From January through April, Lee County fills with snowbirds, spring training fans and families escaping the cold. A Cape Coral canal home with a pool and a boat lift, or a condo near the beaches, can book solid for months. The other half of the year depends on summer visitors, storm risk and how well the property was rebuilt after recent hurricanes.
In short: LendingStreet finances Fort Myers-area short-term rentals with DSCR loans that can qualify on projected vacation rental revenue on some programs instead of a 12-month lease. Loans start at $150,000, the standard minimum DSCR is 1.0x, the minimum credit score is 620 and LLC borrowers are standard. Florida law limits how far cities can restrict vacation rentals, but you still need a state vacation rental license, tax registration and a check of local registration rules, condo bylaws and HOA covenants.
Florida generally preempts local governments from banning vacation rentals or regulating how long or how often they are rented, unless the local rule was in place before June 1, 2011. Cities and counties can still regulate things like registration, inspections, parking, occupancy and noise. In Lee County, that means a single-family home in Cape Coral, Fort Myers, North Fort Myers or Lehigh Acres can usually be rented short term if it meets local registration and safety rules.
Some communities with older rules, along with many condo associations and HOAs, set minimum stay lengths or ban short stays outright, and private covenants are not affected by state preemption. Read the condo documents and HOA covenants before you write an offer.
Cape Coral's canal homes are the core of the local market. Gulf-access homes with a pool and dock draw the highest rates, especially those with sailboat access and no bridges between the house and open water. Freshwater canal homes cost less and still draw families. Fort Myers Beach, Sanibel and Captiva command premium rates, but many properties there were damaged in Hurricane Ian in 2022 and are still being rebuilt or replaced.
Inland, homes near the Red Sox and Twins spring training complexes, Florida Gulf Coast University and the Edison and Ford Winter Estates book during the season. Bonita Springs and Estero to the south draw beach and golf visitors.
Peak season runs roughly from January through April, with holidays in December and spring break in March adding more. Many owners rent to snowbirds by the month during peak season, which lowers turnover costs. Summer brings families and European visitors at lower rates, and September and October are usually the slowest months, overlapping the height of hurricane season.
In Florida, rentals of six months or less are generally subject to state sales tax and the county tourist development tax, so monthly snowbird rentals are taxable just like weekend stays. Platforms collect some taxes, but not always all of them.
This example is illustrative and not a quote. An investor buys a three-bedroom gulf-access canal home in southwest Cape Coral with a pool and boat lift for $725,000. A third-party projection shows about $95,000 a year, or about $7,917 a month. Leased long term, it would bring about $3,600.
At 75% LTV the loan is $543,750. Estimated principal and interest is about $3,709. Property taxes at non-homestead rates are budgeted at $1,087 a month, and wind, hazard and flood insurance at $650. The total payment is about $5,446. On projected revenue the DSCR is about 1.45x. On long-term rent it would be about 0.66x, so the vacation rental plan carries this purchase.
| Item | Vacation rental projection | Long-term lease |
|---|---|---|
| Loan amount | $543,750 | $543,750 |
| Estimated principal and interest | $3,709 | $3,709 |
| Taxes | $1,087 | $1,087 |
| Wind, hazard and flood insurance | $650 | $650 |
| Total monthly payment | $5,446 | $5,446 |
| Monthly income used | $7,917 | $3,600 |
| DSCR | 1.45x | 0.66x |
Insurance is the line that most often decides a Lee County deal. Many canal and coastal homes are in high-risk flood zones where flood insurance is required, and wind coverage costs more on older homes. A wind mitigation report, a newer roof and impact windows or shutters can lower premiums. Older homes may need a roof, electrical, plumbing and HVAC condition inspection to be insurable at all.
Lee County and its cities enforce FEMA's substantial improvement rule: if repairs or improvements cost 50% or more of a building's value, the building generally must be brought up to current flood standards, which can mean elevating it. Ask whether a home was substantially damaged in Ian, Helene or Milton and what repairs were permitted.
Rentals do not get Florida's homestead exemption or its tighter assessment cap. Non-homestead property has its own cap on annual assessment increases for most non-school levies, but the assessment resets toward market value after a sale. Budget taxes on your purchase price rather than the seller's bill, especially if the seller lived in the home. Closing costs include documentary stamp taxes on the deed and the new mortgage, plus the intangible tax on the mortgage.
On programs that allow it, projected monthly revenue from a third-party report is compared with principal and interest, taxes, insurance and any HOA or condo dues. A ratio of 1.0x or better meets the standard minimum, and sub-1.0 programs exist for deals that come close. Reviewers look for comparables of the same water access and pool status. If your projection comes in low, see our guide to STR loans with a low AirDNA projection. Owners with booking history can refinance on actual results.
Condo vacation rentals near the beaches and along the river can work, but Florida's newer condo safety laws require milestone inspections and structural reserve studies for many older buildings, and some associations have raised dues or levied large special assessments to fund repairs. Review the budget, reserves, inspection reports and any pending assessments, and confirm the association allows the rental terms you plan to offer.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, projection, insurance quote and any booking history through the form below or call (877) 298-1001. We will run the ratio with realistic taxes and insurance and tell you what leverage works. Statewide details are on our Florida short-term rental loans page.
Florida law generally prevents cities from banning vacation rentals unless the rule predates June 1, 2011, but cities can require registration and inspections, and HOAs and condo associations can restrict short stays.
Generally a Florida DBPR vacation rental license, state sales tax and Lee County tourist development tax registration, and any local registration the city requires.
Generally yes. Florida taxes rentals of six months or less, and the county tourist development tax also applies.
Yes, on some programs. A third-party projection can replace a long-term lease when the property can legally operate as a vacation rental.
A lot. In high-risk zones it is generally required, and together with wind coverage it can be one of the largest parts of the payment.
Yes. An STR DSCR refinance can use your booking history, and cash-out goes up to 75% LTV, with seasoning rules that vary by program.
Our investor loans are business-purpose loans on non-owner-occupied property, so the home must be run as a rental, not as a second home for personal use.
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