Last updated: January 2025
Texas, known for its diverse landscapes and booming economy, offers excellent opportunities for short-term rental investors. From vibrant cities to scenic coastal destinations, these markets provide strong investment potential.
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
1. Corpus Christi, Texas
Corpus Christi, TX is a popular coastal destination known for its beautiful beaches and iconic attractions like the Texas State Aquarium and the USS Lexington, drawing beachgoers and history enthusiasts alike.
Corpus Christi has seen a slight decline in home values by -1.10%, with the average home price now at $218,426. The Average Daily Rate (ADR) stands at $160.88, while the occupancy rate is 53.66%. With 1,535 active listings, short-term rentals generate an annual revenue of $35,107. Investors can expect an impressive gross yield of 16.07% and a cap rate of 9.64%, while property taxes are approximately 1.86%.
Corpus Christi continues to provide strong rental performance and attractive returns for short-term rental investors.
2. Galveston, Texas
Galveston, TX is a beloved coastal destination offering a serene getaway for vacationers seeking relaxation by the Gulf.
Galveston has seen a slight decline in home values by -3.39%, with the average home price at $342,003. The Average Daily Rate (ADR) sits at $275.40, paired with an occupancy rate of 51.82%. With 3,313 active listings, the market generates an annual revenue of $44,257. Investors can expect a strong gross yield of 12.94% and a cap rate of 7.76%, while property taxes are approximately 1.62%.
Check out our Galveston STR Market Insights for a deeper dive into our analysis of this short-term rental market.
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3. South Padre Island, TX
South Padre Island, TX is a favorite destination for outdoor enthusiasts, renowned for its world-class fishing, birdwatching opportunities, and stunning Gulf Coast beaches.
South Padre Island has experienced a slight decline in home values by -3.47%, with the average home price now at $442,305. The market boasts an impressive Average Daily Rate (ADR) of $349.36 and an occupancy rate of 51.75%. With 1,942 active listings, short-term rentals generate strong annual revenues of $55,951. Investors can expect a gross yield of 12.65% and a cap rate of 7.59%, while property taxes are approximately 1.78%.
Check out our South Padre Island STR Market Insights for a deeper dive into our analysis of this short-term rental market.
4. San Antonio, TX
San Antonio, TX is celebrated for its rich history, iconic architecture, and vibrant cultural scene, making it a year-round destination for travelers.
San Antonio has experienced a slight decline in home values by -2.92%, with the average home price now at $251,892. The Average Daily Rate (ADR) is $167.00, with an occupancy rate of 53.08%. With 3,822 active listings, the market generates annual revenues of $31,205. Investors can expect a gross yield of 12.39% and a cap rate of 7.43%, while property taxes are approximately 1.99%.
Check out our San Antonio STR Market Insights for a deeper dive into our analysis of this short-term rental market.
5. Dallas, Texas
Dallas, TX, one of the largest cities in Texas, combines urban attractions, rich cultural experiences, and a strong economy, making it a hotspot for both business and leisure travelers.
Dallas has experienced a slight decline in home values by -0.28%, with the average home price now at $308,434. The market boasts an Average Daily Rate (ADR) of $222.99 and an impressive occupancy rate of 56.49%. With 3,148 active listings, short-term rentals generate an annual revenue of $37,673. Investors can expect a gross yield of 12.21% and a cap rate of 7.33%, while property taxes are approximately 1.81%.
Check out our Dallas STR Market Insights for a deeper dive into our analysis of this short-term rental market.
