Waco, Texas Short-Term Rental Market
Waco's STR market averaged $207/night at 57.1% occupancy in June 2026, with an estimated 16% gross yield.
Quick Answer: Waco, Texas is an active short-term rental market. average occupancy in the Waco market area is 57%. average monthly revenue in the Waco market area is $3,324. average daily rate in the Waco market area is $207. the top operator in the Waco market area is D&L Vacation Rentals with 72 listings. market score is 90/100 (grade A).
Market data reflects the wider Waco market, which covers 2 areas. Regulations, taxes, and permit details below are specific to Waco.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Waco’s tourism boom, largely credited to Chip and Joanna Gaines’ Magnolia brand and HGTV’s ‘Fixer Upper,’ draws an estimated 1.7-1.9 million visitors a year, with 2023 Waco MSA direct travel spending at $765 million supporting about 6,100 travel jobs. Waco sits on I-35 between Dallas and Austin, drawing heavily leisure and road-trip travelers, couples, and design and home-renovation enthusiasts visiting Magnolia Market at the Silos, alongside day-trippers, weekend travelers, and Baylor University event and sports visitors.
In June 2026, Waco’s STR market averaged 57.1% occupancy and a $207 ADR, producing $3,324 in average monthly revenue per listing. Year over year, occupancy is up 6.0 points, ADR is up 3.9%, and revenue is up 2.5%, a broadly healthy gain led mostly by more nights booked.
Waco’s market has about 1,284 active STR listings (1,219 entire-place, 65 private-room), split fairly evenly across one-, two- and three-bedroom units. Airbnb is the dominant channel (524 listings), with 703 listed on both Airbnb and Vrbo.
Waco created a tiered STR licensing system in 2021: owner-occupied Type I and bed-and-breakfast operations are broadly allowed, while non-owner-occupied Type II (single-family/duplex) rentals are barred from the most restrictive single-family residential zoning districts, and Type III multifamily units are barred from several higher-density and commercial districts. A Special Permit, requiring a public hearing before the City Plan Commission and Council, is additionally required in certain districts.
Top property managers include D&L Vacation Rentals (72 listings, a 4.94 rating), VillaStay Vacation Rentals (50 listings), and Moon River Ranch (22 listings).
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 43% |
| Feb | 53% |
| Mar | 61% |
| Apr | 56% |
| May | 55% |
| Jun | 59% |
| Jul | 58% |
| Aug | 56% |
| Sep | 51% |
| Oct | 57% |
| Nov | 50% |
| Dec | 48% |
Month-by-month nightly rates and revenue figures for Waco are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Waco market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Waco market as a whole, which includes Waco, so these counts are not Waco-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | D&L Vacation Rentals | 72 | 6,551 | ★ 4.94 |
| 2 | VillaStay Vacation Rentals | 50 | 17,060 | ★ 4.84 |
| 3 | Moon River Ranch | 22 | 104 | ★ 4.85 |
| 4 | Waco2Stay | 20 | 495 | ★ 4.94 |
| 5 | Waco Creekside Resort | 20 | 1,952 | ★ 4.97 |
What Kind of STR Should I Buy in Waco?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Waco 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 | 40.8% |
| vrbo | 4.4% |
| both | 54.8% |
Home Value Trends (Waco)
Typical home values, median sale prices, and the 10-year price trend for Waco 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 Waco — 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
Short-term rentals are legal in Waco but regulated by a tiered system the city created in 2021. Every STR must obtain a Short-Term Rental Facility License from the Development/Planning Services Department, and in many zoning districts an additional Special Permit is required first, going through the City Plan Commission and Council with a public hearing, a 60-90 day process where neighbors can support or oppose.
Waco classifies STRs into categories: owner-occupied Type I and Bed & Breakfast types are broadly allowed; non-owner-occupied Type II single-family/duplex STRs are prohibited in the most restrictive residential districts (R-E, R-1A, R-1B, R-1C); and Type III multifamily units are prohibited in several higher-density and office/commercial districts (R-3A through R-3E, O-2, O-3, C-1). Pre-2021 operations may be grandfathered if the license is maintained and ownership stays unchanged.
All STRs must pass a Life Safety Inspection before a license is issued, and the license number and occupancy limit must appear in every advertisement and listing. Reported fees are about $150 for the initial application, with a roughly $50 renewal about every two years, though some city materials describe a one-year license term, so operators should confirm the current renewal cycle directly with the city.
Guests pay a combined 15% hotel occupancy tax (6% state, 7% City of Waco, 2% McLennan County), collected via Avenu Insights & Analytics. Enforcement is handled by Code Compliance, with daily fines and license revocation possible. There is no stated annual cap on rental nights, but investors should verify a target property’s zoning category before purchase, since eligibility for a non-owner-occupied STR depends heavily on the district.
Market Comparison
National benchmarks put the median U.S. short-term rental market at roughly 55% occupancy and a $220 ADR. Waco runs close to both benchmarks, at 57.1% occupancy and a $207 ADR in June 2026, a balanced, mainstream-market position rather than either a high-occupancy budget market or a high-ADR luxury one.
Waco’s roughly $200,100 typical home value is the lowest among this batch’s markets with full housing data, which is why its estimated gross yield (about 16.3%) is the strongest, even though its ADR is mid-range.
D&L Vacation Rentals leads local property managers with 72 listings and a 4.94 rating, followed by VillaStay Vacation Rentals (50 listings, a 4.84 rating) and Moon River Ranch (22 listings); together the top three hold about 11% of the market’s roughly 1,284 active listings, a fragmented operator landscape.
Frequently Asked Questions About Waco, Texas
What is the average occupancy for short-term rentals in Waco?
What is the gross rental yield for a typical Waco STR?
Are non-owner-occupied short-term rentals allowed in Waco?
How much does a Waco STR license cost?
What taxes apply to short-term rentals in Waco?
When is peak season for short-term rentals in Waco?
Who are the top short-term rental managers in Waco?
Analyze Waco Rentals
Use our free calculator to estimate Airbnb revenue for any property in Waco.
Free Waco STR Calculator →
