: higher down or rate; some lenders go to 0.75.

Example: A Destin beach house renting for $8,500/mo with $5,200 PITIA = DSCR 1.63 — excellent.

How STR Income Is Calculated

AirDNA analysis: Third-party comp analysis. Best for high-seasonality FL markets. Form 1007 long-term rent: Understates STR potential — avoid lenders using this on vacation rentals. Actual rental history: 12–24 month average for existing rental conversions.

We work with lenders accepting AirDNA for FL markets. If yours is using long-term appraisals on a Destin Airbnb, you're leaving qualification on the table.

Top FL Markets for DSCR STR in 2026

Destin / 30A: Strongest STR market by revenue-per-night. Beachfront $80K–$200K+ annual STR. Median Destin $685K; 30A $900K–$2M+. Conforming Okaloosa $832,750, Walton $883,200.

Cape Coral / Fort Myers: Canal-front $350K–$600K with $45K–$80K/yr STR revenue.

Orlando / Kissimmee: Highest-volume FL STR. STR-friendly Osceola vacation communities critical to identify. $350K–$550K, $45K–$95K/yr.

Naples / Marco Island: Luxury STRs $100K–$180K/yr. Most jumbo via portfolio/non-QM.

Sarasota / Siesta Key: Siesta Key $1.5M+; Sarasota/Venice more accessible.

DSCR Requirements

Down payment: 20–25% (some 15% at higher rates)
Credit score: 680 min, 720+ for best pricing
DSCR ≥ 1.0 (some 0.75 with larger down)
Loans $150K–$3.5M+
SFR, condo, 2–4 unit, STR
30-yr fixed, 5/1 or 7/1 ARM, interest-only available
Prepayment penalty common (3–5 year step-down)

No income docs, no employment verification, no DTI — the property qualifies, not you.

DSCR Rates in Florida 2026

0.5–1.5% above conventional investment rates. Currently 7–8.5% for most FL investor profiles. Better rates at higher DSCR (1.25+), credit (760+), lower LTV (20%+ down). Interest-only available for cash-flow maximizing.

DSCR Pitfalls

Prepayment penalties: 3–5% if sold/refi'd in penalty window — factor into pro forma. HOA restrictions: Many FL condos prohibit STRs — verify before applying. Insurance: Landlord/STR policies $4,000–$10,000+/yr coastal. Flood: Not optional in flood zones. Property management: 20–30% of gross — affects cash-on-cash, not DSCR.

Ready?

We're licensed in Florida and close DSCR loans statewide, including fully remote for out-of-state investors. Model the DSCR and get a rate quote in 24 hours. Contact Tayton Capital or apply now.

📧 tj@taytoncapitalllc.com
📞 970-708-9624