STR vs LTR calculator — Texas

Frequently asked questions

How do STR platform fees affect returns?

Platform fees reduce gross booking revenue before operating expenses. This calculator applies your fee percentage to gross nightly revenue after occupancy.

What occupancy makes short-term rental worth it vs long-term?

It depends on nightly rate, fees, and expenses. Raise occupancy or nightly rate until STR cash flow and NOI beat your long-term rent scenario on the same financing.

Do Texas property taxes affect cash flow in this calculator?

Yes—and they matter. Texas has no state income tax but property taxes are among the highest in the country. Default inputs start with HUD-based rent estimates; enter your expected annual property tax and insurance load in the expenses field to model real cash flow.

What is a good cap rate in Texas?

Residential investment cap rates in Texas vary by market. DFW and Houston investors typically see 5.5–7% on SFR and small multifamily as of 2024–2025, while Austin and premium suburban markets compress closer to 4.5–5.5%. Texas's high effective property tax (~1.6–2% of value depending on county) meaningfully reduces NOI—enter your actual tax bill rather than using a national default to get an accurate cap rate.

How do I estimate cash-on-cash return in Texas?

Cash-on-cash return in Texas depends heavily on your down payment, financing rate, and how accurately you model property taxes and insurance. With a 20% down payment and 7–8% mortgage rate, many Texas SFR deals run 4–8% CoC. High property taxes reduce NOI, which compresses CoC relative to lower-tax states—use local tax estimates, not a national rule of thumb.

How should I compare STR vs LTR in Texas?

Use realistic occupancy and fee assumptions for STR, then compare against a long-term baseline near about $1,350/month. Include cleaner turnover, management, and regulation-related costs before deciding.