Since New River Gorge became a national park, West Virginia cabins have drawn more out-of-state guests than ever. Prices are still low enough that the ratio often works at modest nightly rates.
In short: LendingStreet finances West Virginia short-term rentals with DSCR loans that can qualify on projected rental revenue on some programs, starting at $150,000 with no W-2s or tax returns and LLC borrowers allowed. Most demand sits around the New River Gorge, Snowshoe, Canaan Valley and the Eastern Panhandle. West Virginia taxes rental property at a higher class than an owner-occupied home, so use the investor tax bill.
Fayetteville and the communities around New River Gorge National Park draw rafters, climbers and hikers, with demand rising since the park designation in 2020. Snowshoe Mountain in Pocahontas County is the state's largest ski resort, and Canaan Valley, Davis and Thomas in Tucker County draw skiers, mountain bikers and hikers.
In the Eastern Panhandle, Harpers Ferry, Shepherdstown and Berkeley Springs draw weekenders from the Washington area. Morgantown fills on West Virginia University football weekends. In the southern coalfields, Hatfield-McCoy Trails towns serve ATV riders, and Summersville Lake draws summer boaters.
| Market | Typical property | What drives bookings | Rule to check |
|---|---|---|---|
| New River Gorge (Fayetteville) | Cabins, small homes | Rafting, climbing, national park | County and town rules |
| Snowshoe | Ski condos, chalets | Skiing, summer mountain biking | Resort and condo association rules |
| Canaan Valley, Davis, Thomas | Cabins, chalets | Skiing, hiking, biking | County zoning |
| Harpers Ferry and Eastern Panhandle | Historic homes, cabins | Washington-area weekenders | Town and county rules |
West Virginia has no statewide STR permit, and most rural counties have light rules. Towns and some counties require a business license, hotel occupancy tax registration or zoning approval. Resort communities at Snowshoe and in Canaan Valley have association rules that govern rental use.
Morgantown and other cities handle STRs through zoning and rental registration rules. Because rural rules are often limited, HOA covenants and private road agreements can be the main constraint. Get both before you buy.
On a long-term rental, the lease or a market rent estimate sets the income. On a nightly rental, some of our programs accept a projection of gross short-term rental revenue, usually from a third-party data report that looks at similar listings, bedroom counts and occupancy in the area.
That projected income is compared with the full monthly payment to get the debt service coverage ratio. If the property already operates as an STR, 12 months of booking history can support the figure. How each program adjusts a projection varies, and a low projection can sometimes be addressed with more down payment or a sub-1.0 program.
This example is illustrative and not a quote. Consider a three-bedroom cabin near Fayetteville and the New River Gorge bought for $325,000, with a revenue projection of $31,000 a year, about $2,583 a month. The monthly budget includes $170 in property taxes and insurance at $140.
Financed at 75% LTV, the loan is $243,750. Estimated principal and interest comes to about $1,729, the total payment to about $2,039, and the DSCR to about 1.27x. A 15% revenue shortfall would bring it to about 1.08x.
With 65% LTV instead, the loan is $211,250 and the total payment about $1,809, lifting the DSCR to about 1.43x. The table compares both.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $243,750 | $211,250 |
| Estimated principal and interest | $1,729 | $1,499 |
| Property taxes | $170 | $170 |
| Insurance | $140 | $140 |
| Total monthly payment | $2,039 | $1,809 |
| Projected monthly revenue | $2,583 | $2,583 |
| DSCR | About 1.27x | About 1.43x |
| DSCR if revenue is 15% lower | About 1.08x | About 1.21x |
Short stays carry state sales tax, and many counties and cities charge a hotel occupancy tax. Platforms collect some of these; registration may still fall on you.
West Virginia taxes owner-occupied homes in a lower property class than other residential property, so a rental's tax bill can be higher than the seller's if the seller lived there. Many river towns sit in narrow valleys with flood history, so check the FEMA flood map. Steep roads, wells and septic systems are common on mountain cabins.
The New River Gorge is busiest from spring through fall, peaking during summer rafting season and the fall Bridge Day festival in October. Snowshoe and Canaan Valley earn most of their revenue in winter, with summer biking a growing second season. Eastern Panhandle towns have steady weekend demand year-round.
The DSCR calculation uses principal, interest, taxes, insurance and HOA dues. Your own budget needs more. A short-term rental pays for cleaning and laundry between stays, utilities, internet, streaming, supplies, platform fees and often a local manager who takes a share of revenue. Furnishing a home before the first booking is a real upfront cost as well.
None of that is in the lender's ratio on most programs, which is why a property that only just clears 1.0x on gross projected revenue can still lose money in practice. Run your own net numbers before you sign.
Our investor loans are business-purpose loans on non-owner-occupied property. The guidelines below apply to 1-8 unit STRs, though maximum leverage can be lower on larger balances and 5-8 unit properties.
We look at the property first: whether it can legally operate as a nightly rental, what it should earn, and what it costs to carry. Then we size the loan so the ratio works. Start with the form below or call (877) 298-1001.
Visitor interest has grown since the 2020 designation. Projections should still use recent comparable cabins, since new supply has grown too.
Snowshoe is a ski-centered market with a growing summer season. Condo association rules, HOA dues and insurance go into the payment.
Owner-occupied homes are taxed in a lower property class. Rentals fall in a higher class, so the investor bill is usually higher.
Properties in mapped flood zones with a mortgage generally do. Many river-valley towns have flood history, so check the map early.
Yes. Most of our STR borrowers close in an LLC and sign for the loan personally.
Yes. Both rate-and-term and cash-out refinances are available, and actual revenue history can be used. Cash-out seasoning varies by program.
Sub-1.0 DSCR programs exist for some files. More down payment can also lift the ratio by lowering the payment.
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