Short-term rentals are a lucrative investment for those willing to take the time to research the best neighborhoods and what guests are looking for. Houston, TX is enjoying a booming economy and a vibrant tourism industry, with Airbnb and other short-term rentals bringing in millions in tax revenue and allowing locals and savvy out-of-town investors to boost their income.
Choosing the best areas in Houston for Airbnb investment is easier when you know how to evaluate the local rental market and what types of properties are popular with visitors.
Short-Term Rentals in Houston, TX: What You Need to Look For
Houston bucked trends in recent years by retaining a strong rental market post-2020 and recovering fast after the national slump in the overall housing market. Properties are available for keen investors, with the potential to make serious ROI.
Best Areas in Houston for Airbnb: Quick Stats
Average property price: $619,380
Current number of Airbnb properties listed: 1836
Average daily rate for Airbnb rentals: $148
2022 Airbnb occupancy rate: 48%
Average monthly income from Airbnb properties: $2,228
Data comes from AirDNA.
Let’s take a look at 7 of the best areas in Houston for Airbnb investment and why they’re a great choice for those looking to get into the short-term rental market or expand their portfolio.
1. Museum District
Houston’s Museum District is home to no less than 19 popular museums, including the Houston Museum of Natural Science and the Children’s Museum of Houston making this one of the best areas in Houston for Airbnb investment if you’re thinking about properties for families with kids who want to see the sights.
Top Reasons to Invest
A quick keyword search shows terms like “Luxury Living,” and “Modern Airbnb,” trending next to "Museum District," showing people are actively looking for high-end short-term rentals here
Popular tourist area with limited low-to-mid-cost accommodation options
Potential market gap to offer a luxury alternative to high-end hotels
Why Do People Rent Airbnbs Here?
Easy access to the rest of Central Houston
Plenty of facilities such as medical centers and grocery stores
Ideal location for families, couples, and groups of friends
Top Attractions
Museum District Airbnb properties regularly demand over $250 per day making this an ideal place for investors to consider more luxury or high-end properties of all sizes.
2. Montrose
Colorful house fronts and cheerful bungalows in the craftsman style make Montrose such a draw for tourists and locals alike. The area’s thriving LGBTQ+ community has adopted many of the bars and clubs as their primary stomping grounds making this a safe and inclusive area to visit—and to invest in. Montrose is also a home for the arts, so expect music lovers and gallery-goers here in their droves.
Top Reasons to Invest
Popular area for short-term rentals; many properties show “rare find” on Airbnb’s search results indicating high demand
Color, style, and unique architecture make properties here easy to promote
Current Airbnb prices can go over $150 per day
Why Do People Rent Airbnbs Here?
LGBTQ+ community members may feel safe here due to existing inclusive communities
Plenty of properties with genuine character, and lots of great photo opportunities for influencers, travel bloggers, or curious travelers
Great combination of residential-style neighborhoods and a highly central location
Top Attractions
Live music venues e.g. Anderson Fair
Montrose is also a top shopping destination which is another big draw for tourists.
3. Downtown
Downtown including East Downtown and surrounding areas is one of the best areas in Houston for Airbnb investment, thanks to a great mix of urban and green spaces and any number of cool attractions. You may be wondering if visitors to Houston really want to say in such a central part of the city? But it's clear from the data that the answer is a resounding “Yes!”
Top Reasons to Invest
Ideal for offering accommodation to those attending seminars, conferences, and events — this is how Airbnb first started!
Over 1000 Airbnbs currently enjoying success with a market for more
Luxury Downtown Houston properties can fetch above $400 per day, particularly condos
Why Do People Rent Airbnbs Here?
Gorgeous, modern properties offering luxury accommodation that’s often better value than hotels of the same quality/standard
Thriving sports scene
Vibrant bars, restaurants, and spots for live music
Top Attractions
Investors that work with a specialist hosting service provider have so many opportunities to impress guests with concierge services and recommendations for things to do in Downtown Houston.
4. Midtown
When you’re looking for the best areas in Houston for Airbnb investment, you want to know what's available for your guests to enjoy both during the day and after the sun goes down. If you’re thinking about Midtown, Houston, you can instantly add “incredible nightlife” to your listings.
There are over 140 restaurants here, plus trendy coffee shops, and some stunning clubs that keep visitors partying until the early hours of the morning. But beyond this, there’s plenty to attract families and young couples, plus even solo travelers looking to explore the culture, history, and architecture of this neighborhood.
Top Reasons to Invest
Fewer Airbnb properties here than some other areas on our list
Centrally located, easy access to both the Museum District and Downtown
Lots of small properties here so could be a market gap to encourage families to rent larger properties
Why Do People Rent Airbnbs Here?
Cool and eclectic properties attract repeat visitors who love to share their unique experiences
Great nightlife scene, short-term rentals are ideal for people staying over to celebrate special occasions, anniversaries, etc.
Historical Victorian properties available which attract culture buffs and seasoned travelers
Top Attractions
Beer gardens and nightlife scene
Exploring available properties here could provide opportunities to develop the short-term rental market and expand an existing portfolio.
5. Pasadena
Back in 2019, Pasadena earned accolades as the best place for Airbnb in Houston, at least in terms of potential returns. Profits gained via Airbnb rentals in this Houston suburb pushed it right to third place on a national list of the most lucrative places to invest in short-term rentals. In 2023, there are at least 72 active rentals in Pasadena, with a highly profitable average daily rate of $142.
Top Reasons to Invest
High demand for rental properties
Potential to charge well in excess of $150 per night
This is a less central area that could attract a more diverse range of guests
Why Do People Rent Airbnbs Here?
Close to the city without the feeling of being “in the city”
Plenty of parks and green spaces
Large suburb with plenty to explore
Top Attractions
Researching the best areas in Houston for Airbnb investment is the first step to short-term rental success. Next, it's time to consider working with a hosting service provider that takes care of every aspect from photographs and listing to housekeeping, maintenance, and financial management.
We offer a personalized concierge service to stay in touch with your guests and provide recommendations for when they visit Houston. Contact Square House and talk to us about the best place for Airbnb in Houston and how we can help attract guests and give them delightful experiences they’ll never forget.