Quick answer
There is no universal "good" VRBO occupancy rate. For underwriting, many seasonal vacation rentals are stress-tested around 40-60% annual occupancy, but the better question is whether occupancy and nightly rate together clear your break-even point.
Lower occupancy can still work if stays are longer, ADR is strong, and turnover costs stay under control.
The formula
Occupancy Rate =
Booked Nights / Available Nights x 100
Example: if your VRBO is booked 18 nights out of 30 available nights, occupancy is 60%. Do not count nights you blocked for owner use, repairs, or long-term stays as available nights.
What matters more than occupancy
Occupancy alone doesn't tell you whether a property makes money. A 45% occupancy property at a high nightly rate can earn more than a 70% occupancy property with cheap rates, heavy cleaning costs, and constant wear.
Track all the inputs: occupancy, ADR, platform fees, cleaning costs, turnover count, mortgage payment, and break-even occupancy. If you are still choosing the assumptions, start with a simple VRBO market analysis before trusting the forecast.
If bookings are slow
- 1. Pricing. Compare your rate against close comps, not the whole city.
- 2. Photos. The cover image decides whether guests click on your listing.
- 3. Amenities. Check every amenity filter that applies to your property.
- 4. Minimum stay. Long minimum stays can turn away shoulder-season guests.
- 5. Reviews and response time. Few reviews or slow replies lower your search ranking and booking rate.
Test occupancy against cash flow
Use the VRBO Calculator to see how occupancy, ADR, fees, and expenses affect the deal.