Short-Term Rental
Direct definition
A rental leased for short stays, typically fewer than 30 days per booking (e.g., Airbnb, Vrbo).
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
STR income can be higher than long-term but more volatile. Underwriting typically requires documented income history or professional operator projections.
Why it matters
Not every lender allows STR income, and city rules may restrict operations — check both before you buy.
Where you may see it
- Loan program disclosures
- Appraisal report
- Rental income documentation
A real-world example
A cabin generates $85,000 in annual STR revenue; a DSCR lender qualifies using two years of documented income.
Educational and illustrative only
A common misunderstanding
Not every loan program treats short-term rental income the same as traditional long-term rental income — underwriting rules and eligible income sources can differ.
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