How to know if MTR market is saturated
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Claudia BucheggerPro Member
Real Estate Agent · Columbus, OH · Member since 2023 · 17 posts · 33 votesA lot of hosts who post listings on Furnished Finder also post on Airbnb and end up getting most of their bookings through Airbnb but then they never update the status of the listing on Furnished Finder from vacant to occupied. I would not base an opinion solely on what you see on Furnished Finder. If you are close to several hospitals, you will likely have success with MTR because traveling nurses love 1/1 units from my experience.
Every city is different, but I have had tremendous success with MTR in Columbus, OH. It seems that MTR is much less saturated than short-term rentals and a ton of investors still are not familiar with MTR, which means less competition. I have spoken to very successful investors and a lot of them have never heard of the MTR strategy. I would say go for it, the cash flow is amazing and the competition is much less than doing STR.
Doing research, California has the highest demand for travel nurses in the U.S., largely due to its large population and mandatory nurse-to-patient staffing ratios. California is currently experiencing a significant shortage of travel nurses, which means there should be an increase in the next decade. This means there should always be demand for MTR since the number of travel nurses should grow in CA. Hope this helps, good luck!
20 Replies
- 1yClaudia BucheggerPro MemberReal Estate Agent · Columbus, OH · Member since 2023 · 17 posts · 33 votes
A lot of hosts who post listings on Furnished Finder also post on Airbnb and end up getting most of their bookings through Airbnb but then they never update the status of the listing on Furnished Finder from vacant to occupied. I would not base an opinion solely on what you see on Furnished Finder. If you are close to several hospitals, you will likely have success with MTR because traveling nurses love 1/1 units from my experience.
Every city is different, but I have had tremendous success with MTR in Columbus, OH. It seems that MTR is much less saturated than short-term rentals and a ton of investors still are not familiar with MTR, which means less competition. I have spoken to very successful investors and a lot of them have never heard of the MTR strategy. I would say go for it, the cash flow is amazing and the competition is much less than doing STR.
Doing research, California has the highest demand for travel nurses in the U.S., largely due to its large population and mandatory nurse-to-patient staffing ratios. California is currently experiencing a significant shortage of travel nurses, which means there should be an increase in the next decade. This means there should always be demand for MTR since the number of travel nurses should grow in CA. Hope this helps, good luck!
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes1yCheck vacancy rates for local long term stay hotels.
Quote from @Sherry T.:
Hello all, I recently purchased a small multifamily with six 1/1 units, located in Midtown Sacramento. It is fully rented out to long term tenants. This is a nice urban area with tree lined streets and very close to the CA capitol and several hospitals.
I'm considering turning one unit into a furnished rental to potentially increase cash flow.
However looking on Furnished Finder, there appear to be around 100 MTR listings in a 2 mile radius with around 40% currently vacant. Is this a clear indicator that the market is saturated?
- Real Estate Broker · Modesto, CA · Member since 2023 · 192 posts · 77 votes1y
Quote from @Sherry T.:
Hello all, I recently purchased a small multifamily with six 1/1 units, located in Midtown Sacramento. It is fully rented out to long term tenants. This is a nice urban area with tree lined streets and very close to the CA capitol and several hospitals.
I'm considering turning one unit into a furnished rental to potentially increase cash flow.
However looking on Furnished Finder, there appear to be around 100 MTR listings in a 2 mile radius with around 40% currently vacant. Is this a clear indicator that the market is saturated?
Saturation doesn't necessarily matter and vacancy factor can't be the only indicator to determine market/strategy viability. In hospitality, you can decrease vacancy by being a super host or offering a unique product. This seems like a financial question - you have 6 units, 40% vacancy means 3 are Leased for MTR consistently. If the income that can generate is greater than what you could achieve with LTR, seems like a good move. Another thought would be to Lease 3 as LTR and 3 as MTR, depends on layout of building. Could you combine 2 units to create two 2/2 units for MTR at a higher rate or all units combined for three 2/2 units. Is vacancy based on entire homes, 2/1, 1/1, studio's, guest house - need to compare apples to apples on vacancy factor and amenities
- Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes1y
This is a great question! I'll say this. I don't think the mid-term rental space will ever be saturated because if you put in the reps to network with the right people and get businesses, insurance companies, etc, to book directly with you, you will stand out more than the others. This is also the work that most MTR operators don't do. Most people will post their listing on Furnished Finder or Airbnb, sit it, forget it, and expect reservations to roll in. This works, however, I have my VA scouring LinkedIn daily, finding relocation specialists, insurance adjusters, etc, to get more housing leads. Most of my mid-term renters don't even come from the OTAs. You can use the OTAs to see how many listings are in your area, but they aren't a true indicator of the actual demand. List your place, use the OTAs to find out who's coming to the area, and start networking to land the bigger MTR clientele.
- 1yBrooke RoundyPro MemberInvestor · Member since 2021 · 45 posts · 41 votes
I used to live in a studio in a small multifamily in midtown Sacramento on Capital Avenue, your post brings back memories. This is an awesome location hence the many Furnished Finder listings. I agree with the comment about not updating Furnished Finder listing once occupied because I’m guilty of it myself. Given the location and high demand from nurses and other professionals traveling for work near or at the capital I say test it out on FF, Airbnb, Facebook groups, etc. Good luck!
- 1yMiguel Del MazoPro MemberNortheast Georgia · Member since 2023 · 140 posts · 170 votes
As you naturally undergo a tenant turnover, consider switching one LTR to an MTR. Furnish it well with contractor grade furniture, give it a little reasonably-priced flair and get great pictures. I bet you will be surprised at how quickly it fills and for how long.
If you find it to be profitable and worth your time, you can switch other units to MTR over time. Having all the unit at the same address will also mean that you probably won't need 6 individual FF listings, if you are clever with maintaining your calendar. Thanks everyone for the generous advice and actionable steps I can take!
@Claudia Buchegger, I appreciate your insight into the traveling nurse markets. It’s interesting to know that FF is not reflective of true vacancy.
@Ken M. do you have a recommended method to look up this info? I quickly checked a big chain and it wasn’t very clear what the vacancy was.
@Nick Maugeri You’re right, the financials have to make sense. I think I can reasonably get $1000 more per month with MTR but would incur $400 more utility expense per month. I’m a long distance investor so I’d need to figure out the logistics as well as my current PM only manages LTR. I’d probably first try out self managing with a single unit when there is a natural turnover, as @Miguel Del Mazo suggested.- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes1yYour question: "do you have a recommended method to look up this info?"
Quote from @Sherry T.:
Thanks everyone for the generous advice and actionable steps I can take!
@Claudia Buchegger, I appreciate your insight into the traveling nurse markets. It’s interesting to know that FF is not reflective of true vacancy.
@Ken M. do you have a recommended method to look up this info? I quickly checked a big chain and it wasn’t very clear what the vacancy was.
@Nick Maugeri You’re right, the financials have to make sense. I think I can reasonably get $1000 more per month with MTR but would incur $400 more utility expense per month. I’m a long distance investor so I’d need to figure out the logistics as well as my current PM only manages LTR. I’d probably first try out self managing with a single unit when there is a natural turnover, as @Miguel Del Mazo suggested.
That info usually comes from the local hospitality group or local hotel trade association or local revenue board. - Real Estate Broker · Modesto, CA · Member since 2023 · 192 posts · 77 votes1y
Quote from @Sherry T.:
Thanks everyone for the generous advice and actionable steps I can take!
@Claudia Buchegger, I appreciate your insight into the traveling nurse markets. It’s interesting to know that FF is not reflective of true vacancy.
@Ken M. do you have a recommended method to look up this info? I quickly checked a big chain and it wasn’t very clear what the vacancy was.
@Nick Maugeri You’re right, the financials have to make sense. I think I can reasonably get $1000 more per month with MTR but would incur $400 more utility expense per month. I’m a long distance investor so I’d need to figure out the logistics as well as my current PM only manages LTR. I’d probably first try out self managing with a single unit when there is a natural turnover, as @Miguel Del Mazo suggested.Simplified - that's an extra $7,200 annually in gross income. Now you can consider what the initial expense is, divide that by $7,200 and have your simple payback in years. Then run NPV and you'll know if it's a worthwhile effort or if you should do LTR or sell altogether.
- 1yBrooke RoundyPro MemberInvestor · Member since 2021 · 45 posts · 41 votes
@Sherry T. I agree with Miguel, I first converted one unit from an LTR to an STR, which I rented as an MTR during the slow season, and now I've converted another unit to an MTR after not renewing my LTR tenants lease. I have two other units in the building which I will eventually do the same thing with upon natural turnover. Given the nature of the units I'd eventually like to have a split 2 MTR, 2 STR with flexibility to adjust based on season. I am also a distance investor and I now have a co-host for my Airbnb and I will be self-managing the MTRs, with a flat fee arrangement for anything that requires boots on the ground, like an emergency. My utilities don't fluctuate much amongst the different arrangements because I already pay for water/Sewer/gas/garbage. I've increased income by $1500/mo in the past year. I consider this my learner property because it's been a ton of work, but worth it.
@Myka Artis I am really inspired by how proactive your strategy is. I’m interested in what key words your VAs are using when searching for those key personnel who handle housing.
@Brooke Roundy Nice to meet you! I really love the area too. Thanks for your encouragement, I’m definitely feel more validated that this is a strategy that can work.- Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes1y
@Sherry T. Housing Coordinator, Relocation specialist, Hotel Coordinator, etc.
- Real Estate Agent · San Diego, CA · Member since 2023 · 189 posts · 88 votes1y
Quote from @Sherry T.:
Hello all, I recently purchased a small multifamily with six 1/1 units, located in Midtown Sacramento. It is fully rented out to long term tenants. This is a nice urban area with tree lined streets and very close to the CA capitol and several hospitals.
I'm considering turning one unit into a furnished rental to potentially increase cash flow.
However looking on Furnished Finder, there appear to be around 100 MTR listings in a 2 mile radius with around 40% currently vacant. Is this a clear indicator that the market is saturated?
Hi Sherry,
Congrats on the new purchase. MTR/STR can be a great strategy with the right resources and approach. I highly recommend consulting with @Noah Laker if you're going to go this route.
There are other strategic options that can be done with the right connections. I am personally niched in sober living at the moment and I would be happy to share with you what this option looks like.
- Real Estate Broker · Sacramento, CA · Member since 2021 · 518 posts · 410 votes1y
Quote from @Keith Mintz:
Quote from @Sherry T.:
Hello all, I recently purchased a small multifamily with six 1/1 units, located in Midtown Sacramento. It is fully rented out to long term tenants. This is a nice urban area with tree lined streets and very close to the CA capitol and several hospitals.
I'm considering turning one unit into a furnished rental to potentially increase cash flow.
However looking on Furnished Finder, there appear to be around 100 MTR listings in a 2 mile radius with around 40% currently vacant. Is this a clear indicator that the market is saturated?
Hi Sherry,
Congrats on the new purchase. MTR/STR can be a great strategy with the right resources and approach. I highly recommend consulting with @Noah Laker if you're going to go this route.
There are other strategic options that can be done with the right connections. I am personally niched in sober living at the moment and I would be happy to share with you what this option looks like.
I actually sold the property! Lol. Hey sherryyyyy :)
MTR is great but we always recommend blending with STR (obtain an STR permit as well) to fill in the gaps. So for example, STR for $100 nightly but offer 20% discount for monthly+ bookings. This will reduce gaps between bookings, and rest assured, there will be gaps. Quality of furnishing and amenities is the key in a market where many investors have figured out this strategy. It's definitely more competitive than it used to be.
- Member since 2019 · 1k+ posts · 292 votes1y
Hi Sherry- It definitely looks like there's a lot of competition, but I think saturation depends on a few more factors beyond vacancy rates. A 40% vacancy rate could mean there’s an oversupply, but it could also be about pricing, amenities, or marketing strategies not lining up with demand.
Some things I’m considering before making a decision:
1. Demand Trends: Are hospitals, corporate offices, or universities nearby consistently bringing in traveling professionals?
2.Pricing & Amenities: How do similar listings compare? Would my unit stand out with better furnishings, flexible lease terms, or included utilities?
3. Listing Performance: Are those vacant properties sitting for months, or do they turn over quickly? That would help gauge renter interest
4. Seasonal Trends: Some areas have slow seasons, so the timing of vacancies might matter
5. Alternative Rental Models: If mid-term rental (MTR) competition is tight, options like corporate housing or executive stays could be worth exploring.I specialize in property management and know the ins and outs of maximizing rental income and keeping properties running smoothly.
If you’d like to connect, just let me know!
- 1yMiguel Del MazoPro MemberNortheast Georgia · Member since 2023 · 140 posts · 170 votes
One caveat: in the blended MTR/STR model, please commit to MTR with a fill-in strategy with STR.
Since, in our experience, most MTR bookings happen within 1-2 weeks of the upcoming vacancy and since many MTR bookings extend into that vacancy, if you allow STR guests to book in the distant future, you will likely block your schedule from being available to the lucrative MTR bookings.
Once you have secured your MTR, if there are gaps, feel free to back fill with STR. It's hard not to accept that STR request 3 weeks in the future when you have an MTR vacancy coming up, but if you market is strong, stay resolute and hold out for the greater prize. :)
- 1yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
Quote from @Sherry T.:
Hello all, I recently purchased a small multifamily with six 1/1 units, located in Midtown Sacramento. It is fully rented out to long term tenants. This is a nice urban area with tree lined streets and very close to the CA capitol and several hospitals.
I'm considering turning one unit into a furnished rental to potentially increase cash flow.
However looking on Furnished Finder, there appear to be around 100 MTR listings in a 2 mile radius with around 40% currently vacant. Is this a clear indicator that the market is saturated?
Impossible to say without a LOT more information; market is segmented. For example the market for lower end and middle type rentals may be saturated - and there may be great unmet demand for high end rentals - or vice versa. I owned a high rise condo unit in an area that had a huge number of furnished SFR for rent sitting empty - but I had one of the few HIGH RISE LUXURY condos available fully furnished for rent. I further separated my offering from the pack by spending $40k + to fully furnish the unit. Ended up with 100% occupancy for the 6 years I rented it out - and took what would have been a 8% ROI and created a 16% ROI AFTER paying a property manager! Why did I sell this property? I'm stupid! LOL
Ok, the reality of why I liquidated this superior return ROI was because my property manager was in a horrific ski accident that left him unable to work for about one year, and my efforts to find a replacement resulted in lousy manager demanding 50% higher compensation. Further, I was able to sell at a price 65% higher than my cost even including the furnishings, so the ROI on the sales/market price was about 10 - 11% rather than the 16% at cost. If I had to pay a manager 50%, then my ROI would have dropped to the 8% I could get with a LTR.
- 1yScott ScovilleBusiness MemberReal Estate Agent · Sacramento, CA · Member since 2019 · 502 posts · 276 votes
Quote from @Sherry T.:
Hello all, I recently purchased a small multifamily with six 1/1 units, located in Midtown Sacramento. It is fully rented out to long term tenants. This is a nice urban area with tree lined streets and very close to the CA capitol and several hospitals.
I'm considering turning one unit into a furnished rental to potentially increase cash flow.
However looking on Furnished Finder, there appear to be around 100 MTR listings in a 2 mile radius with around 40% currently vacant. Is this a clear indicator that the market is saturated?
Hey Sherry, do you have off street parking? I know some complaints that I've heard from MTR tenants is parking and safety in midtown and downtown. Location is key, so if you're having success with long term, you may want to stay with that.
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