Top 10 Texas STR Markets for Summer 2026
From the Gulf Coast to the Hill Country to the state's booming metros, here are the 10 Texas markets generating the most STR revenue this summer—with data on what is driving demand in each.
South Padre Island leads Texas summer STR revenue with a $340 ADR and 80% occupancy, projecting $26,200 for June-August. Galveston takes #2 at $22,100, benefiting from Houston's massive feeder market. Fredericksburg surprises at #4 with a $300 summer ADR driven by wine country tourism. The emerging market to watch is New Braunfels, where river tubing season creates concentrated summer demand at accessible acquisition costs. Texas's no state income tax makes all 10 markets more profitable at the bottom line.
Texas is one of the most diverse STR markets in the country. Within a single state, investors can choose between tropical beach destinations, wine country getaways, urban event hubs, and river recreation towns. Each market type behaves differently during the summer months, creating opportunities for investors with different strategies and risk tolerances.
This ranking covers the 10 best Texas STR markets for summer 2026, evaluated on summer-specific ADR, occupancy, projected revenue, and demand drivers. We also identify the best property type for each market to help you match your investment to what actually performs. For a national perspective on summer revenue, see our Summer 2026 STR Revenue Report.
Texas offers a structural advantage that many states do not: no state income tax. This means every dollar of STR revenue you earn goes further in Texas than in states like California, New York, or Oregon where state income taxes can take 5-13% off the top. Combined with generally reasonable property prices and a pro-business regulatory environment, Texas remains one of the best states for STR investment overall.
Summer 2026 Texas STR Rankings
| Rank | Market | Summer ADR | Summer Occ. | Summer Rev. | Best Property Type |
|---|---|---|---|---|---|
| 1 | South Padre Island | $340 | 80% | $26,200 | Beachfront condo |
| 2 | Galveston | $285 | 78% | $22,100 | Beach house |
| 3 | Austin | $240 | 65% | $18,700 | Downtown condo / East Side home |
| 4 | Fredericksburg | $300 | 52% | $16,800 | Cottage / guesthouse |
| 5 | Port Aransas | $270 | 76% | $16,200 | Beach condo / stilted house |
| 6 | San Antonio | $195 | 68% | $15,400 | Downtown / River Walk home |
| 7 | Dallas | $185 | 62% | $14,200 | Uptown / Deep Ellum home |
| 8 | Houston | $175 | 64% | $13,800 | Montrose / Heights bungalow |
| 9 | Fort Worth | $170 | 60% | $12,800 | Near Stockyards home |
| 10 | New Braunfels | $220 | 58% | $12,600 | River-access home |
Note: Summer revenue represents projected gross income for a well-optimized 2-3 bedroom property during June, July, and August using dynamic pricing. Actual results vary. Use our ROI Calculator to model your specific scenario.
1. South Padre Island
South Padre Island is Texas's only tropical beach destination and the undisputed summer STR champion in the state. The island's 34 miles of Gulf Coast beach attract families from across Texas and the Midwest, creating intense demand from Memorial Day through Labor Day. The $340 summer ADR is up 8.7% from summer 2025, driven by improved property quality and growing demand from outside the traditional Texas feeder markets.
- Key summer demand driver: Family beach vacations. South Padre draws from the entire Texas interior, especially the Dallas-Fort Worth, Houston, and San Antonio metros.
- Best property type: Beachfront condos with ocean views and pool access command the highest ADRs and book first.
- Regulation note: South Padre is STR-friendly with standard permitting and HOT collection requirements.
2. Galveston
Galveston benefits from the single largest advantage any Texas beach market can have: proximity to Houston, the fourth-largest city in the United States. The 50-mile drive from downtown Houston to Galveston's Seawall makes it the default weekend beach escape for 7+ million people. Summer occupancy hits 78% because Houston families treat Galveston as their backyard beach. The historic Strand District and Pleasure Pier add entertainment value beyond the beach itself.
- Key summer demand driver: Houston metro weekend and weekly escapes. The short drive makes even 2-3 night stays practical.
- Best property type: Beach houses on the West End or Seawall-area condos with Gulf views perform best in summer.
- Regulation note: Galveston has clear STR regulations with registration requirements and HOT collection. Generally investor-friendly.
3. Austin
Austin is not a summer-peak market—its biggest revenue months are March (SXSW) and October (ACL Fest)—but it delivers solid summer performance driven by the city's reputation as a music, food, and outdoor recreation destination. Barton Springs, Lake Travis, and the live music scene on 6th Street attract summer tourists, while tech industry travel provides consistent mid-week demand year-round. The $240 summer ADR is up 3.2% from 2025.
- Key summer demand driver: Tourism (live music, food, Lake Travis), tech corporate travel, and UT Austin orientation and summer programs.
- Best property type: Downtown condos for business travelers or eclectic East Side homes for leisure guests.
- Regulation note: Austin restricts non-owner-occupied STRs in residential zones. Focus on owner-occupied or commercially-zoned properties.
4. Fredericksburg
Fredericksburg commands the second-highest summer ADR in Texas at $300, reflecting its positioning as the Hill Country's premier luxury getaway destination. The 50+ wineries and tasting rooms are the primary draw, but German heritage attractions, local boutiques, and the Enchanted Rock State Natural Area add layers of appeal. Summer occupancy at 52% reflects the weekend-heavy booking pattern—Friday and Saturday nights book at 85%+ while weekdays lag. Smart operators are addressing this with mid-week wine tour packages and remote work promotions.
- Key summer demand driver: Wine tourism and couples' getaways from Austin (1.5 hrs) and San Antonio (1.5 hrs).
- Best property type: Charming cottages and guesthouses with Hill Country views and outdoor entertaining space.
- Regulation note: Fredericksburg caps STR permits in certain zones. Limited supply protects existing operators but makes entry harder.
5. Port Aransas
Port Aransas is the laid-back alternative to South Padre Island, attracting families and anglers who prefer a quieter Gulf Coast experience. The town rebuilt significantly after Hurricane Harvey, and the newer housing stock is purpose-built for vacation rentals with elevated construction, modern amenities, and hurricane-resistant design. Summer occupancy at 76% reflects strong family demand, and the fishing culture adds a niche demand layer that many beach markets lack.
- Key summer demand driver: Family beach vacations and sport fishing (deep sea and bay fishing charters).
- Best property type: Elevated beach condos or stilted houses with covered parking and outdoor showers.
- Regulation note: Port Aransas is STR-friendly with straightforward permitting. The post-Harvey rebuild created a modern, rental-ready housing stock.
6. San Antonio
San Antonio's summer STR market is powered by two things: the River Walk and family tourism. The Alamo, SeaWorld, Six Flags Fiesta Texas, and the expanding Pearl District create a family-friendly itinerary that keeps summer occupancy at a strong 68%. The $195 summer ADR is moderate, but San Antonio's lower acquisition costs translate to solid cash-on-cash returns. Properties within walking distance of the River Walk command a 25-30% rate premium over comparable properties in outer neighborhoods.
- Key summer demand driver: Family tourism (Alamo, theme parks, River Walk), military travel (multiple bases), and conventions.
- Best property type: Downtown or King William District homes with River Walk access.
- Regulation note: San Antonio requires STR registration and hotel occupancy tax collection. Generally investor-friendly with clear rules.
7. Dallas
Dallas is not a traditional vacation destination, but its massive corporate economy and event calendar create consistent STR demand that includes summer. Professional sports (Cowboys, Mavericks, Rangers, Stars), concerts at American Airlines Center and Globe Life Field, and a robust business travel market keep properties booked. Summer is Dallas's softest season, but 62% occupancy is respectable for an urban market. The key is location—Uptown, Deep Ellum, and Bishop Arts District properties significantly outperform suburban listings.
- Key summer demand driver: Corporate travel, sports events (Rangers baseball), concerts, and family visits.
- Best property type: Stylish Uptown condos or character homes in Deep Ellum and Bishop Arts.
- Regulation note: Dallas has moderate STR regulations with registration requirements. Monitor for any proposed changes.
8. Houston
Houston's STR market is driven by the energy industry, the Texas Medical Center, and NASA—three demand sources that operate year-round regardless of season. Summer occupancy at 64% holds steady because business travel does not stop for vacation season. The Montrose and Heights neighborhoods deliver the strongest STR performance, attracting both business travelers seeking alternatives to downtown hotels and leisure visitors drawn to Houston's food scene (one of the most diverse in the country). The $175 summer ADR is lower than vacation markets, but Houston's affordable acquisition costs make the math work.
- Key summer demand driver: Energy sector corporate travel, medical center visitors, NASA/Space Center tourism.
- Best property type: Montrose or Heights bungalows with character and walkability to restaurants.
- Regulation note: Houston has minimal STR-specific regulations, making it one of the easiest Texas markets to enter.
9. Fort Worth
Fort Worth is the underrated half of the DFW metroplex for STR investors. While Dallas gets more attention, Fort Worth offers lower acquisition costs, a growing tourism infrastructure anchored by the Stockyards National Historic District, and a cultural scene headlined by the Kimbell Art Museum and Modern Art Museum. Summer demand is driven by the Stockyards' western heritage tourism, Fort Worth Zoo visits, and spillover from Dallas events. The 60% summer occupancy leaves room for growth as the city continues to invest in its tourism identity.
- Key summer demand driver: Stockyards tourism, Fort Worth Zoo, rodeo events, and DFW corporate spillover.
- Best property type: Near Stockyards character homes or Magnolia Avenue area properties.
- Regulation note: Fort Worth has straightforward STR regulations with registration requirements and HOT collection.
10. New Braunfels (Emerging Market)
New Braunfels is the emerging market to watch in Texas for summer 2026. Positioned between Austin and San Antonio on the I-35 corridor, New Braunfels is home to the Comal and Guadalupe Rivers—the most popular tubing destinations in Texas. The summer tube float season (May through September) creates concentrated, predictable demand that is unlike anything in the state. Schlitterbahn Waterpark adds family appeal, and the growing downtown German heritage district provides dining and entertainment beyond the river. At $220 summer ADR and 58% occupancy, the numbers are already working—and this market has significant upside as it matures.
- Key summer demand driver: River tubing on the Comal and Guadalupe Rivers, Schlitterbahn Waterpark, and Gruene Historic District.
- Best property type: Homes with direct river access or within walking distance of tube launch points command the highest summer premiums.
- Regulation note: New Braunfels has evolving STR regulations. Check current permit requirements before purchasing. The city is balancing tourism growth with residential community concerns.
- Why emerging: Lower acquisition costs than Austin or Fredericksburg with strong summer demand and growing year-round appeal make New Braunfels an excellent entry point for first-time Texas STR investors.
Why Texas for STR Investment
Texas offers structural advantages that make every market on this list more attractive at the bottom line:
- No state income tax. STR revenue in Texas is taxed only at the federal level, saving operators 5-13% compared to states like California, New York, and Oregon. On $50K in annual net income, that is $2,500-$6,500 more in your pocket.
- Market diversity. Texas has beach markets, hill country markets, urban markets, and river recreation markets—all within a single state. This allows investors to diversify across market types without managing properties in multiple states.
- Population growth. Texas continues to be a top destination for domestic migration, adding demand for both STR stays (visiting family, relocation housing) and long-term property appreciation.
- Reasonable acquisition costs. Compared to California, Florida, or the Northeast, Texas property prices are more accessible for first-time STR investors. Markets like New Braunfels, Fort Worth, and Houston offer entry points well below the national average for comparable STR revenue.
For comprehensive Texas STR data and market analysis, visit our Texas state page. For a broader national view, see our Best Airbnb Markets 2026 ranking.
Frequently Asked Questions
What is the best Texas Airbnb market for summer 2026?
South Padre Island is the top Texas Airbnb market for summer 2026, with a $340 summer ADR and 80% occupancy generating approximately $26,200 in summer revenue (June-August). Its position as Texas's only tropical beach destination gives it a unique advantage during the summer family vacation season.
How much can a Texas Airbnb make in summer?
Texas Airbnb properties can earn between $12,600 and $26,200 during the summer months (June-August) depending on market and property type. Beach markets like South Padre Island and Galveston earn the most, while urban markets like Dallas and Houston earn less during summer but benefit from more consistent year-round demand. Use our ROI Calculator to model your specific property.
Is Texas a good state for Airbnb investment?
Texas is one of the best states for Airbnb investment due to no state income tax, generally STR-friendly regulations (though they vary by city), strong population growth driving demand, diverse market types (beach, hill country, urban), and relatively affordable acquisition costs compared to coastal states. Read our Why Invest in STR guide for more on the fundamentals.
What are the STR regulations in Texas?
Texas STR regulations vary significantly by city. Austin restricts non-owner-occupied STRs in residential zones. Fredericksburg caps permits in certain areas. San Antonio requires registration and hotel occupancy tax collection. Houston has minimal STR-specific restrictions. South Padre Island and Galveston are generally STR-friendly with standard permitting. Always verify local regulations before purchasing.
Which Texas market is best for first-time STR investors?
New Braunfels is an excellent entry point for first-time Texas STR investors. It offers lower acquisition costs than Austin or Fredericksburg, strong summer demand driven by the Comal and Guadalupe Rivers, relatively simple regulations, and proximity to both San Antonio and Austin feeder markets. The summer tube float season creates predictable demand that is easy to understand and price for.
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