Airbnb vs Long-Term Rental Calculator

STR vs. LTR: how the numbers work

• STR gross revenue = nightly rate × (365 × occupancy %). The occupancy percentage is your booked nights as a fraction of the year, not the fraction of nights the listing is available. AirDNA and Rabbu publish market-specific occupancy benchmarks.
• Platform fee: Airbnb charges hosts 3% of the booking subtotal by default (split-fee model). Vrbo charges 5–8% (owner-fee model). Enter the fee matching your primary platform.
• Cleaning revenue: cleaning fees paid by guests pass through to you minus the platform's cut. They are included in the STR gross but are offset by your actual cleaning cost (not modelled here).
• STR management fee: full-service STR managers typically charge 15–30% of gross revenue, covering guest communication, key handoff, linen and restocking. This is higher than LTR management because the workload is higher.
• LTR effective income = monthly rent × 12 × (1 − vacancy %). LTR vacancy of 5–8% reflects turnover between tenants.
• Hidden STR costs not in this model: higher insurance (DP-3/landlord policy, sometimes a separate STR rider), furnishing and restocking, utilities (often included for STRs), and local STR permit fees. Add these to your operating expenses separately.

Worked example

A two-bedroom condo in a mid-tier market. STR: $175/night, 60% occupancy (219 booked nights), 3% platform fee, $80 cleaning fee, 3-night average stay, 25% management fee. STR gross: $38,325. Platform fee: $1,149. Cleaning revenue: $5,840. Net before management: $43,016. Management fee: $10,754. STR annual net: $32,262.

LTR: $2,400/month, 5% vacancy, 8% management. LTR gross: $28,800. Effective income: $27,360. Management fee: $2,189. LTR annual net: $25,171.

STR wins by $7,091/year, but requires active management and carries higher operating costs not shown (furnishing, utilities, insurance premium). In regulated markets where STR permits are restricted, LTR is the only viable option regardless of the income gap.

Frequently asked questions

What occupancy rate is realistic for Airbnb?

AirDNA data shows average Airbnb occupancy ranges from about 40% in weak markets to 75%+ in high-demand vacation destinations. Urban markets typically run 50–65%. Use conservative occupancy (50–55%) for underwriting; only apply 70%+ if local data supports it.

Does the STR vs. LTR comparison include taxes?

No. Both strategies generate rental income taxed at ordinary rates (or potentially capital gains on sale). STR income may be subject to occupancy/lodging taxes in addition to income tax. LTR income is not. Consult a CPA for the full tax picture.

What if my city restricts short-term rentals?

Many cities require an STR permit, limit the number of nights (e.g. 90 nights/year), or require the host to be present. In some cities (NYC, San Francisco, certain HOA communities) STRs are effectively prohibited. Verify local regulations before using STR income projections for underwriting.

Is Airbnb income more volatile than LTR income?

Yes. STR income is highly seasonal and sensitive to local competition, economic cycles and platform algorithm changes. LTR income is stable for the length of the lease. Many investors use STR income projections as "upside" and underwrite to LTR rates to ensure the deal cash flows conservatively.

Formulas last reviewed October 20, 2026. Results are estimates for educational use; not financial advice. Methodology →