Vacation Rental Valuation: Estimate Property Value from STR Income
Enter any address to estimate revenue, then apply income-based valuation to determine what the property is worth as a short-term rental investment.
Villa in Gulf Shores
5 bed, 4 bath
$820k
Est. Value
7.4%
Cap Rate
$60.7k
Revenue
Condo in Hilton Head
3 bed, 2 bath
$540k
Est. Value
6.8%
Cap Rate
$36.7k
Revenue
Chalet in Steamboat
4 bed, 3 bath
$950k
Est. Value
8.1%
Cap Rate
$76.9k
Revenue
Destin, FL (Beachfront)
Entire home
$94.1k
Revenue
77%
Occupancy
$335
Daily Rate
Breckenridge, CO (Ski)
Entire home
$108.6k
Revenue
72%
Occupancy
$413
Daily Rate
Savannah, GA (Historic)
Entire home
$62.4k
Revenue
75%
Occupancy
$228
Daily Rate
What is a vacation rental valuation?
A vacation rental valuation uses the income approach to estimate what a property is worth as a short-term rental investment. Instead of relying on comparable home sales alone, it starts with projected (or actual) STR revenue, subtracts operating expenses, and applies a capitalization rate to arrive at a property value.
This differs from a traditional appraisal. A three-bedroom cabin might appraise at $380k based on recent sales of similar homes. But if that cabin generates $85k in annual STR revenue with $32k in operating expenses, the income approach at a 7% cap rate values it at $757k. The gap between those two numbers is the STR premium, and it only holds if the income is real.
Try the valuation toolHow does the valuation tool work?
Three steps. No account, no payment info. Start with a revenue estimate, then apply the income approach to approximate property value.
Enter the property address
Type any US street address plus bedrooms, bathrooms, and guest count. The tool finds comparable short-term rentals nearby to build a revenue estimate.
Get the revenue estimate
Annual projected revenue, average daily rate, and occupancy from comparable listings. This is the top-line number that feeds the valuation model.
Apply cap rate or multiplier
Subtract estimated operating expenses from gross revenue to get NOI. Divide NOI by your target cap rate to estimate what the property is worth as an income-producing STR.
Why value a property based on STR income?
Comparable sales tell you what buyers paid for similar homes. Income-based valuation tells you what the property is worth as a business. For an operator, the business value is the one that determines whether the deal works.
Estimated value (income approach)
$757,000
At 7% cap rate
Gross Revenue
$85k
Est. NOI
$53k
Cap Rate
7%
This uses projected revenue. Want NOI from actual bank data?
What to know before you value a vacation rental
Income-based valuation is powerful, but the output is only as reliable as the revenue and expense inputs. Three things to understand first.
Why STR valuations differ from traditional appraisals
A traditional appraisal looks at what similar homes sold for. An income-based valuation looks at what the property earns. In strong vacation markets, STR income can push the value 40% to 80% above what comparable sales suggest. That premium is real only if the income is documented and sustainable.
Cap rate ranges by market type
Beachfront condos in established resort markets trade at 5% to 7% caps. Mountain cabins in areas with regulatory uncertainty require 8% to 12%. Urban vacation rentals fall somewhere in between, depending on competition density and local STR ordinance stability.
Projected vs. actual revenue: the valuation risk
Valuing on projected revenue is a guess on top of a guess. Calendar-based projections inflate occupancy, and the expenses below the top line are absent. A valuation built on reconciled bank deposits and categorized expenses is defensible. One built on scraped calendars is not.
Beyond estimates
The calculator tells you what it could earn. MagicBNB tells you what it actually did.
Connect your PMS and bank account. Every deposit gets matched against every payout. You get per-property financials from money that moved, not money that was estimated.
Bank-Reconciled P&L
Revenue rebuilt from deposits that cleared your bank, matched against payout records from your PMS. Per property, per month.
Smart Transaction Ledger
Every bank transaction auto-categorized and matched to the right property. No manual tagging, no spreadsheet reconciliation.
Channel Breakdown
See which platform (Airbnb, Vrbo, direct) actually pays more after fees. Stop guessing which channel to push.
Deal Analyzer
Run the numbers on a new property before you commit. Uses your actual portfolio data as the baseline, not market averages.
Milo AI Manager
Ask a question in plain English and get the answer from your own financial data. "Which property had the highest margin last quarter?"
Owner Statements
Branded PDF statements generated in one click. Send them to property owners or keep them for your own records.
More free STR calculators
This tool estimates property value from STR income. These calculators cover other angles.
Frequently asked questions
How is a vacation rental valuation different from a traditional appraisal?
A traditional appraisal values a property based on comparable sales of similar homes. A vacation rental valuation uses the income approach: it starts with what the property earns (or could earn) as a short-term rental, subtracts operating expenses, and applies a capitalization rate or income multiplier to arrive at a value. The two methods can produce very different numbers for the same property.
What cap rate should I use for a vacation rental?
Cap rates for vacation rentals typically range from 5% to 12%, depending on the market, property type, and local regulation risk. A beachfront condo in a stable, high-demand market might trade at a 5% to 7% cap. A cabin in a market with uncertain STR regulations might require an 8% to 12% cap to compensate for the risk. The right cap rate reflects both the income stream and the probability that the income continues.
Can I use projected revenue for a valuation, or do I need actual numbers?
You can use projected revenue for a preliminary valuation, and that is what this tool does. For a serious acquisition, refinance, or partnership buyout, lenders and partners will want trailing twelve-month actual revenue from bank statements or a PMS export. Projected revenue is a starting point. Reconciled revenue is the basis for a defensible valuation.
Do lenders accept STR income for mortgage qualification?
Some do, some do not. Portfolio lenders and DSCR lenders often underwrite based on STR income if you can document it. Conventional lenders typically use comparable long-term rents or require two years of tax returns showing rental income. The documentation matters as much as the number itself.
How does MagicBNB help with vacation rental valuation?
MagicBNB connects to your PMS and bank accounts, then reconciles every deposit against the payout records. You get actual revenue, actual expenses, and actual net operating income per property. That is the input a valuation needs. No calendar inference, no guesswork about cleaning fees or platform commissions.
Why would a property be worth more as an STR than as a long-term rental?
Because STR gross revenue often exceeds long-term rent by 1.5x to 3x in strong vacation markets. If net operating income after STR expenses still exceeds what a long-term tenant would pay, the income approach produces a higher value. The premium depends on occupancy, seasonality, and local STR regulation stability.
Valuations based on estimates miss the real picture.
MagicBNB shows actual revenue from bank deposits so you value properties on facts. 14 days free.
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