Rochester's best short-term rental months line up with its festivals and its lakes: lilacs in Highland Park in May, the jazz festival in June, summer weekends on Lake Ontario and the western Finger Lakes. Then the snow comes, and the calendar thins out.
In short: LendingStreet finances investor short-term rentals in the Rochester region 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. Loans start at $150,000 with no stated maximum and go up to 80% LTV on a purchase. The City of Rochester and each surrounding town set their own STR rules, and New York's high property taxes often decide how much leverage an STR can carry.
The City of Rochester regulates short-term rentals through its zoning code and permits, and the rules have been revisited in recent years. Whether a non-owner-occupied home can rent by the night depends on the zoning district and current code, and rental properties in the city also need a certificate of occupancy and pass periodic inspections, including the city's lead paint requirements for older housing. Confirm the parcel's status with the city's zoning office before you buy.
Monroe County collects a hotel occupancy tax on short stays in addition to state and local sales tax. Booking platforms collect some of it; confirm what you must remit yourself.
Brighton, Pittsford, Penfield, Webster, Irondequoit, Greece and the other Monroe County towns each set their own zoning, and several have adopted STR permit rules, limits in residential districts or owner-occupancy requirements. Ask the town building or code office about your parcel.
Most Rochester investors who want a true vacation rental look south and east: Conesus Lake and Honeoye Lake, both within about 45 minutes, Canandaigua Lake, Keuka and Seneca lakes further out, Sodus Bay on Lake Ontario, and the Letchworth State Park area. Many Finger Lakes towns now require STR permits, and some cap them, so each town is its own check.
| Area | Distance from Rochester | Main draw | What to check |
|---|---|---|---|
| City of Rochester | Local | Festivals, hospitals, universities | Zoning, permit, certificate of occupancy |
| Conesus and Honeoye lakes | About 30 to 45 minutes | Summer lake weekends | Town permit and septic rules |
| Canandaigua Lake | About 45 minutes | Lake, wineries, concerts | Town and city STR permits |
| Keuka and Seneca lakes | About 1 to 1.5 hours | Wineries, Watkins Glen | Town rules, permit caps |
| Sodus Bay, Lake Ontario | About 45 minutes | Boating, fishing | Town rules, shoreline flooding |
The Rochester region earns most short-term rental revenue from late May through mid-October. In the city, the Lilac Festival, the Rochester International Jazz Festival, university graduations at the University of Rochester and RIT, and Corn Hill's summer arts festival fill homes on specific weekends. The lakes are busiest from July 4 through Labor Day, with wine-country weekends running into fall.
Winters are long and snowy, and lake cottages may be seasonal or partly winterized. A projection should show monthly revenue, and your reserves should carry the property through January and February.
Property taxes in Monroe County and the Finger Lakes counties are high relative to home prices, with separate county, town or city, and school tax bills. On a lake cottage, the annual tax bill can rival a large share of the mortgage payment. Pull the actual tax bills, including school taxes, before you set the loan amount.
New York also charges a mortgage recording tax on the loan and a real estate transfer tax on the deed. Your title company or attorney, who handles most New York closings, will itemize them.
This example is illustrative and not a quote. An investor buys a year-round Conesus Lake cottage for $525,000 in a town that permits STRs. A projection shows $58,800 a year, about $4,900 a month, mostly in summer. County, town and school taxes total about $1,050 a month, and insurance is $220.
At 75% LTV the loan is $393,750 and the payment is about $3,956. DSCR is about 1.24x on the gross projection but about 0.99x with a 20% reduction. At 70% LTV the loan is $367,500, the payment about $3,777, and the reduced DSCR is about 1.04x, which clears the minimum.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $393,750 | $367,500 |
| Estimated principal and interest | $2,686 | $2,507 |
| Taxes and insurance | $1,270 | $1,270 |
| Total payment | $3,956 | $3,777 |
| Average monthly projection | $4,900 | $4,900 |
| DSCR, gross | 1.24x | 1.30x |
| DSCR, projection less 20% | 0.99x | 1.04x |
Lake cottages bring their own checks. Many rely on septic systems, and some towns require septic inspection or certification before rental use. Water may come from the lake, a well or a municipal line. Lake Ontario shoreline homes, including around Sodus Bay, saw serious high-water flooding in 2017 and 2019, so check flood zones and get flood insurance quotes.
On some programs, the loan can qualify on a third-party projection rather than a lease. Comparables should be permitted rentals on the same lake or in the same city neighborhood, with similar bedrooms, frontage and seasonality. Some programs count gross revenue and others apply a reduction. If the projection is low, a smaller loan, more cash or operating history on a refinance can close the gap.
Inside Rochester, the most consistent demand for furnished stays comes from patients and families at Strong Memorial Hospital and Rochester General, visiting faculty and researchers, and traveling medical staff. Furnished rentals of 30 days or more are generally treated as ordinary tenancies rather than STRs, but confirm with the city, and they still need a certificate of occupancy.
Send the address, the town or city permit status, the price and any projection or booking history. LendingStreet will run the ratio with the full tax bill and show a long-term rental option where nightly use is uncertain. Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below.
It depends on the zoning district and current city code. Confirm with the city's zoning office, and note that rentals also need a certificate of occupancy.
Many do with a town permit, and some cap the number of permits. Each town has its own rules.
County, town or city and school taxes are high relative to prices, and they are part of the payment used in the DSCR calculation.
On some programs, yes, using a third-party projection based on comparable permitted rentals.
Year-round homes are easier to finance. Seasonal-only cottages may not qualify; ask before you make an offer.
Late May through mid-October, with festival weekends in the city and peak lake weeks from July through Labor Day.
Yes, using operating history or a projection on some programs, with cash-out up to 75% LTV.
At least 620, with no W-2s or tax returns required.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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