Short-term rentals
Airbnb and nightly rentals: fees, bookings and what’s left.
16 articles
This arbitrage apartment needs $210 a night to cover a $2,400 lease
Airbnb arbitrage is leasing a home and renting it out by the night, which takes your landlord’s permission first. In this example a one-bedroom leased at $2,400 and listed at $175 a night loses $549 a month at 65% booked, and needs $210 a night to break even.
This Airbnb takes in $88,969 a year and keeps $9,934 of it
Airbnb’s own figure for the typical US host is $15.6K earned in 2025, and three in four hosts list one home for a few days a month. A house bought to run as a short-term rental is a different business: in this example it takes in $88,969 a year and keeps $9,934 after every cost.
This Airbnb needs $298 a night at 65% booked just to break even
Work back from the price that covers your costs at the booking rate you can hold all year, then test what a cut would cost you. In this example a $350,000 Airbnb breaks even at $298 a night with 65% of nights booked, and it clears $828 a month at $375.
At 65% booked this Airbnb returns 9.4%. At 55% it returns 2.3%
No agency or platform publishes a benchmark for Airbnb returns, so the useful test is how far your own occupancy can fall before the deal stops paying. In this example a $350,000 rental returns 9.4% on cash at 65% booked, 2.3% at 55%, and loses money at 50%.
This $350,000 Airbnb needs $119,977 before the first guest books
Enough for the down payment, the closing costs, the furniture, and a cash reserve your lender checks but you never spend. In this example a $350,000 Airbnb takes $105,500 at closing and $14,477 more sitting in the bank, $119,977 in all.
A second-home loan saves $52,500 up front and costs $473 a month
A second-home loan asks for a smaller down payment, but only for a place you keep for yourself and don’t rent out. In this example it needs $70,500 instead of $123,000, and clears $427 a month instead of $900.
These 30-night stays clear $111 a month, against $13 on a 12-month lease
Usually yes, because a furnished month prices well above a lease while costing far less to turn over than nightly stays. In this example the same house clears $111 a month on 30-night stays, $13 on a 12-month lease, and $122 on a nightly listing booked 248 nights of the year.
A $25,000 furnishing bill is 24% of the cash this Airbnb needs
No agency or platform publishes an average, so the honest answer is the price of your own list. In this example, a $350,000 short-term rental needs $105,500 before the first guest arrives, and $25,000 of that is furniture, linens and a kitchen.
This Airbnb clears $2,311 self-managed, $828 at 20% and $86 at 30%
Short-term managers charge a share of booking revenue, and the percentage is several times a long-term manager’s. In this example a manager at 20% of revenue takes $1,483 a month and leaves $828, while the same house self-managed clears $2,311 and at 30% is left with $86.
This Airbnb clears $828 a month at 65% booked and loses $105 at 50%
It depends on your booking rate far more than on the market. In this example a $350,000 Airbnb booked 65% of nights clears $828 a month after Airbnb’s 15.5% fee, a 20% co-host and every other cost. The same house at 50% booked costs its owner $105 a month.
This Airbnb clears $828 a month, or $728 once it is insured for guests
Usually not. Most homeowners and dwelling policies are not written for paying guests, and a claim can be denied on that basis. In this example a policy that covers short-term guests costs $1,200 more a year, taking the house from $828 a month to $728.
Airbnb’s 15.5% fee costs this host $500 a month, unless the price goes up 15%
Most hosts now pay Airbnb a single 15.5% fee, taken from the nightly price and any fees they add, such as cleaning, and guests pay no service fee on top. In this example, a 20-night month at $200 paid the host $3,880 on the old split fee and pays $3,380 on the single fee. Raising the price to $230 brings the payout back to $3,887.
This Airbnb books $104,025 a year and leaves $570 a month after every cost
Check the local rules, estimate a year of bookings, take out every cost and the mortgage, then find the booking rate that breaks the deal. In this example, a $400,000 house booked 60% of nights brings in $104,025 a year, leaves $570 a month, and starts losing money below about 51% booked.
This Airbnb passes Fannie Mae’s income test while losing $105 a month
Yes, for a one-unit home you rent out and don’t live in, but when you buy, Fannie Mae counts only half of the booking income, and only against that home’s own payment. In this example, half of $7,414 a month covers the $2,413 payment, and the house still passes at a booking rate where it loses $105 a month.
This Airbnb needs 220 booked nights a year just to match a $2,400 lease
Find the booking rate at which the Airbnb catches the lease. In this example, a $250,000 house that leases for $2,400 a month has to be booked about 60% of nights, around 220 a year, before the Airbnb earns more, and it takes $20,000 more cash to set up.
What occupancy does an Airbnb need to break even? This one needs 71%.
Break-even occupancy is the share of nights that must be booked before the income covers every cost. At $300 a night, an example $350,000 Airbnb needs about 71%, roughly 258 nights a year, because Airbnb’s fee, a co-host, cleaning and the mortgage come out first.