Average Daily Rate (ADR) is a key metric for understanding how much revenue short term rental properties are earning per booked night. Our ADR chart provides the average nightly revenue earned by hosts each month over the last 12 months.
Note: Revenue figures include cleaning fees and any host discounts applied. OTA service fees are excluded.
Here’s how to calculate it:
Avg. Daily Rate = Total revenue earned over a period of time
÷
Total number of nights booked over a period of time
Let’s say total revenue earned by all short term rentals in a market was $10,000 in June and there were 100 nights booked. The market ADR for June would be $10,000 ÷ 100 = $100.
You can use the same formula to calculate ADR performance for an individual property. If a property earned $5000 in total revenue in June and 17 nights were booked, the property’s ADR for June would be $5000 ÷ 17 = $294.
ADRs can change month to month in response to supply or demand. During peak travel season, ADRs are likely to be significantly higher than during off seasons, as higher demand allows hosts to charge higher nightly rates.
Let’s take a look at the story ADR tells in the sample chart from Orlando, Florida:
Spring and Summer Peaks: Notice the peaks in ADR in March (~$191) and June (~$193). These are Orlando's peak seasons, with demand driven by spring break and summer family vacations. Because demand is so high, guests are often willing to pay a premium for the right location.
September Dip: The rate hits its lowest point in September (~$162). This reflects a seasonal drop in demand, where you might need to offer more competitive pricing, in the form of discounts, to keep your calendar full.
Year-Over-Year: The chart shows a +1.9% increase in ADR over the past year. Positive growth is a great sign. It means demand is strong enough to allow hosts to raise their nightly rates.
You may come across some markets with declining ADR growth. When this happens, it can sometimes mean new supply (like new hotels or short term rentals) are chipping away at host pricing power.
ADR Pro Tips:
To get the clearest picture of your specific niche, be sure to use our filters to drill down into how average daily rates in a market change based on:
Bedroom/Bathroom Count
Property Types
Amenities
Price Tier
Ratings
Review Count
Days Available
Professionally or Self-managed
Once you apply filters, you can save time by saving them as a custom filter. For example, if you’re tracking 3-bedroom luxury spots in Orlando, Florida, just save your filter set. Next time you log in, select it under "Apply a Saved Filter" and get right to work.
Keep in mind that when it comes to STR markets, location is everything. While the market average gives you the baseline, properties right next to major attractions (like Disney World in Orlando’s case) are often able to charge much higher rates than the market average. Use our heatmaps and submarket rankings to understand what neighbourhoods have the highest average nightly rates.
Review ADR performance over several years by visiting the ADR page. Looking at how ADRs have changed over several years will help you understand if rates in your market are gaining momentum.