Temple, TX STR market has 290 active listings with average daily rates up 38% since 2021, while occupancy has softened as supply expanded.
Market Overview
The Temple, Texas short-term rental market had 290 active listings as of February 2026, a near-tripling from the 99 listings recorded in 2021. That supply expansion is the defining story of this market over the past five years. Average daily rates have climbed steadily, rising from $122 in 2021 to $168 in 2025, a gain of roughly 38%. RevPAR in the most recent month stood at $52, with a median of $37.40, reflecting the February slowdown that affects nearly every non-resort Texas market.
On an annualized basis, the market generated average revenues of approximately $2,274 per listing per month in 2025, down from a peak of $3,109 in 2021. That decline tracks directly with the supply increase: more listings competing for a similar pool of guests drove occupancy from 68.3% in 2021 to 44.8% in 2025. The 2026 data point of 31% occupancy reflects a single winter month and is not representative of the full-year picture.
Temple sits in central Texas, roughly equidistant between Austin and Waco on I-35, giving it access to medical tourism through the Baylor Scott and White Health system (one of the largest not-for-profit hospital systems in Texas), corporate travel, and highway-corridor demand. With 150,000 annual visitors and a local population of 83,000, this is a mid-size market with demand driven more by business and medical stays than leisure tourism. Investors entering today face a more competitive supply environment than existed in 2021 or 2022, and underwriting should reflect current occupancy norms rather than historical peaks.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 46% | $141 | $2,005 | 192 |
| Feb | 47% | $139 | $1,886 | 194 |
| Mar | 59% | $139 | $2,791 | 156 |
| Apr | 57% | $133 | $2,562 | 155 |
| May | 58% | $143 | $2,780 | 152 |
| Jun | 64% | $145 | $2,996 | 168 |
| Jul | 64% | $145 | $3,149 | 188 |
| Aug | 61% | $143 | $2,912 | 188 |
| Sep | 57% | $140 | $2,653 | 187 |
| Oct | 59% | $142 | $2,721 | 176 |
| Nov | 55% | $149 | $2,498 | 181 |
| Dec | 50% | $148 | $2,414 | 190 |
Temple follows a clear seasonal curve with summer as the strongest period and late winter as the weakest. July is the top month by both occupancy and revenue, averaging 64.2% occupancy and $3,149 in monthly revenue per listing. June is close behind at 63.6% occupancy and $2,996 revenue. May and March are also strong, both above 58% occupancy and above $2,780 in monthly revenue.
The weakest months are January and February. January averages 45.8% occupancy and $2,005 in revenue. February averages 46.8% occupancy and $1,886 in revenue. Despite being the lowest-occupancy months, January and February still clear $1,800 in average revenue, which reflects the stabilizing effect of medical and business demand that does not disappear in winter the way leisure demand does in resort markets.
ADR variation across the year is surprisingly narrow, ranging from $133 in April to $149 in November. This compressed ADR range suggests that pricing power in Temple is modest: the market does not support dramatic rate increases during peak months the way a beach or mountain destination might. November and December command slightly higher ADRs ($149 and $148 respectively), likely due to holiday travel and year-end corporate bookings.
Operators should plan for a 40% occupancy floor in slow months and a 64% ceiling in peak summer. The roughly 18 percentage point swing from trough to peak is manageable and predictable, making Temple a relatively stable market for cash-flow modeling compared to more volatile leisure destinations.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $514 | $1,048 | $1,988 | $2,860 |
| ADR | $112 | $147 | $223 | $281 |
| Occupancy | 11% | 25% | 46% | 57% |
The spread between high-performing and low-performing properties in Temple is substantial. In February 2026, the 25th percentile property earned $514 per month while the 90th percentile earned $2,860, a 5.6x gap. The median property earned $1,048 and the 75th percentile earned $1,988.
On the ADR side, the same month showed a p25 of $112, a median of $147, a p75 of $223, and a p90 of $281. The wide ADR dispersion suggests significant differences in property type, size, and positioning within the market. A property commanding $281 per night is likely a larger house with premium amenities or a strategically located unit near Baylor Scott and White Medical Center, while a $112 per night property is more likely a budget option or a smaller unit.
Occupancy dispersion is equally wide: p25 at 11%, median at 25%, p75 at 46%, and p90 at 57% in February 2026. These figures confirm that underperforming properties in this market are genuinely struggling, while top operators are achieving occupancy rates well above the market average. New investors should target the 50th to 75th percentile range as a realistic operational goal in year one.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $3,309 | $107 | $118 |
| Apr 2021 | $3,198 | $107 | $119 |
| May 2021 | $3,319 | $107 | $121 |
| Jun 2021 | $3,155 | $105 | $120 |
| Jul 2021 | $3,596 | $116 | $125 |
| Aug 2021 | $3,395 | $110 | $125 |
| Sep 2021 | $2,936 | $98 | $124 |
| Oct 2021 | $2,952 | $95 | $124 |
| Nov 2021 | $2,690 | $90 | $122 |
| Dec 2021 | $2,539 | $82 | $124 |
| Jan 2022 | $2,399 | $77 | $124 |
| Feb 2022 | $2,346 | $84 | $124 |
| Mar 2022 | $2,955 | $95 | $129 |
| Apr 2022 | $2,779 | $93 | $126 |
| May 2022 | $2,872 | $93 | $134 |
| Jun 2022 | $3,330 | $111 | $128 |
| Jul 2022 | $3,659 | $118 | $133 |
| Aug 2022 | $3,125 | $101 | $129 |
| Sep 2022 | $3,049 | $102 | $132 |
| Oct 2022 | $3,213 | $104 | $130 |
| Nov 2022 | $3,112 | $104 | $132 |
| Dec 2022 | $2,955 | $95 | $128 |
| Jan 2023 | $2,594 | $84 | $134 |
| Feb 2023 | $2,175 | $78 | $124 |
| Mar 2023 | $2,823 | $91 | $137 |
| Apr 2023 | $2,863 | $95 | $131 |
| May 2023 | $2,981 | $96 | $139 |
| Jun 2023 | $2,927 | $98 | $131 |
| Jul 2023 | $3,254 | $105 | $139 |
| Aug 2023 | $2,805 | $91 | $129 |
| Sep 2023 | $2,703 | $90 | $134 |
| Oct 2023 | $2,664 | $86 | $135 |
| Nov 2023 | $2,305 | $77 | $143 |
| Dec 2023 | $2,245 | $72 | $164 |
| Jan 2024 | $1,481 | $48 | $145 |
| Feb 2024 | $1,421 | $49 | $134 |
| Mar 2024 | $2,358 | $76 | $155 |
| Apr 2024 | $1,963 | $65 | $146 |
| May 2024 | $2,394 | $77 | $158 |
| Jun 2024 | $3,048 | $102 | $171 |
| Jul 2024 | $2,730 | $88 | $154 |
| Aug 2024 | $2,802 | $90 | $151 |
| Sep 2024 | $2,341 | $78 | $144 |
| Oct 2024 | $2,427 | $78 | $149 |
| Nov 2024 | $1,986 | $66 | $156 |
| Dec 2024 | $2,198 | $71 | $154 |
| Jan 2025 | $1,832 | $59 | $140 |
| Feb 2025 | $2,032 | $73 | $142 |
| Mar 2025 | $2,512 | $81 | $154 |
| Apr 2025 | $2,007 | $67 | $143 |
| May 2025 | $2,332 | $75 | $165 |
| Jun 2025 | $2,521 | $84 | $177 |
| Jul 2025 | $2,507 | $81 | $175 |
| Aug 2025 | $2,431 | $78 | $179 |
| Sep 2025 | $2,238 | $75 | $168 |
| Oct 2025 | $2,349 | $76 | $175 |
| Nov 2025 | $2,397 | $80 | $190 |
| Dec 2025 | $2,134 | $69 | $171 |
| Jan 2026 | $1,719 | $56 | $163 |
| Feb 2026 | $1,455 | $52 | $173 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 65% | 92 |
| Jun 2021 | 74% | 100 |
| Sep 2021 | 64% | 101 |
| Dec 2021 | 60% | 102 |
| Mar 2022 | 68% | 105 |
| Jun 2022 | 74% | 172 |
| Sep 2022 | 65% | 168 |
| Dec 2022 | 62% | 161 |
| Mar 2023 | 63% | 160 |
| Jun 2023 | 67% | 161 |
| Sep 2023 | 60% | 153 |
| Dec 2023 | 45% | 131 |
| Mar 2024 | 49% | 128 |
| Jun 2024 | 56% | 101 |
| Sep 2024 | 54% | 219 |
| Dec 2024 | 44% | 265 |
| Mar 2025 | 51% | 295 |
| Jun 2025 | 47% | 307 |
| Sep 2025 | 42% | 296 |
| Dec 2025 | 40% | 289 |
Entry costs in Temple are moderate by Texas standards. The typical home value is $248,496 and the median sale price is $268,191, which puts the acquisition cost within reach of conventional investment financing. The sale-to-list ratio of 98.5% and 68 median days to pending indicate a market with negotiating room, unlike the 2021-2022 environment when bidding wars were common.
At current performance levels, a median-performing property (p50) generates approximately $1,048 per month in revenue, while a top-quartile property (p75) earns around $1,988 and a 90th-percentile property earns approximately $2,860 per month. Using the February 2026 snapshot, those figures represent the slow-season floor. Full-year 2025 average revenue of $2,274 per month is a more representative baseline for underwriting.
On a $268,000 purchase with 25% down ($67,000) and a $201,000 mortgage at 7%, monthly principal and interest is approximately $1,338. A median-performing property in peak months ($2,791 average in March, $3,149 in July) covers debt service with margin, but a below-median property (p25 at $514 in February) will not. The market rewards operators who can consistently outperform the median through pricing strategy, amenities, and reviews. Investors should budget for the permit application, the 13% total hotel occupancy tax remittance infrastructure, and the operational overhead of active management given the relatively low average nightly rate of $168.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $196,873 |
| Dec 2021 | $235,415 |
| Sep 2022 | $275,678 |
| Jun 2023 | $266,114 |
| Mar 2024 | $260,377 |
| Dec 2024 | $256,000 |
| Sep 2025 | $250,180 |
Booking Insights
The average booking lead time in Temple is 12.4 days, with a median of just 4 days. That gap between mean and median indicates that while most bookings come in within a week of the stay, a smaller number of bookings are made weeks or months in advance, pulling the average up. This is a last-minute booking market.
Average length of stay is 13 days, but the median is 4 days. Again, a wide gap. The mean is inflated by extended stays, likely from medical patients or traveling healthcare workers at Baylor Scott and White, while the typical booking is a 4-night stay. Properties positioned for both short leisure stays and extended medical stays will capture the broadest demand pool.
For pricing strategy, the last-minute booking profile means dynamic pricing tools that lower rates in the final 3 to 7 days before open dates are particularly effective in this market. Holding firm on rates for dates more than two weeks out is reasonable, but discounting as check-in approaches captures demand that would otherwise go to a competitor. The extended-stay segment rewards monthly pricing tiers that make 14-plus night stays attractive without giving away revenue on shorter bookings.
Short-Term Rental Regulations
Temple requires a short-term rental permit for any property rented for fewer than 30 consecutive days. Permits are processed through the city’s Building Permits and Inspections department. Property owners must submit an application and pay associated fees before beginning operations. Operating without a permit exposes the host to penalties.
The hotel occupancy tax obligation is 13% of gross rental revenue in total: 7% remitted to the City of Temple and 6% remitted to the State of Texas. Hosts are responsible for collecting this tax from guests and filing periodic remittances with both the city and the Texas Comptroller. Major platforms such as Airbnb and VRBO collect and remit state-level taxes automatically in Texas, but city-level tax compliance may still require direct action from the property owner. Confirm current remittance procedures with the city before listing.
Zoning restrictions apply. Not all residential areas in Temple permit short-term rentals, and the rules can differ between single-family zones and other residential classifications. Verifying that a specific property’s zoning allows STR operation is a necessary step before purchase or permit application.
As of the data snapshot date of February 2026, no information was available indicating a cap on the number of permits or an outright ban in any specific district. However, regulations change. Prospective investors should verify current rules directly with the City of Temple Planning and Development department and consult a local attorney familiar with STR regulations before closing on a property.
Market Comparison
Temple’s average daily rate of $168 (full-year 2025 average) is below the Texas STR market average for comparable mid-size cities. Markets like San Marcos and New Braunfels, which sit on the river corridor between Austin and San Antonio, command significantly higher rates due to leisure demand. Temple competes more directly with other I-35 corridor business markets.
Occupancy at 44.8% for full-year 2025 is below the national STR average of roughly 55% to 60% for established markets in similar-sized cities. This gap reflects the supply growth: the listing count nearly tripled between 2021 and 2026, from 99 to 290, while demand growth was more modest.
The ADR trend is constructive. Rates have risen from $122 in 2021 to approximately $168 in 2025, a compound annual growth rate of roughly 8% per year. That rate growth partially offsets the occupancy compression. Revenue per available listing on an annual basis in 2025 ($2,274 per month) is 27% below the 2021 peak of $3,109, but the market has stabilized rather than continuing to decline in 2024 and 2025 despite continued supply growth.
Frequently Asked Questions About Temple, Texas
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