Thoughts on Mid-Term Rentals vs. Long-Term Rentals?

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Thoughts on Mid-Term Rentals vs. Long-Term Rentals?

Jill Rhodes
York, SC · Member since 2026 · 24 posts · 5 votes

I’m looking to purchase my first investment property in an area close to home and would love some input on MTRs versus LTRs.

I currently have a mid-term rental in my primary residence, so I’m familiar with both the pros and cons. I actually enjoy furnishing the space and working with the types of renters that MTRs tend to attract.

My biggest question is how others evaluate the numbers when comparing MTRs to LTRs. How do you account for the additional furnishing costs, utilities, vacancy, and turnover when calculating cash flow and cash-on-cash return? Do you use a specific calculator?

I’d love to hear from those who have experience with both strategies and which you’ve found to be more profitable!

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Jimmy Samaha
Staten Island, NY · Member since 2013 · 118 posts · 57 votes
2d

I've done both, and I'd run them side by side. For a mid term, take the furnished rent, then subtract utilities (figure 250 to 400 a month), internet, supplies, and furnishing spread over 5 years, which is about 100 to 170 a month on a 6 to 10k setup.

Underwrite mid term at 80 percent occupancy, since gaps between 1 to 3 month stays are real, while a long term might only sit empty 3 to 5 percent.

Then compare cash on cash on the same down payment. Mid term rent is often 30 to 50 percent higher, but after costs the real gain is more like 10 to 20 percent more cash flow with a lot more work. A simple spreadsheet and your own local rent comps beat any fancy calculator.

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  • Jimmy Samaha
    Staten Island, NY · Member since 2013 · 118 posts · 57 votes
    2d

    I've done both, and I'd run them side by side. For a mid term, take the furnished rent, then subtract utilities (figure 250 to 400 a month), internet, supplies, and furnishing spread over 5 years, which is about 100 to 170 a month on a 6 to 10k setup.

    Underwrite mid term at 80 percent occupancy, since gaps between 1 to 3 month stays are real, while a long term might only sit empty 3 to 5 percent.

    Then compare cash on cash on the same down payment. Mid term rent is often 30 to 50 percent higher, but after costs the real gain is more like 10 to 20 percent more cash flow with a lot more work. A simple spreadsheet and your own local rent comps beat any fancy calculator.

    2Reply
    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      1d

      Super helpful Jimmy! Thanks!

      0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 966 votes
    2d
    Quote from @Jill Rhodes:

    I’m looking to purchase my first investment property in an area close to home and would love some input on MTRs versus LTRs.

    I currently have a mid-term rental in my primary residence, so I’m familiar with both the pros and cons. I actually enjoy furnishing the space and working with the types of renters that MTRs tend to attract.

    My biggest question is how others evaluate the numbers when comparing MTRs to LTRs. How do you account for the additional furnishing costs, utilities, vacancy, and turnover when calculating cash flow and cash-on-cash return? Do you use a specific calculator?

    I’d love to hear from those who have experience with both strategies and which you’ve found to be more profitable!

    Hey Jill, since you already have MTR experience, you’ve got a nice head start! I’d compare both strategies using net cash flow after all expenses, including utilities, furnishing, vacancy, and turnover.

    [email protected]614-418-6081
    2Reply
    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      1d

      Yes, this makes sense! Thanks Arman!

      0Reply
  • Dan NelsonBusiness Member
    Real Estate Broker · Chicago and Kansas City · Member since 2016 · 110 posts · 101 votes
    1d

    Jill, I own several mid-term rentals along with long-term ones. Here is how I compare a unit both ways. The trick that keeps it honest: build the mid-term version from the long-term one.

    1. Start with the plain long-term rent for that unit, unfurnished. That is your floor.

    2. For mid-term, take the furnished rent and subtract everything the tenant used to pay: utilities, internet, cleaning between stays, and the furniture spread over its life.

    3. Count the empty weeks between stays in months, not a percent. How many months a year do you really expect it filled? Then test a slower year too.

    4. Price your hours. If mid-term only wins by a little after all that, the long-term lease is the better job.

    Any spreadsheet works. What makes it work is real furnished comps near that block, not a calculator's default.

    You already run one in your own home, so you know your real fill rate. Use your number, not someone else's.

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    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      1d

      Thanks for your response and expertise. This is super helpful. I'm happy to hear everyone suggest a simple spreadsheet as I prefer that over anything else.

      0Reply
  • John RacinePro Member
    Rental Property Investor · Casselberry, FL · Member since 2008 · 99 posts · 56 votes
    1d

    Jill, you're ahead of most people asking this because you already know your real fill rate from the unit in your home. Dan's idea of starting from the long-term rent is how I set my floor too, so I'll add the other end and a couple of things that changed my numbers.

    Set a ceiling as well as a floor. I price mid-term somewhere between what the unit would rent for on a regular 12-month lease and what it could gross as a short-term rental. If your furnished monthly number isn't sitting comfortably between those two, either the rent is off or the property fits one of the other strategies better.

    Don't assume the empty weeks between stays have to stay empty. Vacancy is the line that sinks most mid-term projections. My units are set for 30+ day stays with 30-60 day minimums, and short stays of a few days up to two weeks fill the gaps between monthly guests. I also keep the 60 days after each stay open so a guest can extend, and extensions have been some of my best bookings. Before you count on any of that, confirm the city and any HOA allow stays under 30 days. If they don't, underwrite it as straight mid-term with a vacancy assumption like Jimmy's.

    Two rules from my long-term rental days that I still use on every deal: the property has to at least break even as a long-term rental with no tax benefits counted, and I put a management fee in the numbers even when I'm doing the work myself. That way the mid-term premium is upside, and if you ever hand it off or sell, the numbers still hold.

    As for which has been more profitable: across all of our properties, mid-term has consistently brought in more than long-term would, even after utilities and the other owner expenses a long-term tenant would normally cover. Guests pay a premium for a furnished place they can book for a month or two without signing a lease, and I lean into that as much as I can. You already enjoy furnishing and working with mid-term renters, and that matters, because the premium only holds up if the place and the experience justify it.

    1Reply
    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      1d

      John, this is all so informative and helpful! I truly appreciate it.

      0Reply
  • Harrison C.
    Member since 2017 · 63 posts · 29 votes
    1d

    Jimmy's method is right. One thing I'd add since you like furnishing and already rent part of your own house: run a third column, furnished rooms rented by the month. I rent my houses that way and it sits between the two.

    How I'd set up that column:

    Rent per room x number of bedrooms, not one house rent. My rooms are $600 to $775 each.

    Utilities and wifi stay in your name, so use the real bills from your current place, not a guess. They go up and down a lot by season.

    Vacancy per room, not per house. One room empty is a 20 or 25% hit, not 100%, and the house is almost never fully empty.

    Turnover is a small job each time. A room takes me about two days to clean and reset, so count more turns but cheaper ones.

    Furnishing per room (bed, dresser, desk) spread over 5 years like Jimmy said, plus the common areas once.

    Then compare all three on cash on cash with the same down payment, and add one line for your time. Rooms and MTR both take more of it than a long term lease.

    Before you buy, check the city and HOA rules on renting rooms, some limit how many unrelated people can live in one house.

    1Reply
  • Jill Rhodes
    OP
    York, SC · Member since 2026 · 24 posts · 5 votes
    1d

    Thanks Harrison. My current mid-term is just one bedroom. I hadn't thought about renting per room as a strategy so thanks for the info on that!

    0Reply
  • Stephany G.
    Investor · miami · Member since 2026 · 5 posts · 2 votes
    1d

    The honest way to compare them is to put both on an "after everything is paid" basis, because the mid-term rental's bigger rent also hides bigger costs. For the mid-term side: start with the furnished monthly rent, then subtract what a long-term rental doesn't have — all the utilities, internet, the furniture spread out over ~3–4 years, more empty time between guests, and supplies. For the long-term side: rent minus the usual vacancy, repairs, and management. Then compare the two leftover-cash numbers side by side — not the headline rents. In my experience mid-term usually looks better on paper, but the gap shrinks fast once you're honest about furnishing and empty weeks, and it's more hands-on. On the calculator question: any that lets you type in the furnished rent and list those extra costs will do. The real work is you picking the vacancy and furnishing numbers — that's where the true answer hides.

    1Reply
    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      1d

      Thanks Stephany! Very helpful.

      0Reply
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 244 posts · 91 votes
    1d

    For MTRs, I'd factor in furnishing costs, utilities, vacancy, and turnover separately before comparing returns with an LTR. Financing matters too, since lenders may evaluate rental income differently depending on the loan program.

    Are you planning to finance your first investment property or purchase with cash?

    1Reply
    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      1d

      Thanks Gregory. Finance.

      0Reply
  • Amit PatelBusiness Member
    Property Manager · Bartlett, IL · Member since 2025 · 170 posts · 67 votes
    1d

    Love that you already have hands-on MTR experience, that’s the best data you’ll get. We’re mostly long-term rentals, but here’s how I’d compare the two:

    Run both side by side in one simple spreadsheet. A general calculator works, but the MTR column needs extra lines most tools skip:

    • Furnishing: Add it to your cash invested, so it lowers your cash-on-cash. Then add a yearly reserve to replace worn items.

    • Utilities: Electric, gas, water, internet, and streaming, all on you.

    • Vacancy: Be conservative. Many investors underwrite 75 to 80% occupancy for MTR versus around 95% for LTR.

    • Turnover: Cleaning and restocking per stay, plus your time or a manager’s higher fee.

    • Insurance: Furnished rentals usually need a different policy.

    Then find your break-even: what LTR rent would give you the same net cash flow? If the MTR only wins by a little, the LTR’s lower effort and steadier income often makes it the better deal.

    For MTR comps, check Furnished Finder and local hospitals or employers for demand.

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    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      1d

      Thanks so much! Very helpful.

      0Reply
  • Emmanuel Morales
    Member since 2026 · 4 posts · 1 vote
    1d

    From what I’ve seen in the industry, MTRs can be a great option because traveling professionals, digital nomads, and people relocating often need furnished places for weeks or months. When comparing the numbers, I’d look beyond monthly rent and factor in utilities, furnishing, vacancy, and turnover costs. A PMS can also be useful as you grow, since it helps you keep bookings, expenses, and property operations organized in one place. That way, you can get a clearer picture of whether the higher rent is actually translating into better returns.

    1Reply
    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      15h

      Thanks! Appreciate your insight.

      0Reply
  • Josh Honken
    Realtor · Cincinnati, OH · Member since 2026 · 3 posts · 1 vote
    19h

    It’s your first investment property, so I would make sure the property could work as either an MTR or an LTR before you jump in.

    On the MTR side, make sure you include the furnishing costs in your total cash invested. Then figure out your actual net cash flow after utilities, turnover costs and a reasonable vacancy allowance. From there, you can compare the cash-on-cash return with what the same property could produce as a long-term rental.

    I don’t know if there is one specific calculator that is best for this. A spreadsheet where you can plug in different rents, expenses and vacancy assumptions for each scenario should help you compare them without treating every property the same.

    I’d also look at the long-term rent before buying. The MTR numbers may look better, but I would still want to know what the property could bring in if you ever decided to go the long-term route instead.

    1Reply
  • Jill Rhodes
    OP
    York, SC · Member since 2026 · 24 posts · 5 votes
    15h

    Thanks Josh! That all makes sense. I appreciate your insight.

    0Reply
  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 884 votes
    15h

    I’d run both sets of numbers using the same conservative assumptions. For the MTR, add furniture, utilities, internet, cleaning, turnover and realistic vacancy, then compare the actual cash flow and cash-on-cash return to the LTR.

    I wouldn’t make the decision based on gross rent. If the MTR only produces a little more after all the extra costs and work, I’d take the simpler LTR.

    1Reply
    • Jill Rhodes
      OP
      York, SC · Member since 2026 · 24 posts · 5 votes
      15h

      Thanks Brian, useful info!

      0Reply
  • Sara Helmkamp
    Investor · Asheville NC · Member since 2026 · 2 posts · 0 votes
    9h

    I’ve operated both MTRs and LTRs, and I think the biggest mistake people make is comparing monthly rental income without accounting for the additional costs and vacancy risk.

    I typically run both scenarios side by side using the same purchase price, financing, taxes, insurance, and maintenance assumptions.

    For an MTR, I also factor in furnishing costs, utilities, internet, additional cleaning and turnover, furniture replacement reserves, and realistic vacancy between tenants. I include the initial furnishing investment when calculating cash-on-cash return, since that’s additional cash invested upfront.

    I also like to stress-test the MTR scenario at different occupancy levels. A furnished rental might command significantly higher monthly rent, but one or two unexpected vacant months can change the numbers pretty quickly.

    One thing I’ve learned is that having a property that also works financially as an LTR provides a nice fallback if MTR demand softens.

    Personally, I enjoy the furnishing and guest experience side of MTRs too, but I want the numbers to justify the extra work and investment.

    Curious what market you’re looking in? MTR demand can vary quite a bit depending on local employers, hospitals, and other sources of temporary housing demand.

    0Reply
  • Ryan BrownPro Member
    Real Estate Agent · Louisville, KY · Member since 2022 · 54 posts · 11 votes
    8h

    @Jill Rhodes, you've gotten a lot of great frameworks here, but honestly your own numbers are going to be your best gauge. You already know your real fill rate, how long your renters stay, what kind of renters your area attracts and how much time it takes you between stays. That's better data than any calculator default or anyone else's market.

    The one thing to keep in mind is that your current setup is a single bedroom, so some of your numbers will scale and some won't. Your occupancy and renter type should carry over pretty well. But furnishing and utilities for a whole unit are a different animal once you add a full kitchen, a living room, more beds and the utilities you'd be carrying for the entire place.

    For the furnishing number, if you didn't really shop for your first one, the easiest way to get a real estimate is to start adding stuff to carts. Pick the property type you're targeting, then go through it room by room on Amazon, Wayfair, Target or wherever you'd actually buy. Add everything down to the shower curtain, dishes and the extra set of sheets. Don't check out, just look at the total. That's your number, and it's usually higher than people guess. Then spread it over a few years in your spreadsheet like Jimmy and Amit said, and add a small reserve for replacing things as they wear out.

    We have furnished units on Furnished Finder here in Louisville, and the investors I've seen do best with mid-term rentals are the ones who build their numbers from their own experience and real costs, not a calculator. You're already ahead on that.

    [email protected]502-889-0122
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