There is no single number. A vacation rental’s income comes from three things: the nightly rate, the share of nights you book, and what it costs to run the home. Change any one of them and the result moves a lot.
Below is how to work out your own estimate, what the math looks like once real costs are in, and how to tell whether an estimate you have been handed is honest.
If you would rather have someone run the numbers, use our rental income calculator or talk to us. If short-term rental is not the right fit for your home, we will say so.
Written by Adam Knight, Founder and CEO, Recreation Stays. Updated November 2026.
The basic math
Gross booking revenue is your nightly rate multiplied by the nights you book. Nights booked is 365 multiplied by your occupancy rate.
Here is an example with round numbers. It shows the method. It is not a forecast for your home.
| Item |
Annual amount |
| 3 bedroom home, $300 average nightly rate, 55% occupancy (about 201 nights) |
$60,225 |
| Airbnb host service fee, 15.5% |
-$9,335 |
| Utilities, internet, supplies, linens, repairs, insurance (assumed $1,200 a month) |
-$14,400 |
| Left before management, mortgage, and income tax |
$36,490 |
Two things stand out. First, the number you care about is what is left, not what was booked. Second, every line is an assumption you can test, which is why a single headline figure tells you very little.
Why chasing occupancy can cost you money
Most owners ask about occupancy first. It matters less than you would think.
Take the same home. At $300 a night and 55% occupancy, it books about 201 nights for $60,225. Cut the rate to $230 to push occupancy to 70%, and it books about 256 nights for $58,765. That is more guests, more cleanings, more wear, and less revenue.
The better question is how much each available night earns, a measure called RevPAR. We price for that over time, not for a full calendar. Our post on ADR, occupancy and RevPAR explains the three numbers.
What moves your nightly rate
- How many people the home sleeps, and how many bedrooms it has
- Location, and whether you have water, mountain, or city views
- Features guests will pay for, such as a hot tub, fire pit, or workspace
- Design, photography, and the quality of your reviews
- The time of year and local events
What moves your occupancy
- Season. A coastal home, a Seattle home, and a mountain home near Snoqualmie Pass book on different calendars, so price each against its own year and not a statewide average.
- Minimum stay rules and how open your calendar is
- How visible your listing is in search. See how the Airbnb search algorithm works.
- Response time and review scores
What comes out of the revenue
- Platform fees. Airbnb now charges hosts a single service fee, 15.5% for most listings, taken from the payout.
- Cleaning and turnover. Usually charged to the guest, but it is a real cost, and poor cleaning shows up in reviews.
- Supplies, linens, utilities, internet. These are steady and easy to underestimate.
- Repairs and replacement. Furniture, mattresses, and appliances wear faster with guest use.
- Insurance. Ask your insurer whether your policy covers short-term rental use.
- Taxes. Lodging taxes collected from guests are not your income. Business and income taxes on what you earn are a separate matter, so talk to a CPA.
- Management, if you hire it. Ask for the fee in writing and see what it covers. Our owner net income breakdown walks through where each dollar goes.
Five questions to ask about any income estimate
- Is this figure gross revenue or what I keep?
- Which comparable homes was it based on, and why those?
- What nightly rate and occupancy does it assume?
- Are cleaning fees and taxes counted as income?
- Does it include the slow months, and how many months of data sit behind it?
Be careful with any estimate that gives one annual number and no range. Seasonal businesses do not earn evenly, and an honest estimate shows that.
Rules that can limit your income
In Seattle the city caps how many units one operator can run and requires licenses before you can list. Condo and HOA rules can also bar stays under 30 nights. Check both before you spend money. Our guide to Seattle short-term rental licenses covers the city rules.
Frequently asked questions
What is the average income for a vacation rental in Washington?
There is no useful statewide average. A cabin near Snoqualmie Pass, a Seattle condo, and a beach house in Moclips differ in rate, season, and costs. Estimate from comparable homes in your own market.
Is short-term rental more profitable than long-term renting?
Sometimes, but not always. Short-term rental earns more per night and costs more to run, with more variation month to month. Compare what is left after costs, not the gross figures. We cover this in Airbnb vs long-term rental in Seattle.
Do I pay tax on vacation rental income?
Rental income is generally taxable at the federal level, and Washington businesses may owe state business and occupancy taxes on bookings. Rules change, and this is not tax advice. A CPA who works with rentals can tell you what applies to you.
How do I get an estimate for my home?
Use our rental income calculator for a first range, or contact us and we will review your home with you.
Get an estimate for your home
Estimate my rental income or talk with our team about your property.
The example figures are illustrative. This post is general information and not tax or legal advice.
