Methodology

How We Rate Lenders and Build the Feasibility & Legality Index

Our verdicts are only as good as our method. This page explains how we assemble STR lender terms, compute the cap-adjusted DSCR, and rank metros in the Feasibility & Legality Index — and why the result is independent of who pays us.

What we measure

For each STR lender we track the load-bearing terms: whether they accept short-term-rental income, whether they accept a market projection or require a 12-month history, the minimum DSCR, the maximum LTV, condotel eligibility, and the states funded. The engine matches your cap-adjusted DSCR against each lender’s floor.

How the cap-adjusted DSCR is computed

We project nightly revenue from comparable listings, adjust it down for any legal night cap (capped nights ÷ assumed available nights), divide the cap-adjusted monthly revenue by PITIA at the STR-overlay rate, and compare to lender floors. STR insurance is modeled higher than a long-term-rental policy.

Independence (no pay-to-play)

Lender terms and the Index are computed from data before any lead form. We are paid a marketing fee when you ask to be matched — but the feasibility verdict, including “this doesn’t pencil” and “your city banned STR,” is the same regardless of who pays us. We do not let compensation move a ranking.

Sources and freshness

Revenue from third-party comp data (AirROI/Rabbu); legality from municipal ordinances and STR trackers, re-checked monthly and on ordinance events; lender terms from partner rate cards and public program pages. Every figure carries an “as of” date. Statuses for newly-added metros are preliminary until verified.

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.

The Index Editorial guidelines

Run the address. Get the honest verdict.

Free · No credit pull · Legality included · Not a call center.

Check the Address