Are Medium-Term Rentals Becoming the Sweet Spot Between Long-Term and STRs?

Are Medium-Term Rentals Becoming the Sweet Spot Between Long-Term and STRs?

Residential Real Estate Broker · Poway, CA · Member since 2017 · 73 posts · 23 votes

Hey everyone,

I’ve been noticing more investors shifting toward medium-term rentals (MTRs) — especially with cities tightening STR regulations and longer leases getting squeezed by slower rent growth.

It seems like the 3–6 month rental space (travel nurses, relocations, contract workers) is offering a nice balance of cash flow and stability — without the constant turnover of short-term stays.

For those already in this space:

  • How are you structuring leases (furnished vs. semi-furnished)?

  • What tenant types have been most consistent for you?

  • Have you had better luck self-managing or using specialized MTR management?

I’m curious how others are approaching this niche in 2025 — especially with housing supply tightening in many markets.

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  • Denver McClurePro Member
    Financial Advisor · Dallas, TX · Member since 2018 · 659 posts · 479 votes
    10mo

    Hey @Andy Gonzales, I agree, MTR has been much better and more stable for my portfolio these last few years. I structure leases as furnished, that way I can flex to STR during peak seasons and not have to move any furniture to storage. For my MTRs in the city (Dallas), travel nurses, PTs, and employees on contract with large companies (AT&T) have been booking it back to back for years. I do have a lakehouse 2 hours outside of the city, and that is rented to engineers that work on wind farms in west Texas. It's been a great solution for the cooler months that aren't a peak STR season.

    Self manage is the way to go with MTRs. It's very hands off and you can be proactive on finding new tenants while the unit is already rented. Happy to chat sometime if needed.

  • Realtor · Northern NJ · Member since 2021 · 19 posts · 9 votes
    10mo

    Hey Andy,

    I own 7 MTRs in New Jersey and with the value of property and the rates at what they are it has been great to be able to cashflow. Most towns here do not allow for STR but we do fully furnished apartments.

    We have a variety of types of guests. Travel medical professionals were our target when we first started but we are seeing a lot of non-medical workers that come to our area. Other types of guests are people relocating to the area, people doing renovations and Interns.

    I am also a partner in a company that manages over 20 units in Northern New Jersey. However, I think it is very doable to manage on your own if you have a few units.

  • New to Real Estate · IN · Member since 2023 · 4 posts · 0 votes
    10mo
    Quote from @Cole Gauldin:

    Hey @Andy Gonzales, I use to work for one of the largest relocation housing companies in the country. All we did was place insurance clients in midterm rentals. I could probably offer some insight into what you're looking for. Feel free to DM me. 


    Hi Cole, I am also interested in MTR. I have a STR in Indianapolis and I am thinking to have a hybrid approach next year allowing my furnished STR property to also be booked for MTR. I have a 3 bedroom home. Do you have some tips on where to list the property, lease agreements, identity checks?

  • Member since 2022 · 4 posts · 0 votes
    10mo

    Hi @Andy Gonzales Mid-term rentals are a lucrative niche. They offer higher cash flow than long-term rentals (LTR) and require less hands-on management than short-term rentals (STR). The key is ensuring tenants' move-in and move-out dates align to prevent long vacancies. Over the past year, I've successfully managed both STR and MTR together. However, it's important not to extend STR dates too far into the future so you can accommodate MTR inquiries when they arise.

  • Alyssa MarquezBusiness Member
    Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 113 posts · 25 votes
    1mo

    I can see how MTRs could appear to be a sweet spot right now. Furnished units appear to be most popular with travel nurses, consultants, or contract workers, as those individuals tend to be looking for units ready to occupy. It'll be interesting to see how utilities and leases extending play out as well. Are you seeing certain markets or types of tenants doing better than others?

  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    1mo

    @Andy Gonzales

    I have LTR's MTR's and STR's. The MTR's have been the most profitable when you add time to manage and other expenses,

    My MTR’s are near two large military bases.  They fill up with TDY training.  Typical stay has been 5-6 months at a time.  The rental rate on an annual basis for the area is just above $60K per property.  Add in 30 days of vacancy it’s still very profitable.  It comes out 2 -2.5x the LTR rate.  Two leases versus one lease a year.  Pretty smooth 

    One advantage is the military is paying the rent and the tenant must comply with all lease rules or they can get in trouble.  

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