Airbnb vs Long-Term Rental: Real Numbers for Real Investors

A $300,000 house in Asheville rents for $2,200 a month long-term. Run it as an Airbnb and you might gross $4,500. Same property. Different business.

The question isn't which is "better." It's which fits your goals, your market, and your tolerance for work. Here's the breakdown with real numbers.

Revenue: STR can double or triple gross

Short-term rentals often earn 2–3x what the same property would fetch as a long-term rental. The math is simple: a 30-day tenant pays one rate. A 2-night guest pays a premium. Multiply that premium across the year and you get higher gross. But gross isn't net. STR has more expenses. More turnover. More variability. The 2–3x gross can shrink to 1.5x net—or less—after you factor everything in. Run the full P&L before you decide. A 3-bedroom in a tourist town might rent for $2,000/month on a 12-month lease. On Airbnb, that same unit could pull $150–200/night. At 60% occupancy, that's $2,700–3,600/month. At 70%, you're at $3,150–4,200.

But occupancy isn't guaranteed. STR is seasonal. Beach towns peak in summer. Ski towns in winter. You might hit 80% in July and 40% in February. Plan for 40–70% annual occupancy in most STR markets. Long-term rentals run 95%+ when you screen well.

Expenses: STR costs more

Cleaning. Every turnover. $50–150 per clean depending on size and market. At 20 turnovers a month, that's $1,000–3,000. LTR: one tenant, one move-in, one move-out. Cleaning is rare.

Supplies. Toiletries, linens, coffee, soap. STR guests expect it. Budget $15–30 per stay. LTR tenants bring their own.

Insurance. STR-specific policies cost more. You're running a commercial-ish operation. Expect 20–40% higher premiums than a standard landlord policy.

Platform fees. Airbnb charges hosts 3%. Vrbo varies. If you use a channel manager or property manager who lists on multiple platforms, fees can reach 10–15% of revenue.

Furnishing. STRs need to look like a hotel. Furniture, decor, kitchen gear. $5,000–15,000 upfront for a 3-bedroom. LTR can be unfurnished or minimally furnished.

Property management. If you outsource STR management, expect 15–25%. LTR management runs 8–12%. Big spread.

The 70% rule (and why it matters)

STR advocates often quote "2–3x LTR revenue." That's gross. Net is different. A common rule of thumb: STR net income runs 50–70% of gross after expenses. So if you gross $4,500/month, expect $2,250–3,150 in net. LTR might net 45–55% of gross—lower gross, but fewer expenses. The gap narrows when you run the full numbers. Don't assume STR automatically wins. It depends on your market, your occupancy, and your cost structure.

Time: STR is a part-time job

Running an STR yourself: 15–20 hours a month. Coordinating cleaners, messaging guests, handling issues, restocking supplies, managing reviews. Turnover days are busy. A long-term rental? 2–5 hours a month when things are smooth. Lease renewal once a year. Maintenance when it comes up. That's it.

If you want passive income, LTR wins. If you're willing to treat STR as an active business, the numbers can work.

A concrete example: $300K in a mid-market city

Long-term rental. Purchase: $300,000. Rent: $2,200/month. Expenses (taxes, insurance, maintenance, vacancy, property management): ~$1,100. NOI: $1,100/month. Cash flow after mortgage depends on your financing. Cap rate (before debt): $13,200 / $300,000 = 4.4%. Predictable. Boring. Stable.

Short-term rental. Same property. Gross: $4,500/month at 60% occupancy ($150/night × 30 × 0.6). Cleaning: $1,200. Supplies: $300. Insurance: $250. Platform fees (5%): $225. Utilities (higher with turnover): $350. Maintenance (more wear): $200. Furnishing amortized: $150. Total expenses: ~$2,675. Net: ~$1,825/month. Higher than LTR. But you're working 15–20 hours. And occupancy can drop. A slow season or a regulatory change—see STR regulations by city—and you're exposed.

When STR wins

Tourist markets. Beach, ski, lake, national parks. Demand spikes. Rates hold. STR makes sense.

College towns. Parents visiting. Graduation. Football weekends. Events drive premium pricing.

Unique properties. A cabin. A waterfront cottage. Something that commands a premium per night. LTR underutilizes it. A generic 3-bedroom in the suburbs might rent for $2,000/month either way. But a lakefront A-frame? That's $200/night in season. STR captures that. LTR gets you $2,500 and leaves money on the table.

You want the upside. You're willing to work. You like the variability. You can absorb a bad quarter.

When LTR wins

Stable cash flow. You need predictable income. A mortgage payment due every month. STR's seasonality is a problem.

Passive investors. You don't want to coordinate cleaners or answer guest messages at 11 p.m. LTR is set-it-and-forget-it (mostly).

Regulatory risk. Your city is cracking down on STRs. Or your HOA bans them. LTR is the only option. Check before you buy.

Scalability. One STR is manageable. Five is a job. Ten is a company. LTR scales with property management. You add units without adding hours proportionally. A 20-door LTR portfolio might take 10 hours a month with a good manager. A 20-door STR portfolio? You're running a hospitality business. Different skill set. Different time commitment. Know which game you're playing before you scale.

Regulation risk: the wild card

STR faces something LTR doesn't: the city can change the rules. NYC did it. Denver did it. More cities will. When you buy an STR, you're taking regulatory risk. A ban or a 120-day cap can turn a profitable STR into a break-even long-term rental overnight. Check our STR regulations guide before you buy. And ask: what happens to my numbers if the rules tighten? If the answer is "I'm stuck," think twice.

Scalability and your time

One STR is manageable. You coordinate cleaners, handle guests, manage the calendar. Five STRs? You're working 75–100 hours a month. Ten? You need a team or a management company. LTR scales differently. A property manager handles 50–100 doors. You add units without adding hours. If your goal is a portfolio, LTR is easier to scale. If your goal is one or two high-performing properties and you're willing to run them yourself, STR can work.

The bottom line

STR can deliver higher returns. It also demands more time, carries more expense, and faces more regulatory risk. LTR is lower return, lower effort, lower risk. Match the strategy to your goals. And run the numbers for your specific property and market. A spreadsheet beats a gut feeling every time. The same $300K house in Asheville might crush it as an STR. The same house in a suburb with no tourism might barely beat LTR after expenses. Location matters. Run the numbers.

For the full STR playbook—including regulations, permits, and when to choose STR over LTR—see the STR & Airbnb guide. The right choice depends on your market, your goals, and your willingness to work. Run the numbers. Talk to local STR and LTR investors. Then decide. And be ready to pivot if the market or the rules change. Some STR markets have softened as supply has grown. Others have tightened with regulation. The same property that crushed it in 2022 might barely beat LTR in 2025. Run fresh numbers. Stay flexible. The best strategy is the one that fits your current reality, not last year's. And remember: you can always convert. An LTR can become an STR if the rules allow and the numbers work. An STR can become an LTR if the city cracks down. The property is the asset. The rental strategy is the tactic. Choose the tactic that fits the market and your goals. Then execute. And one more thing: don't let the higher STR revenue blind you to the work. $4,500 a month sounds great until you're answering guest messages at midnight and coordinating three turnovers in a week. If you want passive income, LTR is the play. If you're willing to run a business, STR can deliver. Be honest about which camp you're in. The investors who struggle with STR are often the ones who wanted passive income but got an active business. The ones who thrive are the ones who knew what they were signing up for. Match the strategy to your lifestyle. Your future self will thank you. And when in doubt, run both scenarios. Model the property as STR and as LTR. See which pencils better. See which fits your life. The numbers will tell you. Then you decide. The right answer isn't always STR. Sometimes LTR is the smarter play. Sometimes it's a different market entirely. Let the numbers guide you. And revisit them periodically. Markets shift. Regulations change. What worked last year might not work next year. Stay curious. Stay flexible. The best investors adapt. STR or LTR—choose based on today's reality, not yesterday's assumptions. Run the numbers. Then decide.