Airbnb (ABNB) is marking the one-year anniversary of Airbnb Friendly Apartments- a program that offers apartment seekers looking for extra income the opportunity to find places to live in that allow for Airbnb hosting, part-time.

Jesse Stein, Airbnb Global Head of Real Estate, joins Yahoo Finance's Brad Smith and Dani Romero to weigh in on the residential rental market and how Airbnb's solution stacks up to the competition.

In terms of growth, Stein says the program is “scaling very, very well” due to the type of renters the program attracts. The distinction of the program, according to Stein, is that it allows hosts to “monetize their space” when they’re traveling.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

DANI ROMERO: Jesse, there's also a surplus of supply in the rental market. And even some markets are dealing with some saturation. How is Airbnb's program able to compete in those markets?

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JESSE STEIN: Well, I think there's so much supply hitting the market today, especially in the Sun Belt of the US. And this offering really differentiates your building from other buildings around you. So it attracts new consumers. Consumers want the flexibility.

Consumers want the ability to make extra income. So we are scaling very, very well across the US, but especially in the Sun Belt where there is a tremendous amount of supply that's going to hit the market over the next 12 to 18 months.

BRAD SMITH: For the number of apartments that you've been able to contract with to this point, I imagine that there's some type of revenue sharing that might even have to take place. What is the kind of comparison when you think about the profitability, the margin, versus a typical listing that would go up on Airbnb?

JESSE STEIN: Yeah, we think about it differently. To a certain degree, this is one's primary home. And they are not looking to arbitrage their unfurnished rent. They are looking to simply monetize their space when they're traveling for work, for pleasure, for whatever.

So the average host has made $3,500. But that obviously is the average. In some markets, it's dramatically higher. In other markets, it's a little bit lower. It all depends on demand in that market, and the use pattern of that residence.

Some consumers are hosting 60 nights a year. Some are hosting six nights a year. So it really depends on the consumer's profile. The integrity of the program is to monetize your space when you're not there. It is definitely not to take away the housing stock and run a dedicated hotel, if you will.