Usually, yes—but how much rental income can be used depends on the loan program, the type of property, and how the income is documented.

For established rental properties, lenders will often review your tax returns, lease agreements, and other supporting documentation to determine the amount of rental income that can be counted. In some cases, not all of the rent received can be used for qualification because lenders may apply vacancy, maintenance, or expense adjustments.

For newly acquired rental properties, the lender may rely on current lease agreements, market rent schedules, or appraisal data depending on the loan program and underwriting guidelines.

The calculation can vary significantly between Conventional, FHA, VA, USDA, and Non-QM loan programs. Because of these differences, there is no single percentage that applies to every situation.

If you own rental properties and are applying for a mortgage, the best approach is to have your loan officer review the complete scenario. A small change in documentation or loan program selection can have a significant impact on how much rental income is available to offset your mortgage obligations.