What per diem means
The allowance is the traveler’s, not yours: the employer pays the worker, and the worker pays you rent under a lease like any other tenant. What per diem changes is the budget they shop with — which is why it’s worth knowing when you price a midterm furnished home for traveling professionals.
The federal numbers
| Topic | Lodging | Meals and incidentals | Used by |
|---|---|---|---|
| GSA standard rate, FY2027 | $113 a night | $68 a day | Federal travelers in most of the country |
| GSA non-standard areas | Set by area, often by season | $68–$92 a day | About 295 higher-cost areas |
| IRS high-low method | $329 (high-cost) or $230 a day, all-in | Included ($86 or $74) | Employers substantiating travel per diem |
The GSA rates change every October 1, when the federal fiscal year starts. The IRS high-low method is a simpler two-rate version for employers: Phoenix and Scottsdale, for example, count as a high-cost area only from February 1 to March 31 — spring-training season.
Per diem for landlords
- Treat lodging × 30 as a ceiling. At the standard FY2027 rate, a month of lodging per diem is about $3,390 ($113 × 30). A furnished home that rents for less leaves the traveler money in their pocket, which is part of why mid-term rentals appeal to them.
- Look up your own area. Rates for higher-cost areas differ, sometimes month by month — the travel nurse stipend calculator adds them up over an assignment. The travel-nurse guide shows the Phoenix and Scottsdale FY2027 table as an example.
- Don’t price off the allowance. Price against comparable furnished homes; allowances vary by employer, and travelers compare. See how to price a mid-term rental.
Per diem by stay length
| Topic | Nightly (short-term) | Monthly (mid-term) | Yearly (long-term) |
|---|---|---|---|
| Typical traveler | A few nights on a business trip | A 13-week nurse or a project crew | Someone who has relocated for good |
| Lodging | Hotel or nightly rental, near the daily rate | A furnished home; monthly rent under lodging × 30 | No per diem — a normal lease |
| Why it ends | The trip ends | The assignment or project ends | The IRS stops treating assignments expected to last over a year as temporary |
Related terms
- Housing stipend — the lodging part of a travel nurse’s pay package. See housing stipend and renting to travel nurses.
- Corporate housing — furnished housing for people traveling or relocating for work. See corporate housing.
- Additional living expenses (ALE) — the insurance version: a displaced household’s housing budget. See ALE.
- MTR — a mid-term rental, also called a medium-term rental. See what MTR means.
Renting to traveling workers alongside nightly guests or yearly tenants? That’s what Nexxus mid-term rental software is built for — or open the live demo set up for mid-term, no sign-up.
Per diem FAQ
What does per diem mean for housing?
The lodging part of a traveler’s daily allowance. An employer or staffing agency pays it so the traveler can cover a place to stay; the traveler then rents the housing themselves — a hotel, or a furnished mid-term rental for a longer assignment — and keeps or covers the difference.
What is the GSA per diem rate for lodging in 2027?
For federal fiscal year 2027 (October 1, 2026 – September 30, 2027), the standard lodging rate for most of the continental US is $113 a night, plus $68 a day for meals and incidental expenses. About 295 higher-cost areas have their own rates, which can change by season — look yours up on gsa.gov.
Do companies have to use GSA per diem rates?
No. GSA rates set what federal agencies reimburse their own travelers. Private employers and agencies choose their own allowances, though many use the GSA rates or the IRS’s simplified high-low rates as a benchmark.
Is per diem the same as a travel nurse stipend?
Close cousins. A travel nurse’s housing stipend is the lodging part of what their agency pays, and many agencies size it from the GSA lodging rate for the assignment’s area. Stipends vary by agency and assignment, and the nurse keeps what they don’t spend.
Should I price my mid-term rental at the per diem rate?
Use it as a ceiling, not a price. Price against comparable furnished homes near the jobs and hospitals your tenants come for. A monthly rent well under the area’s lodging rate × 30 is easy for a traveler to say yes to; one above it asks them to pay the difference themselves.
Sources
Checked September 26, 2026. Rates change every October 1 — confirm the current ones for your area.
- GSA per diem bulletin FTR 27-01 (FY2027 standard rates) and GSA per diem rates (look up any area)
- IRS Notice 2026-60 (2026–2027 special per diem rates and high-cost localities)
- IRS Publication 463 (travel away from home; assignments expected to last over a year)