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

Palestine Short-Term Rental Market Overview

Palestine, TX is a small East Texas market with just 21 active Airbnb listings and an average annual revenue of $21,060 per property. The market's ADR of $177 sits well below the Texas state average of $276, though lower home values at $365,725 help offset the modest top-line numbers. Active listing counts have surged 156% year over year, signaling growing investor interest — but occupancy at 27% lags the state average of 33%, so careful deal selection is essential.

Key Market Statistics

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

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

Why Investors Consider Palestine

Palestine draws investor attention because of affordable entry prices relative to other Texas markets and the potential for outdoor-recreation-driven weekend getaways.

Expert Market Assessment

"Palestine represents a competitive but narrowly focused opportunity. The ROI score of 39 out of 100 reflects average revenue-to-price ratios paired with below-average occupancy stability and growth trends. Seasonality is pronounced: May leads with $2,514 in average revenue, while February bottoms out at just $812 — a spread of over $1,700. Investors who can secure a well-positioned 3-bedroom property at a reasonable basis and manage costs through slow months stand the best chance of generating positive cash flow."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Palestine

Average revenue by month in Palestine

Palestine shows distinct seasonality, with May leading at $2,514 and February trailing at just $812 — nearly a 3:1 spread. A secondary revenue peak emerges from October through December (roughly $1,895–$2,193), giving investors two windows of stronger performance to anchor annual cash-flow planning.

Active Airbnb listings by property size in Palestine

The market's 21 listings are concentrated in 1-bedroom units (10 listings) and 3-bedroom properties (6 listings), with no 2-bedroom, 4-bedroom, or larger configurations reported. This gap in mid-range and family-sized inventory could represent an opportunity for investors willing to target underserved property sizes.

Average daily rate (ADR) by property size in Palestine

ADR increases significantly with size: 1-bedroom listings average $158 per night while 3-bedroom properties command $229 — a 45% premium. For investors, the jump in nightly rate for 3-bedrooms may justify the higher acquisition cost if occupancy holds.

Average RevPAN by property size in Palestine

Three-bedroom properties deliver nearly double the RevPAN of 1-bedrooms ($64 vs. $33), reflecting both their higher ADR and stronger occupancy. This makes 3-bedroom units the clear leader in revenue efficiency across the market.

Average occupancy rates by property size in Palestine

Occupancy rates are modest across both sizes, but 3-bedroom properties fare better at 28% compared to 21% for 1-bedrooms. Neither figure is strong, so investors should budget conservatively and focus on amenities and marketing to capture a larger share of available demand.

Average monthly revenue by property size in Palestine

Three-bedroom listings earn an average of $2,176 per month versus $1,746 for 1-bedrooms — a $430 monthly gap that compounds over a full year. Investors targeting higher monthly cash flow will find the 3-bedroom configuration more attractive in this market.

Average annual revenue by property size in Palestine

On an annual basis, 3-bedroom properties generate approximately $26,122 compared to $20,960 for 1-bedrooms — roughly a 25% revenue premium. Given the relatively small difference in listing counts, 3-bedrooms appear to offer better return potential for investors who can source them at reasonable prices.

Most common amenities for Airbnb listings in Palestine

Parking is universal at 100% of listings, followed by kitchens (81%) and outdoor-oriented features like patios, backyards, and outdoor furniture (52–57%). The prevalence of outdoor amenities and pet-friendliness (48%) signals that Palestine's guest base skews toward leisure travelers looking for rural relaxation, so investors should prioritize these features to stay competitive.

Understanding Palestine's ROI Score: 39/100

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

Palestine's ROI score of 39 out of 100 falls into the 'Competitive Opportunity' band, meaning the market shows real investor interest but requires selective deal sourcing to pencil out. Revenue-to-price ratios are average, while occupancy stability and market growth both register below average — two factors that weigh heavily on projected returns. Investors should pair this data with thorough local regulatory research and conservative financial modeling to determine whether a specific property can overcome the market's softer occupancy dynamics.

Short-Term Rental Regulations in Palestine

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

Permit Requirements

The City of Palestine and the State of Texas may require short-term rental operators to register or obtain a permit before listing a property. Investors should verify current requirements directly with local planning and zoning offices before purchasing.

Key Restrictions

Common STR restrictions in Texas communities can include occupancy limits, noise ordinances, parking requirements, and minimum-stay rules. HOA covenants may impose additional restrictions, so reviewing any applicable deed restrictions or community bylaws is strongly recommended before closing on a property.

Tax Obligations

Texas levies a state hotel occupancy tax on short-term rentals, and Anderson County or the City of Palestine may impose their own local occupancy or tourism taxes. Many booking platforms collect and remit these taxes automatically, but hosts should confirm their specific obligations with a tax professional.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Palestine's STR market is likely to remain a niche play with moderate seasonal swings. May and December historically lead revenue, suggesting that spring events and holiday travel drive the strongest demand. Occupancy may hover in the 25–30% range unless the supply surge cools, and ADR growth of 1–3% is plausible if operators differentiate on amenities and guest experience. Investors should plan for softer months — particularly February and September — when revenues can dip below $1,000."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Palestine, TX

What is the average Airbnb occupancy rate in Palestine?

The average Airbnb occupancy rate in Palestine, TX is currently 27%, which falls below the Texas state average of 33%. Occupancy varies by property size — 1-bedroom listings average about 21% while 3-bedroom properties perform better at 28%. These figures reflect the trailing 12 months of performance data for active listings in the market.

How much do Airbnb hosts make in Palestine?

Airbnb hosts in Palestine earn an average of $1,755 per month, or roughly $21,060 per year, based on historical 12-month booking data. Three-bedroom properties tend to outperform, bringing in approximately $2,176 monthly ($26,122 annually), while 1-bedroom units average about $1,746 per month. Revenue fluctuates seasonally, with May being the strongest month at around $2,514 and February the softest at $812.

Is Palestine a good market for Airbnb investment?

Palestine earns an ROI score of 39 out of 100 — classified as a 'Competitive Opportunity.' The market offers affordable entry with average home values around $365,725, but occupancy stability and growth trends are below average. With only 21 active listings, there's limited competition, though the 156% year-over-year growth in listings means supply is increasing quickly. Success here will likely depend on property selection, amenity quality, and disciplined pricing through slower months.

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

The average daily rate for Airbnb listings in Palestine is $177, compared to a $276 state average across Texas. ADR scales with property size: 1-bedroom listings average $158 per night, while 3-bedroom properties command roughly $229. The lower ADR reflects Palestine's positioning as a rural leisure market rather than an urban or resort destination.

Are short-term rentals legal in Palestine?

Short-term rentals are generally permitted in Palestine, TX, though operators may need to comply with local registration or permitting requirements. State and local occupancy taxes typically apply. We recommend consulting with the City of Palestine's planning department and a local real estate attorney to understand current rules before listing a property.

When is peak season for Airbnb in Palestine?

Peak season for Airbnb in Palestine runs primarily through May, when average monthly revenue hits $2,514. The late fall and holiday corridor — October through December — also performs well, with revenues ranging from $1,895 to $2,193. The slowest period falls in January and February, with February averaging just $812 in revenue.

How many Airbnbs are there in Palestine?

As of April 2026, there are 21 active Airbnb listings in Palestine, TX. The market has seen rapid growth, with a 156% year-over-year increase in active listings. The current supply is split primarily between 1-bedroom properties (10 listings) and 3-bedroom properties (6 listings).

How is Airbnb revenue calculated in Palestine?

The annual and monthly revenue figures for Palestine are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently rather than to forecasts, while naturally reflecting seasonal peaks and slower months 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 Palestine, TX
• Average daily rates, occupancy, and RevPAN tracked over time by property size
• Monthly and annual revenue estimates based on trailing 12 months of booking performance
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Data aggregated from multiple providers and Rabbu proprietary analytics for consistency

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Local regulations, permitting requirements, and tax obligations may change; always verify with municipal and state authorities before investing. Individual property results will vary based on location, condition, management quality, and pricing strategy.