# Can You Use Rental Income to Qualify for a Mortgage? New Fannie Mae Rules

By Brian Martucci (@brianmartucci) · Published 2026-11-03

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# **Can You Use Rental Income to Qualify for a Mortgage?**

**Yes, rental income can help you qualify for a mortgage—but the amount a lender can count may be less than you expect.**

Fannie Mae’s updated guidelines change how lenders document and calculate rental income, particularly for borrowers converting their current home into a rental, becoming landlords or buying investment properties.

The changes apply to loan applications dated **December 1, 2026, or later**, although lenders may adopt them sooner.

## **Converting Your Current Home Into a Rental**

If you buy a new primary residence and rent out the home you are leaving, Fannie Mae calls that property a **departing residence**.

Under the updated rules, a signed lease cannot establish its qualifying rent. Instead, the lender needs independent market-rent support, such as:

-   An appraisal that includes market rent
    
-   A Single-Family Comparable Rent Schedule, or Form 1007
    
-   A market analysis using at least three comparable rentals
    

For a single-unit departing residence, the lender generally uses **75% of supported monthly rent**, then subtracts PITIA: principal, interest, taxes, insurance and applicable association dues.

The rent can offset the property’s housing payment, but any surplus cannot increase your qualifying income. A shortfall counts toward your monthly debts.

Borrowers with less than 12 months of property-management experience must also have **six months of reserves for the departing residence**, in addition to applicable reserves for multiple financed properties.

## **First-Time Landlords and Recently Purchased Rentals**

Borrowers generally need **12 months of documented property-management experience** before positive rental income can increase qualifying income. With less experience, eligible rent generally can only offset the property’s housing payment.

Separate restrictions apply to investment properties purchased within **45 days of the new mortgage application**. A lease cannot establish qualifying rent, independent market-rent documentation is required, and rental income can only offset that property’s housing payment.

Even when a lease is allowed, lenders may require proof of rent deposits and, for certain new leases, a minimum six-month term.

## **Using Airbnb or Vrbo Income**

The updated rules allow qualifying short-term rental income from eligible **one-unit investment properties** that meet local licensing and registration requirements. Short-term rental income from an accessory dwelling unit is ineligible under this provision.

For purchases, lenders generally use **50% of supported gross monthly rent** before subtracting PITIA. The income can offset the property’s housing payment, but any surplus cannot increase qualifying income.

Confirm your lender offers this option before relying on projected rental income.

## **Plan Before You Buy**

Before signing a purchase contract, have your lender review your tax returns, rental history, leases, property expenses and available reserves.

Whether you are buying in Washington DC, Maryland, Virginia or beyond, reviewing rental income early can help establish a realistic purchase budget.

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## **Frequently Asked Questions**

### **Can I use rental income if I have never been a landlord?**

Yes, subject to eligibility and documentation requirements. With less than 12 months of property-management experience, eligible rent generally can only offset the property’s housing payment.

### **Is a signed lease enough to qualify?**

Not always. Departing residences and investment properties purchased within 45 days of the new application require independent market-rent support. Other situations may require evidence of rent payments.

### **Will my lender count all the rent?**

Generally, no. Many long-term rental calculations start with 75% of supported gross rent. Eligible short-term rental purchases generally use 50%. Tax-return-based calculations can differ.

### **When do the updated rules take effect?**

They are required for Fannie Mae loan applications dated December 1, 2026, or later. Lenders may implement them sooner.