Katy, Texas Short-Term Rental Market
Katy STRs posted 51.6% occupancy and a $159 average daily rate in April 2026 across a market of roughly 26,000 active listing-nights.
Quick Answer: Katy, Texas is an active short-term rental market. average occupancy is 61%. average monthly revenue is $3,129. average daily rate is $198. the top operator is Phillip Houston Property Manager with 439 listings. market score is 56/100 (grade C).
Market data reflects the Houston regional market, which includes Katy. Regulations, taxes, and permit details below are specific to Katy.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Katy, Texas sits approximately 30 miles west of downtown Houston and operates one of the larger suburban short-term rental markets in the state. As of April 2026, the market recorded a 51.6% occupancy rate and a $159 average daily rate, producing a RevPAR of $82.23. The active inventory skews heavily toward entire-place rentals, which account for roughly 83% of all listing types (21,667 units), with private rooms at 17% (4,469 units) and shared rooms representing a small fraction (80 units). On the channel side, Airbnb dominates with approximately 15,800 listings listed exclusively on that platform, while 9,245 properties appear on both Airbnb and VRBO, and 1,166 list only on VRBO. Bedroom distribution shows strong demand for 1-bedroom units (10,675 listings), followed by 3-bedroom (6,332), 2-bedroom (4,857), 4-bedroom (2,902), and 5-bedroom-plus (1,396). Year-over-year through April 2026, occupancy declined 7.85%, average daily rate increased 2.55%, and revenue was nearly flat, up 0.61%. The market’s AirDNA total score is 55.63 out of 100, with investability at 63.64 and rental demand at 58.14, reflecting a stable but moderately competitive suburban market tied to Houston’s economic activity.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 53% | $118 | $1,779 |
| Feb | 60% | $122 | $1,823 |
| Mar | 64% | $140 | $2,448 |
| Apr | 57% | $132 | $2,063 |
| May | 60% | $139 | $2,229 |
| Jun | 64% | $143 | $2,390 |
| Jul | 65% | $132 | $2,351 |
| Aug | 59% | $134 | $2,234 |
| Sep | 57% | $129 | $1,970 |
| Oct | 58% | $131 | $2,067 |
| Nov | 56% | $130 | $1,933 |
| Dec | 55% | $127 | $1,946 |
Top Short-Term Rental Operators in Katy
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Phillip Houston Property Manager | 439 | 17,345 | ★ 4.51 |
| 2 | Evolve | 360 | 8,415 | ★ 4.49 |
| 3 | Landing, Inc. | 272 | 398 | ★ 3.84 |
| 4 | Landing | 245 | 158 | ★ 3.56 |
| 5 | Lodgeur | 142 | 2,171 | ★ 4.78 |
What Kind of STR Should I Buy in Katy?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 10,675 |
| 2 bed | 4,857 |
| 3 bed | 6,332 |
| 4 bed | 2,902 |
| 5 bed | 1,396 |
ADR by Property Tier
| Entire Home | $229 |
| Luxury | $365 |
| Professionally Managed | $270 |
Revenue by Dwelling Type
| Apartment | $2,928 |
| Entire Place | $3,545 |
| House | $3,281 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 60.3% |
| vrbo | 4.4% |
| both | 35.3% |
Investment Analysis
Katy’s STR investment case rests on relatively accessible entry prices and consistent, if not explosive, revenue. The typical home value was $338,556 as of April 2026, with a median sale price of $339,317 and a median list price of $371,300. Properties are selling at roughly 91.4% of list price with a median 38 days to pending, indicating a buyer-favoring market with room to negotiate. At the April 2026 revenue average of $2,454 per month, an investor projecting $29,457 in annual gross revenue against a $338,556 purchase price implies a gross yield of approximately 8.7%, before expenses, mortgage, and taxes. By tier, entire-home listings generated $2,734 per month compared to $2,044 for apartments. Professionally managed properties averaged $177 per night ADR versus $159 across all listings, and luxury-tier properties reached $274 per night. Revenue has shown a gradual climb since 2017 ($1,587/month) through 2024 ($2,543/month), with 2025 and early 2026 holding near that level. ADR growth of 2.55% year-over-year provides some inflation offset even as occupancy softened 7.85%. Investors targeting 3-bedroom or larger entire-home configurations will find the strongest per-night revenue, with houses averaging $2,706 per month versus $2,044 for apartments.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Katy guests book an average of 27 days in advance as of April 2026, placing it in the moderate lead-time category. This window gives operators reasonable time to manage pricing dynamically without needing to lock in rates months out. Average length of stay is 4.87 nights, suggesting a mix of weekend getaways and short work-week stays, consistent with a Houston-metro suburb that attracts sports-event travelers, corporate relocation clients, and regional leisure visitors. A nearly 5-night average stay reduces turnover frequency relative to 2-night-minimum markets, which can lower cleaning and restocking costs per occupied night. Operators should set minimum-stay policies in the 3 to 5 night range to align with this natural booking rhythm while leaving flexibility for last-minute fills. The 27-day lead time also means that revenue management tools updating prices inside a 30-day window will be acting at the point when most bookings are already occurring, making timely rate adjustments particularly valuable for maximizing occupancy in the final booking window.
Short-Term Rental Regulations
Katy adopted its short-term rental ordinance (Article 4.10) on March 27, 2023, making STRs explicitly legal citywide with a permit requirement. A new permit costs $300, renewal costs $200, and an inspection fee of $50 applies at each cycle. Permits expire after 12 months and must be renewed annually. Operators must pass initial and renewal code and fire inspections and carry general-liability insurance. There is no owner-occupancy requirement, no primary-residence requirement, and no cap on annual rental nights, which makes Katy comparatively investor-friendly relative to many Texas cities. The city levies a 7% hotel occupancy tax on short-term stays (under 30 nights), which stacks on top of the 6% Texas state HOT for a combined 13% occupancy tax obligation. Violations carry a fine of up to $500 per occurrence, with repeat noncompliance potentially triggering permit revocation. Important use restrictions: the property cannot serve as an event or party venue, and only the physical dwelling may be rented (no RVs, campers, tents, or hammocks on the property as a rental unit). Enforcement severity is rated moderate, with complaints routed to the planning department, building official, and fire marshal. Investors should budget for annual permitting, two inspections per cycle, insurance, and 13% combined occupancy tax.
Market Comparison
Nationally, short-term rental markets average roughly 55% occupancy and approximately $220 in average daily rate. Katy’s April 2026 occupancy of 51.6% runs about 3 to 4 points below the national median, while its ADR of $159 is considerably below the national average, reflecting its suburban, non-destination positioning within the Houston metro. That said, Katy’s entry price point is substantially lower than coastal or resort markets, which supports gross yield calculations in the 8 to 9% range before expenses. Among the top operators, Phillip Houston Property Manager leads with 439 listings, 17,345 reviews, and a 4.507 average rating. Evolve follows with 360 listings, 8,415 reviews, and a 4.490 rating. Lodgeur, with 142 listings, stands out for quality, carrying a 4.775 average rating and 2,171 reviews. Landing and Landing, Inc. together account for over 500 listings but carry lower ratings (3.56 and 3.84 respectively). The presence of multiple national platforms (Evolve, Landing) alongside Houston-area specialists indicates a competitive and professionally managed segment, which newer investors should factor into pricing expectations.
Frequently Asked Questions About Katy, Texas
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