(Gross Yields from 9.97%, 58% Occupancy Rate)
This is the latest in our series of investor guides we release for free to our investors and everyone interested in Short-Term (Airbnb) Rentals.
For this analysis, we have used the trailing twelve months (July 1st, 2021 to June 30th, 2022).
See our post on regulation in these markets.
Active Rentals
There are 6945 active rentals in Dallas, TX. Almost 85% of all listings are 1 and 2 bedrooms.
Larger homes catering to bigger parties and families are potentially undersupplied. There are only 371 active 4 & 5-bedroom homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in Dallas, Texas is $120 dollars.
Throughout the year, the rate only fluctuates by $19 from the mean with the highest Average Daily Rate in June 2022 ($139) and the lowest in August 2021 ($110).
Occupancy Rate
Occupancy Rates in Dallas, TX are high in the summer, despite Dallas’ hot summer weather. The average occupancy rate was 58% for the period from July 2021 through June 2022.
The lowest occupancy rate was in November 2021 at 8% and the highest was in May 2022 at 70%.
The average occupancy rate is the highest for 2 and 1-bedroom homes, 60% and 59% respectively.
Get projections on revenue, average daily rate, cap rates, and a lot more.
High-Performance Properties
Chalet’s research shows that studios have the highest percentage of homes in the high-yield territory (30%) and could be and therefore could be a good strategy for this market.
Chalet considers properties with a gross yield greater than 15% as high-yield properties. Gross yield equals Gross Income/Purchase Price
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Annual Revenue
The median revenue is the highest in May of 2022 at $2700 and the lowest in December 2021 at $1700.
Short-term rentals in Dallas generate a median revenue of $39,292 annually. The highest median revenue for rentals in Dallas is for 5 bedrooms at $70200.
Throughout the year, monthly revenue fluctuates the most for 5-bedroom homes and the least for 1-bedroom homes. More conservative investors should look into 1 bedroom investment properties as data shows they are the most stable and predictable.
Demand
Most of the Dallas short-term rental guests are domestic guests from the United States, though March is when the presence of international guests is most noticeable.
However, international guests in March barely crossed the 1% threshold of total guests in Dallas. The majority of international guests visit from Canada and the United Kingdom.
The majority of Dallas guests come from U.S. cities located within driving distance. We expect drive-to locations/cities to continue to do well in the post-covid world
Other Facts
The average property tax rate is 2.18% which is double the state average according to SmartAsset. That’s substantially higher than the 1.07% national average.
According to Zillow, homes in Dallas appreciated 21.4% year-over-year (YoY) and the median home price for active listings was 536,817 (as of September 2022).
Homes in Dallas average 22 days on the market according to data from Redfin.
The BLS reported that the unemployment rate in Dallas fell to 3.7% in August of 2022, which is lower than the national average of 3.8%.
Short-Term Rental Regulation
Dallas County is a very short-term rental-friendly market.
A short-term rental license is required for every listing and there is a small cost associated with obtaining a license. A great benefit of regulations in Dallas County is that there are no occupancy limits. In most markets, the number of guests (occupancy) is limited based on the home’s number of bedrooms. However, this is not the case in Dallas country which gives hosts more flexibility.
See Chalet’s detailed analysis of short-term rental regulation in the Dallas metro.
