Houston's 9,300-listing STR market averages $194 ADR with strong event-driven demand across all seasons.
Market Overview
Houston is one of the largest short-term rental markets in Texas, with 9,325 active listings recorded in February 2026. The market has expanded significantly over the past two years, growing from roughly 7,400 listings in 2024 to nearly 9,900 by the end of 2025, a supply increase of about 34%. Despite that supply growth, average daily rates climbed from $171 in 2024 to $194 in 2025, and preliminary 2026 data through February shows ADR rising further to $214.
Average monthly revenue across all active listings sits at approximately $2,041 to $2,804 depending on the month, with the market averaging $2,552 per listing monthly during full-year 2025. Occupancy runs at an overall annual average near 44%, which is consistent with Houston’s nature as a large, distributed metro rather than a concentrated resort market.
Houston draws demand from multiple sources: the Texas Medical Center (the largest medical complex in the world), the Port of Houston, a major convention calendar at the George R. Brown Convention Center, and sports events at NRG Stadium and Minute Maid Park. This mix of medical travel, business travel, and event-driven leisure makes the market relatively durable across economic cycles. Investors should note that the city enacted a new STR permitting ordinance effective January 1, 2026, which is reshaping compliance requirements for all operators.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 38% | $190 | $2,122 | 9,584 |
| Feb | 40% | $192 | $2,104 | 9,640 |
| Mar | 52% | $172 | $2,804 | 8,730 |
| Apr | 45% | $168 | $2,282 | 8,484 |
| May | 45% | $184 | $2,565 | 7,357 |
| Jun | 46% | $189 | $2,599 | 7,641 |
| Jul | 49% | $186 | $2,804 | 9,388 |
| Aug | 47% | $184 | $2,577 | 9,278 |
| Sep | 43% | $182 | $2,302 | 9,139 |
| Oct | 44% | $191 | $2,560 | 8,285 |
| Nov | 42% | $197 | $2,470 | 8,638 |
| Dec | 43% | $199 | $2,613 | 9,333 |
Houston’s STR market has a distinct seasonal shape driven by the convention calendar, spring events, and summer travel rather than the beach or ski patterns seen in resort markets.
March is the strongest month by both occupancy and total revenue, averaging 52% occupancy and $2,804 in monthly revenue. The spring surge is connected to Houston’s rodeo season (the Houston Livestock Show and Rodeo draws 2.5 million attendees annually), spring break, and the run-up to major medical conferences. April holds at 45% occupancy before a slight dip.
Summer months (June through August) cluster in the 46-49% occupancy range with ADR near $184-$189, supported by family travel, relocations to the Houston area, and continued convention activity. July and August both average around $2,577-$2,804 in monthly revenue.
Fall (September through November) sees occupancy dip into the 41.5-43.5% range but ADR holds firm at $182-$197, supported by business travel and fall event calendars. December ticks back up to 43% occupancy with the highest ADR of any month at $199, likely reflecting holiday travel and end-of-year medical visits.
January is the softest month (37.5% occupancy, $190 ADR, $2,122 average revenue). Investors pricing dynamic rates should plan for a January trough and build that into cash-flow projections. The spread between the strongest month (March at 52%) and weakest month (January at 37.5%) is about 14.5 percentage points, a narrower swing than resort markets, which helps with cash-flow predictability.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $653 | $1,486 | $2,715 | $4,337 |
| ADR | $113 | $180 | $267 | $392 |
| Occupancy | 15% | 31% | 49% | 67% |
Revenue distribution across Houston’s 9,325 active listings shows wide variation. The most recent complete data (February 2026) shows:
– Bottom quartile (p25): $654/month
– Median (p50): $1,486/month
– Top quartile (p75): $2,715/month
– Top decile (p90): $4,337/month
– Market average: $2,041/month
The average ($2,041) sits well above the median ($1,486), which means a smaller number of high-performing listings are pulling the average up. Investors targeting median performance should underwrite around $1,486/month, or roughly $17,832 annually. Properties in high-demand neighborhoods near the Medical Center, Midtown, the Museum District, or NRG Stadium tend to outperform the median. Properties in outer suburbs with limited walkability and no clear demand driver tend to cluster near or below the p25 threshold.
Full-year 2025 data shows the average across all months was $2,552/month, giving an annualized run rate of about $30,624 for the average active listing.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2024 | $2,453 | $79 | $161 |
| Apr 2024 | $2,192 | $73 | $159 |
| May 2024 | $2,577 | $83 | $170 |
| Jun 2024 | $2,502 | $83 | $176 |
| Jul 2024 | $2,833 | $91 | $177 |
| Aug 2024 | $2,673 | $86 | $170 |
| Sep 2024 | $2,305 | $77 | $167 |
| Oct 2024 | $2,451 | $79 | $171 |
| Nov 2024 | $2,220 | $74 | $179 |
| Dec 2024 | $2,481 | $80 | $181 |
| Jan 2025 | $1,994 | $64 | $170 |
| Feb 2025 | $2,167 | $77 | $167 |
| Mar 2025 | $3,155 | $102 | $183 |
| Apr 2025 | $2,371 | $79 | $177 |
| May 2025 | $2,553 | $82 | $198 |
| Jun 2025 | $2,696 | $90 | $201 |
| Jul 2025 | $2,776 | $90 | $195 |
| Aug 2025 | $2,480 | $80 | $197 |
| Sep 2025 | $2,299 | $77 | $197 |
| Oct 2025 | $2,669 | $86 | $211 |
| Nov 2025 | $2,720 | $91 | $215 |
| Dec 2025 | $2,745 | $89 | $218 |
| Jan 2026 | $2,251 | $73 | $210 |
| Feb 2026 | $2,041 | $73 | $218 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2024 | 49% | 7,415 |
| Jun 2024 | 46% | 4,520 |
| Sep 2024 | 45% | 8,137 |
| Dec 2024 | 45% | 9,330 |
| Mar 2025 | 55% | 10,045 |
| Jun 2025 | 45% | 10,762 |
| Sep 2025 | 40% | 10,140 |
| Dec 2025 | 41% | 9,336 |
Houston’s STR economics present a wide range of outcomes depending on property location, quality, and management approach. At the median (p50), a listing generated $1,486 in gross revenue during February 2026. Top-quartile performers (p75) reached $2,715, and the top-decile (p90) hit $4,337 that same month. The gap between median and top-decile performers is nearly 3x, which reflects meaningful differentiation by neighborhood, property type, and hosting quality.
Typical Houston homes are priced at around $260,149 based on current housing market data, with a median sale price of $298,000. At those acquisition costs, a top-quartile STR generating $2,715/month ($32,580 annualized) against a $298,000 purchase price yields a gross revenue multiple of roughly 10.9% before operating expenses, financing, and platform fees. A median-performing property at $1,486/month ($17,832 annualized) against the same purchase price produces a gross yield near 6%, which is tighter but still potentially viable depending on financing structure.
Houston’s housing market shows 11,685 active for-sale listings with a sale-to-list ratio of 0.974 and a median of 57 days to pending, indicating a moderately balanced market with some buyer negotiating room. That inventory depth gives STR investors time to be selective about location. The new 2026 permitting requirement adds a compliance cost and administrative step, but does not cap the number of permits, which limits downside regulatory risk compared to markets with hard caps.
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| Date | Typical Home Value |
|---|---|
| Mar 2024 | $276,253 |
| Dec 2024 | $275,694 |
| Sep 2025 | $268,365 |
Booking Insights
Houston’s STR guests book with a moderate lead time. The average booking lead time is 31 days, with a median of 17 days. That median is relatively short, indicating that a significant portion of Houston bookings are last-minute, driven by medical appointments, business travel, and event-related needs where travel plans are confirmed close to arrival.
This booking pattern has direct implications for pricing strategy. Because so many guests book within two to three weeks of arrival, operators who hold firm on rates in the final two weeks before check-in (rather than discounting aggressively to fill gaps) are likely to capture higher ADR. Dynamic pricing tools that increase rates as the check-in date approaches tend to perform well in markets with short lead times.
Average length of stay is 7.1 nights, with a median of 3 nights. The mean being more than twice the median signals a bifurcated guest profile: a large number of short-stay guests (2-3 nights for events or business) and a smaller segment of extended-stay guests (likely medical travelers or corporate relocations) pulling the average up. Operators who can accommodate both segments through flexible minimum-stay policies may capture more total nights.
Short-Term Rental Regulations
Houston enacted a comprehensive short-term rental ordinance that took effect January 1, 2026. This is a material change from the previously unregulated environment and requires action from all STR operators.
Key requirements under the new ordinance:
Permit required: All STR operators must register with the Houston Administration and Regulatory Affairs (ARA) Department and obtain a Short-Term Rental certificate of registration before operating. Registration opened October 1, 2025. Operating without a permit is now illegal within Houston city limits.
Annual renewal: The STR certificate must be renewed annually and the registration number must be displayed on all listings across all platforms.
Human trafficking training: Property owners must complete a human trafficking awareness training course as part of the application process.
Hotel occupancy tax: Hosts are required to collect and remit a combined 17% hotel occupancy tax from guests: 7% state tax and 10% local Houston tax. Taxes must be filed quarterly.
No event rentals: STRs cannot host special events or be advertised as event venues, which limits certain high-revenue use cases.
Platform enforcement: Beginning April 1, 2026, the city will notify booking platforms to remove listings that lack proper certification numbers.
Safety standards: Properties must meet local safety requirements including smoke detectors and fire extinguishers, and owners must provide emergency contact information.
For applications and current fee schedules, contact the ARA Department at [email protected] or 832-394-8802, or visit houstontx.gov/ara/str.html.
Market Comparison
Houston’s STR market occupies a distinct position among major Texas metro markets. The 44% annual average occupancy is lower than coastal resort markets (which often reach 55-70%), but consistent with large business-oriented metros. ADR at $194 (2025 average) is competitive for a major Texas city, though it trails high-tourism markets.
The 2024-to-2025 ADR growth of $23 (13.5% increase) while simultaneously absorbing a 34% increase in active listings is a positive signal. Most markets where supply grows 34% in one year see ADR compress. Houston’s ADR growth despite supply expansion suggests underlying demand growth is absorbing the new inventory.
The market average RevPAR (revenue per available room) was $72.90 in February 2026, with a median RevPAR of $53.10. These figures are consistent with secondary business-travel markets rather than primary leisure destinations.
With 51.2 million annual visitors to the Houston metro area and a population base of 2.3 million in the city proper, the demand foundation is large. The new permitting requirement may cause some marginal operators to exit the market in 2026, which could modestly tighten supply and support occupancy rates for compliant operators.
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