Most Profitable Airbnb Cities in Texas (2026 Data)

The most profitable Airbnb cities in Texas in 2026 are Austin and Galveston on gross revenue, with Fort Worth, San Antonio and the DFW metroplex close behind once you factor in purchase price and local rules. This guide ranks the major Texas airbnb markets by annual revenue, revenue per available night (RevPAR), average daily rate (ADR) and occupancy rate, using Surge short term rental data for the trailing 12 months (September 2025 to August 2026). Then we show what that revenue looks like after costs, so real estate investors and airbnb investors can compare profit, not just top line numbers, and find the top airbnb markets for their goals.

Looking for specific towns, neighborhoods and the best places to buy in each area? Read our companion guide to the best places to buy an Airbnb in Texas. This page focuses on city level profitability.

Most Profitable Airbnb Cities in Texas 2026: The Ranking

Rank	City	Annual revenue	RevPAR	ADR	Occupancy	Year over year
1	Galveston	$45,457	$136	$297	43.4%	+5.3%
2	Austin	$44,942	$135	$232	57.7%	flat
3	Dallas	$39,983	$121	$201	60.2%	+1.2%
4	Fort Worth	$38,665	$117	$203	57.3%	+2.6%
5	San Antonio	$36,942	$110	$196	55.3%	+2.2%
6	Houston	$34,281	$103	$184	55.5%	+1.9%

Source: Surge market data covering every active airbnb listing in these short term rental markets, average annual revenue per active listing in each metro, trailing 12 months versus the prior 12 months. RevPAR is ADR multiplied by occupancy, which makes it the cleanest way to compare how hard each property works per night.

What Makes the Best Airbnb Markets in Texas Profitable

Texas offers airbnb investors plenty of reasons to invest: no state income tax, fast population growth, a strong job market in its major cities and a wide variety of destination types, from beach towns to live music capitals. But markets are not equal. In our data, the most profitable short term rental markets share a few traits:

• Proximity to demand drivers. Proximity to beaches, downtown event venues, medical centers and universities creates steady bookings. A listing's proximity to attractions is often worth more than an extra bedroom.
• Year round demand. Markets with business travelers on weekdays and tourists on weekends hold occupancy better than single season destinations.
• Clear short term rental rules. Operators need a market where the rules are stable. Regulations evolve, so focus on cities with a permit process you can follow.
• Room to compete. Supply growth can stop revenue gains, as Austin showed last year. Markets with healthy demand per listing give a new host plenty of room.

Why These Are the Top Airbnb Markets in Texas

Here is how each of the six markets earns its place on the list, and what investors can expect in each area.

1. Galveston, TX: Highest Revenue, Most Seasonal

As a beach destination, Galveston leads the state on revenue ($45,457) and nightly rates ($297), and it is the only major market that grew more than 5% last year. The trade off is seasonality: July brought in about $8,100 per listing versus about $1,850 in January, a swing of more than four times. Profitability depends on how well you price the summer and fill the winter. The city requires a $250 annual license per unit plus 9% city hotel tax, while the nearby Bolivar Peninsula has no city registration at all. See our Galveston investment guide.

2. Austin, TX: Highest ADR Among Major Cities

Austin earns $44,942 annually with a $232 average daily rate, the highest ADR of the major cities, and a steadier calendar than the coast: March (SXSW and spring break) is the peak, January the low, a ratio under two to one. Revenue was flat year over year because supply is high at about 12,900 listings. Since 2025 the city licenses STRs in every residential zone, capped at two per single family site. Strong events, live music, restaurants, hiking in the Hill Country and a strong job market keep demand from tourists and business travelers year round.

3. Dallas, TX: Highest Occupancy Rate

Dallas fills 60.2% of nights, the best occupancy rate of any major Texas city, on the back of business travel, sports and concerts. Revenue averages $39,983. The risk is legal: the 2023 residential ban is on hold by court injunction while the city appeals to the Texas Supreme Court, so investors should underwrite a scenario where the law could change.

4. Fort Worth, TX: Strong Revenue, Tight Zoning

Fort Worth averages $38,665 a year with a $203 ADR and revenue up 2.6%. But Fort Worth bans short term rental use in most residential districts, so in Fort Worth the opportunity is limited to commercial and mixed use zones near downtown and the Stockyards, which need annual registration. Many investors who like the Fort Worth market buy in nearby towns with friendlier rules, like Roanoke. Fort Worth tourists come for rodeo, history and the Stockyards, and the Fort Worth calendar peaks in June.

5. San Antonio, TX: Best Value Market

San Antonio earns $36,942 annually, but lower home prices mean more of that revenue can turn into profit, giving investors one of the best opportunity profiles in Texas airbnb markets. July is the peak month. The city permits STRs citywide (a Type 2 non owner occupied permit costs $450 for three years) with a 12.5% blockface density cap. Proximity to the River Walk, the Pearl and family attractions like SeaWorld drives steady visitors. See San Antonio Airbnb laws.

6. Houston, TX: Largest Market, Easiest Rules

It is the largest airbnb market in the state with about 14,000 listings and the simplest regulations of any major city: no zoning and a $275 annual registration. Revenue ($34,281) and ADR are the lowest of the six, but so is the typical purchase price, and medical, energy and event travel keep occupancy near 56%. Read our short term rental laws guide.

Revenue Is Not Profit: An Illustrative Profit Comparison

Annual revenue is only half the story for any airbnb business, and making the right comparison means looking at costs across markets. To compare cities fairly, the table below takes the average 3 bedroom home in each market and applies an illustrative operating cost ratio of 40% of revenue (cleaning, supplies, utilities, platform fees, maintenance and management). This is an assumption for comparison, not Surge data: mortgage, property tax and insurance are not included, and your own budget will vary by property.

City	3 BR annual revenue	Operating costs (40%, assumed)	Cash flow before mortgage, tax and insurance
Galveston	$43,822	$17,529	$26,293
Austin	$43,601	$17,440	$26,161
Dallas	$43,200	$17,280	$25,920
Fort Worth	$41,090	$16,436	$24,654
San Antonio	$35,449	$14,180	$21,269
Houston	$34,835	$13,934	$20,901

The key insight: the gap between the top and bottom markets is about $5,400 annually in cash flow, which a cheaper purchase price can easily close. A home that costs $150,000 less in San Antonio can be more profitable than a pricier one in Austin even with lower revenue. That is why we rank San Antonio as a best value pick, and why the right place for you depends on your budget, not just the revenue list.

Key Insights From the Data

• Gross revenue is concentrated at the top. Only two markets average more than $44,000 per listing, and both carry trade offs: seasonality in Galveston and heavy supply in Austin.
• Occupancy offers stability. The Austin and North Texas markets fill the most nights, which makes a short term rental property easier to underwrite.
• Neighborhoods beat cities. Inside every metro, top neighborhoods earn far more than the city average, so the investment property you pick matters more than the city on this list.
• Every short term rental market moves. Revenue and supply shift each season, so a good host reviews pricing monthly instead of setting it once.

Bigger Homes and Amenities Earn More in Every City

Across all six markets, revenue climbs with bedroom count. Average annual revenue by size (Surge data):

City	1 BR	2 BR	3 BR	4 BR
Austin	$25,851	$35,125	$43,601	$62,979
Galveston	$23,587	$32,825	$43,822	$62,851
Fort Worth	$23,541	$31,074	$41,090	$53,094
San Antonio	$22,417	$28,716	$35,449	$50,708

Amenities matter too, giving each property a way to stand out from other airbnb hosts in the same location. In Austin, listings with a hot tub average about $88,000 a year and listings with a pool about $62,000, well above the city average. A 4 bedroom house with a pool that sleeps a whole family is the most profitable property type in nearly every Texas market we track, and airbnb hosts in all six markets see the same pattern.

Smaller Texas Markets Worth a Look

Beyond the major cities, several smaller destination towns, like Fredericksburg, TX, attract airbnb hosts and investors looking for lower entry prices. The town draws Hill Country wine and hiking visitors, Waco has Magnolia and Baylor events, and Abilene offers lower prices with thinner demand. These airbnb markets can be profitable and offer opportunity for patient investors, but supply, demand and local rules vary widely, so check data for each town before you buy. Smaller markets also give a host fewer comparable listings to learn from, so pricing takes more work.

Choosing the Best Cities for Your Airbnb Investing Goal

Choosing between the best cities comes down to your goal. If you want the highest share of revenue to flow to profit, focus on value markets. If you want appreciation plus income, the larger markets may be the right place. Ready to compare? Use this checklist:

• Compare RevPAR, not just revenue. It shows how well a property earns per night after occupancy, and it is the best way to compare airbnb markets of different sizes.
• Know your living situation. Some cities, like San Antonio, price owner occupied permits lower, which can work for investors who plan to rent part of the home.
• Check the rules first. A high revenue city is worth nothing if you cannot get a permit. Start with our Texas Airbnb laws guide.
• Plan for seasonality. Coastal vacation rentals swing far more than inland markets, so build a cash reserve. A destination with one big season needs more working capital than markets with steady demand.
• Look at proximity. Proximity to the attractions guests book for is the single biggest driver of a listing's occupancy, so short list homes close to demand.
• Match the home to the guest. Location, size and amenities do more to maximize returns than the city you choose.

Surge is a Texas real estate brokerage and Airbnb management company. We help investors find, buy and run airbnb investment properties across Texas and Florida, making the process simpler for every host, from first time buyers to experienced operators building a portfolio in multiple markets. Explore STR brokerage for help to invest in the right short term rental property, or invest smarter with a property level estimate from the Airbnb calculator.

FAQs

What is the most profitable Airbnb city in Texas? On gross revenue, Galveston ($45,457 a year) and Austin ($44,942). After purchase price, San Antonio often delivers the best return for budget minded investors.

Which Texas city has the highest Airbnb occupancy? Dallas, at 60.2% of available nights over the last 12 months, among the major airbnb markets we track.

Where should I invest in an Airbnb property in Texas? It depends on your goals. Galveston offers the highest revenue, Austin the highest ADR, and San Antonio the best value. Run any address through our airbnb calculator before you make an offer on a property.

Is Airbnb investing in Texas still profitable in 2026? Yes, if you buy where short term rental rules allow it and plan for costs and seasonality. Revenue grew in five of the six major markets last year.