Short-term rental potential: what Airbnb math actually looks like
STR income is real — but the numbers on the listing aren't the numbers you'll see.
Scenario
Tanya is considering buying a 2BR/2BA condo near a popular Atlanta destination for $285,000. A seller's agent shows her an AirDNA report claiming the property averages $3,800/month in gross STR income. Tanya's mortgage would be $1,950/month. She thinks she's found a cash cow. What she hasn't priced in is platform fees, management, furnishing, turnover, taxes, and what happens when STR regulations change.
STR income reality check
- Gross revenue: $3,800/month (seller's claim)
- Platform fees (Airbnb ~3%, guest fees vary): -$114
- Management fee if outsourced (20–30%): -$760
- Cleaning per turnover (~$120 × 8 turns/month): -$960
- Supplies, maintenance, HOA, utilities: -$400
- Net income before mortgage: ~$1,566/month
Risks unique to STR
- HOA or municipality may restrict or ban STR
- Seasonality — not all months perform equally
- Market saturation affects occupancy and rates
- Guest damage, bad reviews, platform deactivation
- STR income is taxed differently — self-employment tax may apply
Things to consider
- Verify the HOA rules — can you legally STR this property?
- Check local municipality STR licensing requirements and restrictions.
- Run the numbers at 60% occupancy, not the best-case scenario.
- What does this property cash flow as a long-term rental if STR stops working?
- Do you have the bandwidth to manage bookings, turnovers, and guest issues?
BRIK takeaway
STR income can be strong — but gross revenue is not cash flow. Model the deal with realistic expenses, realistic occupancy, and a backup plan if regulations change. The best STR investments also work as long-term rentals at a minimum — so you're never forced to sell if the short-term market shifts.