Mcallen, Texas Short-Term Rental Market
McAllen and Mission area STRs averaged $104 ADR, 50.9% occupancy and $1,466 monthly revenue in September 2026.
Quick Answer: Mcallen, Texas is an active short-term rental market. average occupancy in the McAllen market area is 51%. average monthly revenue in the McAllen market area is $1,466. average daily rate in the McAllen market area is $104. the top operator in the McAllen market area is Sleepy Valley Resort with 42 listings. market score is 71/100 (grade B).
Market data reflects the wider McAllen market, which covers 4 areas. Regulations, taxes, and permit details below are specific to Mcallen.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
This profile covers the McAllen and Mission area STR market in the Rio Grande Valley of South Texas. McAllen and Mission sit close together and share one tracked performance series, so every performance figure below describes the combined McAllen and Mission area rather than McAllen alone. In September 2026, short-term rentals in the area averaged an ADR of $104, occupancy of 50.9%, and monthly revenue of $1,466 per listing. Entire-place rentals earned an ADR of $108 for the month. Year over year, occupancy rose 8.8%, ADR rose 2.4%, and revenue rose 5.3%, so the gain is coming mostly from more booked nights rather than higher rates. Across a full seasonal cycle, monthly revenue adds up to $17,703 a year. The longer record shows how far the market has settled since the pandemic surge. Occupancy peaked at 74.0% in 2021 with revenue of $1,846 a month, then eased to 54.8% in 2025 and 54.6% across the first nine months of 2026. ADR has moved the other way, climbing from $90 in 2021 to $105 in both 2025 and 2026. McAllen has a population of 145,385 and draws visitors with its subtropical climate, birding and eco-tourism, cross-border shopping, and medical and dental travel from Mexico. Its signature guest segment is the Winter Texan, a seasonal visitor from the U.S. Midwest and Canada who overwinters in the Valley. An estimated 57,000 Winter Texan households spent roughly $761 million locally in 2022 to 2023. Bedroom, channel, and listing-type counts are tracked at a shared regional level rather than uniquely for McAllen, so this profile omits them.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 57% |
| Feb | 64% |
| Mar | 61% |
| Apr | 54% |
| May | 55% |
| Jun | 60% |
| Jul | 63% |
| Aug | 56% |
| Sep | 54% |
| Oct | 54% |
| Nov | 60% |
| Dec | 61% |
Month-by-month nightly rates and revenue figures for Mcallen are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in McAllen market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the McAllen market as a whole, which includes Mcallen, so these counts are not Mcallen-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Sleepy Valley Resort | 42 | 77 | ★ 4.77 |
| 2 | Urbana | 35 | 2,233 | ★ 4.62 |
| 3 | Evolve | 24 | 343 | ★ 4.73 |
| 4 | Centrica Rental Co. | 20 | 977 | ★ 4.86 |
| 5 | Cavazos Asset Management LLC | 15 | 332 | ★ 4.43 |
What Kind of STR Should I Buy in Mcallen?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Mcallen are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 69.5% |
| vrbo | 2.8% |
| both | 27.7% |
Home Value Trends (Mcallen)
Typical home values, median sale prices, and the 10-year price trend for Mcallen 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 Mcallen — 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
McAllen explicitly permits and regulates short-term rentals, defined as rentals of fewer than 30 consecutive days, under Article VII of Chapter 22 of its code of ordinances. Owners and operators must obtain an annual STR registration from the Environmental Health and Code Enforcement Department at the McAllen Development Center, 311 N. 15th St. The annual regulatory fee is $50, and each property receives a registration number. Applicants provide owner contact details and designate a local contact person who is available 24/7. Safety requirements include a functioning smoke detector in each sleeping room or space and a posted egress map. The ordinance applies to residential one-unit dwellings and accessory buildings. Operators must collect and remit hotel occupancy tax. McAllen levies a 7% city tax plus a separate 2% tax, 9% in total, reported monthly to the Finance Department, on top of the 6% Texas state tax, for roughly 15% combined. No maximum-nights cap, owner-occupancy requirement, or primary-residence requirement was found in the ordinance. The code director may suspend or revoke a registration, and if one is revoked the owner cannot reapply for the same property for 12 months. Enforcement severity is rated moderate. Overall the regime is registration-based and tax-focused rather than restrictive. Confirm current requirements with the city before listing a property.
Market Comparison
September 2026 occupancy in the McAllen and Mission area was 50.9% with a $104 ADR, below the 2026 year-to-date occupancy of 54.6%, which shows that September was softer than the year as a whole. The area’s strengths are momentum and entry cost. Occupancy is up 8.8% year over year and revenue is up 5.3%, while the typical McAllen home value of $231,417 is well below what buyers pay in many higher-rate STR markets. The trade-off is lower revenue per listing, at $1,466 for September and $17,703 over a seasonal year. Top-operator data is tracked at a shared regional level rather than uniquely for McAllen, so this profile omits it. Investors should weigh the lower rates against the lower purchase prices and a registration-based regulatory regime.
Frequently Asked Questions About Mcallen, Texas
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