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classic brownstone row house with a stoop and tall windows in New York, New York
STR prohibited legality checked 2026-05-16

Will Your Airbnb Qualify for a DSCR Loan in New York, NY?

Not on short-term-rental income — in New York, short-term rentals are currently prohibited, so a DSCR loan on STR income isn’t viable (as of 2026-05-16). A typical 3-bedroom would otherwise project around $88,000/yr, but the realistic path here is a mid-term rental, which a DSCR lender can still fund on long-term rent.

Local Law 18 effectively bans un-hosted short-term rentals citywide — $72M+ in fines levied.

STR Feasibility EngineRevenue × legality × DSCR × lenders

We check the city’s current STR ordinance — caps, permits, primary-residence rules — and adjust revenue for it.

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Revenue band

Typical STR revenue in New York

Annual gross revenue by bedroom count — median of 30 comparable listings within 0.5 mi, trailing 12 mo (AirROI + Rabbu comps, as of 2026-05-16).

BedroomsP25MedianP75
1 BR$38,000$48,500$59,000
2 BR$53,500$68,500$83,500
3 BR$68,500$88,000$107,500
4 BR$88,000$112,500$137,500
5 BR$106,500$136,500$166,500

The ordinance

Is short-term rental legal in New York?

Local Law 18 mandates host registration and limits short-term rentals to hosted stays where the host is present and the guest has access to the whole home — no lockboxes, max two guests.

The un-hosted, whole-unit STR that a DSCR investor underwrites is effectively prohibited; platforms must verify registration, so unregistered listings can’t collect.

The engine treats NYC as banned: no DSCR sale on STR income. The realistic path is a 30+ day mid-term rental or a standard long-term rental, which can still fund as a DSCR deal.

Source: NYC Local Law 18 / Office of Special Enforcement · last checked 2026-05-16.

Living rates

Today’s STR DSCR rate range

STR-overlay rates (70–75% LTV), updated 2026-06-13. Estimates; not a commitment to lend.

760+ FICO
7.7%
+0.6% STR overlay
740-759 FICO
7.85%
+0.6% STR overlay
720-739 FICO
8.15%
+0.6% STR overlay
700-719 FICO
8.45%
+0.6% STR overlay
See the full living rates table →

FAQ

New York STR financing questions

Is short-term rental legal in New York?
New York City’s Local Law 18 requires STR registration and bars rentals under 30 days unless the host is present and the guest has full home access. In practice this prohibits the un-hosted whole-unit investor STR model, and enforcement (platform delistings + fines) has been aggressive. (Source: NYC Local Law 18 / Office of Special Enforcement, as of 2026-05-16.) Always confirm current rules with the jurisdiction before purchasing.
How much does an Airbnb make in New York?
A typical 3-bedroom projects around $88,000/yr from 30 comparable listings within 0.5 mi, trailing 12 months (AirROI + Rabbu comps). Revenue scales with bedroom count and amenities; lenders verify via Form 1007 or operating statements.
Can I get a DSCR loan on an STR in New York?
Not on short-term-rental income — New York prohibits the model a DSCR investor underwrites. The realistic path is a 30+ day mid-term rental or a long-term rental, which a DSCR lender can still fund on long-term rent.
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.
Do lenders trust AirDNA or Rabbu revenue numbers?
Some STR-specialist lenders accept a data projection (AirDNA/Rabbu) directly; others want the same revenue expressed through an appraiser’s Form 1007. Either way, the comp count, radius, and trailing-12-month window behind the figure determine how defensible it is.
How does STR insurance affect my DSCR?
STR carriers price coverage materially higher than a standard landlord policy, so we model insurance higher than a long-term rental inside PITIA. That extra cost is a real DSCR haircut most pro-formas miss — the engine bakes it in.

Related

New York STR laws Qualify with no history STR DSCR requirements

Legality: Short-term-rental rules change frequently and vary by city, county, and HOA. Legality shown reflects publicly available sources as of the date displayed; it is not legal advice or a permitting determination. Confirm current rules, permits, and HOA/condo restrictions with the local jurisdiction before purchasing.

Revenue: Projected revenue is an estimate from comparable listings and is not a forecast of your results. Lenders independently verify income, typically via appraisal (Form 1007/1008) or 12-month statements. This is not a loan decision or offer.

Run your New York address. Get the honest verdict.

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