Orlando has one of the largest vacation rental markets in the country, but most of it is not in the City of Orlando. The city and much of unincorporated Orange County restrict investor-owned nightly rentals, and the vacation home business is concentrated in resort-zoned communities in Osceola and Polk counties near the theme parks.
In short: LendingStreet finances Orlando-area short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. The property must be in a location where nightly rentals are allowed, which in this market usually means a resort-zoned community in Osceola or Polk County rather than a home inside Orlando city limits.
The City of Orlando allows home sharing in residential areas only when the host lives in the home, which rules out most investor-owned, whole-home nightly rentals inside city limits. Unincorporated Orange County limits stays under 30 days to certain zoning districts, and most single-family neighborhoods are not among them. Florida law limits new local bans on vacation rentals, but rules adopted before 2011 can still apply, and that is the situation in much of Orange County.
In practice, a home in College Park, Baldwin Park, Lake Nona or Dr. Phillips is usually a long-term rental, not a nightly rental. Always confirm with the city or county for the exact parcel, since zoning and grandfathered uses vary.
Osceola County has resort and short-term rental zoning in communities built for vacation homes, including Windsor Hills, ChampionsGate, Reunion and Storey Lake, all within a short drive of Walt Disney World. Across the county line in Polk County, the Four Corners and Davenport areas along US 27 and I-4 have many more vacation home communities, such as Solterra.
These communities were planned for nightly rentals, with resort amenities, pools and HOAs that expect guests. Homes are often large, with six to ten bedrooms, private pools and game rooms, and they are priced and rented as group accommodation for families visiting the parks.
This example is illustrative and not a quote. An investor buys a six-bedroom pool home in a resort-zoned Osceola County community for $575,000. A third-party projection estimates average gross revenue of $5,600 a month across the year. Resort HOA dues are $350 a month.
Taxes without a homestead exemption are budgeted at about $815 a month and insurance written for vacation rental use at $350. At 75% LTV the loan is $431,250, with estimated principal and interest of about $3,015. The total payment, including HOA dues, is about $4,530 and DSCR on projected revenue is about 1.24x.
At 70% LTV, the payment drops to about $4,329 and DSCR rises to about 1.29x. If the projection came in at $4,800 a month instead, DSCR at 75% LTV would be about 1.06x, still above 1.0x.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $575,000 | $575,000 |
| Loan amount | $431,250 | $402,500 |
| Estimated principal and interest | $3,015 | $2,814 |
| Taxes | $815 | $815 |
| Insurance | $350 | $350 |
| Resort HOA dues | $350 | $350 |
| Total monthly payment | $4,530 | $4,329 |
| Projected monthly revenue | $5,600 | $5,600 |
| DSCR | 1.24x | 1.29x |
Florida charges state sales tax on transient rentals of six months or less, plus any county discretionary surtax and a county tourist development tax. Osceola, Orange and Polk counties each administer their own tourist tax. Booking platforms may collect some taxes, but the owner is responsible for making sure all are filed and paid.
Property taxes are separate. Investors do not receive the homestead exemption, and non-homestead property is subject to a 10% annual cap on assessed value increases for non-school taxes, which resets when the property sells. Use a tax estimate based on your purchase price.
Theme park demand keeps central Florida vacation homes busier than many leisure markets, with strong periods around spring break, summer and the winter holidays, and softer weeks in late August, September and parts of the fall. Large homes compete on amenities, so themed rooms, pool heat and game rooms can affect booking rates.
The area also has a large supply of vacation homes, and new communities keep adding more. Lenders that use projected revenue look at the annual figure, so use a projection built on comparable homes in the same community with the same bedroom count.
Inland Osceola and Polk properties are less exposed to storm surge than the coasts, but hurricane wind is still the main insurance cost. Insurers look at roof age, wind mitigation features and whether the policy covers short-term rental use. Some low-lying areas near lakes and wetlands are in flood zones.
Resort HOA dues often cover amenities, gated entry and sometimes cable or internet. They are part of the DSCR payment, so a community with high dues needs stronger revenue.
On some programs, the DSCR is calculated on a third-party revenue projection instead of a long-term lease. If the projection comes in lower than expected, our guide to a low STR projection covers the options. Owners who already operate a vacation home can refinance on booking history on some programs, with cash-out up to 75% LTV.
For homes inside Orlando city limits that cannot run nightly, a standard DSCR loan based on a 12-month lease is usually the better fit.
Send these items with the form below, or call (877) 298-1001.
Generally not as an investor. The city allows home sharing in residential areas only when the host lives in the home. Most investor vacation homes are in resort-zoned communities in Osceola and Polk counties.
Orange County limits stays under 30 days to certain zoning districts, and most single-family neighborhoods are excluded. Confirm the exact parcel before you buy.
Resort-zoned communities in Osceola County such as Windsor Hills, ChampionsGate, Reunion and Storey Lake, and many communities in the Four Corners and Davenport areas of Polk County. Always confirm zoning and HOA rules.
Most vacation rentals in Florida need a license from the state DBPR, plus sales and tourist tax registration. Check current requirements for your property.
On some programs, yes. DSCR is calculated on a third-party projection of short-term rental revenue.
Yes. HOA dues are part of the monthly payment used to calculate DSCR, along with principal, interest, taxes and insurance.
Our investor loans are business-purpose loans on non-owner-occupied property. Second homes and homes you live in are not eligible.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.