STR → MTR pivot

Your City Restricted Airbnb — Convert to a Mid-Term Rental and Re-Qualify

If your city capped or banned short-term rentals, you’re not stuck. A mid-term rental — 30+ day furnished stays for traveling professionals, relocations, and insurance housing — usually falls outside STR ordinances entirely, and a DSCR lender can re-qualify the property on the long-term rent it produces.

Why MTR sidesteps the cap

Night caps and short-term-rental bans target stays under 30 days. A mid-term rental is, by definition, 30+ days — so the nightly cap doesn’t apply and the legality flag that killed the STR deal often goes green for MTR. You trade peak nightly revenue for steadier occupancy and a lease a DSCR lender underwrites like any long-term rental.

Who rents mid-term

Traveling healthcare workers, relocating professionals, insurance-displaced families, and corporate housing — typically furnished, 1–6 month stays. Demand is strongest near hospitals, universities, and job centers, and it’s far less seasonal than vacation STR.

Re-qualifying the loan

We re-run the DSCR on long-term/mid-term rent comps instead of capped nightly revenue. Often a deal that fails as a pure STR clears the floor as an MTR — PITIA is unchanged, but the income is no longer haircut by a cap. The rate may even improve, since MTR/LTR income carries no STR overlay.

When to pivot vs. sell

If the MTR-adjusted DSCR clears a floor, pivot and refinance. If it still falls short — high price, high taxes, soft long-term rents — a sale into current comps may beat carrying a negative. Run both numbers before deciding.

Frequently asked questions

Can I get a DSCR loan on an Airbnb with no rental history?

Yes. 9 of the 10 STR lenders we track qualify the loan on a market revenue projection (AirDNA/Rabbu) or an appraiser’s Form 1007 short-term-rent schedule, so no operating history is required for many programs.

What down payment and LTV do STR DSCR loans require?

Most STR DSCR programs want 25–30% down (70–75% LTV) — slightly more than a long-term-rental DSCR loan, reflecting the variability of nightly income. A stronger cap-adjusted DSCR and credit band can unlock the higher-LTV tier.

What DSCR do STR lenders require?

Most set a floor around 1.0 on the cap-adjusted DSCR (revenue ÷ PITIA). Some offer no-ratio or sub-1.0 STR programs at a premium for thinner deals. The engine shows your ratio against each lender’s specific floor.

Are you a lender or a broker?

Neither. NightYield is a marketing and lead-referral service. We don’t originate, quote, or negotiate loans — we compute the feasibility truth and, if you ask, connect you with STR lenders who fund Airbnb income.

How current is this information?

Revenue and rate figures render from the data layer with an “as of” date; STR legality is re-checked on a monthly minimum and on ordinance events, because stale legality is worse than none. Every status shows when it was last checked and a source to verify.

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