Imagine waking up and realizing your rent is already paid—all thanks to streams of passive income you set up months (or years) ago. In 2024, it’s more possible than ever to turn this dream into reality with some clever strategies. Today, I’m giving you 23 passive income ideas that can help you cover your rent—and maybe even more.

Understanding Passive Income: The Foundation of Earning While You Sleep

Passive income doesn’t mean you sit back and money magically appears in your bank account. It requires upfront effort, investment, or both … and maybe a lot of it.

The goal is to create a system where, after that initial big push, the money starts flowing with minimal ongoing effort. Here’s how you can set up such systems in 2024.

23 Passive Income Ideas to Cover Your Rent in 2024

1. Participate in Sleep Studies

Yes, you can get paid to sleep. Sleep studies are conducted by research institutions, universities, hospitals, and clinics to understand sleep patterns and disorders.

Some studies can be done at home, while others require you to sleep in a clinic. Platforms like ClinicalTrials.gov and SleepStandards.com offer opportunities, with some studies paying up to $22,000. NASA even offers $199,000 for a 2-month bed rest study.

2. Rent Out Household Items

How often do you use your lawnmower, power tools, or that cornhole game gathering dust in the garage? Renting out household items on platforms like Neighbor, Fat Llama, or Rent My Items can turn unused stuff into cash.

One guy reportedly makes up to $2,000 every weekend just renting out beer pong tables and cornhole boards as a side hustle.

3. Rent Out Your Driveway or Land

If you have an unused driveway, consider renting it out. Platforms like JustPark, Parkable, and SpotHero connect you with drivers in need of parking.

One caregiver reportedly makes $10,000 a year just by renting out his driveway, and some people earn around $200 per month per parking spot.

4. Build an Affiliate Marketing Website

Creating a niche blog where you promote products and earn commissions can generate significant income.

The sky is the limit with this one. It’s possible to bring in thousands of dollars per quarter. It takes time to build, but once established, it’s a steady source of income.

5. Invest in Dividend Stocks

Dividend stocks offer a way to earn passive income by simply owning shares in certain companies. Companies like JP Morgan pay dividends regularly, rewarding you with cash for holding their stock. Over time, with enough shares, this can become a reliable income stream.

6. Create and Sell Online Courses

Platforms like Udemy allow you to create and sell courses on topics you’re skilled in. Whether it’s Excel or photography, if you put in the effort to build a comprehensive course, it can generate income for years to come.

7. Domain Trading

Domain trading involves buying domains that you believe will increase in value over time and then selling them for a profit. For example, crypto-related domains that were bought for a few dollars back in the day are now worth thousands. Pay attention to trends like AI or augmented reality and buy related domains—they could be valuable in a few years.

8. Start a Boring YouTube Channel

Educational YouTube channels focused on solving common problems can generate passive income through ad revenue.

While entertainment channels are competitive, educational content is less so, and searchable videos can continue to attract views and earnings for years.

Leverage what you know a ton about and turn it into cash, no matter how niche the topic is. Know a lot about Dragon Ball? Start a channel!

9. Buy and Sell Intellectual Property (IP)

Investing in IP, such as music rights or movie rights, allows you to earn money through licensing deals. While this requires some initial investment and expertise, it can be highly lucrative.

10. Rent Out Your Car on Turo

If your car spends more time parked than on the road, consider renting it out on Turo. You can earn up to $100 a day, depending on the type of car, and cover your car payments or even make a profit.

11. Lend Money for Interest

Peer-to-peer lending platforms like Prosper and LendingClub allow you to lend money to others and earn interest. It’s a bit risky, but with careful selection, it can be a solid source of passive income.

12. Invest in High-Yield Savings Accounts

Parking your money in a high-yield savings account with platforms like SoFi can earn you over 4% interest annually. It’s a low-effort, low-risk way to make your money work for you.

13. Store People’s Stuff

If you have extra space in your garage, attic, or even your yard, consider renting it out as storage. Platforms like Neighbor and SpareFoot make it easy to connect with people in need of storage. One person reportedly made $26,000 by renting out yard space for storage.

14. Invest in Bonds

Bonds are a classic, low-risk investment that provides regular interest payments. With corporate bonds offering returns around 4-5% and government bonds a bit lower, they’re a safe way to earn passive income.

15. Purchase Index Funds

Personally, I file this under the “eww gross” category. But for those who love stocks and numbers, index funds, like those tracking the S&P 500, offer a reliable return of about 10% annually. It’s a set-and-forget investment strategy, making it ideal for passive income seekers.

16. Invest in Art

Investing in fine art through platforms like Artsy or Christie’s can be a unique way to diversify your portfolio. While riskier, the potential returns can be substantial, especially as art continues to appreciate in value.

17. Peer-to-Peer Lending

Peer-to-peer lending is another way to earn passive income by lending money to individuals or small businesses. The average return on platforms like Prosper is around 5.7%, but with careful selection, you could earn more.

18. Advertise on Your Car

Platforms like Carvertise and Wrapify pay you to wrap your car in advertisements. It’s easy money if you don’t mind turning your vehicle into a moving billboard, with potential earnings of $100 to $500 per month.

19. Sell Your Notes Online

If you have well-organized notes from school or college, you can sell them on platforms like StudySoup or Stuvia. Some people have turned their study notes into a profitable side hustle, with earnings in the thousands.

20. Purchase ATMs

Investing in ATMs can be a lucrative venture. Each transaction generates a fee, and with multiple machines in strategic locations, the income can add up quickly. In doing the research for this article, I came across one person claiming to make $115,000 a month with 30 ATMs.

21. Sell 3D Designs

With the rise of 3D printing, selling 3D designs on platforms like Shapeways or TurboSquid can be a profitable passive income stream. As the technology grows, so will the demand for custom 3D models, making this a promising area to explore.

22. Buy Internet Protocol (IP) Addresses

In this digital age, even IP addresses can be monetized. Companies pay to rent IP addresses for various purposes, including maintaining privacy. Once you’ve set it up, this can be a steady, passive income stream.

23. Start a Newsletter

Creating a niche newsletter can generate steady income through sponsorships and paid subscriptions. Platforms like Substack and Beehiiv make it easy to build and monetize newsletters, allowing you to share your expertise on a specific topic while earning money.

So basically …

There you have it—23 ways to generate passive income in 2024. Whether you’re looking for quick wins like renting out your driveway or long-term investments like dividend stocks, there’s an opportunity for everyone. The key is to start now, experiment with different strategies, and find the ones that work best for you. Your future self (and your wallet) will thank you.