airbnb occupancy rates in Texas cities
What’s the first thing that comes to your mind when you hear the word ‘Texas”?
For many decades, Texas has been known for being a music capital in America. It is also known as the Lone Star State which is located in south-central America bordering a few parts of Mexico. But aside from its famous barbecue meals, hot climate, and historical sites, did you also know that it has one of the best cities to invest in an Airbnb in America?
Despite the fact that the pandemic hit the world in 2020, the Airbnb industry in Texas still managed to rank as the third-highest earning business in the nation! To be specific, new Airbnb hosts in Texas made over $170 million in the last year of 2021.
In this article, we will discuss important factors of investing in an Airbnb business within the Texas area and compare each city according to their respective occupancy rates. Let’s dive in and learn more!
Frequently Asked Questions
Yes, Airbnb is legal in Texas in some parts of the city - but not in residential areas. According to Texas Supreme Court, owners of Short-Term Rentals (STRs) are required to obtain an operating license.
For more information, you can check the laws & restrictions on short-term rentals in Texas.
If you want to have an Airbnb business in Austin, you will be required to have a short-term rental license and pay a 9% quarterly hotel tax.
On the other hand, if your property is inside the San Antonio City Limits, then you need to get a permit from the City of San Antonio to offer a short-term rental to guests. You will also be required to set up a Hotel Occupancy tax with their Finance Department.
In Dallas, although there are no regulations for Airbnb, all short-term rental owners have to register with the City of Dallas. For more information, you can check out the official document released by Dallas City Hall.
Finally, while short-term rentals in Fort Worth have not yet reinforced certain requirements, they are considering of implementing regulations for STR owners.
Typically, the months of May to July are the peak seasons in Texas with an average of 51% occupancy rate.
According to Airbtics' Data, the average daily rate in Texas is $159 for private rooms & $217 for studio-type rooms.
As of April 2022, Austin City has the highest occupancy rate of 40%.
Based on Airbtics data, we think that investing in Texas is an excellent option, as long as you find the right city to invest in!
Aside from the fact that Texas consistently draws tourists from all over the country because of massive events such as music festivals, having an Airbnb business in this state is a unique offer for all vacationers & business travelers.
Based on our in-depth research, if you are looking forward to maximizing your monthly revenue in Texas, San Antonio is ranked 1st on our list.
Since Texas has inclement changing weather in every season, it's best to come prepared! Some of the best amenities that you can add to your Airbnb are:
- Barbecue griller & dining essentials (Texas is literally the barbecue capital, remember?)
- Fireplace / heating unit
- An outdoor pool
- Automatic Icemaker
Check out the rest of the Airbnb must-have amenities!
Using the Airbtics data analytics tool, we were able to accurately get the occupancy rates of the 4 key cities in Texas!
As presented on the funnel chart above, the 4 main cities in Texas have been categorized according to their respective occupancy rates and filtered into 2-bedroom condos.
City of Austin
If you know that Austin is the state capital of Texas, then you also have to know that this city is popular for its eclectic live-music scene of country, rock & blues!
Based on our in-depth research, we’ve come across Downtown Austin and Allandale as one of the most ideal neighborhoods in the city of Austin.
These neighborhoods have thriving business & entertainment districts that offers an exquisite experience for all visitors with various travel purposes.
Occupancy Rate: 66%
Median Daily Rate: $205
Average Monthly Revenue: $4,504
City of Fort Worth
This particular city in Texas is proud of its rich and diverse cultural history – also known as ‘Cowtown’ for its legitimate cattle ranching industry!
Since it is currently illegal to put up an Airbnb business in residential areas in Fort Worth, you will be surprised to know that their average occupancy rate is still at 35%! The most recommended neighborhoods in Fort Worth are Fairmount and Arlington Heights.
These neighborhoods not only have a buzzing strip line with intimate restaurants (from sushi to Thai & Mexican food, yum!) — they also offer a peaceful and safe community.
In addition to this, it offers a wide range of fishing piers, playgrounds and arcades, and vintage-style cafes which most travelers with families prefer to go to.
Occupancy Rate: 65%
Median Daily Rate: $135
Average Monthly Revenue: $3,224
City of San Antonio
This city is a popular tourist destination – hence, it has the highest monthly revenue of $1,687 according to Airbtics data! Being the seventh-largest city in the USA, the City of San Antonio also has the largest concentration of Spanish colonial architecture in North America.
After a thorough investigation, it shows that the areas of Alamo Heights and Terrell Hills are some of the best neighborhoods in San Antonio City.
To sum it up, San Antonio’s economy continues to rise because of different business industries such as medical, energy, technology, and many others. Not to mention that there are numerous business & leisure travelers, too!
Occupancy Rate: 64%
Median Daily Rate: $135
Average Monthly Revenue: $2,875
City of Dallas
The City of Dallas is a modern metropolis located in the northern part of Texas. Known for its museum and parks, it is also the fourth largest city in Texas that attracts millions of visitors a year!
Based on the information that we gathered from various Airbnb hosts & recommendations from numerous guests, the neighborhoods of Preston Hollow and Deep Ellum were ranked as the best.
Aside from the available public transportation nearby, these neighborhoods were also marked with efficient access to the nightlife and historical trips. In addition to this, they were also rated as the most safest and affordable neighborhoods in Dallas!
Occupancy Rate: 60%
Median Daily Rate: $139
Average Monthly Revenue: $2,891
COMPLETE OCCUPANCY RATES IN EVERY CITY?
Head over here to find out about the cities with highest Airbnb occupancy rates & learn more!
Our basis for filtering out the best neighborhoods in each city was thoroughly gauged according to three factors: economic status, safety (lowest crime rates), and most visited tourist destinations.
These three are the main recipe for attracting more potential guests to increase occupancy rates!
Now that you have a brief background and accurate comparison of the cities in Texas, this does not mean that your research & analysis is over. While we portrayed accurate data for the occupancy rates of private rooms in Texas, results will definitely vary according to the type of bedrooms & amenities.
It is also important to note that these occupancy rates in Texas are in constant motion, which is why it’s truly efficient to have a data analytics tool that you can rely on. For the continuous success of your Airbnb business, don’t make a wild guess – try Airbtics!
