Katy, TX Rental Market for Investors
An estimated 40% of Katy's active listings could cash-flow as a short-term rental — here's what the numbers say for investors, as of October 2026.
Homes in Katy that pencil right now
A sample of active Katy listings whose DSCR clears 1.25 using short-term rental income projections we accept as a direct lender. These are spread across the price range, not ranked, and current as of October 2026.
$270,000DSCR 1.295 bed · 2.5 bath · 2,218 sqft
- STR revenue
- $44,921/yr
- Est. interest-only payment
- $2,317/mo
On the market 114 days · Listed by Exp Realty LLC
Scout this home & market: 5-bed house in Katy
$275,000DSCR 1.413 bed · 2 bath · 1,492 sqft
- STR revenue
- $47,474/yr
- Est. interest-only payment
- $2,243/mo
On the market 86 days · Listed by The Sears Group
Scout this home & market: 3-bed house in Katy
$287,000DSCR 1.284 bed · 2.5 bath · 2,051 sqft
- STR revenue
- $42,630/yr
- Est. interest-only payment
- $2,215/mo
On the market 48 days · Listed by Martha Turner Sotheby's International Realty - Central Houston Brokerage
Scout this home & market: 4-bed house in Katy
As of October 2026, we analyzed 2,607 active for-sale homes in Katy, Texas. The typical listing is priced at $369,900 and is projected to generate about $40,984 a year as a short-term rental.
After setting aside an estimated 20% for operating costs, an estimated 40.0% of those homes could still cover an investor mortgage payment on short-term-rental income — below the 53.1% median across the 200 major metros we track, ranking Katy #141 of 200 for cash-flow potential.
On market momentum: homes in Katy sit a median of 51 days on the market, and 33% of active listings came on in just the last 30 days — a steadily paced market, which shapes how much room there is to negotiate.
For a DSCR loan — which qualifies on the property's rental income rather than your personal income — Katy runs tighter once operating costs are accounted for: many listings need a below-median price, a stronger short-term-rental setup, or more money down before the income covers the payment. It's a market where running the numbers property-by-property matters.
What actually works in Katy
Katy works for investors, but the window is specific: 401 of the 2,450 Katy homes, condos and townhomes we can price confidently clear a DSCR of 1.25. Nine in ten of them are priced under $322,000.
| Price | 2 bed | 3 bed | 4 bed | 5 bed |
|---|---|---|---|---|
| $150k–$250k | 56%1.27 | 76%1.38 | 89%1.39 | — |
| $250k–$350k | — | 26%1.13 | 27%1.13 | 46%1.23 |
| $350k–$500k | — | 3%0.77 | 1%0.81 | 2%0.87 |
| $500k+ | — | 0%0.47 | 0%0.54 | 0%0.52 |
Darker means a larger share of that group cash-flows. “—” means fewer than 8 active listings — too few to draw a conclusion from.
Katy in full
| Active for-sale homes analyzed | 2,607 |
|---|---|
| Median list price | $369,900 |
| Median projected STR revenue (annual, gross) | $40,984 |
| Median average daily rate (ADR) | $196 |
| Median occupancy | 57% |
| Median beds | 4 |
| Median size | 2,423 sqft |
| Estimated cash-flow-positive share | 40.0% |
| Median days on market | 51 days |
| New listings (last 30 days) | 32.6% of active |
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Estimates for educational purposes. Final terms subject to credit, property & program approval.
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