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STR Investing

STR vs Long-Term Rental: Which Strategy Makes More Money?

The numbers show STRs earn 2-3x more than long-term rentals in the right markets — but not after accounting for management costs, vacancy, and regulatory risk.

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InvestorVerdict Editorial

Published February 1, 2026

Investment Risk Disclaimer

This article is for educational purposes only and does not constitute financial, investment, or tax advice.

Table of Contents

  1. The Revenue Gap Is Real — But So Are the Costs
  2. True Cost Comparison
  3. When STR Wins
  4. When LTR Wins

The Revenue Gap Is Real — But So Are the Costs

A property earning $1,800/month as a long-term rental can often generate $3,500–$4,500/month as a short-term rental. But STR expenses are dramatically higher: cleaning, supplies, OTA fees (15–20%), and more active management.

True Cost Comparison

LTR Net Operating Income: ~$1,530/mo. STR Net Operating Income: ~$1,800/mo. The gap narrows significantly after professional management and OTA fees.

When STR Wins

STR wins in tourist markets, near event venues, and for hosts who self-manage.

When LTR Wins

Long-term rentals win in markets with STR restrictions, for hands-off investors, and in markets with low tourist demand.

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Investment Risk Disclaimer

All content on InvestorVerdict is for educational purposes only and does not constitute financial, investment, tax, or legal advice. Real estate and cryptocurrency investments carry significant risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own due diligence and consult qualified professionals before making investment decisions.