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

According to Chalet Data, Houston stands out as a short-term rental market where high yields are not confined to one pocket of the city. The ten neighborhoods leading the list span from central districts to affordable outer areas, with gross yields running from 32.3% in Macgregor to 15.3% in Acres Home.

Entry prices range widely, with several high-yielding neighborhoods still offering homes under $200,000. Houston’s citywide gross yield sits at a striking 17.9%, putting it in the 95th percentile nationally, and occupancy rates have held steady at 47% even as home values dipped 4% year-over-year.

The city’s momentum is shaped by a sharp rise in ADR (+36%) and a 26% drop in listings, signaling a market that’s become more competitive for hosts but remains lucrative for committed operators. Whether you’re seeking steady occupancy, event-driven spikes, or value buys, Houston’s leading neighborhoods each tell a different story.

The Best Houston 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, and is reported as the median for each neighborhood. Median ADR and occupancy are computed independently, so multiplying the table’s ADR by occupancy will not reproduce the revenue figure.

Gross yield divides the neighborhood’s median annual revenue by its median home value (Zillow ZHVI). See our methodology for details. The active-operator revenue benchmark filters for listings with sustained booking activity and is the figure buyers should use for underwriting.

1. Macgregor: Highest Yield and Fastest Payback in the City

Macgregor tops Houston’s short-term rental rankings with a gross yield of 32.3%, the highest among all neighborhoods tracked. Occupancy peaks at 66% in August, while January sees a dip to 36%. The median daily rate sits at $189, below the US median but strong for Houston, and annual revenue for active operators reaches $120,337. Home values here have slipped by 4.2% year-over-year, now at $383,529, making the payback period just 3.2 years, the fastest on this list.

Seasonality is balanced, with spring accounting for 30% of annual revenue and summer close behind at 25%. The most common property type is a 2-bedroom, but 3-bedrooms earn the most.

The neighborhood’s proximity to the Texas Medical Center and major universities drives steady demand, while a 29% drop in listings over the past year has kept the market tight and ADRs climbing (+24%). For buyers, Macgregor offers a rare blend of high returns and relatively quick capital recovery. For a full breakdown of property types and revenue, see Macgregor’s analytics page.

Who this market is ideal for: Buyers seeking high-yield, fast-payback investments near major employment centers.

2. Magnolia Park: Affordable Entry, Surging Occupancy

Price-sensitive investors will find Magnolia Park’s combination of a 29.9% gross yield and a $160,555 median home value especially compelling, as its yield sits in the 99th percentile nationwide compared to a US median of just 9.0%.

The area’s annual occupancy rate now stands at 48%, slightly above the US median, with a remarkable 39% year-over-year occupancy jump and a pronounced summer peak at 61% in August. This surge is likely driven by Magnolia Park’s accessibility for budget-minded guests and seasonal demand from workers and families seeking affordable short-term stays.

Spring leads with 30% of annual revenue, while winter (25%) and summer (23%) also contribute significantly, reflecting steady demand throughout the year despite a December low of 39% occupancy. The modest 2% decline in active listings, coupled with a 24% increase in average daily rate, signals a resilient market where operators can capture rising revenues even as supply holds steady.

With payback at roughly 3.4 years of gross active-operator revenue, underwriting risk is mitigated by rapid capital recovery and a dominant 1-bedroom inventory (23 listings at $13,816/year) that aligns with the area’s core traveler segment. More details on bedroom mix and revenue are available on the Magnolia Park analytics page.

Who this market is ideal for: Investors looking for high returns with a low capital requirement and strong occupancy growth.

3. Neartown Montrose: High Revenue, Consistent Demand

Spring travelers drive Neartown Montrose’s occupancy to a 75% peak in March, while even the June trough of 58% outpaces most US markets’ best months. Across the latest 12 months, spring delivered 28% of annual revenue and winter contributed another 27%, showing that demand persists well beyond the festival and holiday surges.

These sustained booking patterns help explain why the area’s occupancy rate, at 62%, stands far above the US median of 45% and supports a gross yield that lands in the 99th percentile nationwide.

Active listings dropped 17% year over year, but average daily rates jumped 52%, allowing active operators to pull in $165,725 in annual revenue. Supply constraints are shaping the market’s economics. Investors seeking quick returns find straightforward underwriting with a payback period of just 3.7 years on the median home price.

The neighborhood’s central location and walkable amenities consistently attract both tourists and business travelers, fueling steady demand and enabling hosts to command higher rates even as home values dipped slightly by 1.1%. For a closer look at revenue by property size, visit the Neartown Montrose analytics page.

Who this market is ideal for: Buyers seeking stable, high-volume bookings in a central, amenity-rich location.

4. Sunnyside: Spring-Driven Revenue, Rapid Supply Shift

Supply constraints have taken center stage in Sunnyside, where a 36% drop in full-time listings over the past year has driven a notable 12% increase in average daily rates.

This tightening market has not only bolstered ADR to $180 but also helped push the gross yield to 22.1%, placing Sunnyside firmly in the 97th percentile among 501 US short-term rental markets. With a median home value of $177,817, well below the US median, entry costs remain accessible even as property values have declined by 11.5% year-over-year.

Spring delivers outsized returns, accounting for 36% of annual revenue and peaking at a 60% occupancy rate in March, while October’s occupancy lags at just 32%. This pronounced seasonality means investors must be adept at optimizing spring calendar strategies and managing leaner fall and winter months, which together contribute only 39% of yearly income.

The active-operator revenue figure of $37,375 translates to a payback period of 4.8 years, an attractive metric for buyers seeking quicker capital recovery in a market dominated by 3-bedroom listings catering to families and groups. For more details, see the Sunnyside analytics page.

Who this market is ideal for: Investors who want a low-cost entry and can manage their calendar for peak spring returns.

5. South Acres Crestmont Park: High ADR, Tight Supply

Price-driven investors will note South Acres Crestmont Park’s standout 20.3% gross yield, which ranks in the 96th percentile among 501 US markets and sits well above the national median of 9.0%.

Occupancy has surged 21% year-over-year, reaching a seasonal high of 65% in August before dipping to 45% in January, a pattern that reflects strong summer demand and a pronounced off-season lull. The average daily rate leads this list at $209, even as it comes in just below the US median, and annual revenue for active operators is a robust $38,682.

Spring accounts for the largest share of annual revenue at 32%, followed by summer’s 26%, showing how bookings cluster in the warmer months. A 17% drop in active listings has tightened supply, driving both occupancy and ADR up by 17% over the last year.

In this area, investors can underwrite for relatively quick capital recovery, just over five years, compared to similar-priced markets. The neighborhood benefits from larger home sizes, steady demand from nearby employment centers, and constrained inventory that keeps competition in check. For a detailed breakdown of performance and property types, see the South Acres Crestmont Park analytics page.

Who this market is ideal for: Buyers focused on higher nightly rates and larger homes in a supply-constrained area.

6. Greater Fifth Ward: Group-Friendly, Strong Spring/Summer

Spring travel demand fuels Greater Fifth Ward’s short-term rental performance, with occupancy surging to 60% in March as families and groups seek affordable, spacious accommodations near downtown.

By December, occupancy drops to 32%, reflecting the area’s pronounced seasonality and a winter slowdown that shapes revenue timing, spring and summer combine for 56% of annual revenue, while fall lags at just 21%. This seasonal pattern means investors should plan for cash flow peaks in the first half of the year and prepare for leaner months as the year closes.

With a 20.1% gross yield, this market stands in the 96th percentile nationwide, far above the US median of 9.0%. The typical property here is a 3-bedroom (75 out of 96 listings), which underwrites well for larger parties and supports a robust $237 ADR.

A sharp 31% drop in active listings has created a supply squeeze, driving ADR up 35% year-over-year and compressing payback to just over five years of active-operator revenue. The area’s ongoing redevelopment and downtown proximity continue to attract buyers seeking both value and future appreciation. Explore the Greater Fifth Ward analytics page for more on property types and returns.

Who this market is ideal for: Investors targeting group bookings and neighborhoods with redevelopment potential.

7. Astrodome Area: High Occupancy, Budget-Friendly

Event-driven traffic shapes the Astrodome Area’s short-term rental market, where July’s occupancy surges to 75% and spring delivers 29% of annual revenue. This neighborhood’s median gross yield of 20.0% places it in the 96th percentile nationally, far above the US median of 9.0%, even as its average daily rate of $143 remains well below the US median.

Properties here see occupancy drop to 33% in May, reflecting a sharp seasonal swing that underscores the importance of timing and event calendars for operators.

Investors will note that the typical payback time is about 5.2 years at current active-operator revenue, a notably fast recoupment window for Houston’s price point. Still, the 26% decline in active listings over the past year has not prevented occupancy from softening by 14%, even as ADR climbed 28%.

Proximity to NRG Stadium and the Texas Medical Center continues to drive demand, but underwriting should account for recent volatility and the heavy concentration of 2-bedroom units (141 listings), which cater to both families and event attendees. For a deeper dive into performance by property size, see the Astrodome Area analytics page.

Who this market is ideal for: Buyers seeking affordable entry and steady bookings near major event venues.

8. Greater Ost South Union: Balanced Returns, Supply Squeeze

Market fundamentals in Greater Ost South Union have shifted quickly, with a 21% drop in active listings driving a pronounced supply squeeze even as demand holds steady. Occupancy rates climbed 12% year-over-year, peaking at 56% in March when average daily rates hit $205, while April saw a sharp occupancy trough at just 35%.

This pronounced seasonal swing underlines the importance of pricing strategy and calendar management for hosts seeking to maximize spring’s 30% share of annual revenue, which outpaces the winter (27%), summer (23%), and fall (20%) contributions.

Gross yields here reach 17.4%, placing the neighborhood in the 95th percentile nationally, well above the US median of 9.0%, even as the $171 ADR trails the US median of $232. The typical property is a three-bedroom, which dominates the inventory with 69 listings and brings in $29,567 annually at a $208 ADR, making it attractive for groups and families.

The season’s compressed inventory and rising rates suggest a window for new entrants, with a payback period of just under six years on active-operator revenue. Buyers should be prepared for seasonal volatility and ongoing price competition as the neighborhood evolves. More granular data is available on the Greater Ost South Union analytics page.

Who this market is ideal for: Investors wanting a balance of yield and occupancy in a tightening market.

9. Mid West: High ADR, Low Occupancy

Price-driven analysis reveals Mid West’s $192 average daily rate sits well above the US median, delivering a headline gross yield of 15.9% that ranks in the 91st percentile nationally. Despite this, occupancy rates are notably soft, with a median of 35% versus the US median of 45%, and a sharp seasonal swing.

July peaks at 61% occupancy (ADR $178), while January plunges to just 18%. The area’s annual revenue for active operators stands at $38,449, reflecting the challenge of filling nights even as nightly prices remain strong.

Recent momentum underscores volatility, as occupancy dropped 36% year-over-year even while ADR climbed 23% and listing count fell 26%. This pattern points to a market where supply contraction has not been matched by demand, likely due to shifting traveler preferences or increased competition from other Houston neighborhoods.

Underwriting here requires caution is payback on the median home sits at about 6.5 years of gross revenue, and the dominance of 1-bedroom units (43 listings) contrasts sharply with the much higher earnings potential of 3-bedrooms ($34,870/year at $256 ADR). For more property-level insights, check the Mid West analytics page.

Who this market is ideal for: Buyers focused on higher nightly rates and willing to manage lower, more volatile occupancy.

10. Acres Home: Steady Bookings, Affordable Entry

Market data from the past year shows that Acres Home’s 15.3% gross yield stands in the 90th percentile among 501 US short-term rental markets, far outpacing the national median of 9.0%.

Occupancy here hits its highest point in July at 61%, a clear sign that summer travel demand remains robust despite the area’s more affordable $157 average daily rate, which sits well below the US median. February sees occupancy dip to 38%, but spring compensates by generating 33% of annual revenue, making it the most lucrative season for hosts.

Operators who focus on family-sized accommodations benefit from a bedroom mix dominated by 3-bedroom homes, with 29 such listings averaging $31,344 annually and a $185 ADR. The combination of a 19% drop in listings and a 38% jump in ADR over the last year signals a tightening supply that has fueled both pricing power and the market’s 33% rise in occupancy.

With a median home value of $222,923 (down 8.8% YoY) and a payback period of roughly 6.8 years, Acres Home offers an accessible entry point and steady returns for those seeking reliable, year-round bookings. For more details on seasonality and property mix, see the Acres Home analytics page.

Who this market is ideal for: Investors seeking affordable homes and consistent bookings in a family-oriented area.

How to read these rankings before you buy

Gross yield gives a quick snapshot of a neighborhood’s income potential, but it’s not the whole story. The headline revenue figure averages all listings, while the active-operator benchmark filters for properties with sustained bookings, this is the number buyers should use for underwriting. Occupancy and ADR fluctuate by season, property size, and listing quality, so the table’s medians won’t always match your property’s performance.

These rankings are a starting point, not a guarantee. Even in top-yielding neighborhoods, individual property results can vary widely based on location, amenities, and guest experience. Always verify numbers at the property level and factor in expenses, taxes, and regulatory requirements. For more on our data and calculations, see our methodology page.

How to Act on This

Houston’s short-term rental scene is defined by its diversity, neighborhoods with high yields span from central districts to affordable outer areas, each with its own guest profile. Proximity to the Texas Medical Center, universities, and event venues like NRG Stadium drives demand in several markets, while others thrive on affordability or group-friendly homes.

Regulation is evolving: starting January 1, 2026, all Houston short-term rentals must register with the city and display a permit number on listings (per the City of Houston’s official ARA guidelines). In addition, operators are responsible for collecting a combined hotel occupancy tax of 17% (6% state, 7% city, 2% county, 2% sports authority) on stays under 30 days. Always verify the latest requirements before you buy or launch a listing.

Given the recent drop in listings and rising ADRs, buyers should expect a competitive landscape where quality, location, and guest experience matter more than ever. Underwrite using active-operator revenue, not just the headline average, and consider seasonality, many neighborhoods see revenue concentrated in spring or summer.

Connect with a Houston short-term rental agent who knows the local permit process and can help you identify properties with proven demand drivers. With the right due diligence, Houston’s leading neighborhoods still offer some of the country’s best returns for short-term rental investors.