Short-Term Rental Income Calculator

Frequently Asked Questions

What occupancy rate should I assume for my STR?

Urban markets often see 60-75% for well-managed listings. Seasonal destinations may average 50-65% annually. Use AirDNA or local market data for your specific area.

How is STR income taxed?

If you rent more than 14 days per year, rental income is taxable. Reported on Schedule E (passive) or Schedule C (active). Personal use rules affect deduction limits. Furnishings depreciate over 5 years.

What are typical monthly operating costs for an STR?

Utilities: $150-400/month. Consumables: $50-150/month. Linens replacement: $30-80/month. Property management if outsourced: 15-30% of revenue.

How do I get listed on multiple platforms?

Use a channel manager (Lodgify, Guesty, Hostfully) to synchronize availability calendars. Most charge $50-150/month. Double-booking from unsynchronized calendars is costly and harms reviews.

Should I hire a property manager?

STR managers typically charge 15-30% of gross revenue. For remote properties or busy owners, the cost may be justified by improved guest experience and higher occupancy.

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Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How It Works

Monthly lodging revenue = nightly rate times (30.4 days times occupancy percentage). Cleaning fees add revenue estimated at approximately one fee per 3 booked nights. The platform fee (Airbnb host fee is about 3%; VRBO varies) is subtracted from gross revenue. Net monthly cash flow = gross revenue minus platform fee minus monthly operating costs minus monthly mortgage.

RevPAR (Revenue Per Available Rental night) = nightly rate times occupancy percentage. This is the single best comparator across different listings and markets because it normalizes both rate and occupancy into one metric.

Break-even occupancy is the minimum occupancy percentage at which the property covers all fixed monthly costs. This tells you the downside safety margin: if the market sustains 60% occupancy but you break even at 45%, there is a meaningful margin of safety.

Key Metrics

RevPAR: Rate times occupancy. Industry-standard comparator for STR performance. Compare your projected RevPAR against AirDNA market data for your specific location and property type.

Break-even occupancy: The minimum occupancy to cover fixed monthly costs. Use this to assess downside risk - how far can occupancy fall before you lose money?

Gross vs net cash flow: Gross shows revenue potential before platform fees and costs; net is your actual take-home. The gap between them reveals total overhead burden.

Platform fee: Airbnb charges hosts about 3% of booking value; Booking.com charges 10-18%; VRBO charges 5% or a flat subscription. Host fees are different from - and in addition to - guest service fees.

Tips

Do not use peak-season rates and occupancy together for your annual estimate - blend high and low seasons to get a realistic annual average.

Account for setup costs not shown here: furniture ($5,000-$30,000 depending on size), photography, licensing, and initial marketing investments before the first booking.

Track local STR regulations before purchasing - permitting requirements, owner-occupancy rules, and neighborhood bans can eliminate the entire rental model overnight.

Dynamic pricing tools (PriceLabs, Wheelhouse, Beyond Pricing) typically increase annual revenue 10-25% over static pricing - factor this into your projection.

High cleaning fee-to-nightly rate ratios suppress bookings - guests avoid listings where the cleaning fee is close to or exceeds the nightly rate. Keep the cleaning fee below 30% of the nightly rate if possible.

FAQ

What occupancy rate should I assume for my STR?

Urban markets often see 60-75% annual occupancy for well-managed listings. Seasonal resort or beach destinations may hit 85% in peak months and drop to 30-40% off-season, averaging 50-65% annually. College-town markets follow academic calendars. Use AirDNA or similar local market data for your specific area rather than national averages.

How is STR income taxed?

If you rent the property more than 14 days per year, rental income is taxable and reported on Schedule E (passive rental) or Schedule C (active if you provide hotel-like services). If you use the property personally for fewer than 14 days or 10% of rental days, you may deduct all rental expenses. Above 14 personal-use days, deductions are prorated. Furnishings depreciate over 5 years under MACRS.

What are typical monthly operating costs for an STR?

Utilities (electric, water, gas, internet): $150-400/month depending on size and climate. Consumables (toiletries, paper goods, coffee): $50-150/month. Linens and towels (replacement): $30-80/month. Property management if outsourced: 15-30% of revenue. Property taxes and insurance: highly location-dependent, calculate from actual figures.

How do I get listed on multiple platforms?

Use a channel manager (Lodgify, Guesty, Hostfully) to synchronize availability calendars across Airbnb, Vrbo, Booking.com, and direct booking sites. Double-booking from unsynchronized calendars is costly and harms your reviews. Most channel managers charge $50-150/month.

Should I hire a property manager?

STR property managers typically charge 15-30% of gross revenue, which is significantly higher than long-term rental management (8-10%). They handle check-in, check-out, cleaning coordination, maintenance, and guest communication. For remote properties or for owners without time to self-manage, the cost may be justified by improved guest experience and higher occupancy.

Short-Term Rental Income Calculator

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