Short-Term vs. Long-Term Rental Calculator

Hold the purchase, loan, property taxes and HOA constant, then model each operating strategy with its own revenue and expenses. For a long-term rental that means rent, vacancy, management, leasing fees, repairs and reserves. For a short-term rental it means nightly rate, occupancy, cleaning, platform fees, management, utilities, supplies, insurance, licensing and the upfront cost of furnishing. Compare annual cash flow, cash-on-cash return and the occupancy the short-term rental needs to break even.

It depends on the nightly rate, cleaning economics and your fixed costs, so there is no single Austin number. This calculator solves for it directly: it shows the occupancy at which short-term cash flow equals long-term cash flow, and the occupancy at which the short-term rental breaks even. The wider the gap between that number and the occupancy you can realistically hold year-round, the safer the short-term strategy.

Yes, with a City of Austin operating license. Ordinance No. 20250227-039 made short-term rentals an accessory use to residential properties across all zoning districts with a valid license, and since July 1, 2026 platforms must display license numbers and remove unlicensed listings when the City asks. HOA covenants, condo bylaws, deed restrictions, loan terms and insurance can still prohibit short-term stays, so check each before you buy.

Guests pay hotel occupancy tax: 11% to the City of Austin (9% occupancy plus 2% venue project tax) and 6% to the State of Texas. Platforms that collect payment remit the City tax on the operator's behalf; bookings taken directly are the operator's responsibility. Because guests pay it on top of the rate, this calculator treats hotel tax as a pass-through rather than income. Rental profit is also subject to income tax, so speak with a CPA.

Cleaning and laundry on every turnover, the full utility bill including internet and streaming, restocking supplies, faster wear on furniture and finishes, higher insurance premiums, licensing, and the cash spent furnishing the home before the first guest arrives. Owners also tend to price from peak weekends instead of a full-year average rate, and to forget that a new listing with no reviews books slower in year one.

This page compares two strategies on the same property: renting it short-term or leasing it long-term. The Austin Rental Analyzer goes deeper on a single long-term rental, with cash-on-cash return, compound annual growth rate against your own targets, and a summary you can save or send to our team. Use this page to choose a strategy, then the Rental Analyzer to pressure-test a long-term deal.

Our Austin Vendor & Services Guide lists the inspectors, contractors, insurance agents and trades we work with. For leasing and day-to-day landlord questions, start with the Landlord Resource Center.

Adam Timothy Group is an investor-friendly Austin real estate team, focused on East Austin, North Loop and South Congress. We own and operate both long-term rentals and vacation rentals, and we help clients pressure-test rent and nightly-rate assumptions, confirm short-term eligibility and structure offers that work under either strategy.