"Should I STR or long-term rent my property?" is the #1 question new owners ask, and most answers are biased. Here's an honest net-revenue comparison on a $300k owned single-family property in a Tier-2 STR market. Spoiler: STR wins on revenue, LTR often wins on hourly return.
The scenario
- $300k owned single-family, 3BR/2BA, Tier-2 US market
- Mortgage: $240k at 7% = $1,600/mo P&I; tax + insurance $400 = total $2,000/mo carry
- STR side: 75% occupancy, ADR $180/night blended, cleaning outsourced
- LTR side: 12-month lease at $2,200/mo (market rent)
Monthly cash flow side-by-side
| Item | STR | LTR |
|---|---|---|
| Gross revenue | $4,050 | $2,200 |
| — Airbnb fee 15.5% | -$628 | — |
| — Cleaning outsourced | -$700 | — |
| — STR insurance premium | -$150 | -$80 |
| — Utilities (host pays) | -$250 | — |
| — Amenities + supplies | -$120 | — |
| — Mortgage + tax + insurance | -$2,000 | -$2,000 |
| — Hotel/lodging tax remitted | -$120 | — |
| — Maintenance reserve (3%) | -$120 | -$65 |
| — Vacancy reserve (8% LTR) | — | -$175 |
| NET monthly | -$38 | -$120 |
At 75% occupancy + $180 ADR, STR + LTR both run small negative cash flow on this scenario — STR by $38, LTR by $120. Difference: $82/mo, or $984/year.
But factor in the time
- STR owner-operator with outsourced cleaning: 30 hours/month (pricing, reviews, guest comms, supplies)
- LTR: 2 hours/month (rent collection + 1-2 maintenance calls)
- STR effective wage: $984/year ÷ (30h × 12) = $2.73/h. Below minimum wage.
- LTR effective wage: -$1,440/year ÷ (2h × 12) = -$60/h, BUT principal pay-down ($8.4k/yr at year 1) is the actual return.
When STR actually wins
- Higher ADR + 80%+ occupancy market — at $230 ADR x 80%, STR NET clears $1,100/mo.
- You can do cleaning yourself — saves $700/mo, immediate $700 NET swing.
- Tier-1 vacation market — Smoky Mountains, 30A FL — peak season ADR $400+.
- Tax depreciation play — bonus depreciation on STR-classified properties may produce real after-tax advantage.
When LTR actually wins
- You have a day job — STR time cost is real; LTR is essentially passive.
- Market with STR regulation risk — one ordinance change wipes the model.
- HOA restrictions — STR illegal; LTR fine.
- You're optimising for stability + equity — mortgage paydown over 30 years builds $300k+ net worth.
- Suburban or rural area without tourism — STR demand thin.
Hybrid: medium-term rental (MTR)
30-day+ traveling nurse / digital nomad rentals charge $2,800-3,500/mo with much lower operating load. Best of both: higher rent than LTR, 80% less work than STR, often regulation-immune.
Bottom line
- Run YOUR numbers — don't trust generic %; use real local ADR + occupancy + your actual carry.
- Don't optimize for revenue, optimize for net + time.
- Account for review-quality risk — one 3-star month can drag STR 20% for 3 months.
- Consider regulation risk as a real cost, not a tail.
- Try MTR if you have a Tier-2 city + light tourism.
Free tools to model your specific scenario: Airbnb income calculator · Break-even occupancy · Sample weekly report.
Sources: PriceBnb host network survey (n=164, 2026-04 to 2026-05), AirDNA Q1 2026 market summaries, US Census Bureau median rent data. All figures are illustrative scenario models; individual results vary. Not financial advice.