How much should you charge for your short-term rental? A per-night pricing guide

In short: the nightly price of your short-term rental should come from three data points: how much is charged in your area for a property like yours, what season you’re in, and how full you want your calendar. Charging a fixed rate all year is the most common mistake and the one that costs you the most income.

Setting the price “by eye” —or copying your neighbor— is the fastest way to leave money on the table or scare off bookings. Let’s look at how to set it with criteria.

Start with your area’s data

Your starting point isn’t how much you want to charge, but how much is being charged for properties like yours, in your neighborhood. And beware: it’s hyper-local. Two areas of the same city can have very different rates.

Before setting your number, look at the real range of your area: how much the average charges, how much the cheapest 25% charge, and how much the most expensive 25% charge. That tells you where you can position yourself.

The factors that move your rate

Exact location. Not the city: the neighborhood, proximity to points of interest, the view.
Type and size. A studio, a family apartment, a house with amenities: each plays in a different range.
Season. High and low can differ enormously. A coastal spot in summer isn’t the same in autumn.
Day of the week. Weekends usually support higher rates than weekdays.
Your calendar. If you’re short on occupancy, lowering a bit can fill you up; if you’re almost full, you can raise.

The costliest mistake: the fixed rate

Leaving the same price all year is comfortable, but it makes you lose on both ends: you undercharge when there’s high demand and you’re too expensive when demand drops. The price should move with the market —just as hotels do with their dynamic pricing—.

How to position your rate

Once you know your area’s range, the question is where to place yourself:

Below the average: you fill faster, but you give up income per night. Useful if you’re just starting and need reviews.
At the average: the balance point for most.
In the top 25%: possible if your property stands out (photos, amenities, reviews). Fewer nights, more margin on each one.

Put your number to the test

The best way to decide is to see the real data for your area and play with the scenarios. Our Rate Radar shows you how much is charged today in your area per night, with Airbnb data, so you can position your rate with information and not blindly.

Conclusion

How much to charge isn’t a hunch: it’s your area, your season, and your occupancy goal, combined. Start with the real data of your neighborhood, position your rate with criteria, and move it with the market. That’s the difference between filling cheap and earning well.