Why Houston Is a Top Market for Short-Term Rentals
Houston’s short-term rental market continues to be one of the strongest in Texas. With a diverse economy driven by energy, healthcare, aerospace, and tourism, the city attracts a steady stream of business travelers, medical visitors, families, and event-goers year-round. The average STR in Houston is booked over 200 nights per year, and well-managed properties in the right neighborhoods can generate significant returns.
But not all neighborhoods are created equal. Whether you’re an investor scouting your next acquisition or a current homeowner exploring co-hosting, location is everything. Here are the best neighborhoods in Houston for short-term rental performance.
1. Montrose
Montrose is one of Houston’s most desirable neighborhoods for short-term rentals — and for good reason. Its walkable streets, eclectic dining scene, proximity to the Museum District, and vibrant nightlife make it a magnet for couples, young professionals, and culturally minded travelers. Properties here consistently command above-average nightly rates, and occupancy tends to stay strong throughout the year.
At Breezy Vacation Rentals, we manage a high-performing fourplex in Montrose that generates over $150K in annual rental revenue. The key is having the right property type, pricing strategy, and guest experience — all of which our co-hosting team handles.
2. The Heights
The Heights offers a charming, neighborhood feel with tree-lined streets, local boutiques, and some of Houston’s best restaurants and coffee shops. It appeals to guests looking for an authentic Houston experience away from the downtown high-rises. Two- and three-bedroom homes here do particularly well for family travel and longer stays.
3. EaDo (East Downtown)
EaDo has transformed rapidly in recent years, becoming one of Houston’s trendiest areas. Its proximity to Minute Maid Park, BBVA Stadium, and the downtown convention district makes it ideal for sports fans and business travelers. Newer construction and modern lofts perform especially well on platforms like Airbnb and VRBO.
4. Museum District & Medical Center Area
The area surrounding the Texas Medical Center — the largest medical complex in the world — sees consistent demand from patients, families, and visiting medical professionals. Properties within a short drive of the Med Center, NRG Stadium, and the Museum District benefit from year-round occupancy that doesn’t rely solely on tourism. This is one of the most recession-resistant STR markets in Houston.
Owners in this area could do very well with the right property and proper zoning. Nearby neighborhoods like Third Ward and EaDo also benefit from this proximity without the premium price tag.
5. Midtown
Midtown’s central location makes it a natural choice for guests who want easy access to downtown, the Medical Center, and the Museum District. Smaller apartments and boutique-style rentals thrive here, especially for solo business travelers and couples. The walkable nightlife and restaurant scene is a bonus that keeps reviews high and repeat bookings coming.
6. Spring & Cypress (Greater Houston)
Don’t overlook the suburbs. Spring and Cypress offer larger homes at more accessible price points, which translates to higher guest capacity and strong group travel appeal. Our Boutique Bunkhouse in Cypress — a 3,600+ sq ft, 4-bed home with a pool, hot tub, and theater room — sleeps 20 and generates over $104K annually. Our Spring Grand Central Station property brings in nearly $98K per year.
These areas are especially popular for family reunions, corporate retreats, and sports tournaments at nearby complexes.
7. Fourth Ward & Second Ward
These up-and-coming neighborhoods offer some of the strongest cash-on-cash returns in Houston’s STR market. Property prices are still relatively accessible compared to Montrose or The Heights, but demand is growing rapidly as these areas see new development, restaurants, and cultural venues.
What Makes a Neighborhood Work for STR?
Beyond location, successful short-term rentals in Houston share a few things in common: proximity to demand drivers (medical centers, stadiums, convention centers), proper zoning and minimal HOA restrictions, and professional management that optimizes pricing, guest communication, and property maintenance.
Houston’s regulatory environment remains relatively investor-friendly compared to cities like Austin or Dallas. The primary requirement is registering with the city and remitting the Hotel Occupancy Tax, which platforms like Airbnb and VRBO handle automatically.
Thinking About Getting Started?
Whether you already own a property in one of these neighborhoods or you’re evaluating your next investment, having the right co-hosting partner makes all the difference. At Breezy Vacation Rentals, we manage 30+ properties across greater Houston and have generated over $700K in annual rental revenue for our owners.
We handle everything — listing creation, professional photography, dynamic pricing, guest communication, cleaning coordination, and maintenance — so you can earn passive income without the day-to-day hassle.
Learn more about our co-hosting services or contact us to see how your property could perform.