If you are about to start mid-term rentals, don’t rush. You need a medium-term rental strategy taking into account multiple factors that can make or break your business. The location of the property is one of them. A place with low demand for mid-term rentals won’t bring enough bookings. You will put too much effort into finding new tenants and grow disheartened with the idea of rentals sooner or later.
To minimize the chance of choosing the wrong place, we have prepared a list of the best cities for mid-term rentals. Find multiple options for the US and globally, and learn what makes a good place to start mid-term rentals. It’s not a ranking but a selection of top cities based on potential demand.
Best cities for mid-term rentals in the US
The United States has many business and educational hubs nationwide, creating a strong demand for mid-term rentals. The monthly rent is also high, reaching $2,078 on average. If you are located in the US or considering investing in local property from abroad, you have many nice options. Here are some of the top mid-term rental markets in the US.
Boston, MA
This city has a thriving job market with many healthcare, finance, technology, and biotech corporations. With over 675,000 in population, it’s the third largest city in the northeast of the US. Boston is home to Harvard University, Massachusetts Institute of Technology (MIT), and other renowned educational centers, which means many students come here annually in need of mid-term stays. The healthcare field is also thriving here, with Brigham and Women’s Hospital being the second-largest hospital and one of nine organ transplant centers in the state.
Why this city:
- Headquarters of State Street Corporation, Boston Consulting Group, General Electric, and Fidelity Investments.
- Top city’s employers: Brigham and Women’s Hospital, Dana Farber Cancer Institute, Massachusetts General Hospital, Beth Israel Deaconess Medical Center, Boston Children’s Hospital.
- Center for educational institutions: Harvard University, Massachusetts Institute of Technology (MIT), Tufts University, Boston University, and Northeastern University.
Austin, TX
Austin is a busy location with many cultural and art events. The delicious food and mild weather attract people who want to change the scenery and have a more relaxed life for several months in another place. Another reason Austin is among the best cities for mid-term rentals is the local business landscape. Austin is home to the offices of Apple, Google, Amazon, Tesla, and many other large corporations, which drives business travelers looking for mid-term rent.
Why this city:
- Headquarters and offices of Dell Technologies, Tesla, Apple, Google, Meta, Amazon, IBM, Intel, NXP Semiconductors, and Oracle.
- Warm climate and active cultural life with a vibrant music scene.
- Unites many universities and colleges: The University of Texas at Austin, St. Edward’s University, Austin Community College, Huston-Tillotson University, and Concordia University Texas.
San Francisco, CA
San Francisco has the highest total startup score in the US and is the site for key tech market players, attracting specialists from the US and abroad for business trips and internships. Due to the high property prices in the area, visitors prefer to rent for several months and test the waters instead of signing a long-term lease right away. It makes the city a top choice for starting mid-term rentals.
Why this city:
- Home to Silicon Valley and one of the key US tech hubs with many tech specialists coming around the year.
- High cost of property for short- and long-term rentals encourages tenants to look for alternatives like mid-term housing.
- Strict short-term rental regulations make Airbnb rentals challenging to run, while mid-term rentals give more flexibility to property owners.
- Lots of educational and medical facilities, including the University of California, the University of San Francisco, San Francisco State University, San Francisco Conservatory of Music; UCSF Medical Center, California Pacific Medical Center, and Kaiser Permanente San Francisco Medical Center.
Read what is a short-term rental in our guide.
Washington, D.C.
The US capital is a meeting point for many government workers. Take a walk here, and you will meet all kinds of diplomats, consultants, government employees, lobbyists, and other professionals coming to rule the world. Most of them need a place to stay during a business trip, making Washington a good mid-term rental market. The city is also rich with universities attracting students for programs and internships lasting for several months.
Why this city:
- Government and political hub regularly visited by traveling professionals working for the federal government and agencies.
- Many international organizations with thousands of workers are located in Washington, including the International Monetary Fund, World Bank Group, etc.
- Home to leading US universities such as Georgetown University, George Washington University, and Howard University.
- Nation’s best hospitals, including Johns Hopkins Hospital, Fairfax Hospital, and MedStar Washington Hospital Center.
Nashville, TN
Nashville has more affordable property prices compared to other best cities for mid-term rentals listed here. It’s the most populous city in Tennessee, and it is often called Music City. The music and entertainment industry is what makes Nashville a good option for mid-term rentals, among other factors. Bands, musicians, and producers come here to work on projects and need somewhere to live.
Why this city:
- Hub for music and entertainment industries attracting thousands of creative professionals annually.
- Headquarters of Oracle, Bridgestone Americas Inc., and Nissan North America.
- Tenth fastest growing Metro area in the US with rapid tourism and healthcare industry development.
- Home to 500+ healthcare companies, including Vanderbilt University and Medical Center, HCA Healthcare, and Community Health Systems.
Chicago, IL
Chicago is one of the top US metros for college students, with 502,189 total college students. University of Chicago, University of Illinois at Chicago, and Northwestern University are large Midwest educational hubs gathering thousands of visitors annually. These people are likely to need mid-term rentals. Besides students, Chicago also has steady flows of seasonal travelers, working professionals, and expats.
Why this city:
- Large transportation hub with O’Hare and Midway airports and many traveling professionals.
- Third-largest US city with 2.746 million population, which means more people in transition who may need a temporary furnished property.
- Educational center with a third place among US metros in terms of the number of college students.
San Diego, CA
This city hosts several Navy, Coast Guard, and Marine Corps bases. Military personnel and their families coming to San Diego usually need short- or mid-term rentals. You can take the niche of mid-term rentals or have a hybrid strategy adapting to tenants’ needs. San Diego also has mild weather year-round, making it a popular option for remote workers who want to enjoy a pleasant Mediterranean climate.
Why this city:
- Large military bases, including Naval Base San Diego with 24,000 military personnel and Marine Corps Base Camp Pendleton with 42,000 active duty personnel.
- Mild weather with a hot-summer Mediterranean climate and dry winters.
- Multiple universities, including the University of California, San Diego State University, Point Loma Nazarene University, and the University of San Diego.
- Booming life sciences and biotech industries with around 2,000 life science-related in the region.
- Close to the Mexican border, which makes it a popular stop for traveling businessmen.
Top mid-term rental markets globally
If you are not a US resident or are considering other markets to invest in, there are many great alternatives globally. These places are among the best cities for mid-term rentals due to the high and stable demand for temporary housing.
A great thing about mid-term rentals is flexibility. Since you don’t need to stay in the same city where you rent a property, you can do it anywhere remotely.
London, UK
London is a business, culture, technology, and finance hub. It’s a focal point for almost any industry due to its geographical location and long-lasting history. The property is expensive here, but if you are ready to invest, London is among the best cities for mid-term rentals in Europe. The short- and mid-term rental market is thriving here.
Montreal, Canada
Montreal is known for culture, arts, jazz, and comedy, uniting thousands of professionals from these fields. Artists are a common category of mid-term tenants in this city. It’s a bilingual place with French spoken by 71% of the population. It means many international travelers may consider this city a perfect stop for several months and look for a lease.
Auckland, New Zealand
Auckland is the most populous city in New Zealand, with 1.5 million residents. The mid-term rental market is growing here as more people need temporary stays for business or personal reasons. Proximity to beaches and the booming tech industry are a magnet for tech professionals looking for mid-term rentals.
Berlin, Germany
The German capital has over 1 million foreign population, creating a considerable demand for mid-term rentals. The city also has other features, making it a lucrative mid-term rental market. It’s home to many startups and tech companies, an arts & culture hub, and a place with many international organizations.
Sydney, Australia
Sydney is Australia’s largest city and an economic hub. Kingsford Smith International Airport passes 2.1 million domestic passengers. Some come and go, but many stay in the city for several months and need a place to live. It creates a niche for property owners who consider mid-term rentals.
How to evaluate mid-term rental markets
You don’t have to choose one of the options listed above. There are many other places well-suited for mid-term rentals. You just need to know how to evaluate the market before starting a rental business. Here are the key things to do:
Analyze the demographics
In your medium-term rental strategy, you must understand your target audience and whether the selected location can provide it. As we have mentioned in our article on what is a mid-term rental, such rentals are mostly popular with traveling corporate workers, medical professionals, students, and digital nomads. That’s why you should prefer locations with active business life, lots of educational institutions, and healthcare facilities. A nice climate is also a benefit since it may attract people fleeing from cold winters or unbearable summer heat.
Collect information on the rental market
Browse statistics on rental prices, average occupancy, competition, and length of stay. Since the information on mid-term rental markets is limited, you may use some data for short-term rentals. Forums are also very helpful for research. In particular, BiggerPockets has many active threads where property owners share insights and personal experiences. These details should help you evaluate and compare different mid-term rental markets to pick the most suitable for your case.
Understand profitability and analyze competitors’ prices
Calculate the ROI of mid-term rentals based on the information gathered about the mid-term rental market. You can do it the same way as for short-term rental profitability.
Then, compare the property you consider to similar locations to estimate potential earnings and rates. Ron Brady, Rental Property Investor, shares his approach to choosing the pricing strategy:
“We look at extended stay hotels rates and on Airbnb. With extended stays, we pick the service level at which we seek to compete, e.g. Extended Stay America v Residence Inn by Marriott. On Airbnb, we search in our area for stays of no less than 30 days with all the amenities we offer–location, parking, number of bedrooms, etc. Using all of the data above, we price our offerings at the point in the market where we think our value proposition is the highest.”
Check local regulations
Many local governments severely limit short-term rentals. Mid-term rental laws are more lenient, but some requirements still apply. You may be allowed to rent in specific city zones or need to follow the 90-day rule. There are also local occupancy limits, rental permissions, and other limitations that may affect your income and ability to rent. The city may require a specific mid-term rental insurance or verifying guests to collect their personal information. You must know what to expect in the mid-term rental market before investing in property.
Mind seasonal and global trends
Some places are unaffected by seasonality and market changes. But more often than not, you must take a strategic perspective and make sure the place you want to rent will remain in demand for several years at least. It will help you avoid prolonged vacancy periods and low revenues.
“During the pandemic, many people working remotely decided to take advantage of the opportunity to go to new and different places and rent STRs for longer periods of time. But this year all of my STR bookings are for typical vacation time slots of one week or less.” – shares Carolyn Fuller.
Medium-term rental strategy to start as a host
Once you decide on the mid-term rental market and evaluate all the pros and cons, you can start rentals. Here are the key steps to do it right:
- Furnish property and buy basic amenities for mid-term rentals.
- Get property insurance to protect it from accidental damage and force majeure.
- Adopt a flexible pricing strategy based on seasonal demand and the rates in similar properties in your area.
- Make sure you follow the local regulations. Get a rental permit, pay registration fees, manage taxes, and take other necessary steps to meet the law.
- Draft a rental agreement with the terms of rentals and the responsibilities of both parties.
- Create a property listing and take professional photos for mid-term rental platforms to nudge people into booking your property.
- Consider using smart tools to automate repetitive processes like guest communications, booking scheduling, accounting, etc.
- If you want to make mid-term rentals truly profitable, take it slow. It’s better to wait several weeks and prepare for rentals than to skip some critical steps and lose income over the long run.
