Dallas, Texas Short-Term Rental Market
Dallas STR market: 4,700+ active listings, $222 average ADR, with supply growth compressing occupancy rates in 2025.
Quick Answer: Dallas, Texas is an active short-term rental market. average occupancy in the Dallas market area is 67%. average monthly revenue in the Dallas market area is $3,621. average daily rate in the Dallas market area is $215.
Market data reflects the wider Dallas market, which covers 47 areas. Regulations, taxes, and permit details below are specific to Dallas.
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 |
|---|---|
| Jan | 55% |
| Feb | 60% |
| Mar | 65% |
| Apr | 61% |
| May | 64% |
| Jun | 70% |
| Jul | 67% |
| Aug | 61% |
| Sep | 61% |
| Oct | 62% |
| Nov | 59% |
| Dec | 58% |
Month-by-month nightly rates and revenue figures for Dallas are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Dallas — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
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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