What Profit Margin Does a Self Storage Facility Have?
A self-storage facility typically earns a gross margin of 95% to 97% after cost of goods, but net profit for a stabilized facility runs roughly 25% to 40% once debt service, staff, utilities, insurance and marketing are paid. Revenue Map's self-storage presets model cost of goods at just 3% of revenue, with monthly rates of $105 to $118 per unit across growth phases.
Storage has the highest gross margin of any physical business in Revenue Map's preset library: cost of goods is just 3%, covering locks, minor insurance resale and cleaning supplies. A $105 monthly rental keeps about $102 of gross profit. But the business is capital-intensive, and the gap between gross margin and net margin is filled by the loan payment on a seven-figure build-out.
Revenue Map's presets model a 300-unit facility at $105 per unit per month in phase one, rising to $118 at maturity. At phase-one occupancy of 45%, gross revenue is roughly $14,200 per month. At stabilized occupancy of 88%, gross revenue climbs to roughly $31,200. Monthly fixed costs, staff at $4,700 with payroll tax, utilities at $700, insurance at $900, admin at $600, marketing at $1,500 and miscellaneous at $500, total about $8,900. Add the $8,460 loan payment and total obligations run roughly $17,300. The margin only opens once occupancy crosses the break-even point.
Revenue Breakdown
Self-storage margin ranges by cost layer and phase
| Item | Typical range | Notes | Source |
|---|---|---|---|
| Cost of goods | 3% of revenue | Locks, cleaning supplies and minor insurance resale across all phases | Revenue Map model presets |
| Gross margin (after COGS) | 95% to 97% | Highest of any physical business in the preset library; essentially no variable cost per unit | Revenue Map model presets |
| Monthly fixed costs | About $8,900 | Staff $4,700 with payroll tax, utilities $700, insurance $900, admin $600, marketing $1,500, misc $500 | Revenue Map model presets |
| Monthly debt service | About $8,460 | Default $1,050,000 loan at 7.5% over 20 years on $1,400,000 capex | Revenue Map model presets |
| Net profit margin (stabilized at 88% occupancy) | 25% to 40% | After all fixed costs and debt service; higher end as rates climb from $105 to $118 | Revenue Map model presets |
| Annual revenue range (stabilized 300-unit facility) | $300,000 to $420,000 | 88% occupancy at $105 to $118 per unit per month across phases | Revenue Map model templates |
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
Occupancy is the only margin lever that matters
At 3% cost of goods, every incremental occupied unit is almost pure gross profit against a fixed cost base. Revenue Map's presets move occupancy from 45% in phase one to 72% in phase two and 88% at maturity. The difference between 45% and 88% occupancy on 300 units at $105 per month is roughly $13,600 of additional monthly revenue, nearly all of it profit once fixed costs are covered.
Rate growth compounds on a stable base
Revenue Map's presets lift the monthly rate from $105 to $112 in phase two and $118 at maturity. On 264 occupied units at 88% occupancy, a $13 rate increase adds roughly $3,400 per month, all of it net margin. Rate discipline, raising rents on renewing tenants by small annual increments, is the primary tool for expanding margins after the lease-up.
Debt service is the largest fixed cost
The $8,460 monthly loan payment on the default $1,050,000 loan is larger than all operating costs combined. It is also the cost that is locked at signing rather than controllable. Facilities that convert an existing building at the $825,000 loan level cut this line by roughly 20%, which directly compresses the occupancy needed to break even.
Format shifts the margin profile
Climate-controlled units at $145 to $160 per month earn more per door but carry a $1,310,000 loan. Vehicle and RV storage at $185 to $205 per unit carries just a $675,000 loan on 140 units. The highest-margin format depends on the local market: where vehicle demand exists, the smaller unit count against lower debt produces the widest net margin.
Frequently Asked Questions
What is a good profit margin for a self-storage facility?
Why is self-storage gross margin so high?
How does the lease-up affect storage margins?
Which storage format has the best margins?
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