10 Best Places to Buy Short-Term Rentals in Dallas (2026)

Gross yields in Dallas short-term rentals are among the strongest in major US cities, but the real story is how tightly those returns cluster in the city’s southern and central neighborhoods. The 2026 leaderboard spans from Cedar Crest’s 21.9% yield down to Oak Lawn’s 9.1%, with the top five all clearing 19%, well above the US median of 9.0%. Entry prices range from $148,000 to over $420,000, offering options for every capital stack.

Dallas’s market is in flux. Citywide occupancy has climbed 6% in the past year, even as median home values dipped 5% and active listings fell by a fifth. That supply squeeze, paired with a 41% jump in ADR, is driving up returns for committed operators.

The neighborhoods that lead this list are those where booking demand is rising or holding steady, and where investors can still buy in at a discount to peak values. If you’re looking to underwrite a Dallas short-term rental in 2026, these are the numbers, and the neighborhoods, that matter. Connect with a Dallas short-term rental agent to get property-level guidance.

The Best Dallas Neighborhoods for Airbnb, Ranked by Yield

Data as of July 11, 2026. Annual revenue is calculated for each listing as ADR × occupancy × 365, using trailing 12-month data, before expenses. The table reports the median listing’s revenue, with median ADR and occupancy computed independently.

Multiplying table ADR by occupancy will not reproduce the revenue figure. Gross yield divides median revenue by median home value (Zillow ZHVI). See methodology for details. The active-operator revenue benchmark filters for listings with sustained booking activity and is the most realistic underwriting baseline for buyers.

1. Cedar Crest: Highest Yield, Fastest Payback

Price-conscious investors find Cedar Crest particularly appealing, as its 21.9% gross yield ranks in the 97th percentile among 501 US markets, far outpacing the national median of 9.0%. The median home value has dropped 10% year-over-year to $176,000, creating an accessible entry point just as demand is intensifying. Occupancy surged by 35% and average daily rates climbed 62% year-over-year, while listings contracted by 22%, indicating a pronounced supply squeeze that is fueling revenue growth for current operators.

Spring is the clear revenue leader here, with occupancy peaking at 58% in March and a robust $221 ADR, while summer sees a dip to 39% occupancy. As a result, spring and winter together account for 55% of annual revenue, rewarding owners who time their marketing and pricing strategies accordingly.

The market’s 57 active full-time listings, most commonly 3-bedroom homes earning $29,600 per year at a $256 ADR, suggest strong group and family demand. With a payback period of just 4.6 years on gross active-operator revenue, Cedar Crest stands out for rapid returns and resilience to market swings. For a deeper breakdown of property types and booking patterns, see the Cedar Crest analytics page.

Who it fits. Yield-driven buyers seeking rapid payback and low entry cost.

2. Eagle Ford: High Rates, Group Demand

Price dynamics in Eagle Ford give investors a powerful combination. A median ADR of $344, which towers over the US median of $232, and a gross yield of 21.8% that places the neighborhood in the 97th percentile nationally.

June stands out as the high season with occupancy peaking at 52%, while April brings the lowest occupancy at 36%, reflecting a pronounced summer group travel surge. These strong seasonal peaks, paired with a 22% year-over-year jump in ADR and a 12% occupancy gain in June, show that demand is intensifying even as supply tightens (active listings down 11%).

The typical investment here is a large home: 4-bedrooms are most common, generating nearly $49,000 annually, and 5-bedrooms command the highest earnings at $71,837 per year with a $519 ADR. This bedroom mix supports the market’s focus on group bookings, which drive both higher nightly rates and annual revenue.

Despite a 7.1% dip in median home values to $248,612, the payback period remains short at 4.7 years, an attractive metric for underwriters seeking fast returns in a supply-constrained, high-demand environment. The Eagle Ford analytics page details how group bookings and premium pricing drive returns here.

Who it fits. Buyers targeting high nightly rates and larger properties for group stays.

3. Southeast Dallas: Budget Entry, Resilient Occupancy

Price-sensitive buyers find Southeast Dallas compelling, as a $148,000 median home value delivers a 21.4% gross yield, ranking in the 97th percentile nationwide and far above the US median of 9.0%. Occupancy remains steady at 50%, with September’s 60% peak (ADR $106) and a sharp January trough at 26%, reflecting the area’s pronounced off-season dip and opportunity for dynamic pricing strategies as demand fluctuates.

Spring’s 29% share of annual revenue underscores the importance of capitalizing on seasonal surges, while fall and summer each contribute nearly a quarter of yearly earnings. The active-operator payback period of just over 5 years is unusually short, driven by the affordable entry point and a bedroom mix dominated by 1-bedrooms (31 listings, $9,133 per year, $60 ADR), making cash flow recovery more accessible for new hosts.

Recent momentum shows softening demand, with occupancy down 9% year-over-year even as ADR climbed 13% and listings contracted by 11%, suggesting that while bookings are moderating, reduced competition and price flexibility could help stabilize returns. The Southeast Dallas analytics page breaks down the risk/reward for value-focused buyers.

Who it fits. Investors seeking low-cost entry and steady bookings, with moderate risk.

4. City Center District: Downtown, High Occupancy

Downtown’s City Center District commands investor attention with a 19.9% gross yield, placing it in the 96th percentile among US short-term rental markets. Occupancy reaches its high in July at 70% (ADR $136), then dips to 48% in January, but revenue remains balanced across seasons.

Spring and winter each contribute 27-28% of annual earnings. This stability is driven by a steady stream of business and leisure travelers who value proximity to offices, convention venues, and major attractions, keeping bookings reliable even as overall demand softens.

Active supply has tightened sharply, with listings down 36% year-over-year, yet occupancy slipped 11% and ADR jumped 31%. This signals that while fewer units chase bookings, the remaining operators are able to command higher nightly rates, partially offsetting the dip in demand.

The payback period stands at 5.2 years, an efficient timeline for a downtown market, supported by a dominant 1-bedroom mix (43 listings, $21,249/yr, $150 ADR) that caters to solo travelers and couples. For a closer look at how downtown dynamics affect returns, see the City Center District analytics.

Who it fits. Buyers prioritizing central location and high occupancy rates.

5. South Boulevard Park Row Historic: Historic Stock, Supply Squeeze

Price trends in South Boulevard Park Row Historic have created a rare opportunity for investors, with the median home value dropping 14% year-over-year to $179,000. Despite this dip, the neighborhood’s gross yield of 19.3% stands at the 96th percentile among 501 US markets, far outpacing the national median of 9.0%.

Seasonally, occupancy builds toward a June peak at 57% (with ADR reaching $216), while April marks a low at 33%, reflecting strong summer demand and a spring season that delivers 30% of yearly revenue.

Recent data points to a pronounced supply squeeze. A 15% drop in listings over the past year has coincided with a 41% surge in occupancy and a 36% jump in ADR. This dynamic pushes the payback period for active operators to just 5.3 years, making underwriting attractive for those seeking quick returns.

The area’s bedroom mix is notable. While 1-bedrooms are most prevalent, 2-bedrooms command much higher earnings at $25,733 per year, suggesting that investors targeting larger units can capitalize on premium rates fueled by limited inventory and growing demand. The South Boulevard Park Row Historic analytics show how historic charm and limited inventory shape this market.

Who it fits. Buyers looking for historic neighborhoods with tight supply and upside in rates.

6. Government District: Downtown Access, Strong Spring

Downtown’s Government District stands out for its robust spring momentum, with occupancy peaking at 65% in May and spring months contributing 36% of annual revenue. This surge is driven by the area’s proximity to major event venues and business centers, which consistently attract both leisure and corporate bookings during the busiest season. In contrast, occupancy dips to 43% in December, reflecting the district’s event-driven demand and a quieter winter calendar.

With a median gross yield of 14.9%, the Government District ranks in the 89th percentile nationally, outpacing the US median of 9.0%. The payback period sits at 6.9 years of active-operator revenue, a figure shaped by the area’s moderate home values and a supply squeeze from a 20% drop in full-time listings. Most listings are two-bedroom units (34 out of 39), catering to small groups and business travelers seeking downtown convenience.

The combination of rising occupancy (+49% year-over-year) and a 37% jump in ADR signals strong pricing power, but the longer payback horizon means buyers should be prepared for a mid-term hold to realize the district’s full potential. The Government District analytics provide more detail on how booking trends shift with the city’s event calendar.

Who it fits. Buyers seeking downtown access and peak spring revenue.

7. Southwest Dallas: Steady, Affordable, Family-Focused

Affordability remains a defining feature in Southwest Dallas, where the median home value of $231,588 sits well below the US median and has dropped 7.5% year-over-year. This market’s 11.4% gross yield places it in the 72nd percentile nationally, offering above-average returns for buyers prioritizing stability.

Occupancy rates show a clear seasonal rhythm, climbing to 71% in August when families travel most and dipping to 38% in November, a lull that shapes annual revenue patterns. Spring emerges as the top-earning season, delivering 32% of yearly revenue, while summer follows at 25%, a reflection of school breaks and family-focused bookings.

Momentum is quietly positive. Occupancy has edged up 3% year-over-year, and the average daily rate surged 60%, even as the number of listings fell 10%. With 80 full-time listings, the active-operator annual revenue of $25,218 translates to a payback period of about 9.2 years, which is longer than Dallas’s most aggressive neighborhoods but signals a more predictable investment cycle.

The dominance of 1-bedroom properties (47 listings) at lower ADRs, alongside stronger earnings from 2-bedrooms ($20,444/year), points to a market that rewards investors who cater to small families or budget-conscious groups. Local attractions and competitive pricing help sustain bookings, especially during peak travel months. The Southwest Dallas analytics cover how local attractions and affordability shape bookings.

Who it fits. Buyers seeking affordable, steady returns and family-oriented demand.

8. Lake Highlands: High Occupancy, Low ADR

Occupancy patterns define Lake Highlands, where bookings hit a September high of 86% at a $75 ADR and rarely dip below 55% even in June’s trough. This consistency keeps annual revenue robust at $33,600, despite nightly rates that lag far behind the US median ($97 here against $232 nationally).

With spring accounting for 32% of yearly revenue and summer trailing at just 24%, owners can expect a reliable flow of guests outside the traditional high season, reducing the risks associated with highly seasonal markets.

Investors will note that the payback period sits at 9.3 years, a direct product of the area’s modest ADR and declining home values (down 5.1% year-over-year). Yet, Lake Highlands’ gross yield ranks in the 69th percentile among US markets, thanks in large part to its 73% median occupancy rate (well above the US median of 45%).

The dominance of 1-bedroom listings (62 out of 77 active full-time units) caters to singles and couples, supporting high utilization rates but limiting per-booking revenue. The recent 52% ADR surge, even as occupancy slipped 4% and listings dropped by a third, suggests operators are successfully adjusting pricing to maintain returns as supply tightens.

Who it fits. Buyers who prioritize high occupancy and consistent bookings over premium nightly rates.

9. Far North: Larger Homes, Year-Round Demand

Price trends in Far North define its investment landscape, as the area’s $407,932 median home value sits at the high end for Dallas and has dipped 4.4% year-over-year. Despite this, Far North’s 10.2% gross yield ranks in the 63rd percentile nationally, outpacing the US median of 9.0%, and its occupancy rate of 58% stands well above the US median of 45%.

Investors find the mild seasonality appealing. Occupancy surges to 74% in July when rates are relatively accessible at $139, while even the January trough holds at 35%, supporting a more consistent booking pattern throughout the year.

Momentum remains positive, with occupancy up 8% and ADR soaring 28% year-over-year, while the number of listings has barely changed, signaling stable competition and growing guest demand. The neighborhood’s bedroom mix reveals opportunity for scale, as 1-bedrooms dominate the market but 4-bedrooms command the highest earnings at $66,606 per year and a $448 ADR.

With a payback period of 10.1 years, underwriting here favors buyers with a long-term horizon and the capital to target larger homes positioned for steady, year-round returns. The Far North analytics detail how larger homes and steady demand shape returns.

Who it fits. Buyers with more capital, seeking larger homes and year-round demand.

10. Oak Lawn: Urban Core, Softening Demand

Urban market dynamics shape Oak Lawn’s investment landscape, where a 9.1% gross yield places it squarely at the 51st percentile among 501 US markets, just above the national median. Occupancy fluctuates sharply through the year, peaking at 66% in August when rates are a moderate $145, but dropping to just 38% in June, reflecting the neighborhood’s strong summer draw and pronounced off-season lull.

This pronounced seasonality means revenue is spread fairly evenly, with spring and fall each contributing 26% and summer 25% of annual income, so operators must plan for cash flow swings.

Recent data points to a market in flux. Year-over-year, occupancy has declined by 29% even as average daily rates have surged 46%, and active listings have fallen 18%. These shifts signal softening demand and intensifying competition, requiring buyers to underwrite conservatively. The payback period sits at around 11.3 years of gross active-operator revenue to recoup the median purchase price, underscoring the need for a long-term perspective.

The bedroom mix is telling. While 1-bedrooms dominate the market with 182 listings and modest $16,676 annual earnings, 3-bedrooms command the highest returns at $35,012 per year and a $305 ADR, suggesting that larger homes better capture the area’s premium pricing potential despite the overall demand headwinds.

Who it fits. Buyers seeking an established urban core, with capital to weather demand cycles.

How to read these rankings before you buy

Gross yield is a powerful first filter, showing which Dallas neighborhoods offer the highest revenue relative to purchase price. But it’s only a starting point. Headline revenue averages all listings, including those with sporadic bookings, while the active-operator benchmark focuses on properties with sustained activity, this is the more realistic baseline for underwriting. Occupancy and ADR can vary widely even within a neighborhood, and seasonality means that timing matters for cash flow.

Before making a purchase, dig into the property-level details. Proximity to demand drivers, property type, and local competition all shape your actual returns. The numbers here reflect median performance, not a guarantee for every listing. Always verify regulations and taxes before closing.

How to Act on This

Dallas offers a rare mix of high yields, falling entry prices, and a tightening supply of active listings. Investors should focus on neighborhoods where occupancy and ADR are rising, and where supply is shrinking, these are the signals of resilient demand. Underwrite using the active-operator revenue, not the headline, and stress-test for seasonality, especially in markets with sharp spring or summer peaks.

Regulation in Dallas remains a moving target. No official primary source currently details permit or licensing requirements, so buyers must verify current rules before investing. For taxes, expect to collect and remit the Texas state hotel occupancy tax of 6% on gross room revenue. City-level hotel occupancy tax is also likely, but confirm the latest rates and filing requirements with the city controller’s office.

Neighborhoods with falling home values and rising ADRs present unique opportunities, but always confirm that your intended property type and location are eligible for short-term rental use. For tailored property selection and up-to-date compliance guidance, match with a Dallas short-term rental agent before you buy.