Mcallen, TX Airbnb Market Data, Statistics, and Occupancy Rates

Mcallen Short-Term Rental Market Overview

With 242 active Airbnb listings and an average annual revenue of $12,724, Mcallen represents a market where careful property selection matters more than broad-stroke optimism. The average daily rate of $136 sits well below the Texas state average of $276, and occupancy hovers at 29% — a few points under the state benchmark of 33%. However, average home values of $330,686 keep the barrier to entry manageable, and the 123% year-over-year listing growth signals rising investor interest in this border-region market.

Key Market Statistics

According to Rabbu market data, the Mcallen short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Mcallen

McAllen draws investor attention due to its affordable entry point relative to Texas metros, cross-border economic activity, and a rapidly expanding STR supply that reflects growing demand signals.

Expert Market Assessment

"McAllen's ROI score of 48 out of 100 places it in the 'Competitive Opportunity' tier — a market where returns are achievable but require sharper deal sourcing and operational execution. Seasonality is notable: December ($1,581) and March ($1,196) stand out as clear revenue peaks, while January ($793) and May ($846) mark the softer months, creating a roughly 2:1 swing between best and worst periods. Larger properties outperform meaningfully, with 3-bedroom units generating nearly $16,873 annually versus just $7,678 for 1-bedrooms, so investors who target the right property size will have a material edge. The below-average revenue-to-price ratio and occupancy stability mean that disciplined underwriting is essential here."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Mcallen

Average revenue by month in Mcallen

McAllen's revenue peaks sharply in December at $1,581 and dips to its lowest point in January at $793, creating a roughly 2:1 seasonal swing. Secondary peaks in July ($1,344) and November ($1,253) suggest a market with holiday- and summer-driven demand rather than steady year-round bookings.

Active Airbnb listings by property size in Mcallen

Three-bedroom properties make up the largest share of supply at 78 listings, closely followed by 1-bedrooms (69) and 2-bedrooms (65). Studios (6 listings) and 4-bedrooms (21) are notably underrepresented, which could signal either limited demand or an opportunity for differentiated inventory in those segments.

Average daily rate (ADR) by property size in Mcallen

ADR scales unevenly with size: 1-bedrooms command just $88, while 4-bedrooms reach $214 — nearly 2.4 times higher. Interestingly, studios fetch $150, outpricing both 1- and 2-bedroom units, which may reflect a small pool of premium-positioned studio listings rather than broad market pricing power at that size.

Average RevPAN by property size in Mcallen

Revenue per available night climbs steadily from studios ($21) to 4-bedrooms ($46), with 3-bedrooms ($41) and 4-bedrooms delivering the strongest per-night returns. The gap between smaller and larger units is significant enough to make property size one of the most important levers for revenue optimization in this market.

Average occupancy rates by property size in Mcallen

One-bedroom units lead occupancy at 34%, while studios trail significantly at just 14%, suggesting limited demand or pricing issues for the smallest listings. Two- and 3-bedroom properties both sit at 28%, and 4-bedrooms come in at 22% — indicating that larger units compensate for lower fill rates with substantially higher nightly rates.

Average monthly revenue by property size in Mcallen

Monthly revenue ranges from $550 for studios to $1,570 for 4-bedroom properties, with 3-bedrooms close behind at $1,406. The jump from 2-bedrooms ($946) to 3-bedrooms represents the sharpest revenue increase per added bedroom, making that upgrade the most impactful for investors weighing acquisition costs against income potential.

Average annual revenue by property size in Mcallen

Four-bedroom properties top the market at $18,841 in annual revenue, with 3-bedrooms not far behind at $16,873 — both substantially outperforming 1-bedrooms ($7,678) and studios ($6,603). For investors focused on return potential, the data clearly favors larger units despite their lower occupancy rates, as their higher ADR more than compensates.

Most common amenities for Airbnb listings in Mcallen

Parking (97%) and a full kitchen (96%) are near-universal in McAllen listings, reflecting a market where guests expect house-like functionality — likely driven by extended-stay and family travelers. Self check-in (83%), washer (81%), and dryer (76%) round out the essentials, while differentiators like pools (20%) and hot tubs (4%) remain relatively rare and could help listings stand out.

Understanding Mcallen's ROI Score: 48/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

McAllen's ROI score of 48 out of 100 lands in the 'Competitive Opportunity' band, reflecting below-average marks on both the revenue-to-price ratio and occupancy stability — the two most heavily weighted factors. Market growth trend and supply/demand balance both score at average levels, suggesting the market isn't deteriorating but isn't accelerating toward stronger returns either. Investors should pair these metrics with thorough local regulatory research and focus on property types and sizes that demonstrably outperform the market average.

Short-Term Rental Regulations in Mcallen

Understanding local STR regulations is essential before investing in Mcallen. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in McAllen, Texas may need to obtain a local permit or business registration before listing a property. Investors should verify current requirements directly with the City of McAllen and Hidalgo County, as regulations can evolve quickly in fast-growing STR markets.

Key Restrictions

Common restrictions in Texas STR markets include occupancy limits, noise ordinances, parking requirements, and potential HOA rules that may prohibit or limit short-term rentals. Some jurisdictions also impose minimum-stay requirements or cap the number of active permits, so it's important to review both municipal codes and any homeowner association covenants before purchasing.

Tax Obligations

Texas does not levy a state income tax, but short-term rental operators are typically subject to the state's 6% hotel occupancy tax plus any local hotel taxes imposed by McAllen or Hidalgo County. Many booking platforms collect and remit these taxes on behalf of hosts, though owners should confirm compliance with the Texas Comptroller's office.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Mcallen can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, McAllen's short-term rental market is expected to remain competitive as supply continues its rapid expansion. Seasonal patterns suggest revenue will cluster around winter holiday peaks and the March spring break corridor, with softer stretches through late summer and early fall. ADR may hold relatively flat in the $130–$140 range given current occupancy pressures, though operators targeting 3- and 4-bedroom properties could see modest revenue per available night improvements of 2–5% if they differentiate on amenities and guest experience. Investors should treat these as estimates rather than certainties and pair them with on-the-ground market research."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Mcallen, TX

What is the average Airbnb occupancy rate in Mcallen?

The average Airbnb occupancy rate in McAllen is currently 29%, which trails the Texas state average of 33%. Occupancy varies considerably by property size — 1-bedroom units lead at 34%, while studios lag at just 14%. Investors targeting higher occupancy should focus on smaller, well-positioned units or differentiate larger properties with standout amenities and competitive pricing.

How much do Airbnb hosts make in Mcallen?

On average, Airbnb hosts in McAllen earn approximately $1,060 per month or $12,724 per year based on trailing 12-month booking data. Revenue scales significantly with property size: 4-bedroom listings average $1,570 per month ($18,841 annually), while 1-bedroom units bring in roughly $639 per month ($7,678 annually). Individual results will depend on property quality, location within the market, pricing strategy, and how well the listing is managed.

Is Mcallen a good market for Airbnb investment?

McAllen earns a Rabbu ROI Score of 48 out of 100, categorized as a 'Competitive Opportunity.' This means investor interest and demand exist, but below-average revenue-to-price ratios and occupancy stability require more selective deal sourcing. Investors who target 3- or 4-bedroom properties — which deliver the strongest RevPAN and annual revenue — and who time their pricing around seasonal peaks in December and March will be best positioned. Affordable home values ($330,686 on average) keep the entry cost reasonable, but thorough underwriting is essential.

What is the average daily rate (ADR) for Airbnb in Mcallen?

The average daily rate for Airbnb listings in McAllen is $136, which is significantly below the Texas state average of $276. ADR scales with property size: studios command $150, 1-bedrooms average $88, 2-bedrooms sit at $103, 3-bedrooms reach $149, and 4-bedrooms top the market at $214. The relatively modest ADR reflects McAllen's positioning as a value-oriented market rather than a premium destination.

Are short-term rentals legal in Mcallen?

Short-term rentals generally operate in McAllen, Texas, though specific permit, registration, or licensing requirements may apply at the city or county level. Texas law allows municipalities to regulate STRs, so rules can change. Investors should verify current requirements with the City of McAllen and review any HOA restrictions that may apply to a specific property before purchasing.

When is peak season for Airbnb in Mcallen?

December is the strongest revenue month in McAllen, with average listings earning $1,581, followed by July ($1,344) and November ($1,253). March also stands out at $1,196, likely driven by spring break travel. The softest months are January ($793) and May ($846). This creates meaningful seasonality that investors should factor into their cash-flow planning.

How many Airbnbs are there in Mcallen?

There are currently 242 active Airbnb listings in McAllen as of April 2026. The market has experienced 123% year-over-year growth in listing count, signaling rapidly increasing competition. Supply is spread across property sizes, with 3-bedrooms (78 listings) and 1-bedrooms (69 listings) representing the largest segments.

How is Airbnb revenue calculated in Mcallen?

The annual and monthly revenue figures shown for McAllen are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the results up to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks (like December's $1,581) and slower periods (like January's $793). Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the McAllen market
• Average daily rate, occupancy, and RevPAN metrics with state-level comparisons
• Monthly and annual revenue breakdowns by property size based on trailing 12-month booking data
• Popular amenity prevalence across active listings
• Home value data sourced from the Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and market conditions as of the dates noted; actual performance may differ as the market evolves. Local regulations, HOA rules, and tax obligations vary and should be independently verified before any investment decision.