DSCR Loans in Hollywood, FL: Vacation Rental Rules, Taxes and the Rent Math

Short answer

Yes, investors may qualify for a DSCR loan on a Hollywood rental using the property's rent instead of personal income: at the Q3 2026 median house price of $550,000 and HUD's $3,216 benchmark rent for a 3-bedroom, taxes and insurance take about $1,425 of that rent each month (example only). Short-term income only counts if the unit holds a City of Hollywood Vacation Rental License, which needs a state DBPR license, tax accounts and a city inspection first. DSCR loans are business-purpose loans for non-owner-occupied property, subject to credit approval and property eligibility.

DSCR in one line, and the Hollywood market

The full requirements (ratio, down payment, credit, reserves, prepayment terms) are in our Florida DSCR requirements guide. In short, DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance and association dues). Many lenders look for 1.0 or higher, and a higher ratio can improve pricing.

DSCR is a business-purpose loan. You sign a business-purpose and occupancy statement, and you cannot live in the property. For a home you will live in, start with our Hollywood mortgage broker page or first-time buyer help in Hollywood.

Florida Realtors data published by MIAMI REALTORS for the City of Hollywood, third quarter of 2026, as of November 2026:

• Houses: 279 sales at a median of $550,000 (down 0.9% from a year earlier), a median of 52 days to contract and 5.1 months of supply. 61 sales were cash.
• Townhouses and condos: 222 sales at a median of $269,500 (down 17.1%), 85 days to contract and 13.5 months of supply. 147 sales were cash.

Two markets. Most house buyers finance, so a DSCR pre-approval puts you on equal footing. Condos sit at 13.5 months of supply with two of three sales in cash: room to negotiate, if a DSCR lender will finance the building.

Hollywood's Vacation Rental License: what the lender will ask for

Hollywood requires a city Vacation Rental License for any dwelling rented more than 3 times a year for periods of less than 30 days. State law (Florida Statutes 509.032) does not let the city ban vacation rentals, so it licenses and inspects them instead. As of November 2026, per hollywoodfl.org:

• Before you apply: an active Transient Public Lodging Establishment license from the Florida DBPR, a Florida Department of Revenue certificate of registration, a Broward County Tax Collector account for Tourist Development Tax, and current local business tax receipts from both Broward County and the City of Hollywood.
• Inspection first. The city inspects all areas of the property before the license is issued and again before each renewal. A locked or refused area is a failed inspection, and fees are forfeited. Unpermitted work gets the property posted unsafe until it is permitted and passed.
• One license per unit. Each dwelling unit needs its own license. Licenses expire every September 30.
• Occupancy cap: overnight guests are limited to 2 times the number of bedrooms; daytime occupancy can reach 1.5 times that, and four children up to age 4 do not count. A 3-bedroom is capped at 6 overnight guests, which limits what you can charge.
• Operating rules: a noise detection device with data kept 180 days, and a responsible contact who gets about 30 minutes to resolve most complaints from the city's 24/7 hotline.
• Fees and fines: the city's schedule lists registration and renewal charges from $45 to $850 depending on owner occupancy, inspection fees that rise above 1,500 square feet, and administrative citations of up to $5,000.

Condos: the code bars a license for a condo, co-op or apartment unit if the building has open violations or has not passed the Broward County Building Safety Inspection Program where it applies. The association can also ban short stays on its own. On a condo, confirm both before you count on nightly income.

Guest taxes and Broward property taxes

Tourist Development Tax. Broward County charges 6% on rent for stays of six months or less, including condos and single-family homes, as of November 2026. Whoever receives the rent charges it, collects it and files it; returns are due on the 1st and late after the 20th, with a minimum $50 penalty. Add Florida's 6% sales tax and Broward's 1% surtax (7% total for 2026, per the Florida Department of Revenue) and a short stay carries 13% in taxes on top of rent. The guest pays these, so they are not part of your DSCR, but clean filings are the easiest proof that short-term income is real and legal.

Property taxes. The Broward County Property Appraiser lists 2026 proposed operating millage for a Hollywood address of 7.4293 (city), 5.6658 (county), 6.2940 (school board, two levies), 0.4500 (Children's Services Council), 0.2301 (South Florida Water Management District), 0.0805 (South Broward Hospital District) and 0.0270 (Florida Inland Navigation District). That totals about 20.18 mills, or roughly 2.0% of taxable value, before voted debt levies.

There is no homestead on a rental. Under Florida Statutes 193.1554, a rental of nine or fewer units is reassessed at just value on January 1 after you buy, then non-school taxes are capped at 10% a year; school levies are not capped. Underwrite taxes on your price, not the seller's bill.

Flood zones and insurance east of US 1

Insurance is the number most likely to break a Hollywood DSCR deal. Per the city's flood page, as of November 2026, over 11,000 Hollywood properties are in a FEMA Special Flood Hazard Area, and many properties east of US 1 sit in floodplains. In high-risk A and V zones, flood insurance is mandatory for federally backed mortgages, and DSCR lenders typically require it too.

• Discount: Hollywood is a Community Rating System Class 6 community, which gives NFIP policyholders a 20% discount on flood premiums.
• Renovation limit: work costing more than 50% of the building's value can trigger current flood elevation rules. That matters for a value-add plan, so ask the city's floodplain administrator (954.921.3930, free site visits) before you budget a big remodel.

Get real wind, flood and HO-6 quotes during the inspection period. See what a flood zone means for your loan.

Example only: DSCR math with Hollywood numbers

Example only, not a quote or an approval. Prices are the city's Q3 2026 medians. Rents are HUD's FY2026 Fair Market Rents for the Fort Lauderdale HMFA (Broward County), used only as a long-term benchmark. Taxes use the 20.18 mills above on the full price. Insurance and HOA dues are assumptions.

House at $550,000, 3 bedrooms, rent $3,216:

• Taxes about $11,097 a year, or $925 a month. Assumed insurance: $500 a month. Taxes plus insurance: $1,425.
• At a 1.0 DSCR, PITIA can be $3,216, leaving about $1,791 a month for principal and interest.
• At a 1.25 DSCR, PITIA can be $2,573, leaving about $1,148.

Condo at $269,500, 2 bedrooms, rent $2,333:

• Taxes about $5,438 a year, or $453 a month. Assumed HOA dues $700 and HO-6 policy $125 a month. Total: $1,278.
• At 1.0, about $1,055 a month for principal and interest. At 1.25, about $588.

The house has more room because HUD's 3-bedroom benchmark is high relative to the median price. Condo dues and special assessments eat the margin fast. Rates vary daily; call for today's pricing to turn the principal-and-interest room into a loan amount.

How we work a Hollywood DSCR file

QMS Lending is an independent mortgage broker in Miami, FL (NMLS #1781090), founded in 2018, with access to 100+ lenders, including DSCR lenders with different rules on short-term income, condos and LLC vesting. Our order of work:

• Check the address: flood zone, open code violations, the condo's inspection status and rental rules, and whether the city license is realistic.
• Build PITIA with taxes on your price, real wind, flood and HO-6 quotes, and full dues.
• Run the ratio on long-term rent first, then on documented short-term rent where the license and the association allow it.

Need to renovate first? A bridge loan can come first, with a DSCR refinance after. Comparing markets? See DSCR loans in Fort Lauderdale or DSCR loans in West Palm Beach. Call 305-425-1990 in English or Spanish. Michael Fernandez, NMLS #1491775, President; 4.9 stars across 200+ Google reviews. Business-purpose loans only. Subject to credit approval and property eligibility. Equal Housing Opportunity.