An Investors Guide on best short term rental markets in Texas

Texas is the 2nd largest state in the USA in terms of area. With an official nickname of “Lone Star State”, Texas is the most opportunistic state in the USA as well. Due to its large area, the best short term rental markets in texas is considered the most successful one in the whole USA.

There are plenty of rental properties in Texas where you can invest and earn some big profits. There is no lack of supply in the Texas market. Therefore, the concern of investors is about beneficial rental properties only. As an investor, you too will be eager to know what are some best short term rental markets in texas. Therefore, we have brought a complete investor guide on the real estate markets of Lone Star State.

Before directly heading towards the top places for investment in Texas, it will be better to know the factors that will make your investment successful. Let’s have a look at the factors that attract investors and entrepreneurs all across the globe to invest in the Texas. 

Factors Attracting Investors Towards Texas’ Real Estate Market

Following are some of the key factors that are attracting investors from all across the United States to invest in the real estate investment in texas

Landlord Friendly Place

The biggest problem that many landlords have to face is the rated people supporting laws. However, in Texas, laws are more favorable for landlords. This urged investors to buy the Texas rental properties. 

Population Growth

The population of any place has a deep impact on its rental market. Therefore the Texas is becoming an ideal place for investors. The population of Texas has been increasing gradually. There has been no decline in population growth over the past few years. It is growing steadily and so is the demand for rental homes.

No Income Tax

Yes, you read it right, in Texas, investors don’t have to pay extra income taxes. This is one of the key reasons why investors have been attracted to the Texas over the past few years. They don’t have to pay taxes and their earning potential through rental properties will be higher.

Affordable Prices

The best thing about the rental properties for sale in texas is that they are not too expensive. As there is plenty of land available for construction work in this state, the prices of rental properties are pretty affordable. You don’t have to spend hefty amounts to buy only a single property. This also encourages investors to buy rental properties in more than one place and earn big profits from some top rental markets in Texas.

Top Places for Investment in the Texas Short Term Rental Market

Due to the presence of several rental properties in Texas, it will be hard for anyone to pick the right option. Therefore, you must go through the data analysis of some top places in the Texas. This will help you to invest according to the trends of the market and earn big profits. 

1. Atlanta

This city in Northeastern Texas is one of the major real estate markets in Texas. Atlanta state park and Historic Washington Park are the main attractions in this city. These attractions are major reasons behind the success of the Atlanta Market.

• The average Rental Income is $3650.
• The average Occupancy rate is 73%.
• The median price for the rental properties is $ 362,500.
• The average area of the rental property is 1947 square feet.
• RIO ratio is pretty high at 6.64%.

2. Austin

It is the state capital of Texas with beautiful and amazing views. The presence of the University of Texas in this city is the major reason why the Austin is growing with every passing day.

• The average occupancy rate is 67% which will be higher during the touring season. 
• The average daily rate is about $235.
• The average rental income is more than $3500.
• The median property price is pretty affordable around $ 622,450.
• The RIO ratio is 2.67%. 

3. Dallas

It is a modern city in North Texas. It is a commercial and cultural hub of the whole state. It has some classic museums and natural parks that assure your investment in the Dallas will not be a waste.

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• The average occupancy rate is 64%.
• The average daily rate is $161.
• The average rental income is $2724.
• The median property price is $ 417,000.
• The average area of the rental property is about 2356 square feet.
• Cash-on-cash ratio is around 1.97%. 

4. Houston

Houston is one of the largest cities in Texas that has been extended to Galveston Bay. Following is the complete and latest analysis of the Houston airbnb occupancy rate.

• The average daily rate is $152.
• The occupancy rate is about 54%.
• Rental demand is around 60 and 85% of it is for entire homes.
• The median property price is $ 354,900.
• The average rental income is $2294.
• The RIO ratio is 1.26%.

5. Paris

Home to Eiffel Tower, River Sean, And plenty of other monuments, Paris is a tourist hub in Texas. From its museum to cafes, everything attracts visitors from all across the globe to witness the beauty of this city at least once in their life. Due to the high number of tourists, the Paris rental properties are worth buying as they will help you earn a lot of profits. 

• The average daily rate is $193.
• The average occupancy rate is around 50 percent. But it will be higher than even 70% in March and April.
• Rental growth is 30% quarterly progress.
• The median property price is $ 224,000. 
• The average rental income is more than $3000.
• RIO ratio is pretty good as it is around 10%.

6. Portland

With a population of more than 20,000, the Portland is the best place for investing. Flowing is a detailed rental data analysis of this city.

• The average daily rate is $187.
• The total occupancy rate is around 81%, which will be at a staggering 100% in March.
• Rental demand is 71.
• The median property price is $ 302,500.
• RIO ratio is pretty good as it is around 5.23%.

7. Pasadena

It is probably the most populous city in the whole state. Situated within Houston, the Pasadena is of prime importance.

• The average occupancy rate is $144.
• The average daily rate is 61%.
• The median property price is $ 213,000.
• RIO ratio is 5.9%. It’s the main reason behind the popularity of this rental market.
• The average rental income is around $1823.

Bottom Line

As promised we have delivered the complete guide on investment in the Texas short term rental market. You know what benefits you can get there as a landlord. Furthermore, you also have complete data on some top rental markets in Texas. Invest at a super suitable place and earn big amounts.

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