Magnolia, Texas Short-Term Rental Market
Magnolia, TX STRs averaged $159 per night at 51.6% occupancy in April 2026, powered by Texas Renaissance Festival demand and year-round Houston proximity.
Quick Answer: Magnolia, 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 Magnolia. Regulations, taxes, and permit details below are specific to Magnolia.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
The Magnolia STR market encompasses approximately 26,216 listings in the latest snapshot. Entire-place listings account for 21,667 (82.6% of the market), private-room rentals for 4,469 (17.1%), and shared rooms for 80 (0.3%). By bedroom count, one-bedroom units are most common (10,675), followed by three-bedroom (6,332), two-bedroom (4,857), four-bedroom (2,902), and five-plus bedroom (1,396).
In April 2026, the market reported an average daily rate of $159 and occupancy of 51.6%, producing a RevPAR of $82. Average monthly revenue per active listing was $2,455. Year-over-year, occupancy fell 7.85 percentage points, though ADR rose 2.55% and revenue grew a net 0.61%, demonstrating that rate discipline partially offset booking volume softness.
Annual performance has been relatively flat. Annual average occupancy was 57.23% in 2023, improving to 59.60% in 2024 (ADR $152, monthly revenue $2,543), then easing to 57.65% in 2025 (ADR $152, monthly revenue $2,472). The 2026 partial-year monthly average is $2,493 through April.
Airbnb dominates the channel mix with 15,805 Airbnb-only listings and 9,245 on both platforms, compared to 1,166 VRBO-only listings.
Market scores: seasonality 93.8 (indicating very low seasonal volatility), regulation 61.9, total investability 55.6. The extremely high seasonality score confirms that this market sustains occupancy across all months with minimal swings.
Magnolia is a small but fast-growing city in Montgomery County, approximately 45 miles northwest of Houston, serving as a gateway to a broader tourism corridor. Its signature seasonal draw is the Texas Renaissance Festival (held on grounds near Todd Mission, commonly using a Magnolia mailing address), which drew approximately 492,910 patrons over eight weekends in 2025.
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 Magnolia
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 Magnolia?
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
April 2026 data shows average monthly revenue of $2,455 per active listing. Using the 2025 annual average of $2,472 per month, the annualized gross revenue benchmark is approximately $29,664. Entire-place listings average $2,734 per month and houses average $2,706, while apartment-style rentals average $2,044.
The ADR tier structure:
– Market average: $159 per night
– Entire-home tier: $181 per night (14% above market)
– Professionally managed tier: $177 per night (11% above market)
– Luxury tier: $275 per night (73% above market)
Note that the professionally managed tier ADR ($177) is slightly below the entire-home tier ($181) in this snapshot, an unusual pattern that may reflect that the professionally managed segment here includes a broad mix of unit types. The luxury premium ($275 vs. $159) is the largest spread.
Revenue grew 0.61% year-over-year in the most recent period despite a 7.85 percentage-point occupancy drop, suggesting rate increases partially preserved revenue. The revenue growth market score of 54.3 reflects modest confidence in near-term growth.
The city adopted a dedicated STR permit ordinance in December 2024, adding a $150 annual permit cost and a mandatory inspection, which investors should budget for.
No Zillow housing price data was available for this market at publication. Magnolia properties have benefited from suburban Houston growth; investors should source current acquisition costs from local listings.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Magnolia STR guests book an average of just 27 days (approximately 4 weeks) in advance, the shortest lead time in this group of markets. This short booking window reflects the market’s character as a drive-market destination, drawing primarily Houston-area weekend visitors who plan trips spontaneously or on shorter timelines.
The average length of stay is 4.87 nights, one of the longer averages in this batch, somewhat at odds with the short booking window. This may reflect that longer-stay corporate travelers and relocated workers (tied to Samsung and Tesla campuses in the broader corridor) book close-in but stay for multiple nights, or that Renaissance Festival patrons book late and stay for multiple festival weekends.
For operators, the 4-week booking window means last-minute pricing adjustments are especially effective. Setting minimum-stay policies of 3 to 4 nights on festival weekends (eight fall/winter weekends) and during March can capture premium demand without overpricing the rest of the calendar. With Houston’s large population base, real-time price drops for unfilled nights in the 7 to 14 day window before arrival can fill gaps efficiently.
Short-Term Rental Regulations
Magnolia regulates short-term rentals at the city level under an ordinance adopted unanimously by the City Council on December 10, 2024. Every STR must obtain a city permit ($150 per property per year, valid 12 months). Operating without a permit is unlawful and enforceable as a Class C misdemeanor with fines.
Within 30 days of application, city officials conduct an on-site inspection to verify maximum occupancy, parking standards, and safety requirements (working smoke alarms, carbon monoxide detectors, bedroom egress windows, properly vented gas appliances). The city maintains a public website listing all permitted STRs.
Existing operators had a 90-day window from the December 2024 adoption date to come into compliance.
On taxes, Magnolia levies a 7% local hotel occupancy tax (HOT) under city code, and Texas imposes a 6% statewide HOT on stays under 30 days, for a combined rate of approximately 13%. The city HOT has been in effect since 1999 and now explicitly applies to STR stays.
There are no owner-occupancy or primary-residence requirements and no confirmed maximum-nights cap. Enforcement is described as moderate given the active ordinance and inspection requirement. Investors should obtain a copy of the December 2024 ordinance directly from the City of Magnolia Development Services and register for HOT collection with both the City and the Texas Comptroller before listing.
Market Comparison
Magnolia’s 51.6% April 2026 occupancy sits near the U.S. STR median of approximately 55%. The 2025 annual average of 57.65% is close to the median, reflecting the market’s consistent year-round occupancy profile. The $159 ADR is below the national median of approximately $220, consistent with the suburban Houston position.
Revenue grew 0.61% year-over-year despite a significant 7.85 pp occupancy decline, demonstrating that rate increases have compensated for booking volume softness. The seasonality score of 93.8 is one of the strongest in any market tracked by StaySTRA, making this a distinctively stable cash-flow environment.
The top five property managers in the Magnolia market are:
1. Phillip Houston Property Manager: 439 listings, 17,345 reviews, 4.51 rating
2. Evolve: 360 listings, 8,415 reviews, 4.49 rating
3. Landing, Inc.: 272 listings, 398 reviews, 3.84 rating
4. Landing: 245 listings, 158 reviews, 3.56 rating
5. Lodgeur: 142 listings, 2,171 reviews, 4.78 rating
Phillip Houston Property Manager leads with 439 listings and 17,345 reviews. Evolve manages 360 properties. Lodgeur earns the highest rating among top-five operators at 4.78 from 2,171 reviews across 142 listings.
Frequently Asked Questions About Magnolia, Texas
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