New Hampshire gives vacation rental owners three seasons that pay: summer on the lakes, foliage in October and ski weekends in winter. The question is whether your town's zoning lets you take part.
In short: LendingStreet finances New Hampshire short-term rentals with DSCR loans that can qualify on projected rental revenue on some programs, starting at $150,000 with a 620 minimum credit score and no W-2s or tax returns. Rules are set town by town under local zoning, and after a state Supreme Court case involving Portsmouth, some communities read their ordinances to bar STRs in residential zones. Confirm the town's position before you buy.
The Lakes Region, centered on Lake Winnipesaukee, is the state's biggest summer rental market. Towns like Meredith, Wolfeboro, Alton, Gilford and Moultonborough have waterfront cottages and lake-access homes that book by the week in July and August, and Laconia fills during its June motorcycle week.
The White Mountains offer year-round demand. North Conway and Bartlett draw shoppers, hikers and Attitash skiers; Lincoln and Woodstock sit next to Loon Mountain and Franconia Notch; Waterville Valley and Bretton Woods are ski-centered. On the Seacoast, Hampton Beach and Rye bring summer beach demand and Portsmouth draws visitors year-round.
| Market | Typical property | What drives bookings | Rule to check |
|---|---|---|---|
| Lakes Region (Winnipesaukee) | Waterfront cottages, lake homes | Summer weeks, Laconia motorcycle week | Town zoning; some towns limit STRs |
| North Conway and Bartlett | Condos, chalets, single-family homes | Skiing, hiking, foliage, outlets | Town zoning and HOA rules |
| Lincoln and Woodstock | Ski condos, townhomes | Loon Mountain, Franconia Notch | Condo association rules matter |
| Seacoast (Hampton, Rye, Portsmouth) | Beach cottages, in-town homes | Beaches, dining, events | Portsmouth zoning limits STRs |
New Hampshire has no statewide STR permit, and the legislature has debated statewide protections several times without settling the question. In 2019 the state Supreme Court upheld Portsmouth's position that short-term rentals were not a permitted use in a residential zone under its ordinance, and other towns have taken a similar reading of their own codes.
Many Lakes Region and mountain towns allow STRs, some with registration, safety inspections or parking limits. Others have tried to restrict them. Ask the town's planning or code office for a written answer, and check condo and lake association rules, which can set their own minimum stays.
A standard DSCR loan compares a property's monthly rent with its full monthly payment: principal, interest, taxes, insurance and any HOA dues. For a short-term rental, some programs replace the long-term lease with a projection of nightly revenue, typically from a third-party revenue report built on comparable listings nearby.
Underwriting looks at the annual revenue figure divided across 12 months, not your best month. Some programs also review the property's own booking history when it has one, and some adjust the projection for expenses or seasonality. Each program sets its own method, so ask how the figure will be used before you lock in a price.
This example is illustrative and not a quote. An investor buys a two-bedroom condo near Loon Mountain in Lincoln for $465,000. A third-party report projects $53,000 in gross annual short-term rental revenue, or about $4,417 a month. Taxes are budgeted at $560 a month, insurance at $110 and HOA dues at $420.
At 75% LTV the loan is $348,750, estimated principal and interest is about $2,474, and the full payment is about $3,564, for a DSCR of about 1.24x. If the year comes in 15% below the projection, the ratio drops to about 1.05x.
At 65% LTV the loan is $302,250, the payment falls to about $3,235 and the DSCR rises to about 1.37x, which leaves more cushion for a slow season in Lincoln.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $348,750 | $302,250 |
| Estimated principal and interest | $2,474 | $2,145 |
| Property taxes | $560 | $560 |
| Insurance and HOA dues | $530 | $530 |
| Total monthly payment | $3,564 | $3,235 |
| Projected monthly revenue | $4,417 | $4,417 |
| DSCR | About 1.24x | About 1.37x |
| DSCR if revenue is 15% lower | About 1.05x | About 1.16x |
New Hampshire has no general sales tax or tax on wages, but it does charge a meals and rooms tax on short-term stays. Operators generally need a meals and rooms license from the Department of Revenue Administration, even when a platform collects the tax for them.
Property taxes are the state's main revenue source and are high relative to home values, so they weigh heavily in the DSCR math. Rural lake and mountain homes may have private wells, septic systems and long driveways that need plowing, and insurers will ask about heating systems and frozen-pipe protection.
Lakes Region homes often earn most of their income from late June through Labor Day, frequently on weekly bookings. Mountain properties spread revenue more evenly, with ski season, fall foliage in late September and October, and summer hiking. Mud season in April and the stretch before ski season are the slow weeks everywhere.
A long-term tenant usually pays the utilities and handles day-to-day upkeep. A nightly guest does not. Plan on cleaning fees, laundry, utilities, internet, consumables, platform charges, more frequent maintenance and management, which for remote owners can be a sizable share of revenue. Budget for furnishing the property, too.
The ratio a lender calculates covers the debt, not these costs. Treat 1.0x as a floor for the loan, not a target for your business, and build your own monthly budget alongside the projection.
Our investor loans are business-purpose loans on non-owner-occupied property. STR DSCR loans follow the same basics as our long-term rental loans, with the income coming from projected or actual nightly revenue.
A complete file gets a faster answer. Gather these items, then get a quote through the form below or by calling (877) 298-1001.
It depends on the town. There is no statewide STR permit, and local zoning decides. Some towns, following a 2019 Supreme Court case involving Portsmouth, treat STRs as not permitted in residential zones.
Operators generally need one from the Department of Revenue Administration, even if a platform collects the tax. Confirm your obligations with the state.
Yes, if the town allows it and the projected revenue supports the payment. Waterfront homes earn most of their income in summer, so the annual figure has to carry the off-season.
With no sales or wage tax, towns rely on property taxes, and bills are high relative to home values. The tax line goes straight into the payment and lowers the ratio.
Yes. Rate-and-term and cash-out refinances are available, with cash-out up to 75% LTV. Your booking history can support the income, and seasoning varies by program.
You can lower the loan amount, or a sub-1.0 DSCR program may fit. The financing team can run both options.
Some programs qualify it on a third-party revenue projection based on comparable listings. That is the usual path on a purchase.
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