Why Smart STR Investors Are Going Hybrid

If you’ve been in the short-term rental game for a while, you’ve probably noticed it’s getting tougher to stand out and stay profitable. With stricter rules, more competition, and guests booking shorter stays, savvy hosts are changing how they play the game. The big move? Combining short-term and mid-term rentals into one smart hybrid strategy.

The Short-Term Rental Boom: Great… But Crowded

Over the last decade, Airbnb and other STR platforms turned millions of everyday homeowners into hospitality pros. The pitch was simple: rent out a spare room or vacation home for a few days at premium nightly rates, then pocket the profits.

But fast forward to 2025, and the landscape has changed. According to AirDNA’s June 2025 report, there are over 8% more active short-term rentals than last year, but booking demand has dipped about 4% year-over-year.

Combine that with stricter city rules, tighter HOA restrictions, and neighbor complaints — and it’s clear the easy days of “just list it on Airbnb and cash checks” are over.

Enter the Hybrid Rental Strategy

Instead of putting all their eggs in the short-term basket, smart investors are now blending in mid-term rentals stays of 30 days or longer. This hybrid approach helps them stay booked year-round, avoid heavy STR regulations, and attract reliable tenants.

The numbers back it up: mid-term rentals have grown by about 20% in the last two years, especially around hospitals, universities, and major business hubs.

What Makes Mid-Term Rentals So Popular?

1. Less Red Tape – Many cities cracking down on STRs still allow longer stays. If you’ve ever dealt with permits, neighbor complaints, or strict local caps on vacation rentals, you know how valuable it is to fly under the radar.

2. Consistent Cash Flow –  Mid-term tenants like traveling nurses, contract workers, or grad students tend to stay for 1–6 months. That means fewer turnover days, less cleaning and staging, and more predictable monthly income.

3. Still Profitable – While nightly rates are lower than short-term bookings, they’re still higher than a typical long-term lease. A furnished mid-term rental can earn 20–40% more than a traditional 12-month lease.