Occupancy Rate
Occupancy rate is the percentage of available nights that are actually booked — one of the two primary drivers of STR revenue alongside average daily rate.
Occupancy rate = Booked Nights ÷ Available Nights × 100. Along with ADR, occupancy is a core driver of STR revenue. A property with high ADR but low occupancy may be overpriced; one with high occupancy but low ADR may be undercharging.
US average STR occupancy is approximately 50–54% nationally. Strong vacation markets run 60–75% average occupancy. Urban markets can be 45–65% with lower seasonal variation. Premium properties in top markets with excellent reviews and dynamic pricing achieve 70–85% occupancy.
Occupancy fluctuates significantly with seasonality. A beach property might hit 90% in summer and 25% in winter. Mountain ski properties see the opposite pattern. Year-round vacation markets (Orlando, Palm Springs, Nashville) have the most consistent occupancy across all months.
When underwriting a deal, always use conservative occupancy projections. The US average of 50–54% is a safe starting point; adjust upward only with verified comparable data from your specific target market and property type.
Formula
Occupancy Rate = Booked Nights ÷ Available Nights × 100Calculate It
Quick Calculator
Occupancy Rate = Booked Nights ÷ Available Nights × 100
Occupancy Rate
61.92%
Worked Example
A property is booked 226 nights out of 365 available nights. Occupancy Rate = 226 ÷ 365 × 100 = 61.9%.
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Frequently Asked Questions
What is a good occupancy rate for Airbnb?+
A 60% occupancy rate is generally considered strong for most US markets, putting you above the 50–54% national average. In top vacation markets with good positioning, 65–75% is achievable year-round. Anything above 75% may actually indicate you could raise your ADR — high occupancy sometimes signals underpricing.
How do I increase my Airbnb occupancy rate?+
Key tactics: implement dynamic pricing to stay competitive, respond quickly to inquiries, build positive reviews, list on multiple platforms (Airbnb + VRBO + direct), offer flexible cancellation policies, target longer minimum stays in off-peak periods to fill gaps, and ensure your listing copy and photos are optimized.
What occupancy should I use in my projections?+
Use the most conservative figure you can justify with comparable data. Start with 50% if you have no market data. Use verified market averages from AirDNA or Rabbu for your specific property type and market. Never model above 65% unless you have hard data supporting it.
How does seasonality affect occupancy?+
Seasonal markets can have 80–90% occupancy in peak months and 20–30% in off-season. Year-round markets (Nashville, Scottsdale, Orlando) have much more consistent occupancy. When reviewing annual occupancy rates, always also review monthly data to understand seasonal volatility and its impact on cash flow stability.
What is the relationship between occupancy and ADR?+
There's a trade-off: raising ADR often reduces occupancy (fewer guests book at higher prices). Lowering ADR increases occupancy but reduces revenue per night. Dynamic pricing algorithms continuously optimize this relationship to maximize total revenue (RevPAR = ADR × Occupancy). Generally, it's better to have slightly lower occupancy at a higher ADR than vice versa.