Evansville is mostly a long-term rental market, and short-term rentals are a small part of it. The STR deals that work here tend to serve traveling nurses, visiting families, event crowds downtown and the steady stream of visitors headed to Holiday World about 45 minutes east.
In short: LendingStreet finances Evansville-area short-term rentals with DSCR loans that, on some programs, qualify on projected short-term revenue instead of a long-term lease. Loans start at $150,000, purchases go up to 80% LTV, the minimum credit score is 620 and LLC borrowers are standard. Indiana law limits outright local bans on short-term rentals, but cities can still regulate them and HOAs can prohibit them, so confirm the rules for the address before you buy.
Health care is the most reliable source. Deaconess and Ascension St. Vincent run large hospital campuses that draw traveling nurses, residents, patients and families, many of whom want a furnished home for weeks rather than a hotel room. The University of Evansville and the University of Southern Indiana add move-in, graduation and athletic weekends.
Downtown events at the Ford Center and the Victory Theatre, tournaments and riverfront festivals bring weekend crowds. Toyota's plant in nearby Princeton and other regional employers add business travelers and new hires looking for temporary housing.
Because of that mix, many Evansville properties work best as furnished rentals of 30 days or more. Stays of that length are often treated more like leases, which can simplify underwriting.
Indiana state law restricts how far local governments can go in banning short-term rentals outright, but cities and counties can still regulate them, for example through safety, nuisance, parking and occupancy rules, and may require registration. Check with the City of Evansville, Vanderburgh County or, in Newburgh, Warrick County for the address.
HOAs are not bound by the state limit. Many newer subdivisions on the east and north sides and in Newburgh restrict rentals under 30 days or limit leasing altogether. Read the recorded covenants before you sign.
Short stays in Indiana are subject to state sales tax and the county innkeeper's tax. Booking platforms collect some of these on your behalf, but not necessarily all, so confirm your obligations with the Indiana Department of Revenue and the county.
On the property side, Indiana caps tax bills as a share of gross assessed value: 1% for a homestead, 2% for residential rentals and 3% for most other property. An STR is not your homestead, so plan on the 2% category or the commercial category if the county classifies it that way, and confirm with the assessor. The cap sets an upper limit that makes budgeting easier.
This example is illustrative and not a quote. An investor buys a furnished three-bedroom home in Newburgh for $310,000, positioned for traveling nurses and visiting families with some nightly stays around events. The lender's adjusted annual revenue figure averages $2,800 a month.
At 75% LTV the loan is $232,500. Estimated principal and interest on a 30-year term is about $1,586. Taxes are budgeted at $480 a month, near the 2% cap, and insurance written for short-term use at $160, for a total payment of about $2,226. The DSCR is about 1.26x.
If the county assesses the home below its purchase price, the tax line drops and the ratio improves.
A comparable home inside Evansville would likely cost less, which can push the loan under the $150,000 minimum; that is one reason Newburgh shows up in many STR plans.
| Item | Monthly amount |
|---|---|
| Purchase price | $310,000 |
| Loan at 75% LTV | $232,500 |
| Estimated principal and interest | $1,586 |
| Taxes (near 2% cap) | $480 |
| Insurance (STR use) | $160 |
| Total payment | $2,226 |
| Adjusted qualifying revenue | $2,800 |
| DSCR | About 1.26x |
Medical demand runs year round, which steadies the calendar. Leisure stays peak in summer, when Holiday World and Splashin' Safari are open and families travel, and around university events in the spring and fall. Late fall and winter are quieter for leisure travel.
Underwriting uses annual revenue. Keep reserves for slower months and for furnishings, cleaning and supplies, which come out of your cash flow but not the ratio.
Inside Evansville, homes near the hospital campuses on the east side and near downtown suit medical guests. Haynie's Corner and the Riverside historic district offer character homes close to restaurants and the riverfront. Newburgh's historic downtown along the Ohio River appeals to visitors who want a small-town feel.
The best-known leisure STR market in the region is around Santa Claus in Spencer County, near Holiday World and Lake Rudolph, where vacation homes and cabins serve families in summer. Patoka Lake, further northeast, draws boaters. Across the river, Henderson, Kentucky follows Kentucky law and its own local rules.
| Area | Main guests | Check first |
|---|---|---|
| East side near hospitals | Traveling nurses, patients' families | 30-day demand vs nightly |
| Haynie's Corner and Riverside | Event and leisure visitors | Historic district rules, parking |
| Newburgh | Visitors, families, business travel | Warrick County and town rules, HOAs |
| Santa Claus area | Holiday World families | Local rules, seasonality |
| Henderson, KY | Regional visitors | Kentucky and city rules |
Many Evansville homes sell for less than $200,000, so a single STR purchase at 75% to 80% LTV can fall below the $150,000 minimum loan. Investors handle that by buying a larger home, choosing Newburgh or the Santa Claus area where prices are higher, or combining several rentals on a blanket portfolio loan.
For a purchase, programs can use a third-party revenue projection adjusted by the lender. For a property you already operate, booking history usually carries more weight, and medium-term stays with signed agreements help. If a projection comes in low, see our guide to low projections. If you own an STR on short-term debt, see our STR refinance page.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, local rules and HOA status, and any projection or booking history. LendingStreet will run the ratio with Indiana's tax cap in mind and a short-term insurance quote. Call (877) 298-1001 or use the form below. See also our Indiana STR page.
Indiana law limits outright local bans, but the city and county can regulate STRs, and HOAs can prohibit them. Check the rules for the address.
Not on some programs. They can use a lender-adjusted revenue projection or booking history.
Stays of 30 days or more are often treated more like leases, though HOA rules still apply.
Indiana sales tax and the county innkeeper's tax. Platforms may collect some of them.
Indiana caps bills at 1% of gross assessed value for homesteads, 2% for residential rentals and 3% for most other property.
Consider a larger property, a higher-priced area or combining several rentals on a blanket loan.
Yes, if local rules allow short-term rentals there and the property meets program limits.
No. A sales disclosure form is filed instead, and closing costs are mostly title and recording.
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