Think the 1% rule applies to short-term rentals? Keep watching.
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Summary
AI-generatedThe 1% rule, where monthly rent equals 1% of the purchase price, is traditionally a quick screening tool for long-term rentals. However, short-term rentals (STRs) often outperform this rule and focus more on factors such as Average Daily Rate (ADR), occupancy rate, seasonality, and expenses.
Key insights
STR investors should prioritize ADR, occupancy rate, seasonality, and expenses over the 1% rule.
Mistakes to avoid
Don't solely rely on the 1% rule when evaluating short-term rental investment opportunities.
Tools & resources
STR analysis tooltool
A free STR analysis tool to help analyze short-term rental opportunities.
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial