Mid-term rentals sit between a yearly lease and a nightly booking. Lenders do not all treat them the same way, so the rent you can count depends on the program and your paperwork.
In short: LendingStreet finances mid-term furnished rentals, typically stays of 30 days or more, with DSCR loans that qualify on the property's rent. Some programs underwrite them like a long-term rental, using a lease or the appraiser's unfurnished market rent. Others treat them more like a short-term rental and use your booking history or a revenue projection, often with an expense or vacancy adjustment. Which approach applies varies by program, and it can change your DSCR a lot, so documentation matters.
The long-term approach is the most conservative. The appraiser estimates what the home would rent for unfurnished on a standard lease, and that number drives DSCR. Your higher furnished rent may not count at all.
The short-term approach looks at actual income. If you have a track record of 30+ day stays, some programs will use that history, usually reduced for vacancy, furnishing and management costs. This can support a larger loan, but it needs more proof.
| Approach | Rent used | Best fit |
|---|---|---|
| Long-term style | Lease or appraiser's unfurnished market rent | New mid-term rental with no history |
| STR style with history | Actual income from stays, often adjusted | Established rental with 12 months of records |
| STR style with projection | Projected revenue from a rental data report | Some programs; varies |
The more your income looks like steady rental income, the easier it is to count. Keep clean records from the first booking.
This example is illustrative and not a quote. An investor buys a furnished condo for $320,000 near a major hospital and rents it to traveling professionals. The appraiser's unfurnished market rent is $2,000. The property's mid-term history averages $3,000 a month.
At 75% LTV the loan is $240,000. At a sample rate of 7.5% on a 30-year fixed, principal and interest is about $1,678. With $500 a month for taxes, insurance and HOA dues, the payment is about $2,178. On the long-term method, DSCR is about 0.92x ($2,000 / $2,178). If a program counted 80% of the $3,000 history, or $2,400, DSCR would be about 1.10x. The adjustment shown here is an assumption for the example; each program sets its own.
Many cities regulate rentals under 30 days but treat 30+ day stays differently. Some also have rules for 30+ day furnished rentals, and HOAs and condo associations may restrict them.
Confirm local rules and any HOA limits before you buy. A lender may ask how the property will be used, and a rental that breaks local rules is a risk to your income and the loan.
Condos deserve extra attention. Some associations set minimum lease terms or cap the number of rented units, and a condo review may ask about rental restrictions. If you are unsure about a local rule, check with the city or a local attorney.
Furnished rentals often need a landlord or short-term rental policy rather than a standard homeowner policy. Get quotes early, because insurance is part of the DSCR payment.
Furniture is usually your cost up front and is not financed by the DSCR loan. Keep receipts, since they help show real operating costs if the lender reviews your income.
If the property works on unfurnished market rent alone, the long-term method is usually the simplest and may price better. If it only works on furnished income, look for a program that accepts mid-term history or plan to season the rental before refinancing.
Short-term rental DSCR programs start from 6.49%, and long-term DSCR from 6.125% for well-qualified borrowers. Rates change with the market. The financing team can tell you which method fits and bring back 2–3 options.
It depends on the program. Some treat 30+ day stays like long-term rentals with a lease. Others use STR-style rules based on booking history or projections.
Sometimes. Programs that accept mid-term history may count furnished income, often with an adjustment. Long-term-style programs usually use unfurnished market rent.
Programs that use actual income often look for about 12 months of records. A newer rental is usually underwritten on market rent or a projection.
It helps. Signed agreements for each 30+ day stay make the income look like rental income and are easier for a lender to verify.
Yes. Once you have a track record, a refinance may be able to use that income, subject to the program's rules and seasoning.
No. The loan is secured by the real estate. Furnishing costs are typically paid separately by the investor.
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