Airbnb or Long-Term Rental: What Makes More Money

The debate between Airbnb investing and long-term rentals has resurfaced in 2025 as investors face higher interest rates, rising maintenance expenses, stricter housing regulations, and shifting demand patterns. What used to be a clear win for short-term rentals during the travel boom of 2021 and 2022 is now far more nuanced. With cities tightening rules and travelers becoming more selective, many property owners are asking the same question this year: which strategy actually brings home more profit?

In 2025, the overall rental landscape is dramatically different from a few years ago. Short-term rentals now operate under heavier scrutiny, with many cities limiting permits, enforcing primary-residence requirements, or implementing extra taxes and compliance rules. Meanwhile, long-term rentals remain in demand, and rents in most urban and suburban markets continue to stay historically high. At the same time, the cost of running any rental—utilities, insurance, maintenance, and loan payments—has climbed, which means investors must look past gross revenue and focus on true net income.

On the other hand, long-term rentals continue to be the steadier and more predictable income model in 2025. While rental growth has slowed compared to recent years, long-term tenants still provide consistent cash flow with far fewer surprises.

Costs are more manageable, turnover is lower, and the property requires significantly less maintenance and oversight. Investors looking for security, minimal risk, and passive income tend to favor this model, especially in areas with workforce housing, suburban demand, or limited short-term rental appeal. Even though long-term rentals may not reach the dramatic revenue highs of peak Airbnb seasons, they often deliver stronger net income because the expenses are lower and more stable.