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 experience 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 occupancy in Orlando, you can see several trends in action:
The Peaks: Occupancy typically peaks in February and March when snow birds and spring break travelers are flocking to Orlando.
The Dips: Occupancy takes its biggest dip in September, reaching the low point of the year. This is a natural breather for the market, and a time when many owners will focus on property maintenance.
Trend Exceptions: Looking at 2023, 2024, and 2025 together, the overall occupancy patterns are very similar, with one notable exception. Occupancy in April 2024 came in lower than April 2023 and 2025. The main reason is a calendar shift—Easter fell in March in 2024 instead of April, which pulled some demand forward and left April demand softer than usual. Calendar shifts, along with concerts, sporting events, conferences, and other major demand drivers, can meaningfully impact occupancy rates in a given month. Identifying and understanding what’s driving occupancy shifts can help you determine whether a change is part of a lasting trend or simply a one time occurrence.
Occupancy Pro Tips
To get the clearest picture of your specific niche, use our filters to see how occupancy changes based on bedroom count, price tier, property availability, review score and much more.
A 6-bedroom luxury home that is only available part time might have a different occupancy heartbeat than a 1-bedroom condo, and knowing that difference helps you find the right investment.
If you want a consistent income, look for markets with low seasonality, or a reliable occupancy heartbeat over several years. For example, Port Arthur, Texas, 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.
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.