When it comes to short-term rental opportunities, Texas is a goldmine for Airbnb hosts with getaways that consistently attract travelers. The best Airbnb markets in Texas stand out for their high demand and significant growth potential. Backed by data-driven insights from Forecast in SummerOS, these standout locations show impressive revenue potential, competitive daily rates, and strong occupancy trends.
Let's dig into the five best short-term rental markets in Texas for your next investment:
- Port Aransas: Best luxury investment
- Lubbock: Best budget-friendly investment
- Waco: Most friendly area for Airbnbs
- Tyler: Best up-and-coming market
- Temple: Best city for year-round income
How we picked the best Airbnb markets in Texas
Identifying the best Airbnb markets in Texas requires a deep dive into the data that shapes the short-term rental landscape. Using Forecast in SummerOS, we analyzed key metrics to find the cities offering the best opportunities for potential investors.
Here's what we considered:
- Profitability potential: Cities with high revenue estimates, competitive daily rates, and solid occupancy trends.
- Airbnb-friendly regulations: Areas where local policies support short-term rentals, making it easier to operate.
- Year-round stability: Markets with consistent demand throughout the year.
- Growth potential: Emerging hotspots showing signs of increasing tourism, rising property values, and untapped opportunity.
- Diverse appeal: Our cities are a mix of locations that cater to a wide range of travelers.
- Market transparency: Areas with clear data on competition, property performance, and traveler preferences.
We didn’t just guess to find these Texas Airbnb markets—we used Forecast in SummerOS to pinpoint the data that matters. With Forecast, you can go beyond the surface and access detailed insights on Texas markets and beyond. From revenue projections to competitive set analytics, Forecast empowers you to optimize your Airbnb portfolio.
Want to uncover top STR markets for your next investment? Find your next opportunity with Forecast to turn data into smarter decisions.
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1. Port Aransas: Best luxury investment
Port Aransas, the "fishing capital of Texas," is a beach town tucked away on Mustang Island. More than just pristine sands and stunning Gulf views, it's a destination for travelers looking to splurge on high-end waterfront stays.
This city delivers premium experiences, and whether guests are looking for a modern beachfront villa or a cozy coastal cabin, properties in the area have what it takes to attract travelers willing to pay a premium for exclusivity. With an average daily rate of $392 and a 48% occupancy rate, Port Aransas offers serious earning potential for investors focused on luxury.
With just under 1,000 active short-term rentals and an average listing price of $858,780, the market here is established yet exclusive, making it a prime choice for potential investors who want to cater to luxury travelers.
2. Lubbock: Best budget-friendly investment
Lubbock is a vibrant college town in the heart of West Texas. Home to Texas Tech University and a growing arts and music scene, Lubbock attracts a steady flow of visitors year-round. And, while Lubbock may not have the luxury allure of some Texas cities, it's a standout option for investors looking for an accessible market with dependable income potential.
With an average gross revenue of $30,158 and a daily rate of $165, Lubbock shines as a very budget-friendly investment market. The real appeal lies in its low average listing price of $269,161 for properties, which allows investors to break into the market at a fraction of the cost compared to luxury-focused cities. Combine that with a 59% occupancy rate, and you have an area where you can earn income throughout the year.
Lubbock currently has around 500 active short-term rentals, making it less saturated than larger Texas markets, giving new hosts room to stand out. For those interested in the city, Lubbock shines as a stable and approachable entry point into Airbnb ownership.
3. Waco: Most friendly area for Airbnbs
Waco has solidified its spot as one of the most Airbnb-friendly cities in Texas, and it's easy to see why. With attractions like Magnolia Market and Baylor University, the city pulls in a steady flow of tourists throughout the year. But what really sets Waco apart is its welcoming approach to short-term rentals. Unlike other Texas markets with tough regulations, Waco keeps things simple, making it easy to start investing in the city.
Hosts can operate short-term rentals across various zoning areas within the city proper by obtaining a special permit and a license. Though each short-term rental is subject to a 15% hotel occupancy tax, the straightforward permitting process and lack of overly restrictive rules make Waco an appealing choice.
From a numbers perspective, Waco might not match the luxury earnings of Port Aransas or the low-cost appeal of Lubbock. However, the average listing price of $409,271 strikes a good middle ground between both, and a gross revenue of $39,950, a daily rate of $231, and a 57% occupancy rate show reliable mid-tier returns.
Thanks to its mix of tourist attractions and investor-friendly policies, Waco shows that having a supportive environment can be just as important as fantastic numbers.
4. Tyler: Best up-and-coming market
Tyler is quietly transforming into one of the state's most exciting short-term rental opportunities. This East Texas city offers small town charm, outdoor activities, and cultural events that are starting to draw in more and more visitors. And, its short-term rental market reflects that, with a 51% growth in active listings over the past two years.
The rest of the numbers reflect a market on the rise. With a 64% occupancy rate, properties here are seeing consistent demand, while the $152 average daily rate makes Tyler an accessible option for travelers. While gross revenue averages $29,769, this is a market where early investors can benefit from growth as the city's popularity increases.
The average listing price of $567,190 positions Tyler as a more premium investment compared to budget-friendly spots like Lubbock, but its untapped potential makes it worth considering. With only around 100 active rentals, there's still room for hosts to establish a foothold before the competition heats up.
5. Temple: Best city for year-round income
Running a short-term rental often means riding the seasonal wave, but there are outliers. Tucked in Central Texas, Temple proves that smaller cities can pack a big punch when it comes to Airbnb income stability. While the city itself may not grab headlines, Temple's dependable demand and consistent revenue make it one of the best short-term rental markets in Texas.
This city's unique edge lies in its role as a hub for medical tourism, thanks to Baylor Scott & White Medical Center, one of the largest healthcare systems in the state. With a steady influx of patients, families, and traveling medical professionals, Temple's rental market doesn't experience the seasonal highs and lows typical of many other cities.
The numbers paint a clear picture, with a 75% occupancy rate–one of the highest among Texas markets. The daily rate averages $149, making properties here affordable for guests while still yielding decent returns. Pair that with a gross revenue of $36,684 and a relatively modest average listing price of $334,096, and you have a market that balances affordability with year-round profitability.
Is Texas good for Airbnb homes?
Texas has something for every Airbnb host, from luxury destinations to budget-friendly options and steady year-round performers.
With that being said, the "best" market depends on your goals. Are you focused on maximizing profitability? Looking for a city with host-friendly regulations? Or are you eyeing a market with long-term growth potential? Each city comes with its own opportunities and challenges, which is why it's extremely important to make informed–and wise–decisions.
For that, Forecast in SummerOS can help. Designed specifically for property managers and investors, Forecast gives you access to intuitive, data-driven insights to help you make smarter decisions, like which city to invest in next.
Explore Forecast today to see how you can confidently navigate the Texas short-term rental market.
Unlock Texas insights with Forecast in SummerOS
Learn more
