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Short-Term Rental · Alcoa, TN

Short-Term Rental Financing in Alcoa, TN

Estimated 0.91x DSCR on a $370,000 short-term rental with $92,500 down — qualified on the property's income, not your tax returns.

Modeled Purchase Price
$370,000
25% Down
$92,500
Loan Amount
$277,500
Est. Monthly PITIA
$2,318
Creditable STR Income
$2,106/mo
Est. DSCR Ratio
0.91x

Short-Term Rental investing in Alcoa

Short-term rental financing in Alcoa is a different underwriting product than a long-term DSCR loan even though it carries the same name. The lender is crediting nightly revenue instead of a signed lease, which means the documentation, the reserve requirement, and the permit diligence all change.

At the Alcoa median of $370,000, a short-term rental prices near $370,000. Minimum down is 25% ($92,500), leaving a loan of $277,500. Estimated all-in PITIA runs about $2,318 per month.

The Alcoa ratio math on this product

Gross nightly revenue in Alcoa models to about $2,925/month across a full year. Lenders do not credit that dollar-for-dollar — a 28% haircut for vacancy, cleaning, platform fees and management leaves $2,106 of creditable income. Against a PITIA of $2,318, that is an estimated DSCR ratio of 0.91x. That lands just under 1.0. It does not kill the deal in Alcoa: moving to a larger down payment ($111,000) usually closes the gap, and several shelves fund down to 0.75x with a rate add-on.

Underwriting notes specific to STR files: plan on 25% down as the floor, six months of PITIA in reserves, and either twelve months of Airbnb/VRBO earnings statements on the subject property or a third-party market revenue study for a property with no operating history. Short-term rental activity is moderate here and local rules vary by zoning district. Verify the permit status of the exact address before you go hard on earnest money — an unpermitted STR is an unfinanceable STR on this product.

Returns and structure

Return metrics at the Alcoa median for this product: an estimated cap rate of 3.76%, and monthly cash flow of $212 negative at 25% down. Negative cash flow at the minimum down payment is common in appreciation-led markets; investors close the gap with a larger down payment, a purchase below median, an added unit, or a rate buydown.

Alcoa property types compared

Property TypeModeled PriceMin. DownEst. IncomeEst. DSCR
Single-Family Rental$370,00020% ($74,000)$1,950/mo0.80x
2–4 Unit Multi-Family$584,60025% ($146,150)$3,627/mo0.99x
Condo & Townhome$266,40020% ($53,280)$1,541/mo0.78x
Short-Term Rental (this page)$370,00025% ($92,500)$2,106/mo0.91x

All figures model a purchase at the Alcoa median of $370,000 with the property-type adjustments described above, at an illustrative 7.50% DSCR rate on a 30-year fixed. Short-term rental income is shown after the standard lender haircut.

Figures on this page are modeled estimates derived from the Alcoa median price and market rent, adjusted for short-term rental product characteristics. They are illustrative, not a loan offer or an appraisal. Actual pricing, rent, taxes, insurance, HOA dues and DSCR depend on the specific property and on conditions at the time of application.

Alcoa Short-Term Rental FAQ

More Alcoa investor resources

Alcoa investor guide
Full market analysis and loan options
Single-Family Rental in Alcoa
0.80x est. DSCR
2–4 Unit Multi-Family in Alcoa
0.99x est. DSCR
Condo & Townhome in Alcoa
0.78x est. DSCR
Blount County investor hub
Every market we finance in the county
DSCR loan requirements in Tennessee
DSCR payment calculator

Price a short-term rental in Alcoa

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