Rates, occupancy, expenses, cap rates and pricing from recent STR appraisal work
Downtown Charleston remains one of the Southeast's most durable STR markets. Steady leisure demand, a long booking window and shrinking supply support investor returns, and recent sales on the Spring and Cannon Street corridor are pricing above $800 per square foot.
Charleston's STR market has moved from expansion to a disciplined, supply-constrained equilibrium. Early-2026 data showed rate softening as listings grew. By fall 2026, active supply had fallen 5.4% while occupancy held near 68% and ADR and revenue turned positive (+3.2% and +2.9%). 96% of listings are entire homes and 71% are marketed on several platforms at once, so this is a professionalized, leisure-driven market. Demand is anchored by tourism, MUSC and the College of Charleston, the King Street retail corridor and ongoing waterfront redevelopment.
The market ADR is about $485/night. Professionally managed units average $553 and luxury units $674. Rates step up sharply with size: 1-bedroom units earn the highest occupancy and revenue per bedroom, and 6+ bedroom homes command $1,100–$1,800 a night from group and family travel. ADRs shown include cleaning fees.
| Unit Size | Market ADR Range | Comp Occupancy | Comp ADR | Annual Revenue | Revenue / Bedroom |
|---|---|---|---|---|---|
| 1 Bedroom | $200 – $300 | 85.5% | $256 | $79,500 | $79,500 |
| 2 Bedroom | $300 – $400 | 73.9% | $332 | $83,100 | $41,600 |
| 3 Bedroom | $400 – $600 | 68.3% | $397 | $95,700 | $31,900 |
| 4 Bedroom | $600 – $900 | — | — | — | — |
| 6–7+ Bedroom | $1,100 – $1,800 | 67.4% | $1,427 | $325,500 | $46,500 |
Market ADR ranges: AirDNA, Downtown Charleston, 2026. Comp figures: averages of 31 peninsula STR listings (1BR n=8, 2BR n=8, 3BR n=8, 7BR n=7).
Occupancy averages 68% and follows a predictable calendar. Spring is the profit engine: March–May listings earn about $12,500/month, roughly twice the $5,000–$6,500 earned in winter. The August–September dip and winter trough are where dynamic pricing and shoulder-season marketing pay off most.
Peak demand; ADR tops out near $590 in May
Strong volume; ADR eases to $440–$470
Heat and hurricane season soften bookings
October rebounds (~$9,700/listing); winter is lowest
Across 16 STR operating statements, expenses run a median 38.5% of gross revenue (range 23.6%–53.8%), plus a 3% replacement reserve. That leaves a typical NOI margin of about 55–60%. Management and real estate taxes are the two biggest drivers. Taxes have climbed for investor-owned STRs: 2025 statements show 11.6%–14.8% of revenue, roughly double the long-run median, so underwrite taxes on the current assessment.
Median shown as bar; line marks the observed min–max range
Before reserves; typical underwriting lands at 42–45% with a 3% reserve.
Market rate for professional STR management (8.4%–16.9%). Underwrite a fee even if self-managed.
Long-run median vs. recent 2025 investor-owned properties.
Airbnb host fee; 3%–5% across platforms.
Nine downtown STR sales (2023–2026) traded at cap rates of 6.27%–7.49%, median 6.93%, and the most recent sale (July 2026) closed at 6.27%. Charleston STRs trade 100–300 basis points tighter than national lodging surveys, a premium for location, historic product and limited supply. Current debt for lodging assets runs near 7.9% interest at about 67% loan-to-value. Supportable going-concern cap rates for stabilized assets sit at 6.75%–7.00%.
Overall cap rate. Dots are individual Charleston sales; bars show survey low–high with the average marked.
Downtown STR buildings sold for $659–$1,043/SF, with a median of $839/SF. Most product is renovated 19th-century two-unit houses on the Spring and Cannon Street corridor priced at $1.1M–$1.9M per unit. Renovation quality, off-street parking and bedroom count drive the spread. Recent appraisals concluded $820–$850/SF for well-located, stabilized STR assets.
| Address | Sale Date | Sale Price | Bldg SF | $/SF | Cap Rate |
|---|---|---|---|---|---|
| 241–243 East Bay St | Jul 2026 | $5,100,000 | 7,740 | $659 | 6.27% |
| 81 Spring St | Sep 2025 | $3,000,000 | 2,877 | $1,043 | 6.97% |
| 90 Spring St | May 2025 | $2,375,000 | 3,082 | $771 | 6.54% |
| 85 Spring St | Apr 2025 | $3,050,000 | 3,749 | $814 | 7.42% |
| 40 Spring St | Mar 2025 | $2,425,000 | 2,711 | $895 | 7.46% |
| 150 Spring St | Oct 2024 | $3,750,000 | 4,469 | $839 | 6.38% |
| 79 Spring St | Oct 2024 | $2,150,000 | 2,549 | $843 | 6.93% |
| 99 Spring St | Jun 2023 | $3,760,000 | 4,542 | $828 | 6.90% |
| 66 Cannon St | May 2023 | $5,825,000 | 6,471 | $900 | 7.49% |
| Median | $3,050,000 | 3,749 | $839 | 6.93% |
Value depends on legal STR use. Confirm the property sits in a short-term rental overlay district and holds the current city permits before underwriting any income.
Small units win on occupancy and revenue per bedroom; large homes win on total revenue and hold their rates better. Multi-unit buildings capture both.
Budget 42–45% of revenue including management, reserves and current-assessment taxes. Owner statements often omit management or reserves and overstate NOI.
STR prices include real estate, furnishings and the operating business. Lenders and tax appeals usually need those pieces separated, so plan for a real-property allocation.
Moyer Group appraises short-term rental and hospitality assets across the Lowcountry for lenders, attorneys and investors.
Sources: AirDNA (Downtown Charleston submarket, October 2026; Charleston submarket, February 2026, which uses a different geography); Moyer Group comparable sale, revenue and expense data; PwC Real Estate Investor Survey and RealtyRates Investor Survey, Q3 2026. Figures summarize market data from recent Moyer Group appraisal assignments and are provided for general information only. They are not an appraisal of any specific property or investment advice.