Short-Term vs. Long-Term Rental Calculator
Compare annual net income from STR (Airbnb/VRBO) versus traditional long-term rental.
🏖️ Short-Term Rental (STR)
🏠 Long-Term Rental (LTR)
Annual Net Income Comparison
This comparison does not include shared fixed costs (mortgage, insurance, property tax) since those are the same for both strategies. Enter only the costs that differ between STR and LTR.
STR vs. LTR: Which Is Right for Your Property?
Short-term rentals typically generate higher gross revenue than long-term rentals in vacation markets, but they also come with higher operating costs: cleaning fees, platform fees, supplies, furnishings, and more active management. Long-term rentals trade higher revenue potential for stability, lower operational overhead, and predictable cash flow.
The right answer depends heavily on your market, your time availability, local STR regulations, and your property's characteristics. A beachfront condo in a strong vacation market will almost always outperform as an STR. An inland suburban home in a non-tourist area may do better as a traditional rental.
Factors This Calculator Does Not Include
This calculator compares income and operating costs. Several important factors are not captured here and should be considered separately:
- Furnishing costs — STRs require full furnishing, typically $10,000–$40,000+ upfront depending on property size.
- Local STR regulations — Many markets require permits, cap the number of rental nights, or restrict STRs in certain zones.
- Tax treatment differences — STR income and LTR income are treated differently under IRS rules, particularly around the 14-day rule and passive activity loss limits.
- Wear and tear — Short-term rentals typically experience higher wear and maintenance costs over time.