Wondering if your vacation rental is attracting enough guests? The key is understanding your occupancy rate. In short-term rental investing, it’s one of the biggest indicators of success because it directly affects your monthly revenue, profitability, and even property value.
In this article, we’ll break down what an Airbnb occupancy rate is, why it matters to hosts, and how to keep it high. We’ll start with the basics—like how to calculate your current occupancy—before moving into practical strategies to boost your listing’s performance. By the end, you’ll feel confident about choosing the best market, setting the right price, and ensuring your property stays booked. Let’s get started!
If you want expert help maximizing your occupancy and revenue, RedAwning’s Airbnb property management services take the guesswork out of hosting—offering pricing optimization, marketing, guest communication, and more.
Defining Occupancy Rate for Short-Term Rentals
Occupancy rate tells you how many nights your rental is booked compared to how many nights it’s available. If your place is open to guests for 20 days a month and fills 15 of those nights, that’s a 75% occupancy rate. Think of it like a snapshot of how well your calendar stays booked.
Occupancy rates can cover different scopes—an entire city, a specific neighborhood, or an individual rental. Citywide averages give you a big-picture view, while a property-specific rate shows how your own listing stacks up against local competition.
You’ll often see occupancy talked about monthly or annually. Both approaches help you spot trends, from seasonal shifts to year-over-year progress. Monitoring these timeframes gives you a better handle on when to adjust your pricing or ramp up your marketing efforts.
Importance of Occupancy Rate in Rental Profitability
Occupancy rate lies at the heart of short-term rental profitability because it shows how many nights your property actually brings in revenue. If you fill 20 nights in a month instead of 10, the overall income—from your average daily rate multiplied by those booked nights—naturally goes up. This ties directly to return on investment, since higher occupancy can boost metrics like cap rate and cash-on-cash return.
Even a strong nightly rate can’t compensate for a calendar that’s mostly empty, so maintaining a healthy stream of bookings is crucial. For investors, it’s often the make-or-break factor when deciding on a market or property. A steady occupancy rate not only covers the mortgage and other expenses, but also generates actual profit. That’s why paying close attention to occupancy is essential, whether you’re a first-time host or managing multiple rentals.
How to Calculate the Airbnb Occupancy Rate
Calculating the Airbnb occupancy rate is actually pretty straightforward. All you do is take the total number of booked nights and divide by the number of nights your property was available, then multiply by 100.
Airbnb Occupancy Rate = Number of Booked Nights / Number of Nights Available for Booking x 100%
For instance, if you offered your rental for 270 nights in a year and managed to fill 240 of them, your occupancy rate would be (240 ÷ 270) × 100, or about 88.9%. A common mistake is using the total calendar days instead of how many days you actually made your listing available. That can make your rate look lower than it really is.
Always remember: if you block off some days for personal use or maintenance, those shouldn’t count against you in the calculation. By zeroing in on those “available” nights only, you’ll get a more accurate look at how well your rental is performing.
Finding Occupancy Data for Your Listings
Curious about how your place is really doing? Airbnb has a handy feature called professional tools that you can switch on in your account settings, which then opens up an “Insights” section. This is where you’ll find data on Occupancy and Rates for your listing. It’s a great way to see how often you’re booked and compare your performance over time.
Keep in mind, though, Airbnb doesn’t provide a big-picture view of what’s happening in your entire market. For that broader perspective, consider third-party platforms like AirDNA, Mashvisor, and AllTheRooms. These services compile booking and listing data from multiple sources to give you citywide or neighborhood-level stats, including average occupancy, nightly rates, and revenue trends.
Comparing your numbers to local competitors—whether through these platforms or by chatting with other hosts—helps you decide if your pricing, photos, and amenities are on par with what travelers expect.
Setting the Bar: What’s a Good Occupancy Rate?
It’s tough to pin down a one-size-fits-all occupancy rate, but most hosts agree that anything above 50% is worth paying attention to. Ideally, you want to be closer to 65% or higher if you’re serious about maximizing profits. After all, if your place sits empty more than half the time, that’s a lot of lost income you’ll never recover.
Of course, these numbers can shift based on location. A property in a bustling urban area with year-round tourism might maintain a much higher rate than a secluded cabin in the mountains, which could see more fluctuation depending on the season. Even within the same city, certain neighborhoods can outperform others.
Ultimately, “good” is relative. A 70% occupancy rate might be phenomenal in a small coastal town but only average in a major metropolis. It’s all about understanding what typical occupancy looks like in your market and measuring your performance accordingly.
High and Low Occupancy Markets Across the U.S.
Location is one of the biggest factors influencing your occupancy rate. Popular tourist spots, pleasant climates, and favorable local rules often mean more consistent bookings, while places with tough regulations or strong seasonality may see longer stretches of vacancy. Here’s a quick look at some examples on both ends of the spectrum.
Top-Performing Markets
- Kihei, Hawaii – Known for year-round sunshine and scenic beaches.
- Lahaina, Hawaii – Historic charm meets oceanfront resorts, boosting ongoing visitor interest.
- Key West, Florida – A favorite for warm-weather escapes, packed with activities and nightlife.
- Bar Harbor, Maine – Proximity to Acadia National Park and striking coastal views attract steady tourism.
- Gatlinburg, Tennessee – A gateway to the Great Smoky Mountains and a magnet for outdoor enthusiasts.
- Scottsdale, Arizona – Golf courses, hiking trails, and a vibrant local scene keep bookings high.
Challenging Markets
- Big Bear Lake, California – Experiences a strong winter rush but slower off-seasons.
- Shaver Lake, California – Highly seasonal demand, with fewer visitors outside summer months.
- Kiawah Island, South Carolina – Restrictive local rules and a luxury niche can limit steady reservations.
- Joseph, Oregon – Rural setting and a shorter tourist season affect year-round occupancy.
- Westhampton Beach, New York – Strict rules and a very seasonal crowd create booking hurdles.
- Sugarloaf, Maine – Busy during ski season, but quieter once the snow melts.
Practical Tips to Boost Occupancy
If you’re looking to keep your Airbnb booked and profitable, a few simple tweaks can make all the difference. Below are some tried-and-true steps to help your short-term rental shine in any market.
- Choose the Right Market Before You Buy: Start by researching areas where short-term rental demand is already strong. Check local occupancy trends and use online tools to see which neighborhoods are in high demand.
- Enhance the Property’s Appeal: Comfortable furnishings and eye-catching decor help your rental stand out. Aim for clean, modern touches and useful extras (like a coffee maker or blackout curtains) that guests love.
- Optimize Your Listing: Think of your title, description, and photos as your virtual first impression. Use clear, engaging language and high-quality images that show off your property’s best features.
- Use Dynamic Pricing: Adjust rates to reflect local events and seasonal shifts. By staying competitive, you’ll rank higher in search results and appeal to budget-conscious travelers.
- Automate Guest Communication: Quick responses can secure a booking before a guest moves on to another option. Consider using automated messaging tools for faster turnaround.
- Gather and Highlight Positive Reviews: Encourage satisfied guests to share their experiences. A few glowing reviews can inspire even more bookings.
- Offer Unique Experiences: Think beyond just lodging. Provide local guides, cozy reading nooks, or special touches like welcome baskets to make your property memorable.
- Strive for Superhost Status: Superhosts often enjoy higher visibility in search and greater credibility with potential guests. Meeting Airbnb’s criteria can pay off big time.
- List Beyond Airbnb: The more places you appear online, the more likely travelers will find you. Consider platforms like Vrbo or Booking.com, and don’t forget social media.
- Maintain Your Property Continuously: Regular cleaning, well-stocked essentials, and quick repairs keep guests happy—and happy guests become repeat visitors.
- Leverage Professional Management (If Needed): If you’re short on time or live far away, a reputable property manager can handle guest communication, cleaning, and pricing adjustments on your behalf.
By applying these strategies, you’ll put yourself in a great position to fill vacancies and boost your earnings. And remember, small tweaks can have a big impact—so don’t hesitate to fine-tune as you learn what works best for your market.
Considering Local Regulations
For any short-term rental property, local regulations are just as crucial as location. Before you purchase, spend time digging into city ordinances, zoning laws, and any specific taxes. Some areas require special licenses or permits, and ignoring these rules can lead to hefty fines or forced closures.
Even if your listing meets Airbnb’s platform standards, your city might have strict rules capping how many nights you can host or limiting short-term rentals to certain neighborhoods. These types of restrictions can drastically reduce your occupancy rate by limiting your rental’s availability. To avoid surprises, reach out to city or county officials, check government websites, and talk to local experts. Understanding the legal landscape upfront helps you maintain high occupancy without unwanted run-ins with local authorities.
Final Takeaways
Keeping your calendar full boils down to mastering occupancy rates: the percentage of nights your rental is booked out of the nights it’s available. A higher occupancy directly boosts your monthly revenue and return on investment. Be sure to gather accurate data from reliable sources and track both monthly and annual trends to fine-tune your pricing and marketing efforts.
For hands-on support, RedAwning’s property management services can automate everything from listing optimization to 24/7 guest communication, helping you focus on growth instead of daily tasks.
Stay alert to local market shifts, keep your rates competitive, and maintain stellar guest reviews. With a blend of smart research, dynamic pricing, and pro-level assistance, your property can remain booked all year long.
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