Yes, in limited cases: Fannie Mae allows short-term rental income from a one-unit investment property, and the DSCR guides reviewed here also accept it under their own rules. Fannie Mae excludes ADUs and generally does not count rental income from a principal residence or second home; on a purchase it counts 50% of market rent, and on a refinance it averages the Schedule E cash flow over 12 months, or uses the 50% method if the property is not yet on the tax return. Freddie Mac's Guide has no separate short-term rental rule and excludes second-home rental income. AD Mortgage, UWM and Cake set their own documentation, such as 12-month receipt histories or AirDNA reports, and expense factors.
Fannie Mae
- A short-term rental is a furnished property rented for brief periods, typically less than 30 consecutive days. Only one-unit investment properties are eligible; the property must be legally permitted to operate as a short-term rental, and the income cannot come from an ADU. Fannie Mae B3-3.8-03
- Rental income from a principal residence or second home generally cannot be used to qualify the borrower. Fannie Mae B3-3.8-01
- The lender must document a current housing payment to use any rental income from the subject property; positive rental income may be used only if the borrower has at least 12 months of property management experience. Fannie Mae B3-3.8-03 Fannie Mae B3-3.8-01
- Purchase: use a Form 1007 based on standard long-term rentals, or validated short-term rental data from MLS or property management companies with three comparable short-term rentals. Fannie Mae B3-3.8-03
- Purchase calculation: multiply the monthly gross rent by 50% and subtract the PITIA; a positive result may offset the PITIA only, and a negative result goes into the DTI ratio. Fannie Mae B3-3.8-03
- Refinance: if the property is on Schedule E, calculate net rental income with a cash flow analysis averaged over 12 months, then subtract the PITIA; if it is not yet on the tax return, multiply the monthly gross rent by 50% and subtract the PITIA. Fannie Mae B3-3.8-03
Freddie Mac
- Rental income from a subject 1- to 4-unit investment property may be considered, and stable rental income must be reasonably expected to continue for at least the next three years. Freddie Mac 5306.1
- A second-home borrower may rent the property on a short-term basis (subject to rental-pool restrictions), but rental income from the second home may not be used as stable monthly income. Freddie Mac 5306.1 Freddie Mac 4201.12
AD Mortgage (DSCR example)
- AD Mortgage's Non-QM guide uses 75% of short-term rental value for DSCR qualification; actual rent may come from a short-term rental agreement (12 months average rental income). AD Mortgage Non-QM 6.6.13
- Estimated short-term income is allowed on purchases only, at 75% of an AirDNA Rentalizer estimate (occupancy rate 60% or greater) or 75% of a Form 1007 that includes short-term rental comparables; on refinances it is not permitted while a long-term lease is in place. AD Mortgage Non-QM 6.6.13
UWM (DSCR example)
- UWM's Investor Flex Blue guide requires short-term rental history from a third-party property management provider; a Form 1007/1025, if provided, must use long-term rentals only. UWM Investor Flex Blue
- Purchase: twelve months of payment receipt history, with DSCR based on 12-month average actual income; without that history, a Form 1007/1025 or an AirDNA Rentalizer with a minimum Submarket Score of 65 may be used. UWM Investor Flex Blue
Cake (DSCR example)
- Cake's DSCR guide uses the lowest monthly figure when several sources are used; short-term rents on a Form 1007/1025 need an appraiser occupancy/vacancy factor, otherwise a 20% vacancy factor applies. Cake DSCR 5.0, 3.2
- An AirDNA report is allowed for purchases only, covering 12 months, dated within 90 days of the Note date, with three comparables and a market score of 60 or higher. Cake DSCR 5.0, 3.2
The Freddie Mac Guide in Strata does not have a separate rule for short-term rental income; its general rental income requirements in Section 5306.1 are the closest text.
Sources
- Fannie Mae Selling Guide, September 2, 2026 version: B3-3.8-03, Rental Income from the Subject Property: Short-Term Rental (p. 398, 399, 400); B3-3.8-01, General Rental Income Information (p. 390)
- Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 5306.1(a), General eligibility requirements (p. 5306-1); 5306.1(a)(i), Rental income eligibility (p. 5306-2); 4201.12(a), Second home Mortgages: Eligibility requirements (p. 4201-9)
- AD Mortgage Non-QM Loan Eligibility Guidelines, September 24, 2026 version: 6.6.13. Debt-Service Coverage Ratio (DSCR) (p. 63, 64)
- UWM Investor Flex Blue Guidelines, September 16, 2026 version: Short-Term Rental Properties (PDF p. 15)
- Cake DSCR 5.0 Guidelines, September 30, 2026 version: 3.2 Purchase — Short-Term Rental Qualification (p. 7, 8)
Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.
