Fort Worth has plenty of nightly demand: the Stockyards, the stock show, Dickies Arena, TCU and a steady stream of business travel. The harder question is where a whole-home short-term rental is actually allowed, and inside the city that answer is narrower than many buyers expect.
In short: LendingStreet finances short-term rentals in the Fort Worth area with DSCR loans that can qualify on projected nightly revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 and purchases go up to 80% LTV. Fort Worth's zoning has generally not allowed short-term rentals in one- and two-family residential districts, so many investors buy in permitted districts inside the city or in nearby lake towns where STRs are allowed.
Fort Worth regulates short-term rentals through zoning. For years the city has treated a whole-home rental of under 30 days as a use that is not allowed in its one-family and two-family residential districts, which cover most of its neighborhoods of detached houses. Short-term rentals have been allowed in some multifamily, mixed-use and form-based districts, subject to registration and the hotel occupancy tax. The city has studied changes to these rules, so confirm current zoning and registration requirements with the City of Fort Worth before you sign a contract.
In practice, this means a typical three-bedroom house in Ryan Place, Arlington Heights or Wedgwood is usually not a legal STR, even if listings exist nearby. Lenders that qualify on projected nightly income need the property to be able to operate legally.
Inside Fort Worth, investors look at condos, townhomes and small buildings in zoning districts that permit short-term rentals, often in or near the Near Southside, downtown and the areas around the Cultural District and West 7th. HOA and condo rules still apply, and many associations prohibit rentals under 30 days.
Outside the city, the most common STR markets are lake and small-town destinations within about an hour or so. Granbury and Lake Granbury in Hood County, Possum Kingdom Lake to the west, and Glen Rose near Dinosaur Valley State Park all draw weekend visitors from the Metroplex. Each city, county and lake community has its own permit, tax and HOA rules, and some subdivisions ban nightly rentals outright.
Texas applies a state hotel occupancy tax to most stays of under 30 days, and many cities and counties add a local hotel tax. Some booking platforms collect state tax, local tax or both, but not always, so register with the Texas Comptroller and the local taxing authority where required. Keep records by property, because each address may fall under a different local tax.
Fort Worth also requires registration for short-term rentals where they are permitted. Fees and inspection requirements change, so check the city's current process.
Demand peaks around the Fort Worth Stock Show and Rodeo in January and February, major events at Dickies Arena and Will Rogers Memorial Center, NASCAR and IndyCar weekends at Texas Motor Speedway, TCU football and graduations, and games and concerts in Arlington. Corporate travel to the Alliance area, the medical district and downtown fills weekdays.
Lake markets are more seasonal. Summer weekends and holidays are strong, while winter is quieter, which a revenue projection should reflect month by month.
On some programs, an STR can qualify on a third-party revenue projection instead of a lease. The underwriter compares projected monthly revenue with principal, interest, taxes, insurance and any HOA dues. Some programs apply a haircut or set a different DSCR threshold for short-term rentals.
For a property you already operate, 12 months of booking history is often the strongest evidence. If your projection comes in lower than expected, our guide to low revenue projections explains common fixes.
This example is illustrative and not a quote. An investor buys a four-bedroom house near Lake Granbury for $425,000. A third-party projection estimates $61,200 a year, or about $5,100 a month, with strong summer weekends and slower winters.
At 75% LTV the loan is $318,750. Estimated principal and interest is about $2,229. Texas property taxes, with no homestead exemption, are budgeted at $690 a month and an STR insurance policy with a wind and hail deductible at $310. The total payment is about $3,229, and DSCR on the projection is about 1.58x. At 80% of projected revenue, it is about 1.26x.
| Item | Amount |
|---|---|
| Purchase price | $425,000 |
| Loan amount (75% LTV) | $318,750 |
| Projected monthly revenue | $5,100 |
| Estimated principal and interest | $2,229 |
| Property taxes | $690 |
| Insurance | $310 |
| Total monthly payment | $3,229 |
| DSCR on projection | About 1.58x |
| DSCR at 80% of projection | About 1.26x |
Texas has no state income tax and relies heavily on local property taxes. A short-term rental is not a homestead, so budget on the full combined rate of the county, city, school district and any special district, not the seller's bill. In Tarrant County, look up the record on the Tarrant Appraisal District site; in Hood County, use the Hood County appraisal district.
North Texas hail and wind push insurance higher, and many policies use percentage-based deductibles. A policy written for short-term rentals usually costs more than a standard landlord policy, and lake homes may need flood coverage.
Budget for furniture, linens, a keyless entry, outdoor furniture and, on the lake, kayaks or a dock that is safe and insured. Cleaning, supplies, utilities, internet and platform fees come out of revenue, so the lender's ratio is not your profit. Many owners outside the city hire a local manager, which adds a fee but helps reviews and turnover.
Send the address, zoning or HOA documents, projected revenue or booking history and your target loan amount. The team will check whether the property can count nightly income and come back with options. Call (877) 298-1001 or use the form below. For statewide markets, see our Texas STR page.
Generally not. Fort Worth zoning has not allowed short-term rentals in one- and two-family residential districts. Rules have been under review, so confirm current status with the city.
In certain multifamily, mixed-use and form-based districts inside the city, and in many nearby lake and small-town markets such as Granbury, Glen Rose and Possum Kingdom Lake, subject to local rules and HOAs.
On some programs, yes, using a third-party projection, but only for a property that can legally operate as a nightly rental.
Texas state hotel occupancy tax and, in many places, a local hotel tax. Platforms collect some of it, but registration and filing are your responsibility.
Then it can be financed as a long-term or mid-term rental using market rent instead of nightly income. Ask about a standard DSCR loan.
Yes. A refinance can use your booking history. Cash-out goes up to 75% LTV, and seasoning varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
620. Stronger credit generally supports better terms and higher leverage.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.