Fannie Mae just released some significant updates to its rental income guidelines, and there are a few changes that real estate investors should know about.

The updates were announced September 2, 2026. Lenders can begin implementing them immediately, with mandatory implementation by November 1, 2026

Here are two of the biggest changes:

 Converting Your Current Primary Into a Rental

This is a big one

If you're buying a new primary residence and converting your current home into a rental, the new guidelines do not require you to have a tenant or executed lease to establish the rental income. In fact, a lease is not permitted to establish the rent under the new departing-residence guideline.

Instead, market rent can be established through:

✓ Form 1007
✓ An appraisal that includes market rents
✓ Market analysis tools such as Zillow, Redfin or MLS, using at least 3 comparable rentals

Generally, 75% of the supported market rent can be used to offset the property's PITIA.

This could make it significantly easier to qualify for your next primary residence without having to find a tenant before you close.

 New Short-Term Rental (STR) Guidelines

Fannie Mae also created a dedicated framework for short-term rental income on eligible 1-unit investment properties.

Projected STR income can potentially be established using a Form 1007 based on long-term rents OR qualifying STR market data using 3 comparable STR properties.

For qualifying STR market data, Fannie applies a more conservative 50% factor to the gross STR income, rather than the traditional 75% rental factor.

There are specific requirements around the STR data, legal STR use and documentation, so this isn't as simple as pulling an Airbnb or AirDNA estimate. But having an actual conventional framework for projected STR income is a pretty noteworthy change.

Individual lender implementation and overlays will still matter, especially while these guidelines are being rolled out.  We will see if Freddie Mac will copy Fannie with these guidelines. 

What do you guys think? Do you see these changes making conventional financing more useful for investors, especially people converting their current home to a rental or buying STRs?