# Midterm Rentals Emerge as City-Proof Alternative to Short-Term Rentals
Short-term rental regulations are pushing investors toward midterm rentals, a strategy that sidesteps the crackdowns decimating the Airbnb model in major cities.
Jeff Hurst, CEO of Furnished Finder and former president of VRBO, identifies midterm rentals as the "Goldilocks" option. These properties typically rent for 30 days to several months, avoiding the strict caps and licensing restrictions cities impose on 3-day stays while capturing yields higher than traditional long-term rentals.
The shift reflects real market pressure. Cities like New York, San Francisco, and Los Angeles have sharply limited short-term rental licenses and banned sublets in many neighborhoods. Owners face fines, legal liability, and platform delistings. Traditional 12-month leases, meanwhile, lock in lower returns and longer vacancy periods when turnover occurs.
Midterm rentals occupy the regulatory sweet spot. Most cities treat 30-day-plus rentals as standard residential leases, requiring minimal special licensing. Tenants sign month-to-month or seasonal agreements. Owners still capture premium rates by targeting corporate relocations, seasonal workers, people in transition, and those needing temporary housing.
The numbers work. While short-term rentals generated 20 to 30 percent annual yields in some markets before regulations tightened, midterm rentals typically return 8 to 15 percent annually. That's double what traditional long-term rentals produce in many markets, without the regulatory gauntlet.
For ordinary investors, this strategy requires different tenant screening and management. Midterm tenants expect furnished units, reliable internet, and flexible lease terms. Hurst's platform, Furnished Finder, and similar services simplify matching owners with