Rental Arbitrage in Philadelphia, PA
We have not published a sourced legal page for this city yet. Check the city's official short-term rental rules and your lease before relying on the numbers below.
- Average daily rate
- $156.90
- Occupancy
- 60%
- Annual revenue potential
- $29,200
How Much Rent Can a Unit Here Carry?
- Most rent that breaks even
- $2,341
- Rent that leaves a 20% margin
- $1,666
At the market's average rate and occupancy, a unit books about 18.2 nights and $3,379 a month. The ceiling assumes 3-night stays, an $85 cleaning fee against a $75 clean, a 3% platform fee and $480 a month for bills, insurance, supplies and software. Market averages include every listing size, so a one-bedroom usually earns less. Treat these as upper limits for a lease negotiation, not targets.
Run the Numbers for Philadelphia, PA
Pre-filled with the market's rate and occupancy, and a rent at the 20% margin ceiling. Replace the rent with the real asking rent of the unit you're considering.
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The Philadelphia, PA Market
AirDNA's Philadelphia market averaged a $156.90 daily rate at 60% occupancy over the last 12 months, about 18.2 booked nights and $3,400 of booking income a month for an average listing.
Philadelphia lets a renter run limited lodging in the home they live in, with the owner's written authorization. A unit you don't live in counts as visitor accommodations, a commercial use that zoning doesn't allow in lower-density residential areas without a variance. Rental arbitrage on a separate unit therefore depends on the exact address's zoning.
What a Unit Can Earn
At the market averages, a unit breaks even at about $2,340 a month in rent and keeps a 20% margin at about $1,670. Treat those as ceilings for a unit that can be licensed, and price from comparable listings near the address.
Startup Costs
At a $1,650 rent, expect roughly $11,700 before the first booking: a one-month deposit, the first month's rent, about $7,500 of furnishing and $900 of setup. Add a cushion of a few months of costs. Work it out properly with the startup cost calculator.
Risks to Weigh
- Units you don't live in are a commercial use that needs the right zoning or a variance
- A renter needs the owner's written authorization
- Several licenses and tax registrations are needed before listing
- Hotel tax, state tax and business income taxes all apply
Frequently Asked Questions
- Can a Renter Do Rental Arbitrage in Philadelphia?
- Only in limited cases. A renter can run limited lodging in the home they live in with the owner's written authorization. A separate unit is visitor accommodations and needs the right zoning.
- What Rent Can a Philadelphia Unit Carry?
- At market averages, about $1,670 a month keeps a 20% margin and about $2,340 breaks even, for a unit that can be licensed.
- How Much Does an Average Philadelphia Short-Term Rental Earn?
- AirDNA's Philadelphia market averaged a $156.90 daily rate at 60% occupancy over the last 12 months, with annual revenue of about $29,200.
- What Taxes Apply?
- An 8.5% city hotel tax and the 6% state hotel tax with 1% local addition, plus business income taxes.
- What Should I Check Before Signing a Lease?
- The address's zoning, the landlord's written authorization, and the license and tax registrations. Then run the calculator with comparable listings.