Portsmouth draws visitors year-round to its downtown, waterfront and restaurants, but the city's own zoning is the first hurdle for an investor-owned nightly rental. Most STR financing on the Seacoast ends up in the beach and lake towns around it.
In short: LendingStreet finances short-term rentals on the New Hampshire Seacoast with DSCR loans that can qualify on projected nightly revenue on some programs, with no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum and a 620 minimum credit score. Portsmouth has treated short-term rentals as not allowed in most residential zones, so confirm the parcel's zoning before you rely on nightly income; many investors look instead at Hampton, Rye, the Lakes Region or southern Maine.
Portsmouth's zoning ordinance has long been read by the city as not permitting short-term rentals in most residential districts, and the city has taken enforcement action against unpermitted listings. Rules have been debated and revised, so treat any listing history you see online as proof of nothing.
Before you make an offer on a Portsmouth property for nightly use, ask the Planning and Sustainability Department which use category applies to the exact parcel and whether any downtown or mixed-use district allows it. If the answer is no, underwrite the property on a 12-month lease instead and see whether the numbers still work.
A property that cannot legally operate as an STR will not qualify on projected nightly revenue, and the loan will be sized on long-term rent.
The beach towns south of Portsmouth carry most of the Seacoast's vacation rental demand. Hampton and Hampton Beach, North Hampton, Rye and Seabrook see heavy summer traffic, and each sets its own zoning and rental rules. Across the Piscataqua River, Kittery, York and Ogunquit in Maine are popular too, though Maine towns have their own registration rules and a different state tax.
Inland, the Lakes Region (Wolfeboro, Laconia, Meredith, Alton) and the White Mountains (North Conway, Lincoln, Bartlett) are about 1 to 2 hours away and attract owners who want both summer and winter seasons. Our New Hampshire STR page covers those markets in more depth.
| Area | Main season | What to check |
|---|---|---|
| Portsmouth | Year-round, peak summer and fall | Zoning; most residential districts restrict STRs |
| Hampton, Rye, North Hampton | Summer beach season | Town zoning, condo and HOA rules, flood zone |
| Kittery, York, Ogunquit (ME) | Summer | Maine town registration and Maine lodging tax |
| Lakes Region | Summer, some winter | Town rules, shoreland rules, septic capacity |
| White Mountains | Winter ski and fall foliage | Town rules, snow load, road access |
New Hampshire has no general sales tax, but its Meals and Rooms (Rentals) Tax applies to short stays, including whole-home rentals booked online. Operators generally register with the NH Department of Revenue Administration, and platforms collect the tax on many bookings. Confirm whether you need your own license for direct bookings.
There is no separate city occupancy tax layer like many states have, which keeps the guest-side math simpler. Property tax is the larger cost on the owner side, and it varies widely from town to town.
Seacoast revenue is lopsided. July and August carry the beach towns, fall foliage weekends help, and January through March are quiet near the ocean. A property that grosses well in summer can sit mostly empty in winter unless it is close to downtown Portsmouth or serves medical, corporate or traveling-nurse stays.
Lenders that qualify on projected revenue look at a full year, so a strong summer has to carry the slow months. Some owners rent mid-term (30 days or more) in the off-season to fill the gap, which can also matter for local rules that only apply to stays under 30 days.
This example is illustrative and not a quote. An investor buys a three-bedroom cottage in Hampton for $650,000 in a district where the town allows short-term rentals. A third-party projection estimates $63,000 in gross annual revenue, or about $5,250 a month.
At 75% LTV the loan is $487,500. Estimated principal and interest on a 30-year fixed is about $3,493. Taxes are budgeted at $725 a month and coastal insurance at $260, for a total payment of about $4,478. DSCR on projected revenue is about 1.17x.
At 70% LTV the loan drops to $455,000, the payment to about $4,245 and DSCR rises to about 1.24x, which gives more room if the projection comes in lower than expected.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $487,500 | $455,000 |
| Estimated principal and interest | $3,493 | $3,260 |
| Taxes and insurance | $985 | $985 |
| Total monthly payment | $4,478 | $4,245 |
| Projected monthly revenue | $5,250 | $5,250 |
| DSCR | About 1.17x | About 1.24x |
Much of Hampton Beach, parts of Rye and low-lying areas along the Hampton and Seabrook marshes sit in FEMA flood zones, where flood insurance is generally required. Older cottages close to the water can be expensive to insure, and some carriers limit new coastal policies.
Get the flood determination and an insurance quote during your due diligence period, and use those figures in your ratio rather than a generic estimate.
On programs that use projected STR income, the projection usually comes from a third-party revenue report or an appraiser's rent analysis based on nearby comparable listings. If your projection looks low compared with what you expect, our guide to low AirDNA projections explains what can be submitted. If you already own and operate the rental, a refinance can use your actual booking history (see STR DSCR refinance).
Send the address, price, your revenue estimate and the town's STR status. The team will check whether the property qualifies on nightly revenue or should be sized on a long-term lease, run the ratio at a few loan amounts and come back with options. Call (877) 298-1001 or use the form below.
Our investor loans are business-purpose loans on non-owner-occupied property, so a home you plan to live in part of the year does not qualify.
The city has treated short-term rentals as not allowed in most residential zones. Ask the Planning Department about your exact parcel before buying, and underwrite on a long-term lease if nightly use is not allowed.
Hampton, Rye, North Hampton and Seabrook carry much of the summer demand on the NH side, and Kittery, York and Ogunquit on the Maine side. Each town sets its own rules, so check before you buy.
Yes. The state Meals and Rooms (Rentals) Tax applies to short stays. Platforms collect it on many bookings, but confirm whether you need your own license with the NH Department of Revenue Administration.
On some programs, yes. Qualification can use a third-party projection of short-term revenue, as long as the property can legally operate as a nightly rental.
Projections cover the full year, so slow winter months lower the average. Lower leverage or mid-term winter rentals can help the numbers.
The minimum is 620. A stronger score and more reserves can improve your options.
Yes. LLC borrowers are standard on our DSCR programs, and you sign for the loan personally.
DSCR loans start at $150,000 with no stated maximum. Larger balances get more review.
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