Investors · US
Short-Term vs Long-Term Rental: Which Earns More?
By the Blurben team · · 7 min read
A short-term rental usually brings in more gross income than a long-term lease on the same home, but it also carries platform fees, higher management fees, furnishing, utilities and local registration rules. Whether it earns more depends on one number above all: the occupancy you can actually reach. In the worked example below, a home that rents for $1,800 a month on a lease needs about 66% occupancy as a short-term rental just to match the lease, while the U.S. average is forecast at 57.4% for 2026. Run your own break-even before you buy furniture.
The quick comparison
| Long-term rental | Short-term rental | |
|---|---|---|
| Typical stay | 12-month lease | A few nights |
| Income | Stable monthly rent | Varies by season and demand |
| Platform fee | None | 15.5% on Airbnb (most listings) |
| Management | Usually 8% to 12% of rent | Usually 20% to 30% of bookings |
| Furnishing and utilities | Usually tenant pays utilities | Owner pays for both |
| Your time | Low once the tenant is in | High unless fully managed |
| Local rules | Landlord-tenant law | Often registration, permits or bans |
What the market numbers say
Short-term occupancy. AirDNA's 2026 midyear outlook, as reported by ShortTermRentalz, forecasts U.S. short-term rental occupancy to average 57.4% this year, just above the pre-pandemic average of 57%. That is a national average. Your street, season and property type can be far above or below it.
Long-term vacancy. The Census Bureau put the national rental vacancy rate at 7.6% in the third quarter of 2026, up from 7.1% a year earlier. A long-term rental is occupied most of the year. A short-term rental at the national average sits empty about four nights in ten.
Platform fees. Airbnb says it moved from a split fee to a single 15.5% host fee in 2026, deducted from your price to calculate the payout, with exceptions in some countries.
Management. For long-term rentals, managers typically charge between 8% and 12% of the monthly rent collected, according to iPropertyManagement. AirDNA says short-term managers charge a percentage of booking revenue, typically between 20% and 30%, and co-hosts who do less charge less. Our guide to property manager fees covers the long-term side in detail.
A worked example on one home
This is a hypothetical home. The long-term rent ($1,800 a month), the nightly rate ($180), utilities, supplies and furnishing are example figures only. Taxes, insurance and the mortgage are left out because they are similar for both, although short-term rentals often need a different insurance policy, so get a quote.
Long-term (per year)
| Line | Amount |
|---|---|
| Rent, 12 x $1,800 | $21,600 |
| Vacancy, 7.6% | −$1,642 |
| Management, 10% of rent collected | −$1,996 |
| Maintenance, 5% of rent | −$1,080 |
| Net before taxes, insurance and mortgage | $16,883 |
Short-term at different occupancy levels (per year, $180 a night)
| Line | 45% | 57.4% | 65% | 70% |
|---|---|---|---|---|
| Nights booked | 164 | 210 | 237 | 255 |
| Booking revenue | $29,565 | $37,712 | $42,705 | $45,990 |
| Airbnb fee, 15.5% | −$4,583 | −$5,845 | −$6,619 | −$7,128 |
| Management, 20% | −$5,913 | −$7,542 | −$8,541 | −$9,198 |
| Maintenance, 5% | −$1,478 | −$1,886 | −$2,135 | −$2,299 |
| Utilities and internet | −$3,600 | −$3,600 | −$3,600 | −$3,600 |
| Supplies | −$1,200 | −$1,200 | −$1,200 | −$1,200 |
| Furnishing, $20,000 over 5 years | −$4,000 | −$4,000 | −$4,000 | −$4,000 |
| Net | $8,791 | $13,639 | $16,609 | $18,564 |
Cleaning is assumed to be covered by the cleaning fee guests pay. Management is at the low end of the AirDNA range, so a real manager may cost more.
The result: at the national average occupancy, this home earns about $3,200 a year less as a short-term rental, even though it brings in about $16,000 more in bookings. It only matches the lease at about 66% occupancy, roughly 240 nights a year. Above that it pulls ahead. Plug your own numbers into the same table, then use our guides on analyzing a rental property and cash-on-cash return to see the full picture with financing.
Check the rules before the numbers
Local rules can decide the question for you. New York City is a clear example. Its Short-Term Rental Registration Law, Local Law 18, requires hosts to register with the Mayor's Office of Special Enforcement and bars platforms like Airbnb, Vrbo and Booking.com from processing transactions for unregistered rentals. Rentals of 30 consecutive days or more are exempt from that registration requirement.
Before you plan a short-term rental anywhere, check:
- City or county registration, permit and tax rules for short stays
- Zoning, and whether the home must be your primary residence
- HOA or condo rules, which can ban stays under a set number of days
- Your mortgage and insurance terms for short-term use
- Whether stays of 30 days or more, often called mid-term rentals, follow different rules where you are
Which one fits you
A long-term rental tends to fit you if you want steady income, low time cost, or you are investing from far away. A short-term rental tends to fit if the location has real year-round demand, local rules allow it, you can reach well above break-even occupancy, and you are ready to run it like a small hospitality business or pay someone who will. Many owners start long-term and test short-term only after the numbers and rules are clear. If you are still choosing a property, our rental property due diligence checklist covers what to verify before you close.
Decision checklist
- Local short-term rules checked: registration, permits, zoning, HOA
- Realistic nightly rate and occupancy from listings near this address
- Platform fee, management and cleaning costs included
- Furnishing, utilities and supplies included
- Break-even occupancy calculated against a long-term lease
- Insurance quote for short-term use
- Plan for slow months and who handles guests at night
Compare both with Blurben
Blurben is an AI real-estate companion on WhatsApp and iMessage. It helps you from finding the place, through checking the numbers and the agreement, to connecting with local services like cleaners, managers and inspectors. Send it an address with the expected rent and nightly rate, and ask which option earns more there. Ask Blurben on WhatsApp or iMessage at any step.
This article is general information, not financial, legal or tax advice.
Frequently asked questions
Is a short-term rental more profitable than a long-term rental?
Sometimes. It usually brings in more gross revenue, but after fees, management, furnishing and utilities, it only earns more if occupancy is high enough. In our example, the break-even was about 66%.
What occupancy rate do short-term rentals get in the U.S.?
AirDNA's 2026 midyear outlook forecasts an average of 57.4% for the year, as reported by ShortTermRentalz. Local markets vary widely.
What fee does Airbnb charge hosts?
Airbnb says it moved to a single 15.5% host service fee in 2026, deducted from the host's payout, with exceptions in some countries.
What is a mid-term rental?
A furnished rental for about one month or longer, often to traveling workers or people between homes. In some places, such as New York City, stays of 30 consecutive days or more fall outside short-term registration rules.
This guide is general information, not legal, tax, financial or investment advice. Rules change and differ by location, so check with a licensed professional before you act.
Ask Blurben about your next property
An AI real estate companion on WhatsApp and iMessage, from finding the place through the agreement to connecting local services.