Few small cities have a nightly rental calendar as lopsided as South Bend's. On a Notre Dame home football weekend, hotel rooms for miles around sell out and homes near campus can earn in two nights what they earn in a slow month.
In short: LendingStreet finances South Bend short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs, with loans from $150,000 and no stated maximum, purchases up to 80% LTV, a 620 minimum credit score and LLC borrowers allowed. Indiana law limits how far cities can go in banning short-term rentals, but South Bend can still require registration and enforce safety and nuisance rules. Because revenue is concentrated in football season and university events, the projection's monthly pattern matters as much as the annual total.
Indiana passed a state law in 2018 that generally keeps cities and counties from banning short-term rentals outright, while still letting them require registration and regulate health, safety, noise and nuisance issues. South Bend has used that room to set up registration and operating rules for short-term rentals. Requirements can change, so confirm the current process with the city before you list a property.
HOAs are not bound by the state law in the same way. Some subdivisions in Granger, Clay Township and Mishawaka have covenants that ban rentals under 30 days, so read them before you buy. Mishawaka and unincorporated St. Joseph County have their own rules.
Notre Dame home football games, usually six or seven Saturdays each fall, are the biggest demand driver. Commencement in May, Junior Parents Weekend, move-in, reunion weekend in early June and basketball and hockey games add more peaks. Hotels sell out on those dates, and guests book homes near campus, the East Bank and downtown months in advance.
Between those weekends demand is much softer. Visiting faculty, families of patients at Memorial Hospital and Saint Joseph Health System, business travel tied to the region's manufacturers and Saint Mary's College and Indiana University South Bend visitors fill some nights, and many operators switch to 30-day furnished stays in winter and summer.
Homes close to campus earn the most on game days. Outside the city, Lake Michigan and inland lakes offer a summer season that balances South Bend's fall peak.
| Area | Main draw | What to check |
|---|---|---|
| Northeast Neighborhood and Eddy Street | Walk to Notre Dame Stadium | City registration; parking limits on game days |
| East Bank and downtown | Restaurants, river, events | City registration; condo rules |
| Sunnyside, Howard Park and Riverside | Short drive to campus | City registration; HOA if any |
| Harbor Country, Michigan (New Buffalo, Union Pier) | Lake Michigan beaches, about 45 minutes | Michigan township rules; permits vary |
| Lake Wawasee and Syracuse, Indiana | Inland lake summer homes, about an hour | County and town rules; lake association |
On some programs, the DSCR is based on a third-party projection of short-term revenue instead of a long-term lease, with the program applying its own adjustments for expenses and vacancy. In South Bend, ask to see the monthly breakdown. A projection that looks strong on an annual basis can hide several months where nightly revenue would not cover the payment.
If the projection is lower than you expected, our guide to low STR projections explains your options, such as lower leverage or a mix of nightly and monthly stays.
This example is illustrative and not a quote. An investor buys a four-bedroom house in the Northeast Neighborhood for $285,000, registers it with the city and plans nightly stays on event weekends with 30-day furnished stays in between. A third-party projection estimates $40,000 a year in gross revenue, about $3,333 a month on average.
At 75% LTV the loan is $213,750. Estimated principal and interest on a 30-year loan is about $1,495. Taxes are about $380 and insurance about $150, for a total near $2,025. If the program reduces projected revenue by 20% for operating costs, qualifying income is about $2,667 and the DSCR is about 1.32x.
| Item | Amount |
|---|---|
| Purchase price | $285,000 |
| Loan at 75% LTV | $213,750 |
| Estimated principal and interest | $1,495 |
| Taxes and insurance | $530 |
| Total monthly payment | $2,025 |
| Projected gross revenue per month | $3,333 |
| Qualifying income after 20% reduction | $2,667 |
| DSCR | About 1.32x |
Indiana caps property taxes as a share of assessed value, with a lower cap for a homestead and a higher cap for residential rentals. An investor will not get the homestead cap, so the bill after purchase can be higher than the seller's. The rental cap still makes the tax line more predictable than in many states.
Short-term stays are subject to Indiana sales tax and St. Joseph County's innkeeper's tax. Booking platforms collect some of these taxes but not always all of them, so confirm what you must file yourself.
Football weekends bring large groups, cars and tailgating. City rules on occupancy, parking and noise apply, and neighbors near campus notice quickly when guests break them. A clear house manual, a local contact who can respond on game day and a firm guest count help keep both neighbors and the city satisfied.
Insurance should be written for short-term rental use, with liability coverage suited to group stays. Lake effect snow in winter means snow removal and freeze protection belong in your budget.
If you already operate a South Bend rental, booking history from at least one full football season can support a DSCR refinance, including cash-out up to 75% LTV. Seasoning rules vary by program. Our STR DSCR refinance page covers the documents most programs ask for.
Send the address, price, registration status, any revenue projection or booking history and your target loan amount. For other Indiana markets, see our Indiana short-term rental loan page.
Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below or call (877) 298-1001 with the property details, current rents and what you want to accomplish, and we will size the loan against the cash flow and walk you through the options.
Indiana law generally keeps cities from banning STRs outright, but South Bend can require registration and regulate safety, noise and nuisance issues. HOAs can still restrict rentals.
A lot. Home games, commencement and other Notre Dame events produce most of the nightly revenue near campus. Plan for slower months in between.
On some programs, yes. A third-party projection can stand in for a long-term lease, adjusted by the program for expenses.
Many South Bend operators do, renting nightly for events and 30-day furnished stays the rest of the year to smooth income.
Indiana sales tax and St. Joseph County's innkeeper's tax apply to short-term stays. Confirm what your booking platform collects.
Yes, if Michigan township rules and any association covenants allow short-term rentals. Rules vary a lot by township.
Possibly. Investors do not get Indiana's homestead cap, so the bill can rise to the rental property cap level.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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