What is Occupancy Rate for Short-Term Rentals? The Complete STR Guide
Occupancy rate is the percentage of available nights your STR property is booked. Learn how to calculate it, what good looks like, and how to optimize yours.
Occupancy rate is one of the most-watched metrics in short-term rental investing — and one of the most misunderstood. A high occupancy rate alone doesn't mean your property is profitable.
What Is Occupancy Rate?
Occupancy rate is the percentage of available nights in a given period that your property was actually booked and occupied by guests.
Occupancy Rate = (Booked Nights ÷ Available Nights) × 100
What Is a Good Occupancy Rate for an Airbnb?
- Under 50%: Underperforming — review pricing, listing quality, and availability settings
- 50–65%: Average — room to grow; dynamic pricing can help fill gaps
- 65–75%: Solid — you're competitive; focus on maximizing ADR
- 75–85%: Strong — excellent demand; watch for pricing opportunities on high-demand dates
- 85%+: Very high — you may be priced too low; test higher rates to boost RevPAR
A 90% occupancy rate sounds fantastic — but if you achieved it by pricing at $80/night when your market commands $150, you've left thousands of dollars on the table. This is why RevPAR is a more complete metric.
How to Calculate Your Break-Even Occupancy Rate
Break-Even Occupancy = Monthly Fixed Costs ÷ (Nightly Rate × Available Nights)
If your monthly costs total $3,000, your nightly rate is $150, and you have 30 available nights: break-even = 3,000 ÷ (150 × 30) = 66.7%. Any bookings above that percentage generate profit.
How to Improve Your STR Occupancy Rate
- Dynamic pricing: Automatically adjust your nightly rate based on demand, seasonality, and local events
- Listing optimization: Professional photos, compelling title, and keyword-rich descriptions improve search ranking
- Minimum stay adjustments: Reducing minimum night requirements fills gaps between longer bookings
- Multi-platform listing: Distributing on Airbnb, VRBO, and Booking.com maximizes reach
- Review management: A higher star rating boosts algorithmic placement on booking platforms
Track occupancy across all your properties in real time — start free with MagicBnB.
About MagicBnB
MagicBnB is the portfolio intelligence platform for short-term rental operators. Connect your Hospitable or Hostfully PMS and bank account through Plaid to track true net profit, ADR, occupancy, and all the metrics that matter — per property, not just in aggregate. Milo, your AI Revenue & Profit Manager, answers questions about your portfolio in plain English. Use the Deal Analyzer to underwrite new acquisitions before you commit. Free plan available — 5 deal analyses included. Start at magicbnb.io.
