STR / Airbnb DSCR Loans in Austin, Texas
Austin is one of the most distinctive STR markets in the US - high demand driven by SXSW, F1 Circuit of the Americas, ACL Festival, and UT football combined with a complex regulatory environment. STR rules differ sharply by neighborhood: Type 1 (owner-occupied) STRs are widely allowed; Type 2 (non-owner-occupied) faces density caps and zoning restrictions. Recent court rulings have relaxed some restrictions but the regulatory environment remains tighter than typical Texas markets. The reward for navigating regulation: peak event-period ADRs that can exceed $500-1,000/night.
Top Austin neighborhoods and submarkets
- East Austin (78702, 78721): Walkable to downtown; event-period premium pricing; Type 2 zoning verification critical.
- South Lamar / Zilker (78704): Premier ACL and SXSW location; tight inventory; high ADR.
- Downtown / Rainey Street: Highest ADR but tightest zoning; mostly Type 1 owner-occupied.
- East Riverside: Affordable entry; growing investor activity; permit caps tighter recently.
- Mueller: Master-planned development; STR rules at HOA level often restrictive.
- Travis Heights (78704): High-end residential; event-period strong; verify zoning.
Austin quick facts
- •No state income tax
- •Austin Type 1 vs Type 2 STR distinction
- •SXSW, F1, ACL drive 3-4 peak event periods
- •Hotel occupancy tax 6% state + 9-11% local
- •Property tax 1.8-2.2% (high)
- •TX 21-day non-judicial foreclosure timeline
Active programs available in Austin
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.
Austin STR / Airbnb DSCR FAQs
Type 1 vs Type 2 STR in Austin - what's the difference?
Type 1: owner-occupied STR where you live on-site and rent rooms or the whole property when you're away. Widely allowed citywide. Type 2: non-owner-occupied investor-style STR. Restricted to specific zones with density caps; many residential zones do not permit Type 2 at all. Verify the specific address zoning before purchase.
Can I buy an Austin investor STR and operate as Type 1?
Not legally. Type 1 requires actual owner-occupancy 6+ months per year. Many investors have tried this; the city enforces and revokes Type 1 permits for non-resident owners.
What's Austin's STR seasonal pattern?
Four major peaks: SXSW (March, 9-10 days), ACL Festival (October, 2 weekends), F1 Circuit of the Americas (October), UT football (Aug-Nov home games). Off-peak occupancy is moderate; ADR drops 40-60% from event peaks.
Property tax impact on Austin STR DSCR math?
High. Travis County effective rate 1.8-2.2% means $7-10K/year in property tax on a $400K STR. Build full-rate taxes into the DSCR calculation. Austin investor properties don't get homestead exemption.
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