If you are a New York City investor hoping to buy a building and run its units on Airbnb, the short answer is that city law does not allow it. The useful answer is what you can do instead.
In short: LendingStreet finances 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, from $150,000 and up to 80% LTV on purchases. Inside New York City, though, Local Law 18 and the state Multiple Dwelling Law mean stays under 30 days are only allowed when the host lives in the home and is present, so an investor-owned whole-unit nightly rental generally cannot operate legally. NYC investors use our STR loans for vacation rentals elsewhere in the state, such as the Catskills, the Hudson Valley and parts of Long Island, and use long-term or 30-day-plus leases for city property.
Since 2023, anyone hosting stays of fewer than 30 days in New York City must register with the Mayor's Office of Special Enforcement, and booking platforms may not process transactions for unregistered listings. Registration requires that the host live in the home and be present during the stay, with a limit of two guests. Separately, the state Multiple Dwelling Law has long barred rentals under 30 days in buildings with three or more units unless a permanent resident is present.
Put together, an investor who does not live in the property cannot legally rent a whole apartment, a whole house or a whole building for stays under 30 days. Proposals to loosen the rules for one- and two-family homes have been debated, but do not buy on the assumption that they will pass. Our investor loans are business-purpose loans on non-owner-occupied property, so the host-present model does not fit them either.
| Plan for a city property | Allowed for an investor? | How we can underwrite it |
|---|---|---|
| Whole-unit nightly rental (under 30 days) | Generally no | Not as an STR |
| Furnished rental of 30 days or more | Generally yes, subject to lease and building rules | On a monthly lease or market rent |
| Standard 12-month lease | Yes | Standard DSCR loan |
| Vacation rental outside the city | Depends on town or county rules | STR DSCR on projected revenue, some programs |
Rentals of 30 days or more are outside the short-term rental rules, and some owners furnish units for corporate housing, medical staff near the large hospital campuses, insurance displacement tenants and people relocating to the city. These stays are leases, so the usual landlord and tenant rules apply, and building rules or a condo board may still limit them.
For financing, we underwrite city property on long-term or market rent. If a furnished monthly strategy earns more, that is upside, but the loan should work on a standard lease.
The Catskills, in Ulster, Greene, Sullivan and Delaware counties, are the most common choice: cabins and farmhouses within a few hours of the city, with ski season at Hunter and Windham, summer hiking and swimming and fall foliage. The Hudson Valley in Dutchess and Columbia counties draws weekenders year-round. On Long Island, the Hamptons and the North Fork have strong summer demand, while Saratoga Springs fills during the summer racing season and the Lake George and Adirondack region draws summer and winter visitors.
Rules vary town by town. Many towns now require short-term rental permits, set occupancy limits, cap the number of rental nights or require minimum stays, and some have paused new permits. Counties also collect occupancy taxes. Confirm the rules for the specific town before you buy. Our New York STR page covers statewide considerations.
This example is illustrative and not a quote. A Brooklyn-based investor buys a three-bedroom cabin in a Greene County town that permits short-term rentals, for $495,000. A third-party projection estimates $62,000 in annual bookings, or about $5,167 a month.
At 75% LTV, the loan is $371,250 and estimated principal and interest is about $2,596. Property taxes, which upstate include county, town and school taxes, are budgeted at $650 a month, and insurance at $175. The total payment is about $3,421.
On the full projection, DSCR is about 1.51x. If the program counts 80% of projected revenue, DSCR is about 1.21x. Winter and summer are strong in ski towns; spring mud season is usually the weakest stretch.
| Item | Full projection | 80% of projection |
|---|---|---|
| Purchase price | $495,000 | $495,000 |
| Loan amount (75% LTV) | $371,250 | $371,250 |
| Estimated principal and interest | $2,596 | $2,596 |
| Property taxes | $650 | $650 |
| Insurance | $175 | $175 |
| Total payment | $3,421 | $3,421 |
| Monthly revenue counted | $5,167 | $4,133 |
| DSCR | About 1.51x | About 1.21x |
Ask the town clerk or code enforcement office these questions for the exact address.
On some programs, the loan qualifies on a third-party revenue projection rather than a lease. Projections for rural markets can be thin, since there are fewer comparable listings, so ask for one that shows each month and the comparable properties used. If yours comes in low, see our low AirDNA projection guide.
If you already own and operate an upstate rental, an STR DSCR refinance can use your booking history on some programs.
Upstate property taxes include separate school taxes and can be high relative to price. Pull the actual bills rather than relying on an estimate. Rural properties often have private wells and septic systems, which may need testing and can limit occupancy.
Winter costs are real: heating, plowing and freeze protection for a property that sits empty midweek. They come out of cash flow even though they are not part of the DSCR formula.
Many city investors keep their two- and three-family buildings in the boroughs on long-term leases and add one or two vacation rentals upstate. The city buildings can be financed with standard DSCR loans, and the upstate rental with an STR DSCR loan. Once you own five or more properties, a blanket loan can combine them on some programs.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, the town's rules and your revenue projection through the form below or call (877) 298-1001. For city property, send the rent roll and we will run it as a long-term rental.
Generally no. Stays under 30 days require the host to live there and be present, so investor-owned whole-unit nightly rentals are not legal in the city.
Rentals of 30 days or more are outside the short-term rental rules, though lease, building and board rules still apply.
No. City properties are underwritten on long-term or market rent.
Common choices include the Catskills, the Hudson Valley, the Hamptons and North Fork, Saratoga Springs and the Lake George area, subject to each town's rules.
On some programs, yes, using a third-party revenue projection.
Many do, and some limit or pause new permits. Check with the town for the exact address.
Changes for one- and two-family homes have been debated. Do not buy assuming they will pass.
Our investor loans are business-purpose loans on non-owner-occupied property, so it must operate as a rental.
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