Few American cities draw visitors like New Orleans, and few regulate short-term rentals as tightly. For an investor, the honest first step is accepting that most residential streets are off the table for a whole-home rental you do not live in.
In short: LendingStreet finances New Orleans area short-term rentals with DSCR loans that can qualify on projected short-term revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. In New Orleans, residential short-term rental permits are tied to owner occupancy, the French Quarter largely prohibits them, and investor rentals are mostly limited to commercial and mixed-use zoned properties with their own caps. If a property cannot hold a permit, we can underwrite it on a long-term or 30-day-plus lease instead.
New Orleans requires a permit for every short-term rental, issued through the city's Department of Safety and Permits. Residential short-term rental permits are limited to owners who live on the property, so they do not fit a business-purpose loan on non-owner-occupied property. The city has rewritten its rules several times, including caps on how many permitted rentals can operate on a block and changes after court challenges, and further changes remain possible.
Commercial short-term rental permits are available for some properties in commercial and mixed-use zoning districts, with limits on how many units in a building can be used this way. Whole-home short-term rentals are largely prohibited in the French Quarter, apart from limited commercial frontage.
Before you write an offer, get the zoning district for the exact address, check whether the building can hold a commercial permit, and ask the city how current caps apply.
| Property location | Investor STR outlook | Practical plan |
|---|---|---|
| Residential zones (most of Uptown, Mid-City, Gentilly, Bywater side streets) | Residential permits require the owner to live there | Underwrite on a long-term or 30+ day lease |
| French Quarter (Vieux Carre) | Largely prohibited | Long-term lease or commercial use only where allowed |
| Commercial and mixed-use zones (CBD, Warehouse District, some corridors) | Commercial permit may be possible, with building caps | Confirm permit eligibility and HOA rules |
| Condo buildings | Depends on zoning and the condo declaration | Read the declaration before buying |
Most permitted investor short-term rentals in the city are in the Central Business District, the Warehouse District and on commercial corridors such as parts of Magazine Street, St. Claude Avenue, Freret Street and Tulane Avenue, often in converted upper floors or newer condo buildings. Each building's declaration and the per-building caps decide how many units can participate.
Many owners of single-family homes and doubles in Uptown, Mid-City, the Marigny, the Bywater and Treme instead rent furnished for 30 days or more to medical staff at the downtown hospital district, traveling professionals and film and television crews, which is generally outside the nightly permit system. Confirm how any minimum-stay rule applies before you plan around it.
Investors who want classic nightly rentals often look elsewhere in the state. The Northshore towns of Covington, Mandeville and Abita Springs in St. Tammany Parish have their own parish and city rules. Baton Rouge sees heavy demand on LSU football weekends and graduation dates, Lafayette draws festival and university visitors, and Grand Isle has a summer beach and fishing season, though storm exposure is high.
Each parish and city writes its own rules, so check the local ordinance and any HOA before you buy. Our Louisiana STR page covers statewide considerations.
Where a permit is in place, New Orleans revenue follows the event calendar. Carnival season builds through January and peaks at Mardi Gras, Jazz Fest fills late April and early May, French Quarter Fest comes in April, Essence Festival lands around July 4th, and the Sugar Bowl, Saints home games and conventions add fall and winter demand.
Late summer is the slow stretch, with heat and the peak of hurricane season from August into October. A revenue projection should show those months honestly, and reserves should cover them.
This example is illustrative and not a quote. An investor buys a two-bedroom condo in a Warehouse District building that allows commercial short-term rental permits, for $395,000. A third-party projection estimates $60,000 in annual bookings, or $5,000 a month.
At 75% LTV, the loan is $296,250 and estimated principal and interest is about $2,071. Taxes are budgeted at $495 a month, the unit's own insurance at $90 and HOA dues, which include the building's master wind and flood coverage, at $650. The total payment is about $3,306.
On the full projection, DSCR is about 1.51x. If the program counts 80% of projected revenue, DSCR is about 1.21x. Note how large the HOA line is; in New Orleans condo buildings, rising master insurance costs often show up there.
| Item | Full projection | 80% of projection |
|---|---|---|
| Loan amount (75% LTV) | $296,250 | $296,250 |
| Estimated principal and interest | $2,071 | $2,071 |
| Taxes | $495 | $495 |
| Unit insurance | $90 | $90 |
| HOA dues | $650 | $650 |
| Total payment | $3,306 | $3,306 |
| Monthly revenue counted | $5,000 | $4,000 |
| DSCR | About 1.51x | About 1.21x |
Louisiana assesses residential property at a 10% assessment ratio, and owner-occupants receive a homestead exemption that investors do not. If the seller lived in the property, the bill after your purchase will be higher. Orleans Parish reassesses every four years, so check where the property sits in that cycle.
Short-term stays also carry state and local sales and hotel taxes. Platforms collect some of them, and owners are responsible for anything left over.
Wind and flood insurance are major costs in New Orleans. Higher ground along the river and the old ridges is often outside high-risk flood zones, while much of the rest of the city sits in mapped zones. Get an elevation certificate, a wind quote and a flood quote before you set your offer.
For condos, review the master policy, the deductible and any planned special assessment. A large assessment can change the numbers overnight.
On some programs, the loan qualifies on a third-party revenue projection instead of a lease. Because New Orleans rules limit permits, the projection only helps if the property can legally hold one. If not, the loan is underwritten on long-term rent. See our guides on a low AirDNA projection and on an STR DSCR refinance for owners with booking history.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, zoning, permit status and revenue projection through the form below or call (877) 298-1001. We will tell you whether the file works on projected revenue or on a lease, and run the ratio either way.
Generally no. Residential permits in New Orleans are tied to owner occupancy. Plan on a long-term or 30-day-plus lease.
They are largely prohibited there, apart from limited commercial frontage. Check the exact address with the city.
Mainly in commercial and mixed-use districts such as the CBD and Warehouse District, subject to building caps and condo rules.
On some programs, if the property can legally operate as a short-term rental.
Investors do not receive the homestead exemption, so the bill is calculated on the full assessed value.
In mapped high-risk zones, generally yes. Many New Orleans properties need it.
Rules differ by parish and city. Investors often look at the Northshore, Baton Rouge, Lafayette and Grand Isle, checking local rules first.
Our investor loans are business-purpose loans on non-owner-occupied property, so it must operate as a rental.
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