How a rental makes money

Sources

• Rental Housing Finance Survey 2024, RHFS Table Creator: properties by property size (1 unit; 2-4 units), tables Ownership and Management, Income and Subsidies, Expenses, and Finances and Mortgage. Data collected June to November 2024, released February 19, 2026 · U.S. Department of Housing and Urban Development and U.S. Census Bureau, 2024
• Quarterly Residential Vacancies and Homeownership, Third Quarter 2026 (released October 28, 2026): national rental vacancy rate · U.S. Census Bureau, 2026
• Primary Mortgage Market Survey: average 30-year fixed rate, week of October 29, 2026 (conventional, conforming home purchase loans for borrowers with 20 percent down and excellent credit) · Freddie Mac, 2026
• Airbnb service fees (Help Center article 1857): split fee and host-only fee for hosts · Airbnb, 2026
• Airbnb, Inc. Form 10-K for fiscal 2025: Gross Booking Value, Nights and Seats Booked, average nights per booking · Airbnb, Inc. (U.S. Securities and Exchange Commission filing), 2025
• Short-Term Rental Registration (Local Law 18 of 2022) · New York City Mayor's Office of Special Enforcement, 2026

Every number

• 31.9%census.gov ·2024 · Worked out: rental properties with one home that said they have a mortgage or similar debt, out of all of them, 2024. Most of the rest said no; some didn't answer.
• 59.8%census.gov ·2024 · Worked out: rental properties with one home that said they have no mortgage or similar debt, out of all of them, 2024.
• 59.6%census.gov ·2024 · Worked out: rental properties with one home owned by an individual investor, out of all of them, 2024.
• 20.6%census.gov ·2024 · Worked out: rental properties with one home owned by a limited liability company or partnership, 2024.
• 1.2%census.gov ·2024 · Worked out: rental properties with one home owned by a real estate investment trust, 2024.
• 50.5%census.gov ·2024 · Worked out: rental properties with one home whose day-to-day management is the owner or someone the owner doesn't pay, 2024.
• 22.3%census.gov ·2024 · Worked out: rental properties with one home run day to day by a management company, 2024.
• 5 hours a monthcensus.gov ·2024 · Median hours a month owners spent managing a rental property with one home, where the owner manages it, 2024.
• $1,400/monthcensus.gov ·2024 · Median monthly rent received per home, rental properties with one home, 2024.
• 7.6%census.gov ·2026 · The national rental vacancy rate, third quarter of 2026: the share of rental homes empty and for rent. Used here as the share of the year a home sits empty.
• $106example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): rent lost to empty months at the national rental vacancy rate, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): rent lost to empty months at the national rental vacancy rate, a month.
• $2,847/yearcensus.gov ·2024 · Median real estate tax per home, rental properties with one home, 2024.
• $1,100/yearcensus.gov ·2024 · Median property insurance per home, rental properties with one home, 2024.
• $1,800/yearcensus.gov ·2024 · Median maintenance cost per home, rental properties with one home, 2024.
• $6,613/yearcensus.gov ·2024 · Median total operating expenses per home (everything to run it, before any loan), rental properties with one home, 2024.
• $237example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): property tax, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): property tax, a month.
• $92example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): insurance, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): insurance, a month.
• $150example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): repairs and upkeep, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): repairs and upkeep, a month.
• $72example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): the rest of the median running costs (water, the lawn, a manager and the like), a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): the rest of the median running costs (water, the lawn, a manager and the like), a month.
• $743example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): what's left before the loan, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): what's left before the loan, a month.
• 4%census.gov ·2024 · Median capitalization rate, rental properties with one home, 2024: income before any loan as a share of value.
• 6%census.gov ·2024 · Median rent received in a year as a share of the property's value, rental properties with one home, 2024.
• $250,000census.gov ·2024 · Median current market value, rental properties with one home, 2024 (owners' own estimates).
• 20%example (example number: Simplified example: a down payment of a fifth of the price.) · Simplified example: a down payment of a fifth of the price.
• $200,000example (example number: Simplified example: the median value with twenty percent down.) · Simplified example: the median value with twenty percent down.
• 7.24%freddiemac.com ·2026 · Freddie Mac's average thirty-year fixed rate, the last week of October 2026. The survey is of loans to home buyers with a fifth down and excellent credit.
• 30 yearscensus.gov ·2024 · Median term of the loans on rental properties with one home that have one, 2024.
• $1,363example (example number: Worked out: the monthly payment on the example loan at the survey rate over thirty years, equal payments.) · Worked out: the monthly payment on the example loan at the survey rate over thirty years, equal payments.
• $620example (example number: Worked out: the example payment minus what's left before the loan.) · Worked out: the example payment minus what's left before the loan.
• $156example (example number: Worked out: the part of the first month's payment on the example loan that lowers what's owed.) · Worked out: the part of the first month's payment on the example loan that lowers what's owed.
• $1,207example (example number: Worked out: the part of the first month's payment on the example loan that is interest.) · Worked out: the part of the first month's payment on the example loan that is interest.
• $1,939example (example number: Worked out: what the example loan's payments lower the loan by in its first year.) · Worked out: what the example loan's payments lower the loan by in its first year.
• $14,416example (example number: Worked out: the interest in the example loan's first year of payments.) · Worked out: the interest in the example loan's first year of payments.
• 6.17%freddiemac.com ·2026 · Freddie Mac's average thirty-year fixed rate a year before the last week of October 2026.
• 50%example (example number: Simplified example: half the price paid in cash.) · Simplified example: half the price paid in cash.
• 100%example (example number: Simplified example: the whole price paid in cash, with no loan.) · Simplified example: the whole price paid in cash, with no loan.
• $1,100/monthcensus.gov ·2024 · Median monthly rent received per home, rental properties with two to four homes, 2024.
• 3 homescensus.gov ·2024 · Median number of homes on a rental property with two to four homes, 2024.
• $3,300example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): rent from three homes at the median rent, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): rent from three homes at the median rent, a month.
• $251example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): rent lost to empty months at the national rental vacancy rate, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): rent lost to empty months at the national rental vacancy rate, a month.
• $500example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): property tax for three homes, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): property tax for three homes, a month.
• $209example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): insurance for three homes, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): insurance for three homes, a month.
• $288example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): repairs and upkeep for three homes, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): repairs and upkeep for three homes, a month.
• $325example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): the rest of the median running costs for three homes, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): the rest of the median running costs for three homes, a month.
• $1,727example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): what's left before the loan, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): what's left before the loan, a month.
• $162,500census.gov ·2024 · Median market value per home, rental properties with two to four homes, 2024 (owners' own estimates).
• $487,500example (example number: Worked out: three homes at the survey's median value per home.) · Worked out: three homes at the survey's median value per home.
• 25%example (example number: Simplified example: a down payment of a quarter of the price.) · Simplified example: a down payment of a quarter of the price.
• $365,625example (example number: Simplified example: the building's value with a quarter down.) · Simplified example: the building's value with a quarter down.
• $2,492example (example number: Worked out: the monthly payment on the example loan at the survey rate over thirty years.) · Worked out: the monthly payment on the example loan at the survey rate over thirty years.
• $765example (example number: Worked out: the example payment minus what's left before the loan.) · Worked out: the example payment minus what's left before the loan.
• $286example (example number: Worked out: the part of the first month's payment on the example loan that lowers what's owed.) · Worked out: the part of the first month's payment on the example loan that lowers what's owed.
• $6,000example (example number: Worked out: the survey's median tax per home in a two-to-four-home property, times three.) · Worked out: the survey's median tax per home in a two-to-four-home property, times three.
• $2,508example (example number: Worked out: the survey's median insurance per home, times three.) · Worked out: the survey's median insurance per home, times three.
• $3,450example (example number: Worked out: the survey's median maintenance per home, times three.) · Worked out: the survey's median maintenance per home, times three.
• $3,900example (example number: Worked out: the rest of the survey's median running costs per home, times three.) · Worked out: the rest of the survey's median running costs per home, times three.
• $180/nightexample (example number: Simplified example: a vacation rental's nightly price. It changes by place and season.) · Simplified example: a vacation rental's nightly price. It changes by place and season.
• 18 nightsexample (example number: Simplified example: nights booked in a month. Airbnb doesn't publish how often its homes are booked.) · Simplified example: nights booked in a month. Airbnb doesn't publish how often its homes are booked.
• $3,240example (example number: Worked out: the example price a night times the nights booked.) · Worked out: the example price a night times the nights booked.
• 15.5%airbnb.com ·2026 · Airbnb's host-only service fee for most hosts, read November 2026. Some pay a little more or less.
• $502example (example number: Worked out: Airbnb's fee for most hosts on the example bookings, rounded.) · Worked out: Airbnb's fee for most hosts on the example bookings, rounded.
• 3.7 nightssec.gov ·2025 · Airbnb's average nights per booking for stays, worldwide, 2025.
• $90example (example number: Simplified example: what a cleaner costs between guests.) · Simplified example: what a cleaner costs between guests.
• $438example (example number: Worked out: the example nights divided by Airbnb's average stay, times the example cleaning cost, rounded.) · Worked out: the example nights divided by Airbnb's average stay, times the example cleaning cost, rounded.
• $350/monthexample (example number: Simplified example: power, water, internet and supplies a host pays, since guests don't.) · Simplified example: power, water, internet and supplies a host pays, since guests don't.
• $551example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): the house's property tax, insurance, upkeep and the rest, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): the house's property tax, insurance, upkeep and the rest, a month.
• $1,399example (example number: Worked out from the examples: what's left before the loan, a month.) · Worked out from the examples: what's left before the loan, a month.
• $36example (example number: Worked out: what's left before the loan minus the example payment.) · Worked out: what's left before the loan minus the example payment.
• $2,300example (example number: Worked out: the example bookings less the fee and the cleaning, a month.) · Worked out: the example bookings less the fee and the cleaning, a month.
• $901example (example number: Worked out: the house's costs plus the example supplies, a month.) · Worked out: the house's costs plus the example supplies, a month.
• $91.3Bsec.gov ·2025 · Airbnb's gross booking value, 2025: what guests booked, including cleaning fees, service fees and taxes.
• 533 million nights and seatssec.gov ·2025 · Nights and experience seats booked on Airbnb, 2025.
• $171sec.gov ·2025 · Worked out and rough: gross booking value divided by nights and seats booked, 2025, worldwide, with fees and taxes in.
• $1,294example (example number: Worked out: the median rent less the empty months, a month.) · Worked out: the median rent less the empty months, a month.
• $551example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): costs before the loan, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): costs before the loan, a month.
• $3,049example (example number: Worked out: rent from three homes less the empty months, a month.) · Worked out: rent from three homes less the empty months, a month.
• $1,322example (example number: Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): costs before the loan for three homes, a month.) · Built from the survey's medians and rounded to whole dollars (medians don't add up exactly): costs before the loan for three homes, a month.
• $866example (example number: Worked out: the survey's median running costs per home minus its median tax, insurance and maintenance.) · Worked out: the survey's median running costs per home minus its median tax, insurance and maintenance.
• 0%example (example number: Simplified example: no manager: you run it yourself.) · Simplified example: no manager: you run it yourself.
• 1 homeexample (example number: Simplified example: one house.) · Simplified example: one house.