Waco, Texas Short-Term Rental Market
Waco STRs need a license and zoning check; ADR $185, 57.0% occupancy, $3,057 monthly revenue (Aug 2026).
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 $3,190. 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 is a city of 143,570 people on I-35 between Dallas and Austin. The area profile puts annual visitation at roughly 1.7 to 1.9 million, driven by Magnolia Market at the Silos, which reports about 825,000 visitors a year. Baylor University events, sports, and conventions add demand. Most guests are leisure and road-trip travelers, and day-trippers and weekend travelers dominate.
In August 2026 the Waco STR market averaged $185 per night at 57.0% occupancy, and the average listing earned $3,057 in monthly revenue. Against August 2025, occupancy rose 3.8%, ADR rose 0.9%, and revenue fell 2.4%. The mix of numbers shows demand is steady while rate growth has stalled.
Seasonality is mild. Occupancy averages 60.8% in March and 43.5% in January, a gap of about 17 points. That is a narrow range compared with beach or ski markets.
Among tracked listings, 95% are entire places and 5% are private rooms. By bedroom count, 1-bedroom units are 33% of tracked listings, 2-bedroom units are 26%, and 3-bedroom units are 26%. Units with 4 bedrooms are 10% and units with 5 bedrooms are 4%. On channels, 55% list on both Airbnb and Vrbo, 41% on Airbnb only, and 4% on Vrbo only.
Annual average occupancy peaked at 62.8% in 2021 and was 51.8% in 2025. Average ADR rose from $170 in 2017 to $206 in 2025, after a high of $210 in 2024.
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. Every STR needs a Short-Term Rental Facility License. In many zoning districts a Special Permit is required first. That permit goes through the City Plan Commission and City Council with a public hearing, which takes 60 to 90 days. Enforcement severity is rated moderate.
A Life Safety Inspection must pass before a license is issued. The license number and occupancy limit must appear in every advertisement. Reported fees are about $150 for the initial license and $50 to renew roughly every two years. Some city materials describe a one-year term, so confirm the renewal cycle with the city.
Waco created a tiered system in 2021. Type I covers owner-occupied rentals and bed and breakfasts. Type II covers non-owner-occupied single-family homes and duplexes and is prohibited in R-E, R-1A, R-1B, and R-1C districts. Type III covers multifamily units and is prohibited in R-3A through R-3E, O-2, O-3, and C-1 districts. Operations that existed before 2021 may be grandfathered if the license is maintained and ownership is unchanged.
Guests pay a combined 15% hotel occupancy tax, made up of 6% state, 7% City of Waco, and 2% McLennan County. Code Compliance enforces the rules with daily fines and license revocation. There is no annual night cap.
Market Comparison
The US STR median is roughly 55% occupancy and a $220 ADR. In August 2026 Waco ran 57.0% occupancy, about 2 points above that benchmark, and a $185 ADR, about 16% below it.
The full-year picture is similar. The 2025 annual average was 51.8% occupancy, about 3 points below the benchmark, at a $206 ADR, about 6% below it. Waco is a value-priced market with moderate occupancy.
Top operators are local. D&L Vacation Rentals leads with 72 listings, a 4.94 rating, and 6,551 reviews, about 5.6% of tracked listings. VillaStay Vacation Rentals follows with 50 listings, a 4.84 rating, and 17,060 reviews. Moon River Ranch has 22 listings, and Waco2Stay and Waco Creekside Resort have 20 each. The top five together manage 184 listings, so the market is not concentrated.
Low ADR against the national median is offset by low home prices.
Frequently Asked Questions About Waco, Texas
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