Side by side
| Long-term rental (LTR) | Short-term rental (STR) | |
|---|---|---|
| Income used | Lease or appraiser's market rent | Booking history or STR income analysis, per program |
| Program availability | Broad | Narrower; some lenders exclude STR |
| Local rules | Rental licensing where required | STR licensing, caps, primary-residence rules in some counties |
| Seasonality | Steady monthly rent | Peaks and slow seasons (Ocean City, Deep Creek) |
| Furnishing and management | Unfurnished, lower turnover | Furnished, higher operating effort |
| Maryland fit | Most of the state | Resort areas where STRs are lawful and licensed |
Where Maryland STRs are and are not an option
Maryland STR rules are local. Montgomery County's short-term rental license generally requires proof that the home is the host's primary residence, which rules out a DSCR-financed investment property. Other jurisdictions, including Baltimore City, Anne Arundel County and Annapolis, Frederick and others, have their own licensing and limits. Resort areas such as Ocean City and Garrett County (Deep Creek Lake) are more established STR markets, with licensing and tax collection of their own.
Lenders count STR income only from a lawful use. Before you plan a nightly-rental strategy, confirm that the property can be licensed. See short-term rental DSCR in Maryland for more.
Running both scenarios
Even if you plan to operate a short-term rental, check whether the property works as a long-term rental. A file that clears the ratio on market rent has a fallback if STR rules change or bookings fall. Use the DSCR calculator with the market rent, then with a conservative monthly average of STR income, and compare. Seasonal markets such as the Eastern Shore and Western Maryland deserve especially conservative estimates.
Questions Maryland investors ask
Can I use short-term rental income for a Maryland DSCR loan?
Some programs accept it, using a booking history or an STR income analysis, but only where the STR is lawful and licensed. Many Maryland files use long-term market rent instead.
Can I finance an investor-only Airbnb in Montgomery County?
Generally not. The county's STR license requires the home to be the host's primary residence, and DSCR loans here are for non-owner-occupied property only.