When you are considering buying a rental property, there are as many variables to consider as there are homes in any given market. From the average daily rate to the average occupancy rate, understanding all factors surrounding your investment is of the utmost importance. Fortunately, as one of the best mortgage lenders, at mbanc, we are here to help navigate this process. An innovative short-term rental calculator like STR Verifi makes interpreting and accessing these insights to guarantee an ROI easier and faster than ever. Using our tools, guidance, and the best DSCR loans and interest-only jumbo mortgages, we will put the odds in your favor. Here is our guide to average occupancy rates by city.
Why is the Average Short-term Rental Occupancy Rate Important?
For hosts, understanding the importance of the average short-term rental occupancy rate is essential when buying an investment property.
The occupancy rate is, in many ways, the best way to forecast your return on investment when you are using one of the best DSCR loans or interest-only jumbo mortgages from one of the best mortgage lenders like mbanc.
This rate tells you the average percentage of days a vacation rental will be booked each month. Still, remember that this figure is an average. For example, if it has an occupancy rate of 40% during half the year during the low season and 80% the other half in peak season, it will have a 60% average.
Understanding the value of this rate enables you to confidently calculate ROI when buying rental property. Fortunately, with the help of a state-of-the-art short-term rental calculator like STR Verifi, accessing such market insights to guarantee a return is easier than ever.
What’s a Good Average Airbnb Occupancy Rate in the USA?
Before we get into the top average Airbnb occupancy rates by city, let’s define what a good occupancy rate is. The average occupancy rate nationwide is 48%, but that’s not indicative of a good score. A good rate, generally, is considered anything over 65%.
Top Average Airbnb Occupancy Rates By City
Now that we have established the importance of understanding the average Airbnb occupancy rate within a city when considering purchasing a vacation rental, let’s get into some of the top occupancy rates by city in the USA.
Port Angeles, WA
Port Angeles, WA, enjoys a prime location near Seattle, Vancouver, and several national parks. What’s the only thing more impressive than its location? Its staggering 81% average Airbnb occupancy rate.
Santa Barbara, CA
Part of what makes Santa Barbara such a draw is its environment. Also called the “American Riviera,” Santa Barbara almost feels like a Mediterranean locale, with an ocean on one side and mountains on the other.
Because of its prime location, Santa Barbara boasts a stellar occupancy rate of 78% on average, meaning you can expect renters 24 days out of a 31-day month.
Yosemite Lakes, CA
Yosemite Lakes is world-renowned for its natural beauty, which is why it boasts an excellent average Airbnb occupancy rate. (And a great daily rate, too!) As a thriving Airbnb market, Yosemite Lakes has an average occupancy rate of 71%.
Orlando is the fourth-largest city in the state and a tourist hub, receiving over 51 million tourists each year. So, what does this mean for its average Airbnb occupancy rate? Orlando enjoys an impressive 70% occupancy rate.
San Francisco, CA
San Francisco enjoys a world-class reputation that attracts countless tourists yearly, so it only makes sense that this Northern California staple would boast an impressive average Airbnb occupancy rate of 68%.
San Diego, CA
On the opposite end of the state, San Diego holds it down as another city that seems to exemplify the California magic that draws countless tourists year after year.
This metropolitan powerhouse is also right next to the Mexican border, offering opportunities other cities don’t. San Diego enjoys a 67% average Airbnb occupancy rate, well above the national average and still higher than what is considered good.
Short-Term Rental Calculator That Offers Market Insights Like Average Airbnb Occupancy Rate to Guarantee ROI
If you are considering buying an investment property, gaining market insights into metrics like the average Airbnb occupancy rate of each US city provides you with an unequaled advantage. However, this is just one factor to consider.
To make a strategic investment that guarantees an ROI, you also have to consider data like seasonality scores, the average daily rate, and more. Fortunately, as one of the best mortgage lenders, at mbanc, our passion is helping people like you achieve their American Dream.
With the help of a premier short-term rental calculator like STR Verifi, you can gain granular insights into any market or property in the United States so you can rest assured you will receive the best possible ROI. Talk with our team for expert guidance and financing through the best DSCR loans and interest-only jumbo mortgages.