Dallas Apartments Edge Out Houses on Short-Term Yield

Apartments lead Dallas on short-term yield because entry prices run far below comparable houses while nightly rates don't drop at the same pace. That mismatch produces a gross yield of 11.1% for apartments against 8.4% for houses, a gap of 2.8%. These are gross figures before HOA dues, which materially narrow the advantage in many Dallas buildings.

Dallas sits in a suburban-balance sweet spot: enough visitor demand to support short-term rental, but entry prices low enough (a 2-bed apartment median around $163,092 versus $235,000 for a Texas 3-bed house) that yields hold up. The numbers below are city medians across 83 ZIP codes spanning Pleasant Grove in the south through Addison and Coppell in the north, so your specific neighbourhood may sit well above or below these figures.

Apartments Lead Both Short-Term and Long-Term Yield in Dallas

City medians across 83 ZIP codes. Gross yields before HOA (apartments) and before operating costs.

The top short-term performer across both formats is the 1-bed apartment at 12.4%. The long-term column tells a narrower version of the same story: apartments still lead on long-term yield at every bedroom count, but the gap over houses shrinks, and house yields are steadier across bedroom counts because tenant demand for single-family homes in suburban ZIPs like Mesquite and Lancaster is deep and the rent-to-price ratio stays reasonable. A standard Dallas 3-bed house produces 8.3% short-term and 5.0% long-term, which helps explain why long-term rental remains the default strategy for most suburban house stock in the metro.

Lower Entry Prices, Then HOA Dues Claw Back the Gap

The yield gap comes down to a price mechanism, not a revenue one. A Dallas 2-bed apartment at around $163,092 costs a fraction of a 2-bed house at $268,682, yet the nightly rate a guest pays for a central two-bedroom unit doesn't fall in the same proportion. Short-term guests pay for location, bedroom count and reviews, not lot size. When the denominator (price) shrinks faster than the numerator (revenue), yield rises.

That gross yield advantage narrows once HOA dues are netted out. Dallas condo and townhome HOAs run roughly $2,549 per year for a typical 2-bed, covering building insurance, shared utilities and amenities. Uptown, Victory Park and Downtown high-rises with pools, concierge and valet sit well above that figure; garden-style complexes in Richardson or Plano sit below it. Subtract the fee from gross apartment income and the yield advantage over houses shrinks, though in most cases does not disappear.

HOA rules carry a second, harder risk: individual condo associations in Dallas can prohibit short-term rental regardless of what the City of Dallas or Texas state law allows. Always read the association's covenants and minutes before purchasing. A permissive state and a permissive city cannot override a restrictive HOA bylaw.

The Bedroom Curve Moves in Opposite Directions for Houses and Apartments

House yields in Dallas tend to rise as you add bedrooms because larger properties pick up a disproportionate share of group-travel demand. Families and short-stay groups pay materially more per night for a 3-bed or 4+ bed house than they pay for a 1-bed, while purchase prices do not scale at the same rate in most outer-ring ZIPs. For long-term rental, the same curve is gentler: a three-bed house captures the family tenant market in a way a one-bed house cannot.

Apartment yields behave differently. Small one and two-bedroom units in dense ZIPs typically carry the best short-term yield profile, while the 4+ bed apartment yield often softens to 10.5%, reflecting the steep price of larger condos in buildings like those on Turtle Creek or in the Arts District. Treat the 4+ bed category with extra caution: it bundles 4, 5 and 6+ bedroom listings together, so a handful of luxury outliers can pull the median either way.

City Medians Hide Wide Suburb Variation

These figures are city medians across 83 ZIP codes, and Dallas neighbourhoods diverge far more than the headline numbers suggest. Pleasant Grove (75217) leads the long-term yield table at 10.5% with a median price of $207,250, while Addison and Coppell in the north sit closer to 6.1% with entry prices well above $350,000. The house-vs-apartment call can flip within a five-mile radius: a 2-bed apartment in Uptown behaves nothing like a 2-bed condo in Mesquite. The dashboard shows suburb-level data for every bedroom count and property type, so you can compare within the specific area you are evaluating.

View Dallas in the dashboard → Free preview · every bedroom count and property type

What the Yield Table Does Not Capture

• HOA fees: Estimated at around $2,549 per year for a 2-bed apartment in this market, not deducted from the gross yields in the table above. Amenity-heavy Uptown and Downtown high-rises sit well above that number.
• Capital appreciation: Dallas houses usually outperform apartments on long-term value growth because you own the land, and Dallas-Fort Worth has been one of the strongest metro land markets in the US over the past decade.
• Renovation potential: Houses in ZIPs like Oak Cliff and Pleasant Grove offer optionality (extensions, ADUs, detached garages) that a condo in a managed building cannot match.
• Financing constraints: Some lenders restrict mortgages on small apartments (under 500 sq ft) or on buildings with high investor-to-owner-occupier ratios, which is common in Downtown Dallas high-rises.
• Property tax weight: Texas has no state income tax but high property taxes, running roughly 1.5% of assessed value. That bill applies equally to houses and apartments and is already baked into any net-yield calculation but not into the gross yields above.
• 4+ bed data breadth: The 4+ bed category bundles 4, 5 and 6+ bedroom listings. A small number of outlier properties can pull the median in either direction.

Dallas Sits Below National Prices, Above National Yields

Dallas is a cash-flow market rather than a premium appreciation market on a national lens. The median 3-bed house at $378,904 sits above the Texas median of $235,000 and above the US median of $242,500, but gross yields of 6.1% long-term outpace the national median of 5.3%. That combination tilts the house-vs-apartment decision in a specific way: in Dallas, the gap between apartment and house yield is narrower than in coastal cities where house prices run much higher, so the case for apartments rests more on HOA-adjusted net returns and location access than on headline yield alone.

Regulation is a tailwind here. Permit required ($404) in Dallas. Dallas passed ordinances in 2023 banning short-term rentals in single-family residential zones and requiring annual registration ($404). However, enforcement is blocked by a court injunction (appealed to Texas Supreme Court, pending as of Feb 2026). Short-term rentals continue to operate during the injunction. Hotel occupancy tax collection is required. That keeps the short-term rental column live across the bedroom grid above, unlike cities with hard night caps. The modelling uses 330 effective rental nights per year, which reflects maintenance and turnover gaps rather than any regulatory ceiling.

Data reflects market conditions as of April 2026. Methodology notes are available on our market score methodology and data sources pages. You can also explore rental data in the dashboard for suburb-level filtering. For a DFW-metro comparison across city lines, see Fort Worth Long-Term Rentals Yield 6.0%, Short-Term Caps Kill the Alternative; for the full cost breakdown behind these yields, see Dallas Short-Term Rentals Gross 80% More, but Costs Narrow the Gap.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.