Unlocking Profit Potential: The Rise of Alternative Housing in Short-Term Rentals


Alternative housing options such as tiny houses, container homes, and prefabricated homes have emerged as innovative living solutions and lucrative opportunities for short-term rentals. This article explores the potential for real estate investors to tap into the growing alternative housing market, catering to individuals’ diverse needs and desires. 

Tiny Homes as Cozy Retreats

Real estate investors can position these alternative dwellings as unique retreats, offering a chance to experience sustainable living for a short duration. The Alternative Housing Lifestyle Guide can be bundled as a part of the rental, providing guests with insights into the eco-conscious lifestyle they’re temporarily embracing.

The idea of staying in a tiny house or a charming container home might seem like a novel and adventurous experience to the urban dweller. Real estate investors can capitalize on this market by creating cozy retreats that depart from traditional hotels. These travelers are seeking something different and sustainable and might find solace in a tiny house surrounded by nature, providing an escape from the hustle and bustle of the city.

Container Homes for the Tech-Savvy Nomad 


Container homes can be advertised as smart stay rentals, appealing to individuals who value connectivity and convenience. These short-term rentals become not just a place to stay but an experience tailored to the tech-savvy individuals’ specific desires, highlighting the “smart” features and eco-conscious design.

For tech-savvy individuals, a container home equipped with innovative technology could be the ideal short-term rental. Investors can integrate cutting-edge features like automated controls, energy-efficient systems, and high-speed internet, catering to Jake’s desire for a balanced and tech-driven lifestyle even when away from home.

Eco-Friendly Escapes

Prefabricated homes can be advertised as eco-friendly escapes, aligning with individuals who desire a harmonious lifestyle. The short-term rental experience becomes an immersive journey into sustainable living, offering insights into the alternative housing lifestyle and the practices and benefits of green living.

To individuals already on a quest for sustainable living, alternative housing can be positioned as an extension of their values. Prefabricated homes, known for their efficiency and eco-friendly construction, have become an attractive option for short-term rentals.

Design-Lover’s Haven: Stylish Retreats in Alternative Housing

Real estate investors can tap into the market of design enthusiasts by promoting these alternative homes as stylish retreats. Each dwelling becomes a canvas, reflecting the desire for a stylish and eco-friendly environment. Visitors can be presented with an inspirational catalog showcasing the potential for creative interior design within these unique spaces.

Alternative housing options can be curated and designed with artistic flair for creative individuals. Container homes and prefabricated structures, customizable and stylish, become unique short-term rentals for those seeking an aesthetic and unconventional stay.

Leading by Example as Sustainable Getaways


For individuals who are already deeply committed to sustainable practices, the short-term rental market for alternative housing becomes an opportunity to lead the change. Earthships, known for their eco-friendly design, could be an exemplary choice for those wanting to experience a fully sustainable stay.

Earthships symbolize sustainable living, attracting guests who are committed to environmental consciousness. The short-term rental experience extends beyond accommodation, becoming an educational journey into a lifestyle of sustainable living. 

A Lucrative Future in Alternative Housing Rentals

Real estate investors have a golden opportunity to tap into the growing demand for alternative housing in the short-term rental market. By understanding the diverse needs of individuals, investors can tailor their offerings to create unique, memorable, and sustainable experiences. As the hospitality industry evolves, alternative housing stands at the forefront, offering not just accommodations but transformative experiences that align with the desires and values of the modern traveler.

How to Finance Alternative Housing Options

Access to funding has always been one of the biggest obstacles to growing a real estate portfolio. That’s especially true in the short-term rental space, where acquisition and operating costs go far beyond a down payment. Investors can always bring on equity investors (and give away upside) or debt (and limit growth). But now, new financing options are coming on the scene, which are purpose-built for the STR space.

Nectar could be a great avenue for many investors to grow their portfolios or upgrade their current properties. Especially as more supply comes online, upgrading properties through unique experiences and quality design is more critical than ever. 

Nectar’s cash flow-based financing allows real estate owners to sell future cash flows to fund these high-ROI projects. 

Specific examples of ways people use Nectar financing: 

  • Add a new amenity—pool, hot tub, unique experiences 
  • Set up a new unit—furniture, design, labor 
  • Grow your portfolio—contribute toward a down payment 
  • Mergers and acquisitions—looking to acquire a property or portfolio? 

This is not for brand-new investors. Nectar does require that a real estate investor is in business for 3+ years and has a 12-month trailing P&L.

To explore this financing option, visit Nectar

If you’re curious to see if the alternative housing lifestyle suits you, we created a guide, Everything You Need To Know Before Taking The Leap Into An Alternative Housing Lifestyle. The guide serves as a valuable tool not only for the investors but also for the guests, providing insights into the alternative living lifestyle they are about to embrace.


Eva is a freelance copywriter specializing in all things real estate, B2B, PropTech, ReTech, CRETech. Owning rental property herself, Eva's love of real estate has turned into a passion for alternative housing options and educating people about the different types of housing available.

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