What is a good occupancy rate for a short-term rental?

A good occupancy rate depends on your market and pricing strategy. Nationally, STR occupancy averages 55-65%. Top-performing properties in high-demand markets can hit 75-85%. However, a lower occupancy rate at a higher nightly rate can sometimes generate more revenue than high occupancy at a discount.

How much can you make on Airbnb?

Airbnb income varies widely by location, property size, and management quality. A well-located 2-bedroom in a popular market might gross $30,000-$60,000 per year. After expenses (cleaning, platform fees, management, insurance, maintenance, and furnishing costs), net income typically ranges from $1,000-$3,000 per month for a solid performer.

What expenses should STR hosts expect?

STR expenses include cleaning costs per turnover, platform fees (3% for Airbnb host-only), property management (15-25% if not self-managed), higher utilities (guests use more), supplies and consumables, STR-specific insurance, property taxes, increased maintenance from higher wear and tear, and furnishing costs amortized over 3 years. Total expenses typically run 40-60% of gross revenue.

Short-Term Rental Revenue Calculator

Estimate your Airbnb, VRBO, or vacation rental income by factoring in nightly rate, occupancy, cleaning fees, and every operating expense. See your true monthly net income before you buy or list.

Property

Average Nightly Rate

Your average rate across seasons

Occupancy Rate

65%

National average is 55-65%. Top performers hit 75%+.

Number of Bedrooms

Cleaning Fee per Stay

Amount charged to guests per booking

Average Stay Length (nights)

Operating Expenses

STR expenses are typically higher than long-term rentals due to turnover, furnishings, and platform fees.

Cleaning Cost per Turnover

Your actual cleaning expense

Platform Fees (Airbnb/VRBO)

Airbnb host-only fee is 3%. Split-fee model varies.

Property Management

20%

Set to 0% if self-managed. STR managers charge 15-25%.

Utilities (monthly)

Electric, water, gas, internet, cable

Supplies & Consumables (monthly)

Toiletries, linens replacement, coffee, etc.

Insurance (annual)

STR-specific policy, not standard homeowners

Property Taxes (annual)

Maintenance (annual)

Higher wear and tear than LTR

Furnishing Cost (total)

Amortized over 3 years

Results

Monthly Net Income

Annual NOI$0

Gross Revenue$0

Total Expenses($0)

Expense Ratio0.0%

Revenue per Bedroom$0

Nights Booked237

Turnovers / Year79

NOI = Gross Revenue − Operating Expenses

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How to Use This Calculator

1. Set your nightly rate — use the average across all seasons. Check comparable listings on Airbnb or use tools like AirDNA and PriceLabs to find your market's going rate.

2. Adjust occupancy — 65% is a reasonable starting assumption. New listings often start lower (50-55%) and climb as reviews accumulate. Seasonal markets may swing between 30% and 90%.

3. Enter your cleaning fee — this is the fee guests pay per booking. Your actual cleaning cost (what you pay the cleaner) goes in the expenses section. The difference is additional revenue.

4. Fill in all expenses — STR costs are higher and more variable than long-term rentals. Don't forget furnishing amortization, which accounts for the upfront cost of outfitting the property.

5. Review your breakeven occupancy — this tells you the minimum occupancy you need to cover all expenses. If it's above 70%, you have little margin for error.

STR Revenue Factors

Short-term rental income isn't static — it fluctuates based on several factors that long-term rental investors rarely consider:

Seasonality — Most markets have peak and off-peak seasons. Beach properties may earn 70% of annual revenue in 4 summer months. Mountain properties spike during ski season. Urban properties tend to be more stable year-round.
Location and walkability — Proximity to attractions, restaurants, and transit drives higher rates and occupancy. A property 5 minutes from downtown will outperform one 30 minutes away.
Amenities — Hot tubs, pools, game rooms, and EV chargers can justify a 15-30% nightly rate premium. Even small touches like a coffee station, fast WiFi, and smart locks improve guest satisfaction and reviews.
Reviews and Superhost status — Properties with 50+ five-star reviews get significantly more bookings and can charge higher rates. Superhost status on Airbnb adds another 5-10% booking boost.
Dynamic pricing — Tools like PriceLabs, Beyond Pricing, and Wheelhouse automatically adjust your nightly rate based on demand, local events, and competitor pricing. Most successful hosts use dynamic pricing.

STR vs. Long-Term Rental

Short-term rentals can generate 2-3x the gross revenue of a comparable long-term rental — but they come with higher expenses, more management overhead, and greater income volatility. Here's a quick comparison:

Factor	Short-Term Rental	Long-Term Rental
Revenue potential	Higher (2-3x gross)	Stable, predictable
Expense ratio	40-60% of gross	30-45% of gross
Management effort	High (or 20%+ to outsource)	Low (8-10% to outsource)
Vacancy risk	Seasonal fluctuations	Turnover between leases
Furnishing cost	$10K-$30K upfront	Minimal or none

Use our Rental Cash Flow Calculator to model the same property as a long-term rental and compare. For a deeper dive, read STR vs. Long-Term Rental: Which Strategy Fits Your Goals?

Already know which route you want to go? Check the Cap Rate Calculator to evaluate the property's unlevered return, or explore key terms like cash flow, occupancy rate, and net operating income (NOI) in our glossary.