Hello Joyman77,
Indeed, the movie can be transferred to your iPad.
Can I play my rental on more than one device?
If you download a rented movie on your computer: You can transfer it to a device such as your Apple TV (1st generation), iPhone, iPad, or iPod if it’s a standard-definition film (movies in HD can only be watched on your computer, iPad, iPhone 4 or later, iPod touch (4th generation or later), or Apple TV). Once you move the movie from your computer to a device, the movie will disappear from your computer's iTunes library. You can move the movie between devices as many times as you wish during the rental period, but the movie can only exist on one device at a time.
iTunes Store: Movie rental frequently asked questions (FAQ)
http://support.apple.com/kb/HT1657
Cheers,
Allen