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 Actually Matters
Occupancy by itself is incomplete. A 45% occupancy property at a high nightly rate can beat a 70% occupancy property with cheap rates, heavy cleaning costs, and constant wear.
Watch the full equation: 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 against close comps, not the whole city.
- 2. Photos: the cover image drives the click.
- 3. Amenities: make sure every real filter is checked.
- 4. Minimum stay: long minimums can block shoulder-season demand.
- 5. Reviews and response time: weak trust signals reduce visibility and conversion.
Test occupancy against cash flow
Use the VRBO Calculator to see how occupancy, ADR, fees, and expenses affect the deal.