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Texas: Short-Term vs Long-Term Rental Returns

Texas offers strong rental yields with no state income tax and relatively affordable property prices. Short-term rental regulations are generally permissive at the state level, though some cities have introduced restrictions.

Published March 21, 2026

What Could You Earn?

Estimated gross income for a typical 3-bedroom house in Texas, based on median values. These are starting points. In the dashboard you can adjust everything to match your own property and circumstances.

Typical property price
$218K
Long-term rental income
$1,543/mo
before expenses
Short-term rental income
$2,318/mo
before expenses
Short-term earns roughly
$775/mo more
before expenses and regulations

Key Takeaways

  • Texas has no state income tax and state law pre-empts many local STR bans, making it one of the more landlord-friendly states for short-term rental.
  • Austin has introduced a licensing requirement and limits STR density in some zones, but most Texas cities remain permissive.
  • The combination of affordable entry prices and strong rents gives Texas some of the best rental yields among large US states.
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How Short-Term and Long-Term Compare by Area

Estimated monthly income for a 3-bedroom house in each area, before expenses. Click any area to see the full breakdown in the dashboard.

City / area Price Long-term /month Short-term /month Short-term rules
Dallas County
Texas
$246K $1,741 $2,620 Low View details →
Williamson County
Texas
$310K $1,724 $2,317 Medium View details →
Travis County
Texas
$379K $1,710 $756 Medium View details →
Denton County
Texas
$271K $1,648 $2,336 Low View details →
Tarrant County
Texas
$223K $1,624 $2,242 Low View details →
Harris County
Texas
$178K $1,588 $2,656 Low View details →
Bexar County
Texas
$185K $1,497 $2,666 Low View details →
Smith County
Texas
$212K $1,419 $2,019 Low View details →
Collin County
Texas
$312K $1,399 $2,509 Low View details →
El Paso County
Texas
$165K $1,249 $2,319 Low View details →
Lubbock County
Texas
$146K $1,235 $1,950 Low View details →
Hidalgo County
Texas
$137K $1,086 $1,670 Low View details →

All figures are estimates based on median values for a 3-bedroom house in each area. Individual properties will vary. Use the dashboard to adjust assumptions to your own situation.

Compare Any Location

The dashboard covers 2851 counties across Texas. Search for any area and adjust property price, rent, nightly rate, occupancy, mortgage rate, and expenses to match your investment.

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Data last updated: March 2026

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