How Property Grading Works — DepreciMax
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DEPRECIMAX PROPERTY SCORING

Know if the STR you're eyeing is great — or just good.

Grade any property against 5,470 active STR listings nationwide. Diamond = top 10% by bonus-eligible %. Bronze just meets the bar. Unearth the diamonds in your shortlist before you offer.

The four grades

Same fixed thresholds for every property, every market. Stone set in a tinted disc, name engraved below.

DIAMOND
GOLD
SILVER
BRONZE
THE SCALE

Medal tiers by bonus-eligible %

Thresholds are fixed; the nationwide share shows where each tier typically falls across the properties we analyze.

TIERTHRESHOLDNATIONWIDEWHAT IT MEANS
DIAMOND
Diamond
≥ 24% bonus-elig.
Best of the best — outdoor amenity stack, high FF&E, and condo pro-rata all lining up.
GOLD
Gold
22.0 – 23.9%
Strong write-off potential, one tier below Diamond.
SILVER
Silver
20.0 – 21.9%
Above-average — solid but not exceptional.
BRONZE
Bronze
18.0 – 19.9%
Meets the minimum bar for a bonus-worthy STR.
Unranked
< 18%
Below the bar — not enough qualifying components to move the needle.

The formula behind every grade

Every listing runs through the same six-step calculation. No black box, no per-property judgment call — the same math applies whether we're grading a Palm Springs condo or a Poconos cabin.

01 · STRUCTURE vs. LAND

Isolate the depreciable basis

Land can't be depreciated, so we start with the market's typical land-ratio from public assessor data. Structure basis = 1 − land ratio. A market with a 20% land ratio has 80% of purchase price as depreciable structure; a market with a 10% land ratio has 90%.

02 · AMENITY BASELINE

Start with the 13% baseline

Every STR property gets a 13-percentage-point baseline for the portion of structure that lives in short-life IRS classes — 5-year FF&E (fixtures, appliances, decorative finishes, smart-home) and 15-year land improvements (driveways, landscaping, outdoor amenity stacks). Set by calibration against formal cost-seg studies.

03 · FINISH-LEVEL ADJUSTMENT

Adjust for price/sqft rank

Higher-end listings within a market carry more FF&E per square foot. We rank each listing by price/sqft against its own market's distribution, then apply a linear ramp: −4 points at the market's cheapest end, +8 points at the top.

04 · BUILD-YEAR ADJUSTMENT

Adjust for property age

Newer construction pushes more content into short-life classes (LED lighting, smart systems, engineered surfaces). Linear ramp by build year: −5 points at 1970 or older, +5 points at 2020 or newer.

05 · CLAMP

Bounded 10 – 35% of structure

We clamp the running total to a defensible range. A ceiling of 35% prevents luxury outliers from exceeding what a formal engineered study would typically find; a floor of 10% keeps 1970s rentals from bottoming to zero when structure still has qualifying components. Result is multiplied by structure basis to get bonus-eligible % of purchase price.

06 · THRESHOLD → MEDAL

Compare to the fixed cutoffs

The property's final bonus-eligible % is checked against the four fixed thresholds: ≥ 24% = Diamond, 22.0 – 23.9% = Gold, 20.0 – 21.9% = Silver, 18.0 – 19.9% = Bronze. Below 18% is unranked.

Why the thresholds are fixed, not percentile

A Diamond property today is a Diamond next quarter — regardless of what the rest of the market does.

CLEAN 2-PP GAPS

18 · 20 · 22 · 24

Two-percentage-point gaps between tiers so grades don't blur into each other at the boundaries. A property at 21.9% is unambiguously Silver; at 22.0% it's unambiguously Gold.

STABLE MEANING

Grades don't drift

Percentile-based thresholds move every quarter as new listings come and go. Fixed thresholds mean a Diamond grade means the same thing in July as it does in January, and the same in Ketchum as in Kissimmee.

COMMUNICATION

Easy to explain

"This property has 24% of its purchase price qualifying for bonus depreciation" is a sentence anyone can act on — investor, CPA, or listing agent.

REFERENCE DISTRIBUTION · 5,470 LISTINGS · TOP 50 US STR MARKETS

Where the thresholds actually land

Diamond≥ 24%9.3%
Gold22.0 – 23.9%18.9%
Silver20.0 – 21.9%20.6%
Bronze18.0 – 19.9%21.2%
Unranked< 18%30.0%

How markets compare — density, not medals

A market never earns a medal. Instead, each market is described by density: the share of its active listings that clear each threshold. That's what "stacked with Diamond-tier properties" actually means.

Poconos, PA
Mountain cabin · 1,000+ Airbnb listings
Diamond33%
Gold+52%
Palm Springs, CA
Desert resort · 1,000+ Airbnb listings
Diamond0%
Gold+4%

Same $99 median list price band. Vastly different medal density. The difference isn't luck — it's what the components add up to when the formula runs across every active listing.

See the methodology in action.

Every market's density and every property's grade uses the same six-step formula on this page.