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STR · Baton Rouge

Short-Term Rental Loans for Baton Rouge Investors

Baton Rouge short-term rental income is lumpy in a way few Southern cities match: seven or eight LSU home football Saturdays, a spring legislative session, graduation weekends and steady medical stays, with quieter weeks in between. A good STR loan file plans for both.

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In short: LendingStreet finances Baton Rouge short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs instead of a 12-month lease. Loans start at $150,000, purchases go up to 80% LTV, the minimum credit score is 620 and LLC borrowers are standard. Before you buy, confirm that East Baton Rouge Parish zoning and permitting allow a non-owner-occupied short-term rental at that address, and budget for flood insurance.

Start with the parish rules, not the listing

Baton Rouge and most of East Baton Rouge Parish operate under a consolidated city-parish government, so the Unified Development Code and the parish planning and permitting offices are where short-term rental questions get answered. Whether a whole-home rental to visitors is allowed, and what registration or permit it needs, can depend on the zoning district and on whether the owner lives on site.

Because rules can change through Metro Council action, check the current requirements with the city-parish before you sign a contract, and ask the seller whether the property already holds any permit. Separately incorporated cities in the parish, such as Zachary, Central and Baker, set their own rules, as do the surrounding parishes.

Where Baton Rouge STR demand comes from

The biggest spikes come from LSU: football weekends at Tiger Stadium, baseball at Alex Box Stadium, move-in, graduation and parents' weekends. Homes in the Garden District, Southdowns, College Town and along the Highland Road and Perkins Road corridors are close enough to campus that game-day guests will pay for them.

Steadier demand comes from the State Capitol during the legislative session, from traveling nurses and families using the hospitals along Essen Lane and Bluebonnet Boulevard, from industrial contractors working at plants along the Mississippi River, and from Southern University events north of downtown. Those guests often book for weeks rather than nights, which smooths the calendar.

A season-by-season look at revenue

Lenders and revenue projections look at the year, not the best weekend. The table shows how a typical close-to-campus Baton Rouge STR calendar tends to shift. It is a general pattern, not a forecast for any property.

When you build your own budget, use a third-party projection for the address and compare it with what nearby listings actually book in September and in July. If summer income is thin, plan cleaning, utilities and reserves around the slow months.

PeriodMain demandWhat to expect
Late August to NovemberLSU football, fall eventsHighest nightly prices on home-game weekends
December to FebruaryBowl travel, holidays, Mardi Gras tripsMixed; mid-week contractor and medical stays help
March to early JuneLegislative session, baseball, graduationSteady weekday and weekend demand
Mid June to mid AugustMedical, industrial and family travelSofter; longer stays fill gaps

Worked example: a three-bedroom near LSU

This example is illustrative and not a quote. An investor buys a three-bedroom house south of campus for $265,000 in a zoning district where a non-owner-occupied short-term rental is permitted. A third-party projection supports average revenue of $2,750 a month across the year.

At 75% LTV the loan is $198,750. Estimated principal and interest on a 30-year term is about $1,390. Property taxes are budgeted at $230 a month and insurance, including a flood policy, at $265, for a total payment of about $1,885. Projected revenue of $2,750 divided by $1,885 gives a DSCR of about 1.46x, comfortably above the 1.0x standard minimum. Some programs count projected revenue differently, so the ratio on your file may be lower.

Flood zones and insurance in the Capital Region

The August 2016 flood reached neighborhoods that had never flooded before, in East Baton Rouge, Livingston and Ascension parishes. Lenders require flood insurance when a home sits in a mapped special flood hazard area, and many investors carry it outside those zones too.

Louisiana homeowners and landlord policies also carry wind and hurricane exposure, and premiums have risen statewide. Get the flood zone determination, the elevation certificate if one exists, and a written insurance quote that covers short-term rental use before you rely on the numbers. Some standard landlord policies exclude nightly rentals.

Property taxes after you buy

Louisiana assesses residential property at a 10% assessment ratio and applies local millage. The homestead exemption only applies to an owner's primary residence, so when an investor buys from someone who lived in the house, the exemption comes off and the next bill is usually higher than the seller's.

Parish assessors reappraise on a four-year cycle, which can move values in a reassessment year. Use the full, non-homestead tax figure in your DSCR math and confirm it with the East Baton Rouge Parish Assessor.

STR-friendly areas outside the core city

If the parcel you want does not allow a non-owner-occupied rental, the region offers other options. Investors look at Prairieville and Gonzales in Ascension Parish, Denham Springs and Walker in Livingston Parish, and St. Francisville in West Feliciana Parish, a small historic town with plantation-house tourism and weddings that draws weekend visitors.

Each parish and town has its own permits and taxes, so run the same checks there. Our Louisiana short-term rental page covers New Orleans and other markets with their own rules.

How LendingStreet underwrites a Baton Rouge STR

Send the address, purchase price, the projected revenue report and the zoning or permit status. We check the ratio on the full tax bill and a realistic insurance quote, and tell you whether the file fits an STR program or works better on a long-term lease to graduate students or medical staff.

Our investor loans are business-purpose loans on non-owner-occupied property. Closings in Louisiana are signed as an act of sale before a notary, and we work with the title company or closing attorney you choose. Call (877) 298-1001 or use the form below to get a quote.

Common questions

Are short-term rentals allowed in Baton Rouge?

It depends on the zoning district, owner occupancy and current city-parish rules. Confirm with East Baton Rouge Parish planning and permitting before you buy, and check any HOA covenants.

Can I qualify on projected Airbnb income instead of a lease?

On some programs, yes. A third-party revenue projection for the address can be used in place of a long-term lease. If the projection comes in low, see our guidance on low projections.

Do LSU football weekends count toward qualifying income?

Projections use full-year revenue, so game weekends are part of the average, but they are averaged with slower summer months. Do not budget as if every weekend books like a home game.

Do I need flood insurance on a Baton Rouge STR?

If the property is in a mapped flood hazard area, yes. Many investors buy it outside those zones too after the 2016 flood. Include the premium in your payment.

What taxes apply to nightly stays in Louisiana?

State and local sales taxes and local occupancy taxes generally apply to short stays. Register with the Louisiana Department of Revenue and the parish before your first booking.

What is the minimum loan amount?

DSCR loans start at $150,000. On lower-priced Baton Rouge homes, that may mean a larger home or financing two properties together.

Will you finance a property I plan to live in?

No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home or units must be rented to others.

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