The Best Neighborhoods in Houston for Airbnb Rentals

Are you looking for the best neighborhoods in Houston to invest in Airbnb rentals? Houston is a vibrant city with plenty of neighborhoods to choose from, each with its own unique character and attractions. However, not all neighborhoods are created equal when it comes to Airbnb rentals. In this article, we will explore the best neighborhoods in Houston for Airbnb rentals based on average daily rate (ADR), average occupancy rate, and average monthly income.

Introduction

Houston is a diverse and growing city with a lot to offer visitors, including world-class museums, excellent restaurants, and plenty of outdoor activities. As the fourth-largest city in the United States, it has a lot of neighborhoods, each with its own distinct character. In recent years, Airbnb has become a popular option for visitors looking for affordable and unique accommodations. With over 12,000 active rentals in Houston, there are plenty of options for investors looking to get into the short-term rental market.

Methodology

To determine the best neighborhoods for Airbnb rentals in Houston, we analyzed data from AirDNA, a company that provides data and analytics for the short-term rental industry. We looked at the average daily rate (ADR), average occupancy rate, and average monthly income for each neighborhood. We focused on neighborhoods with at least 50 active listings and excluded neighborhoods with high hotel occupancy rates, as they may not be ideal for short-term rentals.

The Best Neighborhoods for Airbnb Rentals in Houston

1. Montrose

The Best Neighborhoods in Houston for Airbnb Rentals - Montrose

Montrose is a trendy and vibrant neighborhood located just west of downtown Houston. It is known for its eclectic mix of shops, restaurants, and nightlife. In addition to its thriving cultural scene, Montrose is also home to several parks and green spaces, including Buffalo Bayou Park and Hermann Park. These attractions make Montrose a popular destination for tourists and a desirable location for Airbnb rentals.

According to AirDNA, the average daily rate for Airbnb rentals in Montrose is $107, with an average occupancy rate of 62%.

2. The Heights

The Best Neighborhoods in Houston for Airbnb Rentals - The Heights

The Heights is a historic neighborhood located just northwest of downtown Houston. It is known for its charming bungalows, tree-lined streets, and independent shops and restaurants. The neighborhood is home to several parks, including Donovan Park, Milroy Park, and Love Park, which offer amenities such as playgrounds, walking paths, and picnic areas. Additionally, the neighborhood is located near popular Houston attractions, such as the 160-acre Buffalo Bayou Park and the Houston Arboretum and Nature Center. These amenities, combined with the neighborhood’s proximity to downtown Houston, make The Heights a desirable location for Airbnb rentals.

According to AirDNA, the average daily rate for Airbnb rentals in The Heights is $130, with an average occupancy rate of 58%.

3. Museum District

The Best Neighborhoods in Houston for Airbnb Rentals - Museum District

The Museum District is a cultural hub located just south of downtown Houston. It is home to several world-class museums, including the Houston Museum of Natural Science, the Museum of Fine Arts, Houston, and the Children’s Museum of Houston. In addition to its museums, the neighborhood is also home to several parks and green spaces, including Hermann Park, which offers jogging and walking trails, a golf course, and a Japanese garden. The Museum District’s numerous attractions, including its world-class museums and beautiful parks, make it a highly sought-after destination for tourists and a desirable location for Airbnb rentals.

According to AirDNA, the average daily rate for Airbnb rentals in the Museum District is $113, with an average occupancy rate of 55%.

4. Midtown

The Best Neighborhoods in Houston for Airbnb Rentals - Midtown

Midtown is a bustling neighborhood located just south of downtown Houston. It is known for its high-rise condos, trendy bars, and restaurants. The neighborhood is also home to several parks, including Baldwin Park and Midtown Park, which offer jogging and walking trails, a dog park, and a community garden. These amenities, combined with the neighborhood’s proximity to downtown Houston, make Midtown a desirable location for Airbnb rentals.

According to AirDNA, the average daily rate for Airbnb rentals in Midtown is $112, with an average occupancy rate of 53%.

5. Rice Village

The Best Neighborhoods in Houston for Airbnb Rentals - Rice Village

Rice Village is an upscale neighborhood located just west of the Texas Medical Center. It is known for its high-end boutiques, cafes, and restaurants. The neighborhood is also home to several parks, including Hermann Park and Rice University’s sprawling campus, which offers jogging and walking trails, a stadium, and a beautiful arboretum. These amenities, combined with the neighborhood’s affluent residents and proximity to the medical center, make Rice Village a desirable location for Airbnb rentals.

According to AirDNA, the average daily rate for Airbnb rentals in Rice Village is $119, with an average occupancy rate of 54%.

Other Neighborhoods to Consider

The Best Neighborhoods in Houston for Airbnb Rentals - West University Place

While the above neighborhoods are the best for Airbnb rentals in Houston, there are other neighborhoods worth considering, including:

Downtown Houston: While hotel occupancy rates are high in downtown Houston, there is still a demand for short-term rentals due to its central location and proximity to attractions. The average daily rate for Airbnb rentals in downtown Houston is $120, with an average occupancy rate of 45%.
East Downtown (EaDo): EaDo is a rapidly developing neighborhood located just east of downtown Houston. It is known for its art galleries, breweries, and trendy restaurants. According to AirDNA, the average daily rate for Airbnb rentals in EaDo is $107, with an average occupancy rate of 61%.
West University Place: West University Place is an affluent neighborhood located just west of the Texas Medical Center. It is known for its beautiful homes, parks, and proximity to Rice University. According to AirDNA, the average daily rate for Airbnb rentals in West University Place is $147, with an average occupancy rate of 45%.

According to AirDNA, the average monthly income for an Airbnb rental in Houston varies by neighborhood. The best neighborhoods for Airbnb rentals in Houston, such as Montrose, The Heights, Museum District, Midtown, and Rice Village, have an average monthly income ranging from $2,251 to $2,928. Other neighborhoods, such as downtown Houston, EaDo, and West University Place, have an average monthly income ranging from $2,400 to $3,086.

It is important to note that while these neighborhoods have higher average monthly incomes, the common average monthly income for an Airbnb rental in Houston is $1,733. Therefore, it is crucial to conduct thorough research and due diligence before investing in an Airbnb rental property in any neighborhood, and to consider all relevant factors such as property type, demand, regulations, and management options to ensure profitability.

Conclusion

Investing in Airbnb rentals in Houston can be a lucrative opportunity, but it’s important to choose the right neighborhood to maximize your earnings. The best neighborhoods for Airbnb rentals in Houston are Montrose, The Heights, Museum District, Midtown, and Rice Village, based on ADR, average occupancy rate, and average monthly income. However, other neighborhoods, such as downtown Houston, EaDo, and West University Place, are also worth considering.

Explore Houston’s Rules Governing Airbnb Rentals: A Comprehensive Guide for Hosts and Houston Airbnb Income Tax: The Definitive Guide for Hosts.