Method 1: Actual payout history
For a seasoned listing, many programs ask for platform payout statements or a management company's owner statements, then average the income over the period. Twelve months is common because it captures a full Valley cycle: the strong cooler months, spring events and the slower summer stretch.
What counts as "income" varies. Some lenders use gross payouts, some net out platform fees, and some apply a haircut to account for expenses or vacancy. Ask how the program treats cleaning fees collected from guests, and whether it uses gross bookings or what actually landed in your account.
Shorter histories are possible with some programs, but a partial year can mislead. A listing that opened in October and applies in April shows only the best months. One that opened in May and applies in September shows mostly the slow ones. Tell the lender which months the statements cover.
Method 2: A market-data estimate
For a new listing with no history, or a purchase, some programs accept a projection of short-term income. That projection might come from a third-party short-term rental data provider or from an appraiser who completes a short-term rent analysis for the address, comparing similar listings nearby.
Programs that accept estimates often apply conservative adjustments, require more reserves or set lower leverage. They also look closely at whether the property can legally operate: HOA rules, city credential status and TPT.
Method 3: Long-term market rent only
Some programs ignore nightly income entirely. The appraiser estimates what the home would rent for on a 12-month lease, and the lender uses that number. This is the most conservative method and the most widely available, but it can undersize a loan on a home whose value comes from its STR potential, like a large north Scottsdale pool home.
Long-term rent is also a useful test for you. If the deal covers the payment on long-term rent, the short-term income is upside and you have an easy fallback. See STR vs long-term rental DSCR.
Same house, three answers
Take a three-bedroom Scottsdale home with a full monthly payment (principal, interest, taxes, insurance and HOA) of $4,000.
| Income method | Monthly income used | DSCR |
|---|---|---|
| 12-month payout average | $5,400 | 5,400 / 4,000 = 1.35 |
| Market-data estimate with a lender adjustment | $4,700 | 4,700 / 4,000 = 1.18 |
| Long-term market rent | $3,500 | 3,500 / 4,000 = 0.88 |
Same house, same loan, three very different ratios. The method decides which programs will work and how much you can borrow.
Math illustration with user-style inputs. Not a quote or a loan offer.
Seasonality in the Valley
Phoenix, Scottsdale and Tempe all share a pronounced seasonal pattern: cooler months bring snowbirds, golf, spring training and events, while the hottest weeks are slower. Some homes, especially those with pools near family attractions, hold up better in summer than others. Lenders that average a full year see the real picture. If you are planning a refinance, consider timing the application so your statements cover a complete year.
Expenses lenders may not see the same way you do
The DSCR formula uses principal, interest, taxes, insurance and HOA dues. It usually does not include cleaning, supplies, utilities, internet, platform fees, pool service or management, even though those costs are real. A ratio above 1.00 does not automatically mean the property makes money for you. Budget the operating costs separately, and keep reserves for slow months.
Some programs do account for expenses indirectly, by applying a discount to gross short-term income before they calculate the ratio. Ask how a program handles this, because a discount and a separate expense budget can look similar on paper but lead to different loan amounts.
How to prepare your income documents
- Download platform payout reports covering at least the last 12 months, or as many months as you have.
- If you use a manager, request monthly owner statements for the same period.
- Note any months the home was blocked for repairs or personal reasons. Personal use is a problem on a business-purpose loan, so be clear that no owner or family member stayed there.
- Have your TPT license number and city credential handy; lenders check them alongside the income.
Then try your numbers in the STR DSCR calculator and send the scenario. We will tell you which method each program uses before you choose.
Questions investors ask
Does the lender use my Airbnb projections or real bookings?
It depends on the program. Seasoned listings are often reviewed on actual payout history. New listings may qualify on a market-data estimate if the program accepts one, and some programs count only long-term market rent. We tell you which method each program uses before you choose.
Can I use short-term rental income on a brand-new listing?
Sometimes. Some programs accept a third-party market-data estimate or an appraiser STR rent analysis for a new listing, usually with more conservative terms. Others use long-term market rent until the home has booking history.
This guide summarizes rules generally and is not legal or tax advice. Check current Phoenix, Scottsdale, Tempe and HOA rules before you buy. Nothing here is a commitment to lend.