Raleigh is one of the larger Southern cities where an investor can still legally run a whole-home short-term rental in a residential neighborhood, with a city permit. That makes it a practical STR market for investors who want year-round demand from a growing metro rather than a beach or mountain season.
In short: LendingStreet finances Raleigh short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs, with a 620 minimum credit score, no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum. Raleigh allows whole-home short-term rentals in residential districts with a city permit, subject to its STR regulations, while HOAs and nearby towns set their own rules, so confirm the property can operate before you rely on nightly income.
After several years of debate, the Raleigh City Council adopted rules in 2022 that allow whole-home short-term rentals in residential zoning districts, with a zoning permit and operating standards. The city dropped an earlier proposal for a lottery and spacing requirement after a North Carolina appeals court decision in a Wilmington case limited how cities could regulate STRs through registration. Requirements can change, so check the current rules and permit steps with the city's planning department before you buy.
Nearby cities and towns set their own rules. Durham, Cary, Wake Forest, Apex and Chapel Hill each handle STRs differently, and HOAs in many Wake County subdivisions ban rentals under 30 days or set minimum lease terms. Read the covenants for any property in a planned community.
Short stays in Wake County are subject to North Carolina sales tax and local occupancy taxes. Platforms collect on many bookings, but owners who take direct bookings need to register and remit. North Carolina's Vacation Rental Act also sets rules for rentals of less than 90 days for vacation purposes, covering written agreements, deposits and the handling of advance payments, which is worth reviewing if you plan to manage bookings yourself or hire a local agent.
Raleigh's demand is spread through the year rather than packed into one season. NC State football and basketball, graduations and parent weekends fill rooms near campus and the Hillsborough Street corridor. The Raleigh Convention Center, the Red Hat Amphitheater and downtown events bring weekend traffic, and the arena and fairgrounds in west Raleigh host concerts, hockey and the State Fair in October. Research Triangle Park employers, WakeMed, Duke and UNC health systems bring business and medical stays.
Neighborhoods close to downtown and campus, such as Boylan Heights, Oakwood, Mordecai, Glenwood-Brooklyn and the streets near the Village District (formerly Cameron Village) and Hillsborough Street, tend to draw the most bookings, though prices there are also higher.
| Area | Main demand | What to check |
|---|---|---|
| Downtown edges (Oakwood, Boylan Heights) | Events, convention, nightlife | Historic overlay, permit, parking |
| Near NC State, Hillsborough St | Games, graduations, campus visits | Permit, HOA, noise rules |
| West Raleigh near fairgrounds | State Fair, arena events | Permit, HOA, event seasonality |
| North Hills, Midtown | Business and medical stays | HOA rules, higher prices |
| Suburbs (Cary, Wake Forest, Apex) | Family visits, relocations | Each town's own rules, HOAs |
October is often strong with the State Fair and football, spring brings graduations and events, and summer can be softer near campus once students leave. Winter holidays are mixed. Overall, Raleigh's swings are milder than a beach or mountain market, which helps a projection that averages the full year.
Raleigh's steady relocations and hospital staffing also support mid-term furnished rentals of 30 days or more. Some owners blend nightly and mid-term stays to fill slower months.
Furnished mid-term units near WakeMed and Rex Hospital are especially common.
This example is illustrative and not a quote. An investor buys a three-bedroom house in west Raleigh near NC State for $475,000, confirms there is no HOA and obtains the city's STR permit. A third-party projection estimates $44,000 a year in gross revenue, about $3,667 a month.
Wake County and city taxes are budgeted at $375 a month and insurance at $145. At 75% LTV the loan is $356,250, estimated principal and interest is about $2,552 and the total payment is about $3,072, for a DSCR of about 1.19x.
At 80% LTV the loan is $380,000, the payment about $3,242 and DSCR about 1.13x. Some STR programs cap leverage below the long-term maximum, so the 75% case is more typical.
| Item | 75% LTV | 80% LTV |
|---|---|---|
| Loan amount | $356,250 | $380,000 |
| Estimated principal and interest | $2,552 | $2,722 |
| Taxes and insurance | $520 | $520 |
| Total payment | $3,072 | $3,242 |
| Projected monthly revenue | $3,667 | $3,667 |
| DSCR | About 1.19x | About 1.13x |
Wake County reappraises property on a regular cycle, most recently effective January 1, 2024, when values rose sharply across the county. Tax rates were adjusted after that reappraisal, but many bills still went up. Use the current bill and the county and city rates, and remember that a recent purchase price does not change the assessed value until the next reappraisal.
North Carolina's excise tax on deeds is modest and usually paid by the seller.
Insurance should also be priced for short-term rental use. A standard landlord policy may not cover nightly guests, so get a quote that names the use.
A Raleigh STR needs to meet the city's operating standards and basic safety requirements. Check smoke and carbon monoxide detection, posted contact information, parking and trash rules, and occupancy limits in the permit. Older homes near downtown may sit in historic overlay districts, where exterior changes need approval.
On programs that use projected STR income, the figure usually comes from a third-party revenue report or an appraiser's analysis of nearby listings. Raleigh comparables should be permitted, active listings with similar size and location. If the projection looks low, see our guide to low AirDNA projections; once you have a booking history, an STR DSCR refinance can use actual results. For coastal and mountain properties, see our North Carolina STR page.
Send the address, price, permit status, HOA information and your revenue estimate. The team will confirm whether the file can use projected revenue 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.
Raleigh allows whole-home short-term rentals in residential districts with a city permit and operating standards. Check current rules and any HOA covenants.
Yes. The city requires a zoning permit for short-term rentals. Confirm current steps with the planning department.
North Carolina sales tax and local occupancy taxes. Platforms collect on many bookings.
Many do not. Read the covenants for minimum lease terms before you buy.
On some programs, yes, if the property can legally operate as a short-term rental.
Values rose sharply, and many tax bills went up. Use the current bill in your numbers.
Yes. LLC borrowers are standard, and you sign for the loan personally.
DSCR loans start at $150,000 with no stated maximum.
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