Long-Term Rental
Direct definition
A rental property leased on annual or multi-year terms to tenants using it as a primary residence.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Long-term rentals produce more predictable income than short-term rentals and are underwritten with market rent from an appraiser's rent schedule.
Why it matters
Long-term rental income is generally easier to qualify against in DSCR and conventional investor programs.
Where you may see it
- Lease agreement
- Rent roll
- Underwriting conditions
A real-world example
A single-family rental leased for $2,500/month on a 12-month lease qualifies with underwriter-verified market rent.
Educational and illustrative only
A common misunderstanding
Long-term rental income isn't automatically counted at face value — lenders typically verify it against an appraiser's market rent schedule.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026