STR vs LTR Comparison
Monthly net · Annual income · Strategy winner
Avg US STR: 55–75%
Cleaning, supplies, platform fees, utilities
Tax, insurance, management
Annual vacancy allowance
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STR Net / Month
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LTR Net / Month
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Monthly Difference
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Strategy Winner
About This Calculator
The STR vs LTR Calculator compares short-term rental (Airbnb, VRBO) income against traditional long-term rental income for the same property. Both strategies have distinct advantages depending on your market, property type, and management capacity.
Short-Term Rentals (STR) typically generate 1.5–3x more gross income than long-term rentals, but with higher operating costs (cleaning, supplies, platform fees), more active management, and regulatory risk. STR works best in high-demand tourist or business travel markets.
Long-Term Rentals (LTR) offer predictable, stable income with lower management overhead. LTR is ideal for passive investors, markets with STR restrictions, or properties in areas without strong short-term demand.
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Frequently Asked Questions
Is Airbnb more profitable than long-term rental?▼
In high-demand markets (beach towns, major cities, tourist destinations), STR can earn 2–3x more than LTR. In average suburban markets without strong tourism, STR may only earn 10–30% more — often not worth the extra management effort. Location is everything.
What are the risks of short-term rental vs long-term?▼
STR risks: regulatory changes (many cities ban or restrict STR), seasonal income volatility, higher wear and tear, guest management challenges, and platform policy changes. LTR risks: difficult tenant removal, rent-controlled markets, and slower income adjustment to market changes.
What occupancy rate do I need to beat long-term rental?▼
Calculate your break-even occupancy: LTR Net ÷ (Nightly Rate × Days in Month - STR Costs/Days). If LTR pays $1,500 net and STR earns $100 net/night, you need at least 15 booked nights (50% occupancy) to match LTR. Above that, STR wins.
Can I switch between STR and LTR strategies?▼
Yes, but it requires planning. Switching from STR to LTR: remove STR furnishings and listings, give proper notice to any existing guests. LTR to STR: furnish the unit, register with local authorities, set up platforms. Some investors do seasonal STR in summer and LTR in winter.
How do STR regulations affect my decision?▼
Research local regulations before choosing STR. Many cities require permits, limit nights per year, restrict non-owner-occupied STR, or ban it entirely. Always check: city zoning laws, HOA rules, state regulations, and local STR licensing requirements. Non-compliance can result in fines.
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