How to Analyze an STR Market in 1 Hour

Most people research a market by opening Airbnb, scrolling for twenty minutes, and deciding it "looks busy." That's not analysis — that's window shopping. Here's the one-hour version of the process we teach, using two of our core frameworks.

Minute 0–15: Run The 75/55 Green-Light Test

Before anything else, you need to know whether the market clears our occupancy bar. The idea is simple: a market earns a green light when its strong performers hold roughly 75% occupancy in season and the middle of the pack holds about 55%. Those two numbers together tell you demand is deep enough that you don't have to be the best listing in town to survive — you just have to be good.

A market where only the top listing stays booked is a market with a moat you can't cross on day one. A market where the median listing stays reasonably full is a market with room for a well-run newcomer.

Minute 15–45: Reverse Market Mapping

Now work backwards from the winners. Pull up the top 10–15 listings and map what they have in common: bedroom count, amenity set, design level, minimum stays, pricing bands, and — critically — review frequency. A listing collecting 3–4 new reviews a month is turning over guests constantly; that's the gold standard of demand evidence, far more reliable than a pretty calendar.

You're not admiring these listings. You're reverse-engineering the spec sheet the market has already voted for. If every winner is a 2BR with a dedicated workspace and a king bed, the market just told you what to build.

Minute 45–60: Check the downside, not the upside

Finally, look at what the bottom of the market earns in the slowest month you can find. That number — not the summer peak — is what your lease payment has to survive. (We call the full version of this The Floor Test, and it deserves its own hour when you're modeling a specific deal.)

What this hour tells you

One hour won't make you an expert in a market. It will reliably tell you whether a market deserves the next ten hours. Most don't — and finding that out in sixty minutes is the entire point.

Educational content — results vary by market and operator. See our Earnings Disclaimer.