Dallas STR market: 4,700+ active listings, $222 average ADR, with supply growth compressing occupancy rates in 2025.
Market Overview
Dallas is one of the largest short-term rental markets in Texas, with 4,739 active listings recorded in February 2026. The market draws from a base of 25.7 million annual visitors attracted by the Dallas Arts District, Dealey Plaza, AT&T Stadium events, and a dense calendar of conventions and corporate travel.
The typical listing earns an average daily rate of $220.70 in the most recent month. Over the past two years, ADR has held relatively steady, rising from $215 in 2024 to $222 in 2025 and $224 in the early months of 2026. However, occupancy tells a different story. Market-wide average occupancy dropped from 49.0% in 2024 to 46.7% in 2025, with early 2026 data showing 37.0% for the January-February period (a seasonally soft window).
The supply side explains much of the pressure. Active listings grew from roughly 3,513 in 2024 to 4,768 in 2025, a 36% increase in inventory competing for the same demand pool. New investors entering the market need to underwrite against this supply reality. The market is not contracting in revenue terms, but per-listing performance has softened as inventory expanded. Investors who positioned in 2024 or earlier are operating from a more favorable basis than those entering now.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 42% | $212 | $2,675 | 4,749 |
| Feb | 42% | $209 | $2,396 | 4,764 |
| Mar | 53% | $201 | $3,250 | 4,171 |
| Apr | 46% | $204 | $2,755 | 4,061 |
| May | 47% | $219 | $3,159 | 3,493 |
| Jun | 52% | $227 | $3,598 | 3,636 |
| Jul | 51% | $214 | $3,409 | 4,466 |
| Aug | 48% | $205 | $3,011 | 4,431 |
| Sep | 45% | $214 | $2,918 | 4,391 |
| Oct | 48% | $237 | $3,407 | 3,967 |
| Nov | 45% | $249 | $3,391 | 4,180 |
| Dec | 48% | $236 | $3,494 | 4,607 |
Dallas shows a two-peak seasonal structure driven by spring events and summer leisure travel, with a secondary ADR spike in fall driven by corporate events and the NFL schedule.
The strongest occupancy months are March (52.5%), June (51.5%), and July (50.5%). March consistently outperforms due to spring break activity, SXSW overflow from Austin, and corporate conference season. June and July reflect summer leisure demand. Average revenue in these months runs $3,250 to $3,598.
Occupancy softens in January (42.0%) and February (41.5%), the weakest months of the year. Despite lower occupancy, ADR stays supported in winter because the mix shifts toward higher-end bookings.
The most interesting seasonal dynamic is the fall ADR surge. November produces the highest ADR of the year at $249, followed by October at $237 and December at $236. This reflects Dallas Cowboys home game weekends, holiday corporate travel, and year-end events at venues like the Kay Bailey Hutchison Convention Center. Operators who adjust pricing aggressively in October and November can partially offset the lower occupancy months earlier in the year.
The full-year occupancy spread between best month (March, 52.5%) and worst (February, 41.5%) is about 11 percentage points, which is a relatively tight range compared to resort or seasonal markets. Dallas is a year-round demand market with modest seasonality.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $766 | $1,597 | $2,837 | $4,452 |
| ADR | $122 | $176 | $263 | $396 |
| Occupancy | 17% | 32% | 51% | 67% |
The distribution of STR revenue in Dallas is wide, reflecting significant differences in property quality, location, and management approach.
In February 2026 (a soft month), the 25th percentile of properties generated $766 in gross revenue. The median property produced $1,597. The 75th percentile reached $2,837, and the 90th percentile produced $4,452.
ADR shows similar stratification. Bottom-quartile properties averaged $122 per night, while median properties charged $176. Top-quartile properties commanded $263, and the top 10% averaged $396 per night.
On an annualized basis, using full-year 2025 averages: a median-performing property grosses approximately $37,700. A 75th-percentile property grosses approximately $66,600. A 90th-percentile property approaches $85,000-$90,000 annually.
The spread between p25 and p90 is roughly 5.8x on a monthly basis, which means property selection and pricing strategy have a larger impact on returns than market selection alone. Properties near Deep Ellum, Uptown, or within walking distance of major venues tend to cluster in the upper percentiles.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2024 | $3,051 | $98 | $197 |
| Apr 2024 | $2,747 | $92 | $210 |
| May 2024 | $3,250 | $105 | $215 |
| Jun 2024 | $3,449 | $115 | $219 |
| Jul 2024 | $3,473 | $112 | $210 |
| Aug 2024 | $3,180 | $103 | $206 |
| Sep 2024 | $3,124 | $104 | $211 |
| Oct 2024 | $3,312 | $107 | $219 |
| Nov 2024 | $3,329 | $111 | $240 |
| Dec 2024 | $3,504 | $113 | $222 |
| Jan 2025 | $2,678 | $86 | $197 |
| Feb 2025 | $2,656 | $95 | $198 |
| Mar 2025 | $3,449 | $111 | $205 |
| Apr 2025 | $2,763 | $92 | $199 |
| May 2025 | $3,068 | $99 | $224 |
| Jun 2025 | $3,747 | $125 | $235 |
| Jul 2025 | $3,344 | $108 | $218 |
| Aug 2025 | $2,843 | $92 | $205 |
| Sep 2025 | $2,712 | $90 | $218 |
| Oct 2025 | $3,502 | $113 | $254 |
| Nov 2025 | $3,453 | $115 | $258 |
| Dec 2025 | $3,483 | $112 | $250 |
| Jan 2026 | $2,672 | $86 | $227 |
| Feb 2026 | $2,136 | $76 | $221 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2024 | 50% | 3,559 |
| Jun 2024 | 51% | 2,133 |
| Sep 2024 | 49% | 3,826 |
| Dec 2024 | 50% | 4,505 |
| Mar 2025 | 55% | 4,783 |
| Jun 2025 | 52% | 5,138 |
| Sep 2025 | 41% | 4,956 |
| Dec 2025 | 45% | 4,708 |
Dallas presents a mid-tier STR investment case with meaningful spread between average and top-performing properties. At current prices, the math requires careful underwriting.
The median sale price for Dallas properties is $424,666, with a typical home value of $301,696. The market is moderately competitive with a 97.4% sale-to-list ratio and 55 median days to pending, giving buyers more negotiating time than in tighter Texas metros.
At the 50th percentile, a Dallas STR generates roughly $1,597 per month in gross revenue. At the 75th percentile that rises to $2,837, and top-quartile operators (p90) are producing $4,452 per month. Annual gross revenue for a median performer runs approximately $19,000-$20,000. A top-quartile property can reach $45,000-$53,000 annually.
Using a $300,000 acquisition cost and a 30% expense ratio, a median-performing STR produces a gross yield around 6.4% before debt service. A 75th-percentile property at the same cost produces closer to 11.3% gross. The gap between median and top performers is wide enough that property selection and management quality are the primary determinants of return. Investors should also factor the 9% hotel occupancy tax into revenue projections, as it applies to all rentals under 30 days and must be collected and remitted to the city and state.
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| Date | Typical Home Value |
|---|---|
| Mar 2024 | $335,669 |
| Dec 2024 | $331,769 |
| Sep 2025 | $318,257 |
Booking Insights
Dallas booking behavior reflects its mix of business and leisure demand, with patterns that differ from pure leisure markets.
The average booking lead time is 18.8 days, with a median of just 9 days. This compressed median indicates that roughly half of all Dallas bookings are made within 9 days of the check-in date. A significant portion of demand comes from last-minute corporate travelers and event attendees who book only when their plans are confirmed.
The average length of stay is 7.0 days, but the median is only 3 nights. The gap between average and median is driven by a subset of extended-stay bookings (likely corporate or relocation guests) pulling the average up. Most bookings are short, 2-4 night weekend or early-week stays.
For pricing strategy, the short lead times mean dynamic pricing tools are essential. Setting rates too far in advance and holding them static will underperform the market. Operators should expect to fill 40-50% of their calendar within the final two weeks before each date, and pricing algorithms should reflect increasing urgency in that window. The 3-night median stay also means per-night rates are more critical than weekly discounts for driving most bookings.
Short-Term Rental Regulations
Dallas has a defined permit and tax framework for short-term rentals that operators must navigate before listing.
Permit requirement: All STR operators must obtain a short-term rental permit from the City of Dallas. Applications are submitted online through the city’s Development Services portal. The permit is property-specific and must be renewed according to city timelines.
Hotel occupancy tax: Dallas STR operators are required to collect and remit a combined 9% hotel occupancy tax. This breaks down as 7% state tax (remitted to the Texas Comptroller) and 2% city tax (remitted to the City of Dallas). Most booking platforms including Airbnb and Vrbo collect and remit state taxes automatically, but operators should confirm whether the city portion is handled by the platform or must be remitted separately.
Zoning restrictions: Not all residential zones permit STR operation. Properties must be located in areas where the Dallas Municipal Code allows short-term rentals. Operators should verify zoning compliance before purchasing a property for STR use.
Safety requirements: Properties must have working smoke detectors and carbon monoxide alarms. Additional safety requirements may apply depending on property type and occupancy.
Enforcement: Violations can result in fines or permit revocation. The city has increased enforcement activity in response to neighbor complaints in some residential areas. For current permit requirements, visit the City of Dallas page at dallascityhall.com or review the Dallas Municipal Code at library.municode.com.
Market Comparison
Compared to US short-term rental market benchmarks, Dallas occupies a mid-range position on most metrics.
US average STR occupancy typically runs in the 50-55% range for well-performing urban markets. Dallas at 46.7% in 2025 and 49.0% in 2024 sits slightly below the top-tier urban market average, reflecting the effects of supply growth over the past two years.
Dallas ADR of $222 in 2025 is competitive with similarly-sized inland metros but trails coastal and mountain resort markets where ADR often exceeds $300-$400. Within Texas, Dallas ADR is broadly comparable to Houston and San Antonio, while Austin commands a premium due to its festival and tech-driven demand.
The 18.8-day average booking lead time in Dallas is shorter than many leisure-focused markets where advance planning is common. Beach and ski resort markets often see lead times of 30-60 days. The short lead time in Dallas reflects urban demand patterns where business travelers and event-goers book closer to their travel dates.
The market’s inventory growth from 3,513 listings in 2024 to 4,768 in 2025 represents a 36% supply increase in one year. That rate of supply growth is above typical US urban market norms and is the primary reason occupancy has softened despite stable or rising ADR.
Frequently Asked Questions About Dallas, Texas
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