If you’ve ever wondered what is a mid-term rental, here’s the answer: monthly rentals—stays of roughly 30 to 180 days—bridge the gap between nightly STRs and year-long leases. Demand for furnished monthly housing has surged. As more people travel for work, the rise of Work-From-Home has also led to an increase in digital nomads.
The local regulatory landscape is also favouring mid-term rentals. In this article, we’ll define the monthly rental model, compare its performance against nightly STRs, spotlight the top markets of 2025, explore tenant behaviors and emerging technologies, and outline the steps you need to launch a compliant, profitable monthly-rental business.
What Exactly Is a Monthly (Mid-Term) Rental?
A monthly (mid-term) rental is a property leased for stays longer than a typical nightly booking but shorter than a conventional one-year lease—generally between 30 and 180 days. These mid-term rental agreements often include utilities, internet, and basic furnishings, creating a turnkey living experience for tenants.
The stay runs from one month to six months. Shorter or longer terms can be negotiated, but this window balances flexibility and stability for both hosts and tenants. Most common ones are furnished rentals that cater to traveling professionals, healthcare workers, and digital nomads who need immediate, comfortable housing. Unfurnished options may appeal to tenants planning longer stays in personalized spaces – with them, you’ll have to be wary of squatters.
What are the Various Tenant Types?
- Remote workers & digital nomads seeking a “home base” for multi-week projects
- Travel nurses & healthcare professionals on temporary assignments
- Corporate transferees & relocation clients in between leases
- Graduate students & interns needing temporary housing
By offering a middle ground between short-term volatility and long-term commitment, monthly rentals deliver a steadier occupancy rate and a predictable revenue stream for hosts, while providing tenants with the convenience and comfort of a furnished home away from home.
Market Trends Shaping Monthly Rentals
As monthly rentals eclipse the old “mid-term rental” terminology—Google searches for “monthly rentals” now outpace “mid-term rentals” by fifty-fold—the market is responding with rapid supply growth and surging demand.
- Platform Supply: Furnished Finder leads the space with roughly 300,000 furnished monthly listings, compared to about 80,000 on Apartments.com and 36,000 on Zillow. Hosts have more channels than ever to attract longer-stay tenants.
- Demand Surge: In 2025, Furnished Finder logged over 2 million tenant inquiries—a 105% year-over-year increase—highlighting the shift toward stable, month-long stays.
Major real-estate marketplaces like Apartments.com and Zillow are doubling down on multi-family and furnished offerings, signaling industry confidence that monthly rentals will continue to expand. This suggests that savvy hosts who position their properties for longer stays will benefit from both increased visibility and a growing pool of qualified tenants.
Are Monthly Rentals Profitable?
When evaluating profitability, it helps to compare average daily revenue (ADR) and occupancy for short-term rentals (STRs) versus monthly (mid-term) rentals (MTRs) in the same market. MTRs yield a steadier income stream—even if the nightly ADR is lower—because occupancy consistently hovers around 85–90%, compared to 55–65% for STRs.
1. ADR & Occupancy
In high-demand markets like New York or San Francisco, STR ADR averages around $250–$300 per night, translating to about $7,500–$9,000 per month at full occupancy—but typical occupancy is only 60%, netting $4,500–$5,400.
The same listings as MTRs command around $2,200–$2,500 per month with occupancy near 90 percent, yielding $1,980–$2,250 reliably each month.
2. Seasonality & Stability
STRs spike during peak travel seasons but drop off sharply in off‐peak months. MTRs smooth out those seasons, delivering a predictable baseline even when tourist bookings wane.
Overall, MTRs trade a higher top-end for consistent occupancy and cash flow—making them an attractive complement to a traditional short-term rental strategy.
Top Monthly Rental Markets for 2025
Below is a detailed look at the top ten cities by listing count, occupancy rate, average daily rate (ADR), and revenue per available rental (RevPAR):
What do you need to know from this data?
- Mega Markets (High Supply & Demand): New York City and Los Angeles lead in supply (12,753 and 8,081, respectively). New York balances volume with a solid 62% occupancy and $110 RevPAR. Los Angeles trades some occupancy (49%) for a premium ADR of $298, driving RevPAR up to $145.
- High-Occupancy Destinations: Barcelona achieves the highest occupancy (73%), translating to consistent cash flow despite a modest ADR of $113. San Francisco follows at 64%, yielding $133 RevPAR—proof that strong ADR plus decent occupancy pays off.
- Premium-Rate Cities: Vancouver’s $293 ADR delivers the highest RevPAR ($153), even at 52% occupancy, making it attractive for hosts targeting fewer but higher-paying bookings. New Orleans and Chicago show the opposite: lower occupancy (39–45%) and RevPAR ($75–$89), indicating potential for growth if hosts can boost marketing or adjust pricing.
- Stable Mid-Tier Markets: Montréal, Philadelphia, and Washington each offer balanced opportunities (50–63% occupancy, $77–$92 RevPAR), ideal for hosts seeking predictable, lower-volatility returns.
For hosts evaluating expansion, these metrics—especially RevPAR and occupancy—can guide where to invest in new properties or shift marketing focus to maximize monthly-rental performance in 2025.
Tenant Behaviors & Preferences in 2025
In 2025, monthly renters will continue to seek comfort and reliability, but their expectations are evolving rapidly as lifestyles change.
Here’s what hosts need to know to connect better with these renters:
1. Renters Plan Further Ahead
Mid-term rentals now have a 36-day booking window, which is two days longer than last year. For hosts, this means anticipating demand earlier and setting rates to ensure steady occupancy throughout the year.
2. Pets Are More Important Than Ever
A significant shift is that nearly 32% of bookings now include pets, marking an 18% increase year-over-year. To capture these bookings, consider clearly outlining pet policies, adding pet-friendly amenities, and creating a welcoming environment for pet owners.
3. Who’s Renting Monthly Stays
Your ideal tenants typically fall into these main categories:
- Business Travelers & Digital Nomads (35%): Prioritize comfortable, furnished workspaces, reliable Wi-Fi, and flexible lease terms.
- Healthcare Professionals (25%): Look for clean, quiet spaces close to hospitals and medical centers.
- Relocation & Academic Renters (30% combined): Appreciate turnkey homes with ample storage, fully stocked kitchens, and practical, everyday amenities.
4. Smaller Groups and Units Dominate
On average, each stay now includes around 2.6 guests, up significantly from previous years.
About 70% of stays involve three or fewer occupants, highlighting a strong preference for smaller units. This is how demand shifts according to property type:
- Studios & 1-bedroom units account for 55% of total demand.
- Two-bedroom apartments make up about 25%, while larger units (3+ bedrooms) represent just 20%.
How to Start a Monthly Rental Business?
Launching a successful monthly rental means combining smart prep, tech tools, and local know-how.
Here’s a streamlined path to get started:
- Research the Market: Understand the PriceLabs Market Dashboards to analyze occupancy and RevPAR in target markets.
- Understand Local Regulations: Check local regulations for length-of-stay rules, registration, zoning, and taxes before listing.
- Furnish a Tenant-Ready Unit: Include quality essentials like a comfortable bed, blackout curtains, high-speed Wi-Fi, and in-unit laundry. Add small touches like welcome kits and pet amenities to stand out.
- Price It Strategically: Set your monthly base price using the Base Price Help Tool, then apply PriceLabs Dynamic Pricing to adjust for local demand shifts, seasons, and events.
- List Across Multiple Platforms: Publish on Furnished Finder, Apartments.com, Zillow, and your own site. Use detailed descriptions, strong keywords, and professional photos to attract the right tenants.
- Screen & Lease Efficiently: Run background and employment checks, and use e-signature tools for fast, secure lease agreements and deposit collection.
- Automate & Optimize Operations: Set smart calendar rules, automate tenant messages, and monitor results using PriceLabs Portfolio Analytics to tweak pricing and stay competitive.
With these essentials in place, you’ll be ready to launch a smooth, compliant, and revenue-strong monthly rental business.
Legal Considerations for Monthly Rentals
To run a compliant and protected monthly rental business, hosts should focus on four key legal areas:
- Zoning & Registration: Understand local rules—many cities allow stays over 30 days without a short-term rental license, but you may still need to register. Fines for non-compliance can exceed $1,000 per property. Join local STR groups or forums to stay informed and adjust proactively.
- Lease Agreements: Monthly rentals fall under landlord-tenant laws. Clearly define rent terms, notice periods, maintenance responsibilities, and early termination policies in your lease.
- Tax Compliance: Some areas apply lodging taxes to stays under six months. Report earnings accurately and consult a tax advisor to stay on top of both local and federal obligations.
- Insurance Coverage: Standard homeowner policies often don’t cover extended stays. Get landlord or rental-specific insurance that includes property damage, liability, and income loss.
Taking care of these essentials upfront helps you avoid penalties, maintain smooth operations, and safeguard your revenue.
How to Future-Proof Your Monthly Rental Business?
According to Furnished Finder, these are the markets that you should focus on:
What should you do once you know where to build your mid-term rental business:
- Furnish for Real Life: Prioritize comfort—a good bed, fast Wi-Fi, blackout curtains, laundry.
- Use Smart, Dynamic Pricing: Set a solid base rate using comparables, then let PriceLabs Dynamic Pricing adjust for demand, seasonality, and local events.
- Diversify Where You List: Publish on Furnished Finder, Zillow, Apartments.com, and your own site. Great photos, SEO-friendly descriptions, and strong keywords attract better tenants.
- Streamline Leasing: Run background and income checks, then close deals quickly using e-signatures and online payments.
- Focus on Long-Term Relationships: Deliver a great tenant experience. Happy tenants mean better reviews, referrals, and fewer marketing costs.
By remaining adaptable, informed, and proactive, you’ll secure the sustainability and ongoing profitability of your monthly-rental business.
How Can PriceLabs Help Mid-Term Rental Hosts?
Running a successful monthly rental takes more than just listing your place and hoping for the best. You’re constantly juggling market analytics, pricing strategy, and what tenants actually want.
That’s a lot to manage—and that’s exactly where PriceLabs comes in.
With Dynamic Pricing, your monthly rates adjust automatically based on local demand, seasonality, and competitor data. No more second-guessing what to charge—just smarter pricing that helps you stay booked and profitable.
Want to know how your listings are doing? The Portfolio Analytics dashboard gives you a simple, at-a-glance view of performance across all your properties. You can spot what’s working (and what’s not) without digging through spreadsheets.
Looking to grow your business? Use Market Dashboards to understand the competition in any neighborhood, and Revenue Estimator Pro to forecast what you could actually earn before you invest.
PriceLabs gives you the tools to run your rentals with less guesswork and more confidence—so you can focus on what really matters.
Frequently Asked Questions
1. Do I need special insurance for monthly rentals?
Yes. Regular homeowner insurance usually won’t cut it. You’ll want a landlord or rental-specific policy that covers things like property damage, liability, and tenant-related issues for longer stays.
2. What do monthly renters look for in a space?
Think comfort and convenience. Strong Wi-Fi, a decent workspace, in-unit laundry, pet-friendly policies, and a fully furnished setup are all big wins. These features make your place feel more like home—and help it stand out.