Real estate · free calculator
Airbnb vs long-term rental ROI
Compare net annual income from short-term rental (Airbnb / VRBO) vs traditional long-term rental, accounting for occupancy, fees, cleaning, and management.
STR vs LTR delta
Positive = STR wins
Show the work
- STR net annual income$22
- LTR net annual income$4,800
- STR nights booked / yr237
STR vs LTR — the cleaning fee changes everything
Airbnb / VRBO operators forget two costs: cleaning subsidy (the cleaning fee you charge guests is rarely what you pay the cleaner) and the unbookable nights between stays. Net both out and short-term rental's apparent premium often shrinks to single-digit percent over LTR — for 10x the operating effort.
What the math actually shows
Default scenario: $175/night × 65% occupancy = $41,500 gross. Subtract 25% management ($10,375), $90 cleaning subsidy × ~80 stays ($7,200), and STR nets ~$24k against $28,800 LTR rev. LTR wins by $4,800/yr in this scenario before factoring in your time.
When STR actually wins
- High-tourism markets (>$250 nightly rate sustainable)
- Self-management (eliminates the 25% drag)
- Long average stays (3+ nights → cleaning amortizes)
- Strong direct booking + repeat guest list (skip platform fees)
The hidden LTR advantage
Stable cash flow → financeable. Banks underwrite LTR cash flow at 75-100% in DSCR loans. STR revenue is only counted at 50-70% (volatility discount). For investors using leverage, LTR's lower yield is offset by easier refinancing.
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