Top 14 Airbnb Markets in Texas

Everything is bigger in Texas—including the opportunities for short-term rental (STR) investors. From fast-growing metros and college towns to rugged desert escapes and Hill Country wine destinations, the Lone Star State offers an unusually diverse lineup of high-performing Airbnb markets. If you’re looking for cash-flowing urban properties, weekend-trip cottages, or bargains in up-and-coming regions, the following Texas markets rank highest on AirDNA’s proprietary Market Score.

What Is AirDNA’s Market Score?

Market Score is a proprietary metric that ranks how attractive a location is for short-term rental investment. Each score is calculated based on five core factors:

• Investability
• Rental Demand
• Revenue Growth
• Seasonality
• Regulation

Scores range from 0 to 100—higher scores indicate healthier, more profitable markets. Inside the AirDNA platform, each of the five factors also receives its own 0–100 sub-score, helping hosts zero in on exactly what drives performance in any given location.

Understanding Markets vs. Submarkets

This roundup focuses on markets—cities or larger geographic areas with enough active listings to generate reliable data. While Texas is loaded with promising submarkets (think individual neighborhoods in Dallas or lakeside communities outside Austin), the list below sticks to city- and region-level data so investors can compare apples to apples.

Airbnb Market Overview in Texas

Texas enjoys a year-round tourism cycle driven by major sporting events, world-class medical centers, top-tier universities, and iconic attractions such as the River Walk and the Alamo. Demand is further buoyed by significant corporate travel in Houston, Dallas–Fort Worth, and Austin. Meanwhile, rural gems like Fredericksburg and Big Bend country have exploded in popularity for road-trippers and digital nomads who crave open spaces. Add in relatively landlord-friendly regulations (with a few notable exceptions), and it’s no surprise that Texas remains one of the hottest STR states in the U.S.

Top 14 Airbnb Markets in Texas (Ranked by Market Score)

14. Texas East Area

Market Score: 16.60

Average Annual Revenue: $28,910

The Texas East Area—home to piney-woods towns, fishing lakes, and historic small cities—offers a low-cost entry point for investors. Limited competition and steady regional travel create pockets of above-average yields for cabins and family-sized homes.

13. Austin

Market Score: 19.25

Average Annual Revenue: $40,748

“Keep Austin Weird” also means keeping regulations tight. Despite sky-high average daily rates fueled by tech conferences, live-music festivals, and UT football, strict permitting rules weigh on Austin’s overall score. Investors must navigate zoning carefully—but the upside can be enormous.

12. College Station

Market Score: 39.86

Average Annual Revenue: $39,066

Home to Texas A&M University, College Station surges during football season, graduation weekends, and campus events. Consistent enrollment growth and alumni travel keep occupancy strong, especially for multi-bedroom listings.

11. Dallas

Market Score: 41.57

Average Annual Revenue: $31,081

Dallas boasts a booming business sector, pro sports, and a top-tier dining scene. While competition is fierce and city ordinances are evolving, properties near entertainment districts and corporate hubs still command healthy nightly rates.

10. San Antonio

Market Score: 44.72

Average Annual Revenue: $33,180

The Alamo City’s rich history and family-friendly attractions, including SeaWorld and Six Flags, generate robust year-round demand. Investors should account for seasonal spikes around spring break and summer tourism.

9. El Paso

Market Score: 56.08

Average Annual Revenue: $17,586

Border culture, Fort Bliss, and a growing culinary scene position El Paso as a stable, lower-cost market. Affordable home prices help offset its modest ADRs, making cash-flow targets easier to hit.

8. Waco

Market Score: 60.64

Average Annual Revenue: $36,862

Fueled by Baylor University and HGTV’s Magnolia phenomenon, Waco sees high visitor interest relative to its size. Boutique homes and designer-inspired remodels often outperform market averages.

7. Amarillo

Market Score: 60.90

Average Annual Revenue: $25,926

Sitting on historic Route 66, Amarillo attracts national-park road-trippers and oil-and-gas workers. Low purchase prices and steadily improving ADRs make it a solid cash-flow play.

6. Texas West Area

Market Score: 63.44

Average Annual Revenue: $25,313

This sprawling region covers gateway towns to Big Bend National Park and the Davis Mountains. Outdoor adventure tourism drives pronounced high seasonality, but limited supply keeps margins strong.

5. Fort Worth

Market Score: 64.25

Average Annual Revenue: $30,718

With its Stockyards, museums, and booming downtown, Fort Worth offers an attractive alternative to Dallas. A friendlier regulatory atmosphere and slightly lower purchase prices improve its STR outlook.

4. Lubbock

Market Score: 64.31

Average Annual Revenue: $28,489

Lubbock leans on Texas Tech University, medical centers, and a rising craft-beer scene. Occupancy soars during football games and graduation, creating lucrative weekend rate premiums.

3. McAllen

Market Score: 67.59

Average Annual Revenue: $16,026

Located in the Rio Grande Valley, McAllen benefits from cross-border commerce, “Winter Texan” snowbirds, and growing healthcare infrastructure. Investors often favor smaller, low-maintenance properties that cater to medical travelers.

2. Fredericksburg

Market Score: 77.14

Average Annual Revenue: $53,356

The Hill Country’s wine capital sees huge weekend demand from San Antonio and Austin residents. High nightly rates for charming cottages and vineyard-view homes propel Fredericksburg to one of the state’s highest revenue potentials.

1. Houston

Market Score: 80.02

Average Annual Revenue: $25,280

As Texas’ largest city, Houston boasts a diversified economy—energy, aerospace, healthcare, and the nation’s largest medical center. Year-round conventions, pro sports, and eclectic neighborhoods create consistent occupancy, earning it the top Market Score in the state.

Should You Invest in Texas?

Texas combines business-friendly regulations (with some city-level exceptions), strong population growth, and a tourism scene that seldom cools off. Coastal investors might gravitate toward Austin’s premium ADRs or Fredericksburg’s weekend surge pricing, while cash-flow hunters can uncover bargains in places like McAllen, Amarillo, and the Texas East Area.

With diverse demand drivers—from Fortune 500 headquarters to national parks—the Lone Star State offers something for every STR strategy. As always, review local ordinances and analyze up-to-date AirDNA data before you buy, but rest assured: Texas remains a heavyweight contender in the short-term rental arena.