Airbnb vs long-term rental: how the comparison works
The calculator runs two operating statements on one property and subtracts the same mortgage from both. Costs that do not depend on how you rent (taxes, insurance, HOA, the loan) appear in both columns; everything else is specific to each strategy.
| Long-term lease | Short-term rental | |
|---|---|---|
| Income | Monthly rent | Nightly rate × booked nights + cleaning fees |
| Lost income | Vacancy between tenants | Unbooked nights; platform fees |
| Utilities | Often paid by the tenant | Paid by you, plus internet and streaming |
| Furnishing | None | Furniture, linens, kitchen, smart lock |
| Your time | Low, or a management fee | Messages, pricing, turnovers, reviews |
| Rules | Landlord-tenant law | Local short-term rental permits and limits |
The occupancy where they tie
The break-even occupancy is the share of nights the short-term rental must book just to match the lease's cash flow. Here it is 56.8%. If similar listings nearby book well above that all year, short-term renting may pay; if they only reach it in peak season, the lease probably wins after the extra work.
Management changes the answer a lot. With a co-host taking 20% of revenue after fees, the short-term column falls from $221 to −$473 a month and the tie point rises to 76.0%.
Furnishing payback
Furnishing is a one-time cost the lease does not need. The results divide it by the extra annual cash flow of the short-term option to show how many years it takes to earn back. If the short-term rental is not ahead, it never pays back.
Tax differences to know
Under U.S. passive-activity rules, a property whose average guest stay is seven days or less is generally not treated as a "rental activity", which changes how losses can be used.[1] If you use the home yourself for part of the year, expenses must be divided between rental and personal use.[2] These rules are why the same home can produce different after-tax results under the two strategies; ask a tax professional before relying on either.
Lease vacancy matters too: the U.S. national rental vacancy rate was 7.6% in the third quarter of 2026, though your local market is what counts.[3] Airbnb's own fee pages explain which fee structure applies to a listing.[4]
Go deeperFor a full short-term analysis with purchase price, loan and break-even nightly rate, use the Airbnb calculator. For the lease side with cap rate and cash-on-cash, use the rental property calculator. For the rent alone, the rental income calculator shows taxable income as well.
Frequently asked questions
Short-term vs long-term rental: which is more profitable?
Sometimes. Short-term rentals usually earn more gross income but cost more to run and take more time. The answer depends on local demand, occupancy, rules and whether you pay for management.
What occupancy does an Airbnb need to beat a long-term rental?
The tie point shown in the results. It depends on your rent, nightly rate, fees and costs, so it differs for every property.
Should I include my own time?
Yes, at least as a check. Enter a management percentage equal to what a co-host would charge and see whether the short-term rental still comes out ahead.