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

As of Apr, 27 2026

Rabbu ROI Score

57 / 100

Sherman offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.

Sherman Short-Term Rental Market Overview

Sherman, TX is a compact short-term rental market with just 39 active Airbnb listings and an average annual revenue of $16,565 per property. While the average daily rate of $169 sits well below the Texas state average of $276, lower property values around $411,639 help keep the revenue-to-price ratio competitive. The market has seen explosive year-over-year listing growth of 258%, signaling rising investor interest in this North Texas community.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 39
Average Daily Rate (ADR) vs. $276 state avg. $169
Average Occupancy Rate vs. 33% state avg. 28%
RevPAN ADR * Occupancy Rate $47
Average Monthly Revenue Historical 12-month average $1,380
Average Annual Revenue Historical 12-month average $16,565

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

Why Investors Consider Sherman

Relatively affordable home values paired with above-average market growth make Sherman an intriguing entry point for investors seeking exposure to the North Texas rental corridor.

Key investment factors

  • Lower property acquisition costs compared to Dallas–Fort Worth metro markets
  • Above-average market growth trend signals rising traveler and investor interest
  • Small listing inventory of 39 properties means less direct competition than larger Texas markets
  • Three-bedroom units deliver the strongest RevPAN at $46, pointing to family and group demand
  • Proximity to North Texas economic hubs may support weekday and relocation-related stays

Expert Market Assessment

"Sherman presents a moderate opportunity for STR investors willing to navigate a market that's still maturing. Revenue peaks sharply in July at $2,443 per listing, while January drops to just $605 — a nearly four-to-one spread that underscores significant seasonality. The ROI score of 57 out of 100 reflects an 'Attractive Opportunity' rating, buoyed by a favorable growth trend but tempered by below-average occupancy stability. Investors who can manage cash flow through slower winter months and target three-bedroom properties stand to capture the best returns in this emerging North Texas market."

— Rabbu Market Analysis Team

Understanding Sherman's ROI Score: 57/100

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

Factor Sherman Performance Weight
Revenue-to-Price Ratio Average 40%
Occupancy Stability Below average 30%
Market Growth Trend Above average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Sherman's ROI score of 57 out of 100 places it in the 'Attractive Opportunity' band, reflecting a market where revenue relative to property values is average but growth momentum is above average. The below-average occupancy stability score is the main drag, driven by pronounced seasonal swings and a 28% occupancy rate that trails the state benchmark. Investors should pair these data points with thorough local regulatory research and conservative cash-flow modeling to account for the market's winter soft spots.

Short-Term Rental Regulations in Sherman

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

Permit Requirements

Operators in Sherman, TX should verify whether the city requires a short-term rental permit or business registration before listing a property. Texas does not impose a statewide STR licensing mandate, but local municipalities may have their own requirements, so checking directly with Sherman's planning or code enforcement office is strongly recommended.

Key Restrictions

Common STR restrictions in Texas cities can include occupancy limits, minimum stay requirements, noise ordinances, parking regulations, and HOA covenants that may prohibit or limit rentals. Investors should review any applicable homeowners association rules and local zoning overlays before purchasing a property intended for short-term rental use.

Tax Obligations

Texas imposes a 6% state hotel occupancy tax on short-term rentals, and local jurisdictions may add their own occupancy or tourism taxes on top. Platforms like Airbnb often collect and remit state-level taxes automatically, but hosts should confirm whether any city-level taxes in Sherman require separate filing.

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

Short-Term Rental Financing for Sherman

Financing an Airbnb investment in Sherman requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Sherman Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Sherman's above-average market growth trend suggests continued investor attention and possible demand expansion, potentially driven by the broader North Texas economic corridor. Seasonal patterns indicate summer months will remain the primary revenue driver, with ADR likely holding steady or nudging up 1–3% as supply and demand find equilibrium. Occupancy, currently at 28% against a 33% state average, may stabilize in the 28–32% range as the market absorbs its recent wave of new listings. Investors should monitor whether the rapid supply growth begins to compress per-listing revenue or whether demand catches up."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Sherman, TX

What is the average Airbnb occupancy rate in Sherman?
The average Airbnb occupancy rate in Sherman is currently 28%, which falls below the Texas state average of 33%. Occupancy varies by property size, with three-bedroom units performing best at 34%, while one-bedroom listings average 29%. These figures reflect the market's seasonal demand patterns, with stronger bookings during summer months and softer periods in winter.
How much do Airbnb hosts make in Sherman?
Airbnb hosts in Sherman earn an average of $1,380 per month and approximately $16,565 per year based on trailing 12-month booking data. Revenue varies significantly by property size — one-bedroom listings average $11,332 annually, two-bedrooms bring in about $14,088, and three-bedroom properties lead at $16,755. Summer months, particularly July, deliver the highest monthly earnings at around $2,443.
Is Sherman a good market for Airbnb investment?
Sherman carries an ROI score of 57 out of 100, rated as an 'Attractive Opportunity.' The market benefits from above-average growth trends and a reasonable revenue-to-price ratio thanks to average home values around $411,639. However, occupancy stability is below average, so investors should budget for seasonal revenue fluctuations. The small supply of just 39 active listings means there's room to establish a presence, though the 258% year-over-year listing growth warrants close monitoring.
What is the average daily rate (ADR) for Airbnb in Sherman?
The average daily rate for Airbnb listings in Sherman is $169, well below the Texas state average of $276. ADR scales with property size: one-bedroom units average $87, two-bedrooms come in at $116, and three-bedrooms command $138. While these rates are modest compared to larger Texas metros, they align with Sherman's lower property acquisition costs.
Are short-term rentals legal in Sherman?
Short-term rentals operate in Sherman, TX, as evidenced by the 39 active Airbnb listings currently in the market. However, investors should verify specific permit requirements, zoning restrictions, and any applicable HOA rules directly with the City of Sherman before purchasing or listing a property. Local regulations can change, so staying current with city ordinances is important.
When is peak season for Airbnb in Sherman?
Peak season for Airbnb in Sherman runs through the summer months, with July delivering the highest average revenue at $2,443 per listing. June and August are also strong at $1,737 and $2,014 respectively. The slowest months are January ($605) and February ($728), creating a pronounced seasonal curve that investors should factor into their financial planning.
How many Airbnbs are there in Sherman?
As of April 2026, there are 39 active Airbnb listings in Sherman. The supply is concentrated among smaller properties: 12 one-bedroom listings, 9 two-bedroom listings, and 9 three-bedroom listings. Notably, the market has experienced 258% year-over-year growth in active listings, indicating rapidly increasing investor and host interest.
How is Airbnb revenue calculated in Sherman?
The annual and monthly revenue figures for Sherman 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 remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and how effectively the listing is managed.

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 Sherman, TX market
  • Average daily rate, occupancy, and RevPAN metrics benchmarked against state averages
  • Monthly and annual revenue estimates based on trailing 12-month booking performance
  • Property size breakdowns for listings, rates, occupancy, and revenue
  • Amenity prevalence data across active listings to identify guest expectations

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. Data reflects trailing 12-month averages as of April 2026 and may not capture very recent market shifts. Local regulations, HOA restrictions, and tax obligations vary and should be independently verified before investing.

Next Steps

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