Florida is one of the top STR markets in the country. Orlando, Miami, Tampa, Fort Lauderdale, and the Gulf Coast all generate strong short-term rental income. But financing these properties comes with nuances that can kill a deal if you don't know them upfront.
STR DSCR Qualification
Traditional DSCR lenders use long-term market rent (from Form 1007) to qualify. STR lenders use either actual trailing 12-month revenue from your Airbnb/VRBO dashboard or a market STR income projection from AirDNA. The STR income is typically 20–40% higher than long-term rent, which means better DSCR and potentially higher loan amounts.
STR Lender Requirements
Most STR lenders require: 12 months of operating history (or AirDNA projection for new properties), proof of STR compliance with local zoning, no active HOA STR restrictions, and 20–25% down. The biggest risk is municipal STR regulation — cities like Miami Beach have restricted STRs in many areas. Verify local STR legality before purchasing.
STR Insurance
Standard landlord insurance doesn't cover STR operations. You need either a commercial STR policy or a dedicated short-term rental policy. Companies like Proper Insurance, Safely, and CBIZ are active in this space. Budget $2,500–$5,000/year for quality STR coverage in Florida. This impacts your DSCR calculation.
Florida Markets with Strong STR Fundamentals
Orlando (Disney/Universal proximity), Miami Beach (when STR-legal), Fort Lauderdale beach areas, Gulf Coast (Naples, Fort Myers Beach, Cape Coral), and Key West. Seasonal markets should be modeled at 60–70% annual occupancy, not peak-season rates.
