Self Storage Facility Financial Projections: Year One
A 300-unit self storage facility projects roughly $80,000 of revenue in year one because of the 18-month lease-up, rising to about $280,000 in year two and $366,000 at stabilization. Revenue Map's presets model the facility opening at roughly 34 rented units and filling to 264 over 18 months, with monthly fixed costs and mortgage of about $17,400 running the entire time.
The financial projection a lender evaluates for self storage is dominated by the lease-up trough. Revenue Map's presets model a 300-unit facility at $105 per unit per month with 45% phase-one occupancy, but the 18-month ramp means the facility starts at roughly 34 rented units, not 135. The $8,460 monthly mortgage and roughly $8,900 of monthly operating costs run whether there are 34 tenants or 264. Year one is negative by design, and the $350,000 of owner equity exists to absorb that gap.
The binding test is debt service coverage ratio. Lenders apply a 1.25 DSCR to storage assets, meaning net operating income must exceed 125% of the mortgage payment before the loan is considered performing. Revenue Map's presets show the facility reaching that threshold around month 16, when occupancy passes roughly 60%. A projection that skips the path from opening to that milestone is the one the lender sends back.
Revenue Breakdown
Self storage financial projections by year and milestone
| Item | Typical range | Notes | Source |
|---|---|---|---|
| Year one total revenue (with ramp) | About $80,000 | Average of roughly 67 units occupied during year one at $105 per unit, 5% promotional discount | Revenue Map model presets |
| Year one cash shortfall | About $130,000 | Total obligations of $208,000 (operating costs plus mortgage) against $80,000 of revenue | Revenue Map model presets |
| Month when DSCR reaches 1.25 | Around month 16 | Requires roughly 60% occupancy, or about 180 units, to clear the lender's threshold | Revenue Map model presets |
| Year two total revenue | $265,000 to $280,000 | Ramp completes at month 18, phase two at 72% occupancy and $112 per unit kicks in | Revenue Map model presets |
| Stabilized annual revenue (year four onward) | About $366,000 | 264 units rented at $118 per month with 2% discount on new leases only | Revenue Map model presets |
| Stabilized annual DSCR | About 2.30 | Monthly NOI of $19,400 against $8,460 mortgage, well above the 1.25 threshold | Revenue Map model presets |
Sources: Revenue Map model presets (default investment, pricing and funnel assumptions in our industry templates), Revenue Map model templates (vertical research in each financial model), Revenue Map benchmark tables (the thresholds behind our free calculators), and honest industry ranges where our own data is thin. Ranges are planning bands, not guarantees.
What Moves the Number
The lease-up trough defines the capital requirement
Revenue Map's presets model a facility opening at 34 rented units and reaching phase-one occupancy of 135 units over 18 months. During the first 12 months, average occupancy is roughly 67 units, producing about $6,600 per month of revenue against $17,400 of monthly obligations. The $130,000 year-one shortfall is the figure that sizes the owner's equity requirement, and a plan that understates the ramp understates the capital needed.
DSCR is the milestone that matters to the lender
A 1.25 debt service coverage ratio means every dollar of mortgage payment is backed by $1.25 of net operating income. Revenue Map's presets show the facility crossing that line around month 16, when occupancy passes roughly 60%. Before that point, the owner is covering the gap from equity. A projection should show the lender exactly when that handoff happens and how much capital bridges it.
Rate growth compounds against near-zero variable cost
Because self storage COGS is only 3%, a rate increase drops almost entirely to the bottom line. Revenue Map's presets move rate from $105 to $118 across three phases. At stabilized occupancy, the $13 per unit increase on 264 units adds $3,430 of monthly revenue and $3,327 of monthly gross profit. The stabilized facility earns roughly 2.3 times its monthly mortgage in NOI.
Phase-two economics are the real story
Year two is where the projection shifts from survival to performance. Revenue Map's presets model 72% occupancy at $112 per unit with a $1,200 marketing budget (down from $1,500 during lease-up), producing monthly NOI of about $12,600. That is 1.5 times the mortgage payment, giving the lender the coverage margin they require and the owner roughly $4,100 of monthly pre-tax cash flow.
Frequently Asked Questions
How much cash does a self storage facility need before it breaks even?
What is a good DSCR for a self storage loan?
How much does a self storage facility make in year two?
How long does it take a self storage facility to stabilize?
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