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Short-Term Rental · Northampton, MA

Short-Term Rental Financing in Northampton, MA

Estimated 1.02x DSCR on a $500,000 short-term rental with $125,000 down — qualified on the property's income, not your tax returns.

Modeled Purchase Price
$500,000
25% Down
$125,000
Loan Amount
$375,000
Est. Monthly PITIA
$3,316
Creditable STR Income
$3,384/mo
Est. DSCR Ratio
1.02x

Short-Term Rental investing in Northampton

Short-term rental financing in Northampton 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 Northampton median of $500,000, a short-term rental prices near $500,000. Minimum down is 25% ($125,000), leaving a loan of $375,000. Estimated all-in PITIA runs about $3,316 per month.

The Northampton ratio math on this product

Gross nightly revenue in Northampton models to about $4,700/month across a full year. Lenders do not credit that dollar-for-dollar — a 28% haircut for vacancy, cleaning, platform fees and management leaves $3,384 of creditable income. Against a PITIA of $3,316, that is an estimated DSCR ratio of 1.02x. That clears the 1.0 minimum most DSCR shelves require for base pricing, but the cushion is thin. Stress-test a tax reassessment and an insurance renewal before you write the offer.

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 Northampton median for this product: an estimated cap rate of 4.47%, and monthly cash flow of $68 positive at 25% down. A file that cash-flows at the minimum down payment is the exception in Massachusetts right now, and it gives you room to absorb an insurance renewal without going to the reserve account.

Northampton property types compared

Property TypeModeled PriceMin. DownEst. IncomeEst. DSCR
Single-Family Rental$500,00020% ($100,000)$3,125/mo0.90x
2–4 Unit Multi-Family$790,00025% ($197,500)$5,813/mo1.11x
Condo & Townhome$360,00020% ($72,000)$2,469/mo0.87x
Short-Term Rental (this page)$500,00025% ($125,000)$3,384/mo1.02x

All figures model a purchase at the Northampton median of $500,000 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 Northampton 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.

Northampton Short-Term Rental FAQ

More Northampton investor resources

Northampton investor guide
Full market analysis and loan options
Single-Family Rental in Northampton
0.90x est. DSCR
2–4 Unit Multi-Family in Northampton
1.11x est. DSCR
Condo & Townhome in Northampton
0.87x est. DSCR
Hampshire County investor hub
Every market we finance in the county
DSCR loan requirements in Massachusetts
DSCR payment calculator

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