Mid-term rental arbitrage is the strategy of leasing a property long-term and subletting it as a furnished rental for 30 to 180 days—targeting traveling nurses, corporate relocators, insurance displacement tenants, and digital nomads. In 2026, this niche is quietly generating 2x the profit of traditional short-term Airbnb arbitrage for hosts who understand the math. Less turnover, fewer regulations, better tenants, and near-zero vacancy. If you’re still grinding nightly bookings and haven’t explored the mid-term play, you’re leaving serious money on the table.
What Is Mid-Term Rental Arbitrage?
Let me break this down simply. Rental arbitrage is when you sign a long-term lease on a property—with the landlord’s written permission—and then sublet it at a higher rate. Most people think of Airbnb-style nightly rentals when they hear “arbitrage.” But mid-term rental arbitrage targets stays of 30 to 180 days instead.
That distinction changes everything.
With short-term rentals, you’re dealing with 2-3 day turnovers, constant cleaning, guest communication at all hours, and a regulatory landscape that’s tightening in virtually every major city. Mid-term flips that script. You get one tenant for 1-6 months, one check-in, one cleaning between guests, and—here’s the kicker—most cities don’t even classify 30+ day stays as short-term rentals. That means no permits, no occupancy taxes, and no caps on the number of nights you can rent.
The core formula is identical to standard Airbnb business models:
- Monthly rent you pay to the landlord: Your fixed cost
- Monthly revenue from your mid-term tenant: Your income
- The spread minus expenses: Your profit
The difference? Mid-term tenants pay less per night than short-term guests—but they pay every single night for months straight. No vacancies between weekend warriors. No dead Tuesdays. No seasonal crashes. Just consistent, predictable income month after month.
Why Mid-Term Rental Arbitrage Is Exploding in 2026
I’ve been watching this space closely, and five demand drivers are converging right now to make mid-term the most underrated play in rental arbitrage.
Traveling Nurses on 13-Week Contracts
The travel nursing market is projected to hit $45 billion in 2026. These nurses take 13-week contracts at hospitals across the country, and they need furnished housing near their assignment. They don’t want hotels. They don’t want unfurnished apartments with 12-month leases. They want a clean, furnished place with WiFi and a kitchen for about $1,800-$2,500 per month.
States with the highest demand? California, Texas, Georgia, Massachusetts, and New York. Every major hospital system in these states cycles through travel nurses constantly. That’s recurring demand, not seasonal.
Remote Workers and Digital Nomads
Remote work isn’t a trend anymore—it’s permanent. And it’s created an entirely new category of renter: the person who works from their laptop and wants to live somewhere different every few months. They don’t need a one-night crash pad. They need a comfortable, furnished space with a good desk and reliable internet for 1-3 months.
These tenants are gold. They’re employed professionals, they’re quiet, they’re rarely home during the day, and they treat your property well because it’s literally their home office.
Insurance and Disaster Relocation Housing
After the 2025 LA wildfires displaced tens of thousands of families, insurance companies scrambled to find temporary housing. FEMA’s Continued Temporary Housing Assistance program provides up to 18 months of coverage. Insurance companies pay above market rate for furnished housing because they need availability fast.
Natural disasters are increasing in frequency. Every hurricane, wildfire, and flood creates a surge of displaced families who need furnished housing for 2-6 months while their homes are rebuilt. This isn’t a niche—it’s a growing, recession-proof demand source.
Corporate Relocations and Project-Based Workers
Companies relocating employees to new cities need temporary housing during the transition. Construction managers on 3-6 month projects, consultants on quarterly engagements, executives starting new roles—all of them need furnished mid-term housing. Corporate housing companies charge $150-$250 per night for this. You can undercut them at $3,000-$4,500 per month and still clear massive margins.
Students and Interns
Summer interns at tech companies, medical residents rotating through hospitals, graduate students doing semester-long fieldwork—these tenants need 3-4 month furnished housing in specific cities. They’re reliable, their employers often guarantee payment, and they book well in advance.
Mid-Term vs. Short-Term Arbitrage: The Full Comparison
I’ve run both models. Here’s the honest breakdown so you can see why I’m shifting more units toward mid-term in 2026.
| Factor | Short-Term Arbitrage (1-29 nights) | Mid-Term Arbitrage (30-180 days) |
|---|---|---|
| Revenue per night | $120-$250/night | $70-$150/night |
| Monthly occupancy | 65-80% | 90-100% |
| Effective monthly revenue | $2,400-$6,000 | $2,100-$4,500 |
| Cleaning costs/month | $400-$1,200 (8-15 turnovers) | $0-$150 (0-1 turnovers) |
| Supplies/consumables | $150-$300/month | $20-$50/month |
| Guest communication time | 5-10 hours/month | 1-2 hours/month |
| Platform fees | 3-15% per booking | 0-3% (many direct bookings) |
| Damage risk | Higher (party guests, bachelor groups) | Lower (professionals, families) |
| Regulatory burden | Heavy (permits, taxes, caps, bans) | Minimal (30+ days often exempt) |
| Seasonal volatility | High (peaks and dead seasons) | Low (demand is year-round) |
| Furnishing standard | Hotel-quality (decor-heavy, Instagram-worthy) | Comfortable and functional |
| Net profit after expenses | $800-$2,500/month | $1,000-$2,800/month |
Read that last row again. Mid-term often nets more because you’re not bleeding money on cleaning, supplies, platform fees, and your own time. The top-line revenue is lower, but the bottom line? It’s frequently higher.
And here’s what that table doesn’t capture: stress. Managing 15 check-ins and check-outs per month versus 1 is a completely different lifestyle. I’ve talked to hosts who switched to mid-term and said it felt like they got their life back. That’s not an exaggeration.
Want to understand all the tradeoffs before jumping in? Read the full pros and cons of rental arbitrage.
The Numbers: A Real Mid-Term Arbitrage Profit Analysis
Enough theory. Let me walk you through an actual scenario I’ve modeled based on real market data.
Scenario: 2-Bedroom Apartment Near a Major Hospital
| Line Item | Monthly Amount |
|---|---|
| Rent to landlord | $1,800 |
| Utilities (electric, water, internet) | $250 |
| Renter’s insurance | $35 |
| Furnishing amortization (12 months) | $375 |
| Cleaning (between tenants, amortized) | $50 |
| Supplies/toiletries | $25 |
| Platform fees (Furnished Finder listing) | $15 |
| Maintenance reserve | $75 |
| Total monthly expenses | $2,625 |
| Mid-term rental income | $3,200 |
| Monthly net profit | $575 |
| Annual net profit | $6,900 |
“Wait, $575 a month? That doesn’t sound like 2x.”
Fair pushback. Here’s where it gets interesting. That $3,200/month is the conservative Furnished Finder average for a 2BR near a hospital. In high-demand markets—San Diego near Naval Medical Center, Boston near Mass General, Nashville near Vanderbilt—you’re looking at $3,800-$4,500/month for the same unit. That pushes your profit to $1,175-$1,875/month.
Now compare that to a short-term arbitrage model on the same unit. Yes, your gross revenue might hit $4,000-$5,000 in peak season. But after $800 in cleaning, $200 in supplies, $400-$600 in platform fees, and 10+ hours of your time at even $25/hour, your net drops to $500-$1,200. And in the off-season? You might not even cover rent.
Mid-term doesn’t have an off-season. Hospitals don’t close in January. Insurance claims don’t stop in February. Corporate projects don’t pause for summer.
Curious about the full cost picture? Check the startup costs breakdown to see how furnishing costs compare across models.
Best Platforms for Mid-Term Rental Bookings
Where you list your mid-term property matters. Each platform attracts a different tenant type, and the best operators list on multiple channels simultaneously.
Furnished Finder
This is the 800-pound gorilla of mid-term rentals. Originally built for traveling nurses, Furnished Finder logged over 2 million tenant inquiries in 2025—a 105% year-over-year increase. The average stay is 107 days. Annual listing fee is around $150 per property (not per booking), so there are no commission fees eating into your revenue. If you’re doing mid-term arbitrage and you’re not on Furnished Finder, you’re not serious.
Airbnb (30+ Day Filter)
Airbnb offers monthly stay discounts and a 30+ day search filter. Many mid-term tenants start their search here out of habit. The platform takes a 3% host fee on bookings, which is reasonable. Pro tip: set your minimum stay to 30 days and enable monthly discounts of 20-30%. This attracts the right tenants and suppresses the weekend party crowd.
VRBO
VRBO (owned by Expedia) skews toward families and longer stays already. Less competition than Airbnb for mid-term because fewer hosts are set up for it. Monthly stays are a natural fit here.
Zillow (Furnished Filter)
A lot of people don’t know this: Zillow has a “furnished” filter for rentals. Corporate relocators and longer-term tenants use it frequently. Free to list, massive traffic, and you deal directly with tenants—no platform fees.
Corporate Housing Companies
Companies like National Corporate Housing, Oakwood, and BridgeStreet place corporate tenants in furnished apartments. They handle the tenant relationship and typically pay premium rates. The trade-off: they want longer commitments and sometimes negotiate lower monthly rates for volume.
Insurance Housing Networks
ALE Solutions, Temporary Housing Directory, and similar services connect displaced families with furnished housing. Insurance companies pay above-market rates because they need fast availability. Getting listed with these networks takes some effort upfront, but the payoff is consistent, above-market bookings during disaster events.
Best Markets for Mid-Term Rental Arbitrage in 2026
Not every city is a good mid-term market. You need demand drivers: hospitals, military bases, corporate headquarters, universities, and government facilities. Here are the markets I’d target right now.
| City | Key Demand Drivers | Avg. 2BR Rent | Est. Mid-Term Revenue | Why It Works |
|---|---|---|---|---|
| San Diego, CA | Naval Base (24K personnel), Camp Pendleton (42K), 30+ hospitals, biotech hub | $2,400 | $3,800-$4,500 | Military + healthcare + corporate triple demand |
| San Antonio, TX | Joint Base San Antonio (80K+), 6 major hospital systems | $1,400 | $2,600-$3,200 | Massive military presence, low rent-to-revenue ratio |
| Nashville, TN | Vanderbilt Medical, 500+ healthcare companies, Oracle HQ | $1,700 | $3,000-$3,600 | Healthcare capital + corporate growth |
| Boston, MA | Mass General, Brigham & Women’s, biotech corridor, universities | $2,800 | $4,200-$5,000 | Highest concentration of teaching hospitals |
| Raleigh-Durham, NC | Research Triangle, Duke Medical, UNC Health, tech corridor | $1,500 | $2,800-$3,400 | Research + healthcare + affordable entry |
| Denver, CO | Banner Health system, military installations, tech companies | $1,900 | $3,200-$3,800 | Year-round demand from healthcare and outdoor professionals |
| Washington, D.C. | Johns Hopkins, MedStar, government contractors, military | $2,200 | $3,600-$4,200 | Government + military + healthcare trifecta |
| Houston, TX | Texas Medical Center (106K+ employees), energy sector, NASA | $1,500 | $2,800-$3,400 | World’s largest medical complex drives massive nurse demand |
Want to see which cities are best for short-term arbitrage too? Here’s our full analysis of the best cities for Airbnb arbitrage.
Notice a pattern? The best mid-term markets aren’t the typical Airbnb tourist destinations. You don’t need beach access or a downtown party scene. You need hospitals, bases, and corporate offices. That’s actually an advantage—you’re not competing with the flood of Airbnb hosts chasing the same tourist markets.
How to Set Up a Mid-Term Rental Property
Setting up for mid-term is cheaper and simpler than short-term. Your tenants aren’t looking for an Instagram-worthy boutique hotel experience. They want a comfortable, functional home for the next 3 months.
Furnishing Essentials (Not Extras)
Here’s what mid-term tenants actually need. I’ve furnished units for both STR and MTR, and the MTR setup costs about 40% less.
- Bedroom: Queen bed with mattress protector, nightstands, dresser, hangers, blackout curtains, reading lamp
- Kitchen: Full cookware set, dishes for 4, utensils, coffee maker, microwave, toaster. These people actually cook—they’re not ordering DoorDash every night
- Living room: Comfortable couch (not a $300 futon), TV with streaming, coffee table, decent lighting
- Workspace: Desk and ergonomic chair. Non-negotiable for remote workers and nurses charting at home
- Bathroom: Starter toiletries only (first week supply), towel sets, bath mat
- Laundry: In-unit washer/dryer is a massive differentiator. If the unit doesn’t have one, portable washer machines work
Total furnishing budget for a 2BR mid-term unit: $4,000-$6,000. Compare that to the $7,000-$12,000 I’ve spent on Instagram-ready short-term units with custom decor, professional photography staging, and designer touches.
Lease and Legal Setup
You need two documents locked down before anything else:
- Your master lease with the landlord: Must explicitly permit subletting for furnished mid-term rentals. Don’t try to hide this. Read our guide on getting landlord approval for rental arbitrage and use a proper rental arbitrage contract
- Your sublease agreement with tenants: A mid-term lease agreement should cover the stay duration, monthly rent, security deposit, house rules, utilities included, and early termination terms. This isn’t Airbnb where the platform handles disputes—you need a real lease
Amenities That Win Mid-Term Bookings
These are the amenities that actually move the needle for mid-term tenants (based on what I’ve seen convert on Furnished Finder):
- High-speed internet (100+ Mbps): Include the speed in your listing. Nurses charting from home and remote workers won’t book without it
- Parking: Especially near hospitals where nurses work odd shifts
- Pet-friendly: Traveling nurses with pets have fewer options. Charge a $250-$500 pet deposit and you’ll get bookings others miss
- All utilities included: Mid-term tenants don’t want to set up utility accounts for 3 months. Bundle everything into one monthly price
- Flexible move-in dates: Nurse contracts start on specific dates. Being flexible with move-in/move-out gets you booked faster
The Hybrid Strategy: Combining STR and Mid-Term
Here’s where smart operators really separate themselves. You don’t have to pick one model. The hybrid strategy uses mid-term as your floor and short-term as your ceiling.
Here’s how it works:
- Set your Airbnb minimum stay to 30 days with a competitive monthly rate as your baseline
- During peak seasons (holidays, local events, conferences), switch to nightly pricing at 2-3x the nightly equivalent
- During slow seasons, lock in a mid-term tenant for 2-3 months at a guaranteed rate
- Between mid-term tenants, open up for short-term bookings to fill the gap
Example calendar for a Nashville unit:
- January-March: Mid-term tenant (traveling nurse, 13-week contract) at $3,200/month
- April: Short-term bookings during spring tourism at $180/night
- May-July: Mid-term tenant (summer intern at Oracle) at $3,000/month
- August-September: Short-term during CMA Fest and football season at $200/night
- October-December: Mid-term tenant (corporate relocation) at $3,400/month
This hybrid approach typically generates 15-25% more annual revenue than either model alone. The mid-term bookings eliminate dead season risk, and the short-term windows capture premium rates during peak demand.
Use our mid-term rental calculator to model the numbers for your specific market.
Common Mistakes in Mid-Term Rental Arbitrage
I’ve watched hosts blow this opportunity by making avoidable errors. Don’t be one of them.
1. Pricing Like a Short-Term Rental
You can’t charge $150/night and expect a traveling nurse to book 90 nights at that rate. Mid-term pricing should be 30-50% below your nightly STR rate. The volume and consistency make up the difference. If your 2BR goes for $150/night on Airbnb, price your monthly rate at $3,000-$3,500 (effectively $100-$117/night). That’s competitive for mid-term and still wildly profitable.
2. Ignoring the Lease Agreement
Some hosts skip the formal sublease because “it’s basically Airbnb but longer.” Wrong. A mid-term tenant without a lease can create legal headaches that an Airbnb guest never could. In many states, a tenant staying 30+ days has tenant rights—including the right to a formal eviction process if they stop paying. Always use a proper lease. Always.
3. Under-Furnishing the Kitchen
Short-term guests microwave leftovers. Mid-term tenants cook real meals every day for months. If your kitchen has two pots and a dull knife, you’ll get bad reviews and tenants won’t extend. Invest in a complete, quality kitchen setup. It costs maybe $300 more and pays for itself in tenant satisfaction and extensions.
4. Not Screening Tenants
Airbnb has its review system. With direct bookings on Furnished Finder or Zillow, screening is on you. Run background checks, verify employment (especially for traveling nurses—ask for their contract assignment letter), and collect a security deposit. One bad mid-term tenant can cost you thousands in damages and lost income over 3 months.
5. Overlooking Insurance
Standard renter’s insurance probably won’t cover your subletting arrangement. You need a policy that specifically covers furnished rental operations. Companies like Proper Insurance and CBIZ offer policies designed for arbitrage operators. Expect $100-$200/month per unit—build it into your expense model.
6. Targeting the Wrong Markets
Don’t try mid-term arbitrage in a beach town with no hospitals, no corporate offices, and no military base. The demand drivers are completely different from STR. Nashville works. Myrtle Beach doesn’t. San Antonio works. Key West doesn’t. Match your market to the tenant profile.
7. Setting It and Forgetting It
Mid-term is less work than STR—but it’s not zero work. Check in with your tenant monthly. Address maintenance requests quickly. Send a renewal offer 30 days before their lease ends. Proactive management leads to extensions, and extensions mean zero vacancy, zero turnover cost, and maximum profit.
Getting Started: Your First Mid-Term Arbitrage Unit
Ready to actually do this? Here’s the step-by-step path.
- Pick your market: Choose a city from the table above, or any metro with major hospitals, military installations, or corporate headquarters
- Find the right property: 2BR apartments near hospitals are the sweet spot. Use Zillow/Apartments.com to identify units in the $1,400-$2,000 rent range within 15 minutes of a major hospital
- Get landlord approval: Present this as a professional furnished housing operation. Offer above-market rent, longer lease terms, and guaranteed property care. Most landlords say yes when you pitch it correctly
- Furnish the unit: Budget $4,000-$6,000 for a complete 2BR setup. Buy quality but not luxury. IKEA plus Amazon basics gets it done
- List on multiple platforms: Furnished Finder (day one), Airbnb with 30-day minimum, Zillow furnished filter, and your own simple website if you scale beyond 3 units
- Price competitively: Research what similar furnished units rent for in your area on Furnished Finder. Price 5-10% below the top listings to book fast while you build reviews
- Build relationships: Contact local travel nurse staffing agencies, corporate housing departments, and insurance adjusters. These referral relationships become your moat over time
The total startup cost for your first mid-term unit is typically $5,500-$8,000 (first month’s rent, deposit, furnishing, and setup). That’s comparable to short-term arbitrage startup costs, but with lower ongoing expenses and faster path to profitability.
Frequently Asked Questions
How much can you make with mid-term rental arbitrage?
A typical 2BR unit generates $500-$1,800 in monthly net profit depending on the market. In high-demand cities like San Diego, Boston, or Nashville near major hospitals, expect the higher end. Over a year, that’s $6,000-$21,600 per unit. Scale to 3-5 units and you’re looking at a legitimate full-time income with part-time hours.
Is mid-term rental arbitrage legal?
Yes, in most markets. The 30+ day threshold is the key regulatory line. Most cities define “short-term rentals” as stays under 30 days—meaning your mid-term operation typically falls outside STR permit requirements, occupancy taxes, and hosting caps. You still need landlord permission and a proper sublease structure. Always check your specific city and state regulations, but mid-term operators face far fewer legal hurdles than STR hosts.
What’s the difference between mid-term and short-term rental arbitrage?
Short-term targets 1-29 night stays (tourists, weekend travelers, business trippers). Mid-term targets 30-180 day stays (traveling nurses, corporate relocators, insurance displacement, digital nomads). Mid-term has lower per-night revenue but higher occupancy, lower expenses, less management time, and fewer regulatory issues. Net profit is often comparable or higher with mid-term.
Do you need special insurance for mid-term rental arbitrage?
Standard renter’s insurance won’t cover a subletting operation. You need a policy designed for furnished rental businesses. Proper Insurance and CBIZ are two providers who cover arbitrage operators. Budget $100-$200/month per unit. Don’t skip this—one liability claim without coverage can wipe out years of profit.
What are the best platforms for finding mid-term tenants?
Furnished Finder is the dominant platform, with over 2 million tenant inquiries in 2025 and an average stay of 107 days. Airbnb with a 30+ day minimum stay filter is second. Zillow’s furnished rental filter attracts corporate relocators. For premium pricing, connect with corporate housing companies and insurance relocation networks directly.
How does mid-term compare to traditional long-term renting?
Mid-term generates 40-80% more revenue than a standard 12-month unfurnished lease on the same unit. The tradeoff is that you’re handling furnishing, utilities, tenant turnover every few months, and ongoing management. But the profit premium is substantial—and unlike long-term tenants locked into below-market leases, you can adjust pricing every time a new tenant comes in.
Can you do mid-term rental arbitrage with no money?
Realistically, no. You need first month’s rent, a security deposit, and furnishing money. That’s $5,500-$8,000 minimum for your first unit. Some people negotiate with landlords to waive the deposit or use credit cards for furnishing, but I wouldn’t recommend starting completely broke. This is a real business—treat the startup capital like an investment, not a gamble.
