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

Montgomery Short-Term Rental Market Overview

Montgomery, TX sits within the Lake Conroe corridor — a popular getaway destination north of Houston — and currently hosts 203 active Airbnb listings generating an average annual revenue of $25,345 per property. With an average daily rate of $247 (slightly below the $276 Texas state average) and a 30% occupancy rate, the market rewards investors who target the right property size and guest experience. The 162% year-over-year growth in active listings signals strong investor interest, though that influx of supply means sharper competition and more selective deal sourcing will be essential.

Key Market Statistics

According to Rabbu market data, the Montgomery 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 Montgomery

Montgomery attracts STR investors because of its proximity to Houston, lakefront recreation appeal, and the strong revenue premium available to larger properties.

Expert Market Assessment

"Montgomery presents a competitive opportunity where strong investor interest meets real but measured demand. Seasonality is pronounced — July leads at $2,869 in average monthly revenue while January dips to $1,281, creating a roughly 2.2x spread that investors should account for in cash-flow planning. The below-average revenue-to-price ratio (average home values sit at $721,475) means conventional returns are tighter, but larger properties punch well above their weight: 4- and 5-bedroom units generate $50,795 and $97,722 annually, respectively. Selective acquisition of the right property type — particularly larger lakefront homes — can meaningfully shift the math in an investor's favor."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Montgomery

Average revenue by month in Montgomery

Montgomery's revenue cycle peaks in July at $2,869 and bottoms out in January at $1,281, reflecting a strongly seasonal market driven by summer lake recreation. The roughly $1,600 spread between peak and trough means investors should build 3–4 months of lighter revenue into their financial models.

Active Airbnb listings by property size in Montgomery

Two-bedroom listings lead supply with 59 active properties, followed closely by 3-bedrooms (48) and 1-bedrooms (46), while 5-bedroom homes are notably scarce at just 7 listings. The thin supply of larger properties — combined with their outsized revenue — may signal an opportunity for investors willing to acquire bigger lakefront homes.

Average daily rate (ADR) by property size in Montgomery

ADR jumps sharply at the upper end of the size spectrum: 4-bedroom properties command $390 per night and 5-bedrooms reach $576, compared to $159–$215 for 1- to 2-bedroom units. The premium-to-cost trade-off appears strongest for 5-bedroom properties, where the nightly rate is nearly 3x that of a 3-bedroom listing.

Average RevPAN by property size in Montgomery

Five-bedroom properties deliver the highest RevPAN at $191 — more than double the next-best category (1-bedrooms at $78) — demonstrating that their high ADR more than compensates for moderate occupancy. Two-bedroom units trail the pack at $48 RevPAN, suggesting that mid-range properties face stiffer competition relative to what they can charge.

Average occupancy rates by property size in Montgomery

One-bedroom listings achieve the highest occupancy at 36%, while 4-bedroom properties lag at just 19%, indicating that larger group bookings are less frequent but far more lucrative when they occur. Most size categories cluster between 30–36%, with the 4-bedroom dip suggesting pricing or availability patterns that limit their fill rate.

Average monthly revenue by property size in Montgomery

Monthly revenue scales dramatically with property size — from $1,213 for 1-bedroom units up to $8,143 for 5-bedroom homes, a nearly 7x difference. Even 4-bedroom properties at $4,232 per month significantly outperform the market-wide average of $2,112, underscoring how property size is the primary revenue lever in this market.

Average annual revenue by property size in Montgomery

Five-bedroom properties generate an impressive $97,722 in annual revenue, roughly 3.4x more than 3-bedroom listings ($28,690) and nearly 7x more than 1-bedrooms ($14,561). For investors weighing acquisition cost against income potential, the 4-bedroom tier at $50,795 annually may offer the most accessible entry point to above-average returns.

Most common amenities for Airbnb listings in Montgomery

Parking (98%), kitchen (96%), and self check-in (90%) are near-universal, establishing them as baseline expectations rather than differentiators. Lake access at 71% confirms the market's waterfront identity, while amenities like pool (49%), pet-friendliness (46%), and waterfront location (45%) represent potential ways to stand out from the competition.

Understanding Montgomery's ROI Score: 47/100

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

Montgomery's ROI Score of 47 out of 100 places it in the 'Competitive Opportunity' band, meaning investor demand is strong but returns require disciplined property selection. All four calculation factors — revenue-to-price ratio, occupancy stability, market growth trend, and supply/demand balance — score at or below average, with supply/demand balance being the lone 'Average' bright spot. Investors should pair this data with thorough local regulatory research and target property types (especially larger homes) where the revenue-to-price math works in their favor.

Short-Term Rental Regulations in Montgomery

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

Permit Requirements

Short-term rental operators in Montgomery, TX should verify whether a local permit or registration is required through both the City of Montgomery and Montgomery County. Texas does not impose a statewide STR licensing requirement, but local jurisdictions may have their own rules — always confirm directly with city planning or code enforcement before listing.

Key Restrictions

Common STR restrictions in Texas communities can include occupancy limits tied to property size, noise and nuisance ordinances, parking requirements (especially relevant for lakefront properties attracting larger groups), and HOA covenants that may prohibit or restrict short-term rentals entirely. Investors should also check for any permit caps or minimum-stay rules that could affect booking flexibility.

Tax Obligations

Texas imposes a 6% state hotel occupancy tax on short-term rentals, and Montgomery County or the city may levy additional local lodging taxes. Major platforms like Airbnb typically collect and remit state-level taxes on behalf of hosts, but operators should confirm whether any local tax obligations require separate registration or filing.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Montgomery's STR market is likely to see continued supply growth as investors capitalize on the Lake Conroe draw, which could keep occupancy in the 28–32% range unless demand outpaces new listings. Summer months — particularly June through August — should remain the revenue engine, with monthly averages potentially pushing toward $2,600–$2,900 during peak season. ADR may inch up modestly (1–3%) as larger, premium lakefront properties set higher pricing benchmarks, but investors should plan conservatively around sub-35% occupancy until the supply wave stabilizes."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Montgomery, TX

What is the average Airbnb occupancy rate in Montgomery?

The average Airbnb occupancy rate in Montgomery, TX is currently 30%, which trails the Texas state average of 33%. Occupancy varies by property size — 1-bedroom listings lead at 36%, while 4-bedroom properties see the lowest occupancy at 19%. Seasonal demand and property amenities (especially lake access) play a significant role in how consistently any given listing stays booked.

How much do Airbnb hosts make in Montgomery?

Airbnb hosts in Montgomery earn an average of $2,112 per month and $25,345 per year based on trailing 12-month performance data. Revenue varies significantly by property size: 1-bedroom listings average $14,561 annually, while 5-bedroom properties earn roughly $97,722 per year. These figures reflect historical averages across active comparable listings, so individual results depend on factors like location, pricing, guest reviews, and amenities offered.

Is Montgomery a good market for Airbnb investment?

Montgomery scores a 47 out of 100 on Rabbu's ROI Score, categorized as a 'Competitive Opportunity.' The market benefits from Lake Conroe's draw as a leisure destination near Houston, but high average home values ($721,475) and a below-average revenue-to-price ratio mean investors need to be strategic about property selection. Larger homes — particularly 4- and 5-bedroom properties — offer the strongest revenue potential and may justify the higher acquisition costs.

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

The average daily rate for Airbnb listings in Montgomery is $247, slightly below the Texas state average of $276. ADR scales significantly with property size: 1-bedroom units average $215, 2-bedrooms come in at $159, 3-bedrooms at $209, 4-bedrooms at $390, and 5-bedroom properties command $576 per night. The premium for larger lakefront-style properties is substantial and reflects the area's group and family vacation appeal.

Are short-term rentals legal in Montgomery?

Short-term rentals are generally permitted in Texas, but local regulations in Montgomery and Montgomery County may apply. Investors should verify any permit, registration, or zoning requirements with local authorities before purchasing or listing a property. HOA restrictions are also common in the area and can limit or prohibit STR activity in certain communities.

When is peak season for Airbnb in Montgomery?

Peak season in Montgomery runs from June through August, with July topping the chart at $2,869 in average monthly revenue. The summer months align with school vacations and peak lake recreation season. The slowest period is January ($1,281), so investors should plan for a meaningful seasonal revenue swing — roughly a 2.2x difference between the highest and lowest months.

How many Airbnbs are there in Montgomery?

Montgomery currently has 203 active Airbnb listings as of April 2026. The supply is spread across property sizes, with 2-bedroom units being the most common (59 listings), followed by 3-bedrooms (48), 1-bedrooms (46), 4-bedrooms (37), and just 7 five-bedroom listings. The 162% year-over-year growth in listing count indicates significant new investor activity entering the market.

How is Airbnb revenue calculated in Montgomery?

The annual and monthly revenue figures for Montgomery 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. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks (like July at $2,869) and slower months (like January at $1,281) because each month uses its own historical performance. 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 Montgomery, TX market
• Average daily rates, occupancy rates, and RevPAN metrics benchmarked against state averages
• Monthly and annual revenue trends based on trailing 12-month booking performance
• Property size breakdowns covering listings from 1 to 5+ bedrooms
• Data sourced from Rabbu proprietary analytics and Zillow Home Value Index for consistency

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 as of April 2026; market conditions, regulations, and competitive dynamics may shift. Individual property results vary based on location, condition, amenities, pricing strategy, and management quality.