DSCR Loans in Miami Beach: What Local Investors Need to Know

Short answer

Yes, you may qualify for a DSCR loan on a Miami Beach rental, but the rent the lender counts depends on local rules: the City of Miami Beach prohibits rentals of less than six months and one day in all single-family homes and in many multifamily buildings, so most deals must qualify on a long-term lease. Condo approval, flood insurance and HOA dues then decide whether the ratio works. DSCR loans are business-purpose loans for non-owner-occupied investment property, subject to credit approval.

Short-term rentals in Miami Beach: the rule that shapes your DSCR

Our Miami DSCR guide explains the formula and the county rules for unincorporated Miami-Dade. Miami Beach is its own city with its own, stricter rules. As of October 2026, the City of Miami Beach says:

• Rentals of less than six months and one day are prohibited in all single-family homes and in many multifamily buildings in certain zoning districts (Resiliency Code 7.5.4.13 and 7.5.4.11; Land Development Regulations Sec. 142-1111).
• Short-term rentals are allowed only at properties shown on the city's Short-Term Rental Zoning Map and authorized list. The list has about 434 addresses, many on Collins Avenue, Harding Avenue, Washington Avenue, Indian Creek Drive and Ocean Drive.
• An approved operator needs a Vacation/Short-Term Rental Business Tax Receipt and a Resort Tax account, and must show both numbers in every listing.
• Condo units also need a letter from the condo association, and only the unit owner, not a tenant, can get the Business Tax Receipt for transient rentals.

What this means for financing: if the address is not on the city's approved list, plan on a 12-month (or longer) lease. Most DSCR lenders will then use the lower of the lease or the appraiser's market rent. If the address is approved and the building allows it, some lenders may consider short-term rental income, usually with more down payment and documented history.

Before you write an offer, look up the address in the city's legal rentals lookup and read the condo or HOA rules. We check both before a lender counts any short-term income.

Miami Beach is a condo market, and condo rules decide the loan

As of October 2026, MIAMI REALTORS data for Q2 2026 shows 467 condo and townhouse sales in the City of Miami Beach at a median of $521,688, versus only 83 single-family sales at a median of $5,275,000. For most investors, a Miami Beach DSCR loan is a condo loan.

DSCR lenders review the building, not only the unit. Many follow agency-style project tests. Fannie Mae's Selling Guide, for example, treats these as ineligible or red flags:

• A project operated as a hotel or motel, or one that is primarily transient in nature.
• 75% or more of the units owned as investment or second homes (extra review).
• One owner holding more than 20% of the units in a project of 21 or more units.
• Commercial space over 35% of the building.
• Unfunded critical repairs over $10,000 per unit due within 12 months.

Older oceanfront and Collins Avenue buildings often trip one of these. When a building fails, the deal may still work as a non-warrantable condo or a condotel loan, which usually means more down payment. Ask the association for the condo questionnaire, the latest milestone inspection and SIRS, and any open special assessments before you commit.

Flood insurance, taxes and resort tax: the Miami Beach costs in your PITIA

A DSCR ratio is rent divided by PITIA. In Miami Beach, three local costs push PITIA up:

• Flood insurance. As of October 2026, the city says 93% of all buildings are in FEMA's Special Flood Hazard Area, where flood insurance is required on federally backed mortgages. Most DSCR lenders require it too. The city's Community Rating System participation gives most NFIP policyholders a 25% discount. Check the flood zone and the condo master policy early.
• Property taxes. The 2025 adopted total millage for Miami Beach is 18.7601 mills (19.4906 in the area with an extra district levy), per the Miami-Dade Property Appraiser. On a unit assessed near the $521,688 median, 18.7601 mills is roughly $9,790 a year. An investment unit gets no homestead exemption, so expect the full rate.
• HOA dues. Oceanfront buildings carry high dues, and assessments for repairs after milestone inspections can raise them. The lender counts the full monthly dues.

If the unit is an approved short-term rental, the city charges a 4% resort tax on transient rentals of six months or less, as of October 2026. That is collected from guests and remitted by you, so it does not enter PITIA, but it does affect your real cash flow.

Rates vary daily; call for today's pricing. We run the ratio with real insurance quotes, not estimates, before you sign.

A DSCR loan is a business-purpose loan

DSCR loans are for non-owner-occupied investment property. You sign a business-purpose and occupancy statement, and many lenders prefer or require that you close in an LLC. Under the CFPB's Regulation Z, credit extended primarily for a business purpose is exempt from many consumer mortgage rules, so read the note carefully, including any prepayment penalty.

If you plan to live in the Miami Beach unit, even part of the year, a DSCR loan is the wrong tool. Look at a second-home conventional loan, bank statement loans or a jumbo loan instead. Foreign buyers without US credit can look at foreign national loans.

How we work a Miami Beach DSCR file

QMS Lending is an independent mortgage broker in the Miami area with access to 100+ lenders, so we can match the building, not just the borrower. Our order of work:

• Confirm the address status with the city (long-term only, or approved short-term).
• Pull the condo questionnaire, budget, reserves and inspection status.
• Get real flood, wind and HO-6 quotes, plus taxes and dues.
• Run the ratio on long-term rent first, then short-term rent if allowed.
• Send the file to lenders that accept the building type.

For general requirements (credit, reserves, LTV), see DSCR loan requirements in Florida. For the city overview, see our Miami Beach mortgage broker page. Call 305-425-1990 in English or Spanish.