The apartment is in the NYCHA complex that stretches from 25th to 28th Streets between 9th and 10th Avenues in Manhattan, New York.
A mother and daughter booked a unit for $90 a night. They wound up reporting the official tenant.
Boston resident Rachel Valerio told The New York Times that the apartment was highly rated on Airbnb but it smelled like gas and there was a roach trap next to the bed.
Now there is talk of city council hearings on the matter.
Airbnb says it was unaware of the situation, and it supports a ban on rentals in affordable housing.
NYCHA released a statement:
"Illegal subletting of NYCHA apartments on Airbnb is prohibited by HUD regulations and by our lease agreements. We are investigating the matter."