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Short-Term Rental · Orange Beach, AL

Short-Term Rental Financing in Orange Beach, AL

Estimated 0.77x DSCR on a $700,000 short-term rental with $175,000 down — qualified on the property's income, not your tax returns.

Modeled Purchase Price
$700,000
25% Down
$175,000
Loan Amount
$525,000
Est. Monthly PITIA
$4,652
Creditable STR Income
$3,600/mo
Est. DSCR Ratio
0.77x

Short-Term Rental investing in Orange Beach

Short-term rental financing in Orange Beach 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 Orange Beach median of $700,000, a short-term rental prices near $700,000. Minimum down is 25% ($175,000), leaving a loan of $525,000. Estimated all-in PITIA runs about $4,652 per month.

The Orange Beach ratio math on this product

Gross nightly revenue in Orange Beach models to about $5,000/month across a full year. Lenders do not credit that dollar-for-dollar — a 28% haircut for vacancy, cleaning, platform fees and management leaves $3,600 of creditable income. Against a PITIA of $4,652, that is an estimated DSCR ratio of 0.77x. That is below the 1.0 threshold, which is normal at this basis. Financing here works one of three ways — more money down, a no-ratio DSCR product, or qualifying on documented short-term rental revenue.

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 rentals are active in this market; licensing and zoning are set locally and we verify the specific address before quoting. 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 Orange Beach median for this product: an estimated cap rate of 3.39%, and monthly cash flow of $1,052 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.

Orange Beach property types compared

Property TypeModeled PriceMin. DownEst. IncomeEst. DSCR
Single-Family Rental$700,00020% ($140,000)$2,325/mo0.48x
2–4 Unit Multi-Family$1,106,00025% ($276,500)$4,325/mo0.59x
Condo & Townhome$504,00020% ($100,800)$1,837/mo0.48x
Short-Term Rental (this page)$700,00025% ($175,000)$3,600/mo0.77x

All figures model a purchase at the Orange Beach median of $700,000 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 Orange Beach 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.

Orange Beach Short-Term Rental FAQ

More Orange Beach investor resources

Orange Beach investor guide
Full market analysis and loan options
Single-Family Rental in Orange Beach
0.48x est. DSCR
2–4 Unit Multi-Family in Orange Beach
0.59x est. DSCR
Condo & Townhome in Orange Beach
0.48x est. DSCR
Baldwin County investor hub
Every market we finance in the county
DSCR loan requirements in Alabama
DSCR payment calculator

Price a short-term rental in Orange Beach

Send us the address and we'll model the real DSCR ratio, PITIA and cash flow on that specific property — usually the same day. Licensed in Alabama, and we close in an LLC or your personal name.

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