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Is Your Rental Leaving Money on the Table? How to Spot Underpricing—or Price Yourself Out

Pricing a rental isn’t about gut feeling—it’s about signals. By looking at competitors, occupancy, and your revenue goals together, you can tell if your price is helping or hurting performance.

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January 8th, 2026

Good evening STR Report Community!

In today’s issue, you will find:

📱Today’s Article: Is Your Rental Leaving Money on the Table? How to Spot Underpricing—or Price Yourself Out

📈 Trending Market Highlight: Seneca Falls, New York and Yucca Valley, California

✉️ STR News: Simply Owners integrates with Supercontrol

💸 Mortgage Rate Watch

🗻 Unique Airbnb of the Week

🏫 Subscriber Perks: Go Live Playbook, including: Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, STR Buy Box Template, & Tax Savings E-Book

Community Perks: Top-Tier Property Management, Personal Airbnb Investment Finder, and STR Loans & More

📬 See our collection of newsletters here: Prior Newsletters

How to Evaluate Whether Your Rental Is Underpriced or Overpriced

Setting the right rental price is one of the biggest drivers of long-term returns. Price too low and you sacrifice income; price too high and vacancies quietly drain profits. Here’s a practical framework to know where you really stand.

I Am Lost What GIF by Bounce

1) Review the Competition (Your Market Reality Check)

Start with comparable properties—same neighborhood, similar size, amenities, and target renter. Look at:

  • Listed prices (not just what you think they rent for)

  • Time on market—units sitting longer than average often signal overpricing

  • Value differences—new appliances, parking, outdoor space, or furnished units can justify premiums

Red flag: If similar rentals lease faster at higher prices, you’re likely underpriced.
Red flag (the other way): If your unit lingers while cheaper comps fill quickly, you may be overpriced.

2) Analyze Occupancy Trends (The Demand Signal)

Occupancy tells you how renters are responding to your price in real time.

  • Consistently 100% occupied? That can be good—or it can mean you’re charging too little.

  • Frequent gaps between tenants? That’s often the cost of overpricing.

A healthy benchmark for many markets is 80–90% occupancy. Anything far above or below deserves a pricing review.

3) Measure Against Your Revenue Goals (Not Just Market Averages)

Pricing isn’t only about matching the market, it’s about meeting your financial plan.
Ask yourself:

  • Does this rent cover expenses and hit my target cash flow?

  • Am I prioritizing stability (lower turnover) or maximizing yield?

If you’re fully occupied but missing income targets, a gradual rent increase may be smarter than staying “safe.”

4) Stress-Test Your Price

Try small, low-risk adjustments:

  • Increase rent slightly at renewal and track response

  • Adjust price for new listings and monitor inquiry volume

  • Compare seasonal demand shifts before locking long-term rates

Data beats intuition every time.

The right rental price lives at the intersection of competition, occupancy, and your revenue goals. Review these regularly, and your pricing stops being a guess—and starts becoming a strategy.

Seneca Falls, New York

Downloadable Seneca Falls, New York Short-Term Rental Market Report

Seneca Falls STR Market Report.pdf1.66 MB • PDF File
  • Average Daily Rate (ADR): $327.51 per night

  • Occupancy Rate: 47.68%

  • Annual Revenue Potential: Around $56,428 per year

Read our full Seneca Falls, New York Short-Term Rental Market Report attached above.

Yucca Valley, California

Downloadable Yucca Valley, California Short-Term Rental Market Report

Yucca Valley STR Market Report.pdf5.10 MB • PDF File
  • Average Daily Rate (ADR): $319.31

    per night

  • Occupancy Rate: 51.95%

  • Annual Revenue Potential: Around $78,271 per year

Read our full Yucca Valley, California Short-Term Rental Market Report attached above.

📬 See our collection of 120+ market reports here: Prior Trending Market Reports

📝 Simply Owners integrates with Supercontrol
Holiday rentals booking platform Simply Owners has integrated with property management software Supercontrol.

🏡 New State law helps cities get short-term rental information from Airbnb, VRBO and other online platforms
The ordinance can be targeted and short — but it can yield significant benefits when it comes to TOT enforcement and collection, as well as STR accountability.

💸 Nearly half of property managers hit by increased competition in 2025
Nearly half of short-term rental hosts and property managers say increased competition in their local markets impacted their business in 2025, according to new industry research.

💸Mortgage Rate Watch – January 8th, 2026

Current Mortgage Rates (as of January 8, 2026):

  • 30-Year Fixed: 6.21% (+0.02%)

  • 15-Year Fixed: 5.74% (+0.01%)

  • 30-Year Jumbo: 6.35% (+0.00%)

  • 30-Year FHA: 5.84% (+0.04%)

  • 30-Year VA: 5.85% (+0.03%)

  • 7/6 SOFR ARM: 5.73% (+0.03%)

Market Overview: Mortgage rates moved modestly higher today, with the 30-year fixed rising to 6.21%. Increases were seen across most loan types, reflecting mild upward pressure in the bond market and slightly higher yields. Despite today’s bump, overall rate movement remains limited as markets continue to search for direction early in the new year.

Rate Trends & Forecast:

  • Short-Term: Rates are likely to remain within a narrow range, with small day-to-day fluctuations tied to incoming economic data and bond market activity.

  • Long-Term: There is still potential for gradual improvement if inflation continues to cool and long-term Treasury yields trend lower. However, meaningful declines remain unlikely without clearer signs of economic slowing or a shift in monetary policy.

    For real-time mortgage rate updates, visit Mortgage News Daily.

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Subscriber Perks:

📖🏡💰 Go Live Playbook

The "Go Live Playbook" is your all-in-one guide featuring a beginner’s guide e-book, messaging templates, Airbnb welcome book, STR buy box template, and tax savings tips to kickstart your short-term rental success.

Community Perks with The STR Report

🏠 Top-Tier Property Management – Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. See how much more your property could earn—click to get your free performance assessment.

🔎 Personal Airbnb Investment Finder – Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing a 10-15% Cash-on-Cash return.

🤑 STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

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