How We Built This Vacation Rental Occupancy Rate Analysis
We spent 12 months tracking vacation rental occupancy rate data across all 50 states to answer a question every short term rental investor, property manager, and host asks before buying: where do rentals actually stay booked? The industry generates over $72 billion in annual revenue across the United States, yet average occupancy varies by nearly 30 percentage points from state to state. That gap determines whether a rental property generates meaningful revenue or bleeds money on vacancy.
Our team cross-referenced data from four independent analytics platforms, three federal tourism datasets, and reports from 23 state tourism boards. We analyzed 1.69 million available vacation rental listings, tracked booked nights by season, compared average daily rate and revenue per available rental across every market, and mapped the demand patterns that separate high-performing markets from those with chronic vacancy. The result is the most comprehensive state-by-state occupancy rate comparison we have published for hosts, property managers, and real estate investors evaluating the short term rental market.
National Occupancy Rate: The 2025 Baseline
The average vacation rental occupancy rate in the United States reached 54.9 percent during the first half of 2025, then softened to roughly 51 percent by year-end as new listings outpaced guest demand. In 2024, average occupancy sat closer to 53 percent, and in 2023, it was 57 percent. The short term rental market is expanding faster than travelers can fill it.
Supply is the driver. Available listings grew to 1.69 million in 2025 and are projected to reach 1.77 million in 2026, a 4.6 percent increase. Demand for short term rentals grew 4.9 percent in 2025 but is expected to slow to 4.1 percent in 2026. When supply growth exceeds demand, occupancy rates compress. For hosts and property managers, market selection and dynamic pricing have become more important than at any point in the past five years.
The average daily rate tells a different story. Despite softening occupancy, the average nightly rate climbed to $246.62 in January 2026, up 3.6 percent year-over-year. Luxury-tier vacation rental listings led at 5.23 percent growth, while budget rentals saw rates decline 0.33 percent. Revenue per available rental rose 2.1 percent to $119.27. The industry is bifurcating: premium properties with desirable amenities in strong markets are thriving, while commodity listings in oversaturated markets face falling occupancy and flat pricing.
The Top 15 States for Vacation Rental Occupancy
After analyzing year-round booking data, these 15 states consistently filled their short term rental calendars above the national average.
Hawaii dominates with a 65.4 percent occupancy rate, nine points clear of second-place Tennessee at 56.4 percent. Hawaii operates with strict regulations that cap the number of available listings while guest demand from domestic and international travelers remains relentless. The state has the lowest vacancy rate for vacation rentals in the nation. Tennessee benefits from a dual-season model: music tourism year-round, plus hiking guests from spring through fall.
Florida rounds out the top three at 55.3 percent. Despite hosting the largest inventory of vacation rental listings in the country, the state sustains above-average occupancy through sheer volume of inbound tourism and a climate that stretches peak season across eight months. Florida remains the single largest market by listing count and total booked nights.
California follows at 52.9 percent, driven by coastal markets like San Diego and Los Angeles where occupancy rates climb to 63 and 71 percent respectively. Illinois surprises at 51.8 percent, largely on the strength of Chicago, where convention guests, business travelers, and event demand keep listings occupied at 64 percent year-round.
Rounding out the top ten: Washington at 51.7 percent, Alabama at 51 percent, Oregon at 50.8 percent, Louisiana at 50.5 percent, and South Carolina at 49.9 percent. Each state benefits from destination tourism, moderate supply growth, and at least one anchor market that pulls the statewide average above the median.
States 11 through 15: New York at 49.3 percent, Arizona at 49.3 percent, North Carolina at 49.1 percent, Ohio at 48.3 percent, and Nevada at 48 percent. They hover just below the national average but contain individual markets that outperform dramatically. Las Vegas alone hits 70 percent occupancy with guests booking year-round.
The Bottom 15 States: Where Rentals Sit Empty
We identified 15 states where the average occupancy rate falls below 42 percent. For property owners and hosts in these markets, nearly six out of every ten available nights go unbooked, pushing the vacancy rate above 58 percent.
Mississippi sits at the bottom with a 37.2 percent occupancy rate, followed by South Dakota at 37.3 percent and Vermont at 37.5 percent. The pattern is consistent: states with limited urban centers, heavy seasonal dependence, and growing supply face a structural problem that dynamic pricing alone cannot solve.
Maine (37.8 percent), Wyoming (37.9 percent), Alaska (38.6 percent), and New Hampshire (38.6 percent) cluster in the 37 to 39 percent range. These states share extreme seasonality. Maine and New Hampshire see compressed summer demand windows of roughly 10 to 14 weeks when travelers book coastal and lake properties, while Wyoming and Alaska face even shorter peak seasons driven by national park visitation. Outside those weeks, the vacancy rate climbs above 70 percent for most listings.
Wisconsin (39 percent), Delaware (39.1 percent), Rhode Island (39.3 percent), Kentucky (39.9 percent), Nebraska (40.2 percent), West Virginia (40.5 percent), Michigan (41.4 percent), and Arkansas (41.6 percent) complete the bottom tier. These areas lack the year-round drivers, major airports, or brand recognition that sustain bookings in top-performing states.
One counterintuitive finding stands out. Wyoming posts the highest average daily rate of any state at $263.70, yet its occupancy sits among the lowest at 37.9 percent. Premium pricing coexists with high vacancy. The short term rental properties near Jackson Hole and Yellowstone command extraordinary nightly rates from guests willing to pay for proximity. But they book for a narrow window, and the rest of the year the calendar stays empty. The cap rate on a Wyoming rental looks attractive until you factor in 225 empty nights.
Revenue Per Available Rental by State
Occupancy alone does not tell the full story. A property can fill 55 percent of its nights but earn less revenue than a rental at 45 percent if the average daily rate is low enough. We tracked RevPAR, revenue per available rental, to give hosts and property managers a clearer picture of earning potential.
Hawaii leads at $175.70 in RevPAR, combining the highest occupancy rate with the third-highest average daily rate at $259.20. Colorado sits second at $131.30, driven by ski-season pricing where nightly rates average $263.50 and guests book premium properties with high-end amenities.
South Carolina ranks third at $127.10. The state sits only tenth in occupancy at 49.9 percent, but its average daily rate of $234.40 lifts revenue above states with higher occupancy but lower pricing power. Beach properties in Charleston, Hilton Head, and Myrtle Beach command rates that reflect the amenities travelers expect: pools, beach access, and outdoor space.
The top ten for RevPAR: Alabama ($120.40), Tennessee ($118.50), Florida ($112.30), Utah ($111), California ($110.20), Wyoming ($109.70), and Massachusetts ($97.20). At the bottom: North Dakota generates just $34.70 per available rental night. A vacation rental in Hawaii generates roughly five times the revenue per available night compared to North Dakota.
Cap Rate and Investment Returns
For real estate investors, the cap rate shows how quickly a short term rental pays for itself relative to purchase price. We analyzed investment-grade markets where the combination of occupancy rate, average daily rate, and median property price creates the most favorable returns.
Abilene, Texas leads with a 14.01 percent cap rate, fueled by an 82 percent occupancy rate, $171.50 average daily rate, and a median property price of $201,493. Jackson, Mississippi posts the highest cap rate overall at 15.95 percent, but with lower occupancy at 57 percent and annual revenue of $24,550.
Other standout markets: Akron, Ohio (11.66 percent cap rate, 61 percent occupancy), Montgomery, Alabama (11.64 percent, 59 percent), Port Arthur, Texas (10.38 percent, 67 percent occupancy), and Springfield, Illinois (10.09 percent, 62 percent). These markets share affordable real estate, consistent guest demand, and limited listing competition.
High-revenue markets like Kauai ($481 average daily rate) deliver strong top-line numbers but require significant capital that reduces the cap rate. The highest cap rate markets are mid-size cities where a property manager can maintain occupancy above 60 percent without competing against thousands of listings for guests.
Seasonal Occupancy Patterns: Peak, Shoulder, and Low
We tracked how occupancy rates shift across peak, shoulder, and low seasons for different market types. The seasonal patterns vary dramatically by geography.
Beach and Coastal Markets
Coastal properties experience a compressed peak season from Memorial Day through Labor Day. Occupancy during these 14 weeks runs 30 to 40 percentage points above the annual average, with guests booking 60 to 90 days in advance. Florida is the exception: Miami and Fort Lauderdale maintain elevated occupancy from November through April, with peak bookings from snowbird travelers during winter.
Shoulder season rates fall 20 to 40 percent below peak pricing, and occupancy averages 40 to 55 percent. Low season drops to 20 to 35 percent for most coastal listings outside Florida. Dynamic pricing during shoulder months can increase occupancy by 15 to 20 percent compared to hosts maintaining static rates.
Mountain Markets
Colorado, Utah, Montana, and mountain regions follow a dual-peak model. Winter ski season drives occupancy to 60 to 75 percent in resort markets where guests seek properties with premium amenities. A secondary summer peak runs 15 to 20 percentage points lower. Shoulder months dip to 25 to 35 percent. Property managers use dynamic pricing and mid-week discounts to reduce vacancy during low-demand periods.
Urban Markets
Cities show the flattest seasonal curves, making them attractive for hosts seeking consistent rental income. Los Angeles (71 percent), Boston (71 percent), Las Vegas (70 percent), and Chicago (64 percent) maintain steady demand year-round, with seasonal variation of only 10 to 15 percentage points. Convention calendars, business travelers, and cultural tourism smooth out the leisure dips that create high vacancy in resort markets.
Desert Markets
Phoenix, Scottsdale, Palm Springs, and similar markets invert the coastal pattern. Peak season runs October through April when snowbird guests drive occupancy above 65 percent. Summer months push vacancy above 70 percent despite aggressive dynamic pricing. Property managers in desert markets accept seasonal vacancy rather than fighting it with unprofitable rate cuts.
City-Level Performance: Markets That Outperform
We compared the 11 highest-volume short term rental markets. The divergence between city and state occupancy rates reveals where guest demand concentrates.
Los Angeles leads at 71 percent occupancy with a $236 average daily rate, while California as a whole sits at 52.9 percent. Boston matches at 71 percent with a lower $171 ADR. Las Vegas achieves 70 percent occupancy at just $144 per night, the lowest average daily rate of any major market.
Oahu (66 percent, $295 ADR) and Kauai (63 percent, $481 ADR) demonstrate scarcity economics. Strict regulations cap listings while guest demand stays constant, enabling Kauai to command the highest nightly rate of any major U.S. vacation rental market.
San Francisco underperforms at 54 percent and $232 ADR, reflecting oversupply. San Diego achieves 63 percent with the highest mainland ADR at $318. Orlando posts the lowest major-city occupancy at 50 percent, with property managers relying on dynamic pricing to increase occupancy between holiday booking surges.
Vacation Rental Occupancy Statistics You Should Know
- The United States had 1.69 million available short term rental listings in 2025, projected to reach 1.77 million in 2026, a 4.6 percent supply increase (AirDNA).
- National occupancy dipped from 53 percent in 2024 to 51 percent in 2025 as new listings outpaced traveler demand (AirDNA).
- The U.S. vacation rental market was valued at $72 billion in 2025, projected to grow at 7.4 percent CAGR through 2030 (Grand View Research).
- Traveler demand grew 4.9 percent in 2025 but will slow to 4.1 percent in 2026 while supply grows 4.6 percent (AirDNA).
- Average daily rate reached $246.62 in January 2026, up 3.6 percent year-over-year, with luxury listings growing at 5.23 percent (StayFi).
- Only four states posted occupancy gains in July 2025: Illinois up 1.7 percent, Arkansas up 1.1 percent, Missouri up 0.9 percent, West Virginia up 0.1 percent (PriceLabs).
- Revenue per available rental rose 2.1 percent to $119.27 in January 2026 despite the occupancy dip (StayFi).
- Large homes with six or more bedrooms saw 12.61 percent booking growth year-over-year, the fastest-growing category (StayFi).
- Hawaii leads all states in RevPAR at $175.70, nearly five times North Dakota at $34.70 (AllTheRooms).
- Pet-friendly properties earn $17.41 more per night and see 5.4 percent higher guest demand (StayFi).
- August 2025 occupancy tracked 10 percent below 2024, with September pacing 12 percent lower year-over-year (PriceLabs).
- Abilene, Texas recorded the highest investment-market occupancy at 82 percent, with a 14.01 percent cap rate (Lodgify).
What Separates High-Occupancy States from the Rest
After tracking this data for a year, we identified five factors that predict whether a market will land in the top or bottom quartile.
Year-Round Guest Demand
States with overlapping demand sources sustain higher occupancy than states dependent on a single season. Hawaii, California, Florida, and Tennessee benefit from business travelers, convention guests, and leisure tourism layering across 10 or more months, filling calendar gaps that leave single-season markets with high vacancy.
Supply Discipline
Regulation has a measurable impact on occupancy rates. Hawaii's strict permitting limits supply growth, supporting its 65.4 percent rate. States with minimal regulation have seen listing counts grow faster than demand, pushing occupancy below 38 percent.
Airport Connectivity
Every top-10 state for occupancy contains at least one major airport hub. Access drives demand. States without direct flights from high-volume origins face a structural disadvantage in attracting enough guests to sustain above-average occupancy.
Property Amenities
Properties with in-demand amenities achieve 8 to 15 percent higher occupancy than comparable listings without them. Pools, hot tubs, pet-friendly policies, and high-speed internet are the primary levers a host or property manager controls to increase bookings and reduce vacancy.
Dynamic Pricing
Professionally managed rentals outperform individually managed properties. Yet 57 percent of property managers still adjust rates quarterly or less, leaving significant booked nights on the table. Dynamic pricing tools that respond to demand, seasonality, and competitor rates can increase bookings by 20 percent.
FAQ
What is the average vacation rental occupancy rate in the United States?
The national average ranged from 51 to 55 percent in 2025. Mid-year performance reached 54.9 percent but declined in the second half, with August tracking 10 percent below 2024. The benchmark has softened from 57 percent in 2023 as supply growth of 4.6 percent outpaces demand at 4.1 percent.
Which state has the highest vacation rental occupancy rate?
Hawaii leads all 50 states at 65.4 percent, nine points ahead of Tennessee at 56.4 percent. Strict regulations, limited supply, and year-round guest demand create the tightest supply-demand balance in the country. At the city level, Los Angeles and Boston each achieve 71 percent.
How can hosts increase occupancy rates?
Three strategies have the largest impact. Automated pricing tools raise bookings by 15 to 20 percent over static rates. High-demand amenities lift conversions by 8 to 15 percent. Distributing on multiple platforms and using professional management add another 10 to 15 percentage points versus self-managed rentals.
Is the US vacation rental market growing or declining?
Growing in revenue, softening in bookings. The market reached $72 billion in 2025, projected at 7.4 percent CAGR through 2030. But performance will ease about 1 percent in 2026 as listings grow 4.6 percent to 1.77 million. Suburban, coastal, and mountain areas with supply discipline outperform oversaturated zones. For investors evaluating cap rate, choosing the right location matters more than ever.