Waco

As of May 2026, Waco, Austin, Temple have 2,110 active Airbnb and VRBO listings. This represents a 1% decrease from the previous year.

The average Airbnb or VRBO in Waco generates $36K per year. High-performing properties earn $68K/year, while low-performing properties earn $14K/year. The wide revenue variance, despite flat multi-year supply, highlights a significant split between assets capturing market demand and those struggling to convert interest into bookings.

Average home prices in Waco vary by property size: 1-bedroom properties cost approximately $100K, 2-bedroom homes average $162K, 3-bedroom properties are around $265K, and 4+ bedroom homes average $393K. These prices reflect median home values across the Waco, Austin, Temple area.

Airbnb and VRBO can be profitable in Waco, with an average gross yield of 13% across all properties. High-performing properties achieve yields up to 24%, which is considered top for short-term rental investment. This yield spread suggests that operational efficiency or specific property positioning heavily influences returns in an otherwise stagnant revenue environment.

The average occupancy rate for Airbnbs and VRBOs in Waco is 32%. This occupancy level, combined with an average nightly rate of $258, results in a RevPAR (revenue per available room) of $74 per day.

1-bedroom properties demonstrate the strongest performance in Waco, with an average gross yield of 21% and annual revenue of $20K. These properties balance purchase price ($100K), operating costs, and rental demand most effectively in the Waco market.

Short-term rental regulations vary by jurisdiction in the Waco area. Waco: Lenient. No specific STR regulations or permits required. Operates under standard business licensing and zoning. Minimal enforcement. Austin: Strict. Type 2 license required, owner-occupancy mandatory for residential areas, 3% density cap per census tract. Active enforcement with significant fines and license revocation. Temple: Lenient. No STR-specific regulations. Standard business license and zoning compliance only. Light enforcement. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Waco Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 1% year-over-year, while RevPAR has decreased 13%. This indicates balanced supply-demand dynamics. The simultaneous drop in revenue despite stable supply signals a softening in guest willingness to pay or a decline in overall market absorption.

Launch around December, 2-3 months before peak fall season (March peaks). This pre-peak timing lets you build reviews when competition is 18% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (September-January) when gaining traction is harder.

The most common amenities in Waco listings include: Air Conditioning (100%), Kitchen (95%), Tv (85%), Washing Machine (78%), Heating (66%). Amenities that boost revenue the most include Hot Tub, Pool, Washing Machine, with Hot Tub properties earning approximately 69% more ($72K/year vs $43K/year).

Monthly estimated revenue per listing in Waco over the last 12 months: May: $2K, June: $2K, July: $3K, August: $3K, September: $2K, October: $3K, November: $2K, December: $2K, January: $2K, February: $2K, March: $3K, April: $2K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Waco is $258, up 16% year-over-year. By property size: 1-bedroom properties average $155/night, 2-bedroom properties average $202/night, 3-bedroom properties average $261/night, 4+ bedroom properties average $464/night. Rates peak in October and are lowest in February.

Guests in Waco book an average of 29 days in advance, down 18% from last year. By property size: 1-bedroom: 25 days, 2-bedroom: 26 days, 3-bedroom: 29 days, 4+ bedroom: 37 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Waco Airbnb and VRBO market has seen the following changes: supply declined 1%, revenue per listing decreased 13%, occupancy fell 13%, average nightly rates increased 16%, and lead time decreased 18%. These metrics reflect a market pivot where rising nightly prices are failing to offset plummeting occupancy, shortening booking windows.

In Waco, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Friday and are lowest on Tuesday. Weekends show 91% higher occupancy than weekdays.