Texas is home to many thriving short-term rental markets, but identifying the top-performing cities can be overwhelming, especially when combing through data from countless locations across the state.
To simplify this process, we analyzed data from markets statewide and compiled a list of the top 20 cities for investors and landlords seeking potentially high-return rental properties in the coming year.
As always, we recommend thorough underwriting and analysis of any prospective property and a review of local short-term rental regulations before making any investment decisions.
How We Created This List
First, we looked at all Airbnb listings in Texas that met the following criteria as of December 2024:
- Average Rating: 4.8 stars and above
- Guest Review Count: Minimum of 10
- Average Daily Rate: $1 (minimum) to $2,000 (maximum)
- Occupancy Rate: 1% (minimum) to 99% (maximum)
- Property Size: 1 to 10 bedrooms
- Property Type: Entire homes
We did this to eliminate Airbnb listings from our analysis that fall outside of what we consider "realistic" situations. This left us with a total of 23,327 Airbnb listings across the state of Texas to work with.
Next, we grouped these listings by city and eliminated markets that didn't have at least 75 Airbnb listings meeting the above criteria. We took this step to avoid outlier cities we felt didn't have enough data to be considered at this current time. This left us with 68 cities in Texas to rank.
Then, we needed to arrive at a gross yield number for each of our remaining cities in order to create our rankings. We did this by taking the average annual Airbnb revenue for each city and combining it with the cities median property value (from Zillow as of November 2024) to calculate our gross yield for each city.
Finally, we ordered the cities by highest gross yield.
The Top 20 STR Markets in Texas
1. Brownsville, TX
Brownsville, TX, boasts a dynamic short-term rental market, making it one of the best places for real estate investors in 2024. Known for its rich history and vibrant culture, visitors flock to attractions like the Gladys Porter Zoo, Palo Alto Battlefield, and the picturesque Resaca de la Palma State Park. Sports enthusiasts enjoy events at the Brownsville Sports Park, while festivals like Charro Days draw tourists year-round. With robust tourism providing consistent rental income, Brownsville offers vacation home investors a good return on investment properties.
Key STR Metrics:
- Average Gross Yield: 19.7%
- Average Property Value: $260,569 (as of November 2024)
- Average Annual Revenue: $51,201 (past 12 months)
- Average Occupancy Rate: 32% (past 12 months)
- Qualifying Airbnbs: 165 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 112%
Find Airbnbs For Sale in Brownsville, TX →
2. Corpus Christi, TX
Corpus Christi, TX is a prime location for real estate investing in vacation homes and short-term rental properties. Known for its stunning Gulf Coast beaches, this city draws tourists year-round to attractions like the Texas State Aquarium and USS Lexington Museum. With a vibrant sports scene, including the Corpus Christi Hooks baseball team, and annual events like the Buc Days festival, the short-term rental market here is thriving. Real estate investors can capitalize on this demand, enjoying good returns and rental income from a steady stream of visitors.
Key STR Metrics:
- Average Gross Yield: 18.8%
- Average Property Value: $342,689 (as of November 2024)
- Average Annual Revenue: $64,533 (past 12 months)
- Average Occupancy Rate: 33% (past 12 months)
- Qualifying Airbnbs: 496 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 98%
Find Airbnbs For Sale in Corpus Christi, TX →
3. Freeport, TX
Freeport, TX, offers an enticing short-term rental market for real estate investors in 2024. Famous for its pristine beaches and vibrant attractions, it draws both tourists and vacationers alike. Top attractions include Surfside Beach, the Freeport Historical Museum, and Quintana Neotropical Bird Sanctuary, providing year-round tourism appeal. The Brazoria County Fair and annual fishing tournaments add to its charm, promising a constant flow of rental income. With a strong housing market, it's one of the best places for investment properties and generating good cash flow for investors and Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 17.2%
- Average Property Value: $182,484 (as of November 2024)
- Average Annual Revenue: $31,457 (past 12 months)
- Average Occupancy Rate: 30% (past 12 months)
- Qualifying Airbnbs: 169 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 114%
Find Airbnbs For Sale in Freeport, TX →
4. Waco, TX
Waco, TX, is a burgeoning hotspot for short-term rental properties, offering real estate investors a vibrant market with good returns. Known for attractions like the Magnolia Market at the Silos and the Dr Pepper Museum, Waco draws tourists year-round. The presence of Baylor University ensures a steady stream of visitors, especially during football season. Special events like the Waco Cultural Arts Fest add to its appeal. With a thriving tourism scene and a growing housing market, Waco is ideal for investment property and vacation rentals.
Key STR Metrics:
- Average Gross Yield: 15.0%
- Average Property Value: $307,729 (as of November 2024)
- Average Annual Revenue: $46,286 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 427 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 118%
Find Airbnbs For Sale in Waco, TX →
5. Port Isabel, TX
Port Isabel, TX, with its charming coastal allure and rich history, is emerging as one of the best places for short-term rental properties. Known for iconic attractions like the Port Isabel Lighthouse and proximity to South Padre Island beaches, it lures tourists and real estate investors alike. The vibrant tourism scene hosts fishing tournaments and festivals, drawing visitors seeking both relaxation and adventure. The area's thriving short-term rental market presents real estate investing opportunities, promising good returns and attractive rental income for Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 14.8%
- Average Property Value: $406,269 (as of November 2024)
- Average Annual Revenue: $60,076 (past 12 months)
- Average Occupancy Rate: 33% (past 12 months)
- Qualifying Airbnbs: 118 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 83%
Find Airbnbs For Sale in Port Isabel, TX →
6. Terlingua, TX
Terlingua, TX is a hidden gem for real estate investors seeking short-term rental properties with promising rental income. This desert outpost charms visitors with its proximity to Big Bend National Park, making it a magnet for outdoor enthusiasts. Attractions like the annual Terlingua International Chili Cook-off and ghost town tours captivate tourists year-round, ensuring a high demand for vacation rentals. With its unique blend of natural beauty and cultural events, Terlingua stands out as one of the best places for real estate investing in the short-term rental market in 2024.
Key STR Metrics:
- Average Gross Yield: 13.9%
- Average Property Value: $390,597 (as of November 2024)
- Average Annual Revenue: $54,312 (past 12 months)
- Average Occupancy Rate: 36% (past 12 months)
- Qualifying Airbnbs: 161 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 130%
Find Airbnbs For Sale in Terlingua, TX →
7. Grand Prairie, TX
Grand Prairie, TX is a thriving hub for short-term rental properties, offering attractions like Epic Waters Indoor Waterpark and Lone Star Park. With strong tourism driven by events at the Verizon Theatre and a lively local sports scene, it presents significant opportunities for real estate investors in 2024. This city, part of a booming housing market, delivers great rental income potential for AirBNB hosts. Its strategic location between Dallas and Fort Worth makes it one of the best places for real estate investing and short-term vacation rentals.
Key STR Metrics:
- Average Gross Yield: 12.9%
- Average Property Value: $420,401 (as of November 2024)
- Average Annual Revenue: $54,258 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 140 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 88%
Find Airbnbs For Sale in Grand Prairie, TX →
8. Seguin, TX
Seguin, TX, a gem in the heart of Texas, offers real estate investors a vibrant short-term rental market. Known for its rich history and beautiful Guadalupe River, Seguin attracts tourists year-round. Visitors enjoy boating and fishing adventures, and the city hosts exciting events like the Guadalupe County Fair and the Pecan Fest. Nearby attractions like Schlitterbahn Waterpark and Texas Lutheran University's sports teams further enhance tourism. Airbnb hosts can expect good rental income and cash flow from their vacation rentals as the demand for comfortable vacation homes continues to grow.
Key STR Metrics:
- Average Gross Yield: 12.7%
- Average Property Value: $433,663 (as of November 2024)
- Average Annual Revenue: $55,118 (past 12 months)
- Average Occupancy Rate: 33% (past 12 months)
- Qualifying Airbnbs: 77 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 118%
Find Airbnbs For Sale in Seguin, TX →
9. Mabank, TX
Mabank, TX, nestled near Cedar Creek Lake, is rapidly becoming a prime spot for short-term rental properties. Vacation homes here promise consistent rental income, driven by attractions like the Cedar Creek Brewery and the lush Purtis Creek State Park. Known for its vibrant real estate market, Mabank draws tourists with events like the Mabank Western Week Rodeo. The blend of natural beauty and local charm makes it one of the best places for real estate investing, ensuring a good return for real estate investors seeking a profitable STR market.
Key STR Metrics:
- Average Gross Yield: 11.8%
- Average Property Value: $398,001 (as of November 2024)
- Average Annual Revenue: $46,793 (past 12 months)
- Average Occupancy Rate: 27% (past 12 months)
- Qualifying Airbnbs: 122 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 74%
Find Airbnbs For Sale in Mabank, TX →
10. Conroe, TX
Conroe, TX, a thriving area for short-term rental properties, offers exciting opportunities for real estate investors in 2024. Known for its vibrant tourism, Conroe is home to Lake Conroe, a hotspot for water sports, and Sam Houston National Forest, perfect for nature enthusiasts. Visitors can enjoy local attractions like B-52 Brewing Co. and cultural events such as the Montgomery County Fair. With its growing real estate market, Conroe attracts tourists year-round, promising good returns and cash flow for Airbnb hosts in this competitive housing market.
Key STR Metrics:
- Average Gross Yield: 10.5%
- Average Property Value: $482,682 (as of November 2024)
- Average Annual Revenue: $50,687 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 87 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 94%
Find Airbnbs For Sale in Conroe, TX →
11. South Padre Island, TX
South Padre Island, TX is a prime destination for real estate investors focusing on the short-term rental market. Known for its stunning beaches and vibrant nightlife, it offers vacation homes that promise strong rental income. Tourists flock to attractions like Schlitterbahn Waterpark and the annual Sandcastle Festival. The area is popular for water sports, making it a hotspot for Airbnb hosts. With a robust tourism sector, South Padre Island ensures good cash flow for those investing in its lucrative real estate market.
Key STR Metrics:
- Average Gross Yield: 10.4%
- Average Property Value: $711,514 (as of November 2024)
- Average Annual Revenue: $74,014 (past 12 months)
- Average Occupancy Rate: 38% (past 12 months)
- Qualifying Airbnbs: 477 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 90%
Find Airbnbs For Sale in South Padre Island, TX →
12. Arlington, TX
Arlington, TX is a vibrant city offering lucrative opportunities for real estate investors looking to dive into the short-term rental market. Home to the iconic AT&T Stadium, this city attracts sports enthusiasts with thrilling Dallas Cowboys games and other major events. Adventurers flock to Six Flags Over Texas, boosting demand for vacation rentals. Arlington's bustling tourism, with attractions like the Texas Rangers at Globe Life Field, makes it one of the best places to invest in short-term rental properties, promising robust rental income and steady cash flow for Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 10.2%
- Average Property Value: $404,693 (as of November 2024)
- Average Annual Revenue: $41,410 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 255 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 113%
Find Airbnbs For Sale in Arlington, TX →
13. New Braunfels, TX
Nestled between Austin and San Antonio, New Braunfels, TX, is a gem for real estate investors targeting the short-term rental market in 2024. Known for its German heritage, the city charms tourists with attractions like the historic Gruene Hall and the natural beauty of Landa Park. Visitors flock to the annual Wurstfest, adding rental income potential for vacation homes. Baseball fans enjoy the New Braunfels Unicorns, ensuring consistent guest interest. This vibrant tourism spot promises good cash flow for Airbnb hosts, making it one of the best places for real estate investing.
Key STR Metrics:
- Average Gross Yield: 10.1%
- Average Property Value: $583,544 (as of November 2024)
- Average Annual Revenue: $58,987 (past 12 months)
- Average Occupancy Rate: 33% (past 12 months)
- Qualifying Airbnbs: 338 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 93%
Find Airbnbs For Sale in New Braunfels, TX →
14. Abilene, TX
Abilene, TX is a hidden gem for real estate investors seeking a lucrative short-term rental market. Known for its rich history and vibrant culture, attractions like the Grace Museum and Frontier Texas draw tourists year-round. Sports fans flock to the area for the Abilene Christian University athletics and the West Texas Fair & Rodeo. With its thriving arts scene and warm Texas hospitality, vacation homes in Abilene promise substantial rental income and a good return on investment for Airbnb hosts catering to eager visitors.
Key STR Metrics:
- Average Gross Yield: 10.0%
- Average Property Value: $314,453 (as of November 2024)
- Average Annual Revenue: $31,546 (past 12 months)
- Average Occupancy Rate: 37% (past 12 months)
- Qualifying Airbnbs: 196 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 119%
Find Airbnbs For Sale in Abilene, TX →
15. Fort Worth, TX
Fort Worth, TX, is a thriving short-term rental market perfect for real estate investors seeking good returns. Known for its Western heritage, Fort Worth attracts tourists with the Fort Worth Stockyards, Sundance Square, and the renowned Kimbell Art Museum. Visitors flock to experience major events like the Fort Worth Rodeo and NASCAR at Texas Motor Speedway. With robust sports culture, including TCU Horned Frogs games, the city provides excellent opportunities for vacation rentals. As an Airbnb host, you can enjoy steady rental income in this bustling tourism hotspot.
Key STR Metrics:
- Average Gross Yield: 9.5%
- Average Property Value: $425,182 (as of November 2024)
- Average Annual Revenue: $40,268 (past 12 months)
- Average Occupancy Rate: 41% (past 12 months)
- Qualifying Airbnbs: 583 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 90%
Find Airbnbs For Sale in Fort Worth, TX →
16. Bryan, TX
Bryan, TX boasts a dynamic short-term rental market perfect for real estate investors seeking vacation homes with good return potential. Known for its rich history and vibrant events, visitors can explore attractions like the Brazos Valley Museum of Natural History or enjoy local sports with the Bryan College Station Bombers. The housing market benefits from Texas A&M University events, creating consistent rental income opportunities for Airbnb hosts. This region offers tourists access to charming downtown areas and annual festivals, making it a prime destination for short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 9.5%
- Average Property Value: $418,529 (as of November 2024)
- Average Annual Revenue: $39,601 (past 12 months)
- Average Occupancy Rate: 35% (past 12 months)
- Qualifying Airbnbs: 261 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 84%
Find Airbnbs For Sale in Bryan, TX →
17. San Antonio, TX
San Antonio, TX, offers an enticing short-term rental market for savvy real estate investors seeking high rental income. With top attractions like the Alamo, River Walk, and vibrant Pearl District, it's a hotspot for tourism. Sports enthusiasts can catch the San Antonio Spurs and enjoy annual events like Fiesta San Antonio. These make it one of the best places for vacation homes and investment properties. The robust housing market promises good returns and cash flow for Airbnb hosts catering to diverse visitors.
Key STR Metrics:
- Average Gross Yield: 9.4%
- Average Property Value: $389,928 (as of November 2024)
- Average Annual Revenue: $36,701 (past 12 months)
- Average Occupancy Rate: 38% (past 12 months)
- Qualifying Airbnbs: 2,159 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 85%
Find Airbnbs For Sale in San Antonio, TX →
18. Canyon, TX
Canyon, TX, a gem for real estate investors looking at the short-term rental market, boasts impressive attractions like Palo Duro Canyon State Park and the Panhandle-Plains Historical Museum. Visitors enjoy vibrant special events such as the Texas Outdoor Musical and Canyon Aqua Park's summer splashes. The locale draws tourists year-round, benefiting rental property owners with steady vacation rental income through platforms like Airbnb. These attractions make Canyon a best place for investors seeking cash flow from short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 9.3%
- Average Property Value: $438,805 (as of November 2024)
- Average Annual Revenue: $41,012 (past 12 months)
- Average Occupancy Rate: 42% (past 12 months)
- Qualifying Airbnbs: 92 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 88%
Find Airbnbs For Sale in Canyon, TX →
19. Rockport, TX
Rockport, TX, is a prime destination for real estate investors eyeing the short-term rental market. Known for its charming coastal beauty, Rockport offers vacation homes near attractions like Rockport Beach and the Texas Maritime Museum. The vibrant tourism scene, bolstered by annual events like the Rockport Art Festival, ensures steady rental income. As one of the best places for vacation rentals, investors and Airbnb hosts can expect a good return and cash flow from guests eager to explore this picturesque locale.
Key STR Metrics:
- Average Gross Yield: 9.3%
- Average Property Value: $582,469 (as of November 2024)
- Average Annual Revenue: $54,261 (past 12 months)
- Average Occupancy Rate: 30% (past 12 months)
- Qualifying Airbnbs: 338 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 94%
Find Airbnbs For Sale in Rockport, TX →
20. Wichita Falls, TX
Wichita Falls, TX, is an enticing destination for short-term rental properties due to its vibrant tourism sector and rich attractions. Visitors flock to experience the iconic Wichita Falls and Lucy Park, while sports enthusiasts enjoy minor league hockey with the Wichita Falls Warriors. Annual events like the Hotter'N Hell Hundred attract tourists, enhancing rental income potential for real estate investors. As a vacation rental hub with strong cash flow opportunities, Wichita Falls' housing market offers a good return for Airbnb hosts and real estate investing.
Key STR Metrics:
- Average Gross Yield: 9.1%
- Average Property Value: $284,475 (as of November 2024)
- Average Annual Revenue: $25,991 (past 12 months)
- Average Occupancy Rate: 30% (past 12 months)
- Qualifying Airbnbs: 104 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 133%
