Vacation Rental Market Analysis: Houston, TX

The Evolve Team
The Evolve Team
April 25, 2023

As America’s fourth-largest city, Houston attracts over 22 million annual visitors with its variety of to-dos for all ages. 

With award-winning cuisine, family-friendly attractions, and plenty of green space for outdoor activities, it’s no wonder travelers are drawn to this Texas metropolis for vacation. That can make a rental property investment in Houston a valuable consideration for buyers.

To help you understand the opportunity this popular area presents, we created a free, downloadable vacation rental market analysis

Inside you’ll find: 

  • Rental income potential by property size
  • Average occupancy by property size
  • Average daily rate by property size
  • Average days booked in advance
  • Average length of stay
  • Vacation rental inventory by property size
  • Occupancy rate by month

The findings in this analysis are based on Evolve’s Houston market averages in the last year and provide a general baseline for performance potential. They’re designed to help inform smart buying decisions when making a rental property investment in Houston.

Download Our Complete Houston Vacation Rental Investment Analysis

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Why Houston Is a Great Place to Own Vacation Rental Property

From outdoor adventures like kayaking and hiking to museums and festivals in the heart of the city, Houston offers a little something for everyone. And though the area sees fluctuations in occupancy throughout the seasons, the annual weather trends allow out-of-towners to comfortably visit for most of the year (though it can jump to the mid-90s come summer). 

According to our real estate experts, Houston’s first surge in visitors occurs around spring break, when travelers welcome the Texas sunshine. Demand peaks again around mid-summer, when families, professionals, and students alike take much-deserved breaks in favor of some Southern flair.

Houston’s average home price currently sits around $261,000, which is more affordable than nearby Galveston or even Dallas. What’s more, a Houston investment property could currently sell for less than the median national average, so now could be the right time to buy before prices go up.

If you’re ready to explore the vacation rental market, start your search with these homes for sale.

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How Much Money Can You Earn with a Houston Vacation Rental?

With a variety of visitors and endless activities available, buying rental property in Houston could be a great way to earn passive income. To help maximize how much you could earn, consider these important factors.

Property Size

Our in-house experts say the most popular Houston investment properties are those that can host large groups, so bigger really can be better in Texas. Data shows five-bedroom homes usually see the most bookings and are the top revenue-generators — though three-bedroom properties have nearly as many annual bookings. But, be aware: bigger home sizes aren’t as heavily represented in the area’s inventory, which could make it harder to buy rental property.

Plus, if a larger home isn’t part of your vacation rental goals, there’s no need to sweat. There tends to be a lot of one- and two-bedroom properties ready for purchase. And while they may not be booked quite as frequently as their larger counterparts, they do still get booked — especially if they’re marketed well and have appealing amenities.

Property Location

When thinking about the best area to buy rental property in Houston, it’s important to remember just how big Houston is (the city expands over 665 square miles). That’s why our team suggests looking for properties with access to major roads (like 610, I-10, and I-45) for convenience.

More specifically, neighborhoods like Greater Heights, River Oaks, Uptown-Galleria, and the Museum District provide proximity to both downtown and popular outdoor attractions. By sticking close to these areas, families and outdoor enthusiasts alike will appreciate a quick commute to the Houston Zoo, Space Center Houston, Buffalo Bayou Park, or the White Oak Bayou Trail — so looking for central Houston investment properties could be a great starting point..

Property Amenities

Houston attracts a large number of annual travelers — and you want to do what you can to make sure a lot of them choose your property when looking for accommodations. Part of that is working with a company that can get your home seen on the best vacation rental sites — and part of it is offering perks that make guests want to book.

No matter what size home you invest in, it’s important to maximize your home’s space by offering kid-friendly amenities like bunk beds, sleeper sofas, and cribs. And with warmer months being Houston’s busiest seasons, it’s key to keep everyone cool with refreshing outdoor living spaces (like shaded patios and a swimming pool) and air conditioning when guests want to escape the heat.

You can also take your Texas hospitality even further — and lock in five-star reviews — by offering keyless entry, Smart TVs and streaming services, and other top amenities guests look for when booking in the South. It always helps to provide a welcome book, too, especially when it has local recommendations for visitors to explore.

Download Our Full Houston, TX Vacation Rental Market Analysis

Offering sunshine, thrills, and sweet Southern charm, Houston is an awesome place to visit and an opportunity for buyers to run a profitable vacation rental business.

For a more in-depth look at the potential of a Houston investment property, download our free Houston Vacation Rental Market Analysis today. Inside you’ll find:

  • Average daily rate by property size
  • Expected seasonality in vacation rental demand
  • Average length of stay in high and low seasons
  • Inventory breakdown based on property size

With the right intel, buying rental property in Houston should feel like a cool breeze in the warm, Texas sun. Use our report to make strides in this market with informed, income-driving investment decisions.

Get Your Vacation Rental Market Analysis

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