Rental Arbitrage in Dallas, TX
We have not published a sourced legal page for this city yet. Check the city's official short-term rental rules and your lease before relying on the numbers below.
- Average daily rate
- $179.10
- Occupancy
- 60%
- Annual revenue potential
- $33,100
How Much Rent Can a Unit Here Carry?
- Most rent that breaks even
- $2,734
- Rent that leaves a 20% margin
- $1,977
At the market's average rate and occupancy, a unit books about 18.2 nights and $3,784 a month. The ceiling assumes 3-night stays, an $85 cleaning fee against a $75 clean, a 3% platform fee and $480 a month for bills, insurance, supplies and software. Market averages include every listing size, so a one-bedroom usually earns less. Treat these as upper limits for a lease negotiation, not targets.
Run the Numbers for Dallas, TX
Pre-filled with the market's rate and occupancy, and a rent at the 20% margin ceiling. Replace the rent with the real asking rent of the unit you're considering.
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The Dallas, TX Market
Dallas averaged a $179.10 daily rate at 60% occupancy over the last 12 months, or about 18.2 booked nights and $3,780 of booking income a month.
Registration with the city is free and required, and hosts collect a 9% city hotel tax plus the 6% state tax. The bigger question is legal: the 2023 ban on short-term rentals in single-family zoning is blocked by a court injunction while the lawsuit continues, so a long lease on a house carries more risk than a unit in a multifamily or commercial zone.
What a Unit Can Earn
At market averages, the break-even rent is about $2,730 a month and a 20% margin needs rent of about $1,980 or less.
Startup Costs
At a $1,950 rent, expect roughly $12,300 before the first booking: a one-month deposit, the first month's rent, about $7,500 of furnishing and $900 of setup. Add a cushion of a few months of costs. Work it out properly with the startup cost calculator.
Risks to Weigh
- If the courts let the 2023 zoning ban take effect, rentals in single-family zones would have to stop
- The combined 15% hotel tax is collected on room revenue and must be filed monthly
- HOA, condo and lease rules can still prohibit short-term rentals
Frequently Asked Questions
- What Rent Can a Dallas Unit Carry?
- At market averages, the break-even rent is about $2,730 a month, and a 20% margin needs rent of about $1,980 or less.
- How Much Does an Average Dallas Short-Term Rental Earn?
- AirDNA's Dallas market averaged a $179.10 daily rate at 60% occupancy over the last 12 months, with annual revenue of about $33,100 for an average listing.
- Is the Dallas Short-Term Rental Ban in Effect?
- Not while the court injunction stands. The 2023 zoning ban on short-term rentals in single-family areas is blocked while the lawsuit continues. Registration and hotel tax are required now.
- Should I Lease a House in a Single-Family Zone in Dallas?
- It carries more risk than a unit in a multifamily or commercial zone, because a court decision could let the 2023 ban take effect during your lease.
- What Taxes Do Dallas Hosts Collect?
- A 9% city hotel occupancy tax plus the 6% state hotel occupancy tax, 15% combined, filed monthly with the city.