STR / Airbnb DSCR Loans in Texas
Texas combines no state income tax with strong urban demand and major event flow (SXSW, F1, college football) that supports STR economics in Austin, Houston, Dallas, and San Antonio. STR regulation is city-by-city: Austin and Dallas have stricter regimes; Houston and San Antonio are friendlier. Hill Country markets (Fredericksburg, Wimberley) are growing destination markets.
Top Texas markets for str / airbnb dscr
- Austin: Strict STR Type 2 (non-owner-occupied) caps in many neighborhoods.
- Dallas / Fort Worth: Dallas requires registration; Fort Worth more permissive.
- Houston: Generally STR-friendly; medical center, Energy Corridor, Galleria all active.
- San Antonio: Tourism + military events drive year-round demand.
- Hill Country (Fredericksburg, Wimberley): Wedding/wine country; weekends premium.
Texas quick facts
- •No state income tax
- •TX property tax 1.6-2.5% (high)
- •6% state hotel tax + city hotel tax
- •STR rules vary by city
Active programs available in Texas
Bridge Loan for Investors
confirmed 5/9/2026A streamlined short-term bridge loan program for non-owner-occupied investment properties, offering interest-only payments and no income documentation requirements for entity-based borrowers.
DSCR Loan for Investment Properties
confirmed 5/9/2026A DSCR loan program for investment properties that allows for short-term rentals, vacant properties, and qualification based on market rent without requiring a lease.
Foreign National Investment Loan
confirmed 5/9/2026Financing program for international investors purchasing U.S. real estate that does not require U.S. credit history or traditional U.S. income documentation.
Non-QM Investor Loan
confirmed 5/9/2026Financing solutions for condo projects that do not meet standard Fannie Mae or Freddie Mac guidelines, including those with litigation, high commercial space, or investor concentration.
Specialized Investor Loan Program
confirmed 5/10/2026A flexible, fully amortized HELOC solution for primary, second home, and investment properties with loan amounts up to $750,000 and fast funding in as little as 5 days.
Fix & Flip Loan for Investors
confirmed 5/9/2026Financing for experienced investors and developers focused on fix-and-flip projects with fast closing timelines.
DSCR Loan for Investment Properties
confirmed 5/9/2026A flexible Non-QM program offering full income, alternative income, and DSCR documentation options with fixed, adjustable, and interest-only rate structures.
Bank Statement Loan
confirmed 5/10/2026A non-QM bank statement program for service and tip industry workers that uses 12-24 months of bank deposits to calculate income without requiring tax returns.
Texas STR / Airbnb DSCR FAQs
Is Airbnb legal in Austin, TX?
Type 1 (owner-occupied) STRs are widely allowed. Type 2 (non-owner-occupied) faces density caps and restrictions in residential zones. Recent court rulings have relaxed some Austin restrictions but the regulatory environment remains complex.
Does TX have a state STR tax?
Yes. Texas hotel occupancy tax (6%) applies to stays under 30 days, plus city/county hotel taxes (typically 7-10% additional). Most platforms collect and remit automatically.
Property taxes on TX investment property - anything STR-specific?
No homestead exemption available on investment property. TX property taxes run high (1.6-2.5% of assessed value) which can compress STR cash flow. Build conservative property tax estimates into your DSCR calc.
General str / airbnb dscr questions
How is short-term rental income verified?
Three common methods: (1) 12-month trailing statement from Airbnb/VRBO/PriceLabs, (2) AirDNA Rentalizer report for the subject address, or (3) market-rent appraisal addendum that captures STR comps.
What expenses are deducted from gross STR income?
Most lenders apply a 20–25% expense deduction (cleaning, supplies, platform fees, vacancy) to gross STR revenue before computing DSCR. Some lenders use 30%.
Can I get an STR loan in a market that just banned short-term rentals?
Generally no. Lenders verify local STR ordinances and will pivot to long-term DSCR (or decline) if the address sits in a permit-restricted zone.
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