New York City is effectively closed to whole-home nightly rentals. Two hours north, the Catskills, Hudson Valley and Adirondacks are some of the busiest vacation rental markets in the Northeast.
In short: LendingStreet finances New York short-term rentals outside New York City with DSCR loans that can qualify on projected nightly revenue on some programs, starting at $150,000 with no W-2s or tax returns and LLC borrowers allowed. Inside the city, Local Law 18 requires hosts to register and be present during stays under 30 days, which rules out whole-unit STR investing. Upstate towns and Long Island villages each set their own permit rules.
The Catskills, including Woodstock, Phoenicia, Windham, Hunter and Livingston Manor, draw weekenders from the city year-round, with ski seasons at Hunter and Windham. In the Hudson Valley, towns around Hudson, Rhinebeck, Beacon and New Paltz attract farm-to-table and hiking visitors.
The Adirondacks, from Lake Placid to Lake George and Saranac Lake, are a summer lake and winter sports market. The Finger Lakes around Canandaigua, Skaneateles, Watkins Glen and Ithaca rent well for wine country trips and college events. On Long Island, the Hamptons and North Fork are high-value summer markets with strict village and town rules.
| Market | Typical property | What drives bookings | Rule to check |
|---|---|---|---|
| Catskills | Cabins, farmhouses, A-frames | City weekenders, skiing | Town permits vary; some limits |
| Hudson Valley | Farmhouses, village homes | Dining, hiking, weddings | Town and city rules; Kingston has limits |
| Adirondacks (Lake Placid, Lake George) | Lake homes, cabins | Summer lakes, winter sports | Lake Placid caps STR permits |
| Hamptons and North Fork | Luxury homes, cottages | Summer season | Town registration; minimum stays common |
In New York City, Local Law 18, enforced since 2023, requires hosts to register stays under 30 days with the city, be present during the stay and host no more than two guests. In practice, whole-home STR investing in the five boroughs is not an option. Investors buying there should plan on long-term leases, which our standard DSCR loans cover.
Upstate, rules come from towns and villages. Lake Placid limits permits in many residential areas, and many Catskills and Hudson Valley towns require registration, inspections and occupancy limits. East Hampton and Southampton require rental registration and limit how often a home can be rented. New York has also added statewide STR registration and occupancy tax rules, so confirm current requirements.
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 three-bedroom Catskills cabin near Phoenicia for $575,000. A third-party report projects $60,000 in gross annual short-term rental revenue, or about $5,000 a month. Taxes are budgeted at $720 a month and insurance at $190.
At 75% LTV the loan is $431,250, estimated principal and interest is about $3,060, and the full payment is about $3,970, for a DSCR of about 1.26x. If the year comes in 15% below the projection, the ratio drops to about 1.07x.
At 65% LTV the loan is $373,750, the payment falls to about $3,562 and the DSCR rises to about 1.40x, which leaves more cushion for a slow season in Catskills.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $431,250 | $373,750 |
| Estimated principal and interest | $3,060 | $2,652 |
| Property taxes | $720 | $720 |
| Insurance | $190 | $190 |
| Total monthly payment | $3,970 | $3,562 |
| Projected monthly revenue | $5,000 | $5,000 |
| DSCR | About 1.26x | About 1.40x |
| DSCR if revenue is 15% lower | About 1.07x | About 1.19x |
Most New York counties charge an occupancy tax on short-term stays in addition to state and local sales tax. Platforms collect some of these; confirm what is left for you to file.
Upstate property taxes, including school taxes, are high relative to home values in many towns, and they are often billed on separate schedules. Older farmhouses and cabins may have oil heat, wells, septic and steep driveways, all of which insurers ask about. Budget for snow removal and winterization.
Catskills and Hudson Valley homes earn much of their income on Friday and Saturday nights year-round, with stronger summer and foliage seasons. The Adirondacks are summer-heavy with a winter sports bump. The Hamptons earn most of their revenue between Memorial Day and Labor Day. A projection should reflect midweek softness, not just weekend rates.
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.
Not for nightly income. Local Law 18 requires the host to be present and limits guests, which rules out whole-unit STRs. You can finance a city rental on a long-term lease with a standard DSCR loan.
Many Catskills towns allow them, often with registration, inspections and occupancy limits. Rules vary by town, so confirm with the town clerk or code office.
Yes. Lake Placid and the town of North Elba cap STR permits in many residential areas. Check permit availability before buying there.
Most counties charge an occupancy tax, and state and local sales tax apply. Property and school taxes are also high in many towns, so include them in the ratio.
The minimum is 620. Stronger credit and more equity can open more program options. No W-2s or tax returns are required.
Yes. Most of our STR borrowers close in an LLC and sign for the loan personally.
Yes. Both rate-and-term and cash-out refinances are available, and actual revenue history can be used. Cash-out seasoning varies by program.
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