Occupancy is the share of available nights that are booked. Market averages for whole-home short-term rentals are often in the 40–65% range, with big swings by season and location. For underwriting:
- Use local market data for comparable listings (same bedrooms, amenities), not the city average.
- Model occupancy and nightly rate together — high occupancy often comes from low prices.
- Run a pessimistic case 10–15 points lower.
- Find your break-even occupancy, the level where STR equals a long-term lease, in the Airbnb vs long-term rental calculator.
Also check local short-term rental rules: many cities require permits, limit nights or ban non-owner-occupied STRs.