Miami has some of the strongest short-term rental demand in the country, from Art Basel and the Miami Open to cruise passengers, Brickell business travel and winter visitors. It also has some of the strictest rules. In much of the City of Miami and Miami Beach, a house bought for nightly guests in a residential neighborhood is not allowed.
In short: LendingStreet finances short-term rentals in the Miami area with DSCR loans that can qualify on projected short-term rental revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with a 620 minimum credit score, and purchases go up to 80% LTV with max leverage varying by program. Before anything else, confirm the property can legally rent nightly: the City of Miami limits STRs in many residential zones, Miami Beach prohibits them in most residential areas, and many condo associations ban short stays.
The City of Miami regulates short-term rentals through its Miami 21 zoning code, and in many residential neighborhoods, especially single-family T3 areas, nightly rentals are not permitted. Where they are allowed, operators generally need city registration and business tax receipts. Miami Beach goes further and prohibits short-term rentals in most of its residential districts, with large fines for violations.
Florida law limits how cities can adopt new bans, but older rules and zoning restrictions remain, and they are enforced. Do not rely on a listing that says a unit "can be rented on Airbnb." Check the zoning for the exact address with the city, and read the condo or HOA documents.
Within Miami, nightly rentals tend to work in buildings designed for them, such as certain condo-hotel and mixed-use buildings in Downtown, Brickell and Edgewater where the declaration permits short stays. Unincorporated Miami-Dade and some smaller municipalities have their own rules, which differ from the city's.
Many investors look north to Broward County, where cities such as Fort Lauderdale and Hollywood use registration programs rather than outright bans, or to the Florida Keys, where Monroe County and individual islands set their own, often strict, rules. Every one of these markets needs its own check.
| Area | Typical STR status | What to verify |
|---|---|---|
| City of Miami residential (T3) areas | Generally not permitted | Zoning for the exact address |
| Downtown, Brickell, Edgewater buildings | Only where the building permits it | Condo declaration, city registration |
| Miami Beach residential districts | Prohibited in most areas | Zoning district; heavy fines |
| Fort Lauderdale, Hollywood | Registration programs | City registration, occupancy limits |
| Florida Keys | Varies by island; often strict | County and city rules, licenses |
Florida requires most vacation rental operators to hold a license from the Department of Business and Professional Regulation. Rentals of six months or less are generally subject to Florida sales tax and Miami-Dade's tourist taxes, and some cities add their own requirements. Platforms collect some of these taxes, but not always all of them, so confirm with the Florida Department of Revenue and Miami-Dade County.
Florida's documentary stamp tax applies to deeds and new mortgages, and Miami-Dade has its own deed stamp rate. Include these closing costs in your budget.
Most legal nightly rentals in Miami are condos, and condo costs are rising. After the Surfside collapse, Florida added milestone structural inspections and reserve study requirements for many older buildings. Associations have raised dues and levied special assessments to fund repairs and reserves.
For an STR loan, HOA dues are part of the monthly payment. A building with low dues today and a large repair project ahead can change your numbers quickly. Ask for the budget, the reserve study, recent inspection reports and any pending assessments before you sign.
This example is illustrative and not a quote. An investor buys a two-bedroom condo for $650,000 in a building whose declaration permits short-term rentals. A revenue projection estimates $75,600 a year, about $6,300 a month. HOA dues are $1,100, taxes are budgeted at $1,150 a month with no homestead exemption, and the unit's insurance is $120.
At 75% LTV the loan is $487,500, estimated principal and interest is about $3,493 and the total payment is about $5,863, for DSCR of about 1.07x. At 70% LTV the loan is $455,000, the payment is about $5,630 and DSCR is about 1.12x.
The HOA dues are nearly a fifth of the payment. A special assessment or a dues increase would cut directly into the margin, which is why many Miami STR buyers choose lower leverage.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $487,500 | $455,000 |
| Estimated principal and interest | $3,493 | $3,260 |
| HOA dues | $1,100 | $1,100 |
| Taxes and insurance | $1,270 | $1,270 |
| Total payment | $5,863 | $5,630 |
| Projected monthly revenue | $6,300 | $6,300 |
| DSCR | About 1.07x | About 1.12x |
Miami's high season runs roughly from December through April, when winter visitors, Art Basel Miami Beach, the Miami Open and spring events push nightly rates up. Summer and early fall are slower and overlap hurricane season. Cruise traffic through PortMiami and international business travel help keep demand going year-round.
Lenders look at annual projected revenue, so a projection should reflect the slow months, not just peak season.
For condos, the association's master policy covers the building, and you insure the unit's interior and your liability, ideally with coverage that recognizes short-term rental use. For houses in permitted areas, windstorm coverage and flood insurance in mapped flood zones can be large costs. Get quotes before you sign and include them in your numbers.
Our STR DSCR loans follow our DSCR basics: loans from $150,000, 620 minimum credit score, 30-year terms available and cash-out up to 75% LTV. Some programs qualify on projected revenue; others use 12 months of booking history.
Send the address, price, HOA dues and projected revenue through the form below, or call (877) 298-1001. We will run the numbers and tell you plainly whether the property fits. If the building does not allow nightly stays, we can show how the same unit would look as a 12-month rental.
Only in some places. The City of Miami limits STRs in many residential zones, and Miami Beach prohibits them in most residential areas. Check zoning for the exact address.
Only if both the city's rules and the condo declaration allow it. Many associations ban stays under a set minimum.
Most vacation rental operators need a license from the Florida Department of Business and Professional Regulation, plus tax registrations.
On some programs, yes. Lenders look at annual projected revenue.
HOA dues are part of the payment. Assessments and dues increases lower the ratio, so review the reserve study and budget first.
Those cities use registration programs. Check each city's current rules before buying.
Yes. Our STR refinance can use booking history, with cash-out up to 75% LTV depending on the program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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