Occupancy rate measures this by looking at the percentage of nights a short-term rental is booked compared to the nights it is available each month.
It’s calculated like this:
Occupancy Rate = ( Total nights booked in a month ÷ Total nights available to be booked in a month) * 100
Let’s say a property had 25 nights available and 5 nights that were blocked and unavailable for bookings in June. If 15 nights were booked in June, the property’s occupancy rate would be (15 ÷ 25)* 100 = 60%.
We use the same formula to calculate market occupancy rate. Let’s say a market had 1000 nights available in June and 550 of those nights were booked. The market occupancy rate for June would be 550 ÷ 1000 = 55%.
Why Occupancy Matters for Your Strategy
Spot the Seasons: Occupancy is a useful indicator of market seasonality. Some locations see sharp spikes in occupancy during peak months and big dips in shoulder seasons, while others maintain steady bookings year round. If you prefer consistent income, target destinations with stable occupancy throughout the year.
Revenue optimization: Monitoring how occupancy rates change with seasons enables you to capitalize on peak times and strategize to fill vacancies during slower periods.
Looking at a sample occupancy chart for Orlando, you can see the occupancy trends in action:
The High Points: You’ll notice occupancy typically peaks in February and March when snow birds and spring break travelers are flocking to Orlando.
The September Dip: Occupancy takes its biggest dip in September. This is a natural breather for the market and a perfect time for you to handle property maintenance or try creative ways to reach guests during the quiet stretch.
Seasonality: Orlando is a great example of a more seasonal market with busy peaks followed by quiet time. A less seasonal market, like Port Arthur, Texas, (example below) sees a more consistent occupancy rate throughout the year. Driven by the largest oil refinery in the U.S., this market sees steady demand from contractors and engineers working in the area.
Occupancy Pro Tips:
To get the clearest picture of your specific niche, be sure to use our filters to drill down into how occupancy rates in a market change based on Bedroom/Bathroom Count, Property Types, Amenities, Price Tier, Ratings, and so much more.
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 city average
gives you the baseline, properties right next to major attractions (like Disney World in Orlando’s case) often see much higher occupancy than the market average. Be sure to dig deeper into the Submarkets to understand what neighborhoods are the most desirable among guests.
This chart shows occupancy trends over the last 12 months, but you can see the long-term trends going back several years on the occupancy page. Looking at occupancy over several years helps you confirm if those seasonal dips and peaks are a reliable heartbeat you can set your watch to, or if they're shifting because of new local attractions or changing travel habits.