Tayton Capital
ES
Short-Term Rental · Block Island, RI

Short-Term Rental Financing in Block Island, RI

Estimated 0.60x DSCR on a $1,400,000 short-term rental with $350,000 down — qualified on the property's income, not your tax returns.

Modeled Purchase Price
$1,400,000
25% Down
$350,000
Loan Amount
$1,050,000
Est. Monthly PITIA
$10,314
Creditable STR Income
$6,192/mo
Est. DSCR Ratio
0.60x

Short-Term Rental investing in Block Island

Short-term rental financing in Block Island 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 Block Island median of $1,400,000, a short-term rental prices near $1,400,000. Minimum down is 25% ($350,000), leaving a loan of $1,050,000. Estimated all-in PITIA runs about $10,314 per month.

The Block Island ratio math on this product

Gross nightly revenue in Block Island models to about $8,600/month across a full year. Lenders do not credit that dollar-for-dollar — a 28% haircut for vacancy, cleaning, platform fees and management leaves $6,192 of creditable income. Against a PITIA of $10,314, that is an estimated DSCR ratio of 0.60x. 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 Block Island median for this product: an estimated cap rate of 2.92%, and monthly cash flow of $4,122 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. Note that the $1,050,000 loan amount exceeds the $806,500 conforming limit for Washington County, so agency pricing is off the table and this is a jumbo DSCR file.

Block Island property types compared

Property TypeModeled PriceMin. DownEst. IncomeEst. DSCR
Single-Family Rental$1,400,00020% ($280,000)$4,000/mo0.37x
2–4 Unit Multi-Family$2,212,00025% ($553,000)$7,440/mo0.46x
Condo & Townhome$1,008,00020% ($201,600)$3,160/mo0.38x
Short-Term Rental (this page)$1,400,00025% ($350,000)$6,192/mo0.60x

All figures model a purchase at the Block Island median of $1,400,000 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 Block Island 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.

Block Island Short-Term Rental FAQ

More Block Island investor resources

Block Island investor guide
Full market analysis and loan options
Single-Family Rental in Block Island
0.37x est. DSCR
2–4 Unit Multi-Family in Block Island
0.46x est. DSCR
Condo & Townhome in Block Island
0.38x est. DSCR
Washington County investor hub
Every market we finance in the county
DSCR loan requirements in Rhode Island
DSCR payment calculator

Price a short-term rental in Block Island

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 Rhode Island, and we close in an LLC or your personal name.

Get My Investment Analysis Talk to a Loan Officer

Keep exploring

Related pages

Get started

See your loan options in minutes.

Tell us a little about you and we'll reach out personally — usually within one business day.

Or call (970) 708-9624

Terms · Privacy Policy

Get a quoteApply Now