Mid-Term Rental Loans: DSCR Financing for 30+ Day Furnished Rentals

A mid-term rental is a furnished residential property leased for roughly 30 days to 12 months, most often to travel nurses and allied health staff, relocating employees, insurance-displaced families, and traveling trades crews. It sits between a short-term vacation rental and a standard annual lease.

Yes. Mid-term rentals are business-purpose, non-owner-occupied investment property, which is exactly the profile DSCR programs are built for. The key underwriting question is which rent figure qualifies the property — most programs use the long-term market rent from the appraiser's rent schedule (Form 1007) as the qualifying income, with mid-term premiums treated as upside rather than qualifying income.

It varies by program. The conservative and most common approach is to qualify on the appraiser's long-term market rent, because 30-to-90-day furnished leases are not backed by a 12-month lease. Some programs will consider documented mid-term income history. Program terms differ and are subject to full underwriting; nothing here is an offer of credit.

Short-term rental programs often qualify on documented nightly revenue from platform statements or a market data report, and lenders apply tighter LTV caps because revenue is seasonal. Mid-term rentals produce steadier monthly income with fewer turnovers, so they frequently qualify under standard DSCR terms using market rent instead of a specialty STR calculation.

Often, but never assume it. Many municipal short-term rental ordinances define a short-term stay as fewer than 30 days, so a 30-day minimum lease falls outside that definition. Other jurisdictions regulate any furnished rental under a year, and HOA documents may impose stricter minimums than the city. Verify the ordinance and HOA rules for the specific address before you buy.

It depends entirely on the submarket and the demand driver. Operators typically target a premium over the unfurnished market rent to compensate for furnishings, utilities, internet, cleaning between stays, and higher vacancy exposure. Because the premium is not guaranteed, underwrite the deal so it still works at long-term market rent — that is the same standard your lender will apply.

Most DSCR programs qualify on the appraiser's market rent rather than a trailing occupancy or booking history, so a newly acquired or newly furnished mid-term property can typically still qualify. Documented rent history can help but is generally not a hard requirement.

Yes. Rate-and-term and cash-out refinance options are available on stabilized non-owner-occupied mid-term rentals, underwritten the same way as a purchase using appraised market rent and current leverage and credit tier. Cash-out proceeds are commonly used to furnish additional units or expand the portfolio.

Typically no — appraisals for investment property financing are based on comparable sales of the real estate itself, not the furniture package inside it. Furnishing cost is usually treated as a separate operating investment outside the loan-to-value calculation.

Generally yes, since both describe furnished stays longer than 30 days to a non-transient tenant. The underwriting approach is the same DSCR framework using long-term market rent, regardless of whether the tenant is an individual traveler or a corporate housing account.

No. Self-managed and professionally managed mid-term rentals are both eligible, since DSCR underwriting is based on the property's income potential rather than who manages the leasing. A dedicated mid-term operator or manager can still improve occupancy in practice.

Down payment requirements follow the same leverage bands as other DSCR investment property purchases and depend on credit tier, DSCR, and property type. Illustrative figures are subject to credit review, appraisal, and full underwriting rather than a fixed percentage guaranteed here.