any lucks of investing MTR in Houston

[Lily Wang]

Hi, I’m Lily, and I live in Houston. I started long-term rentals last year with a focus on Section 8 properties. However, the Houston Housing Authority recently lowered the payment standard significantly, by over $1,000 per month, which has made this strategy less viable.

Now, I'm considering mid-term rentals (MTR) for better cash flow and less management compared to short-term rentals (STR). But I'm concerned about the challenges of frequent turnover and vacancy rates.

If anyone has experience with MTRs, I’d love to hear your insights! What locations, property sizes, and target groups work best? Is this a good investment strategy in Houston right now?"

Thank you.

[River Sava]

Hey Lily, I think you're on the right track by considering MTRs, especially with the challenges you're facing in the Section 8 space. MTRs can offer a nice balance between the steady income of long-term rentals and the high cash flow of STRs without the constant turnover.

In terms of locations, I've noticed that areas close to hospitals or corporate hubs tend to do well since travel nurses and professionals on temporary assignments often seek out these rentals. Property sizes can vary, but something with a couple of bedrooms usually appeals to a wider range of tenants.

As for Houston, it seems like a solid market for MTRs with its strong medical presence and diverse industries. Happy to connect and send over some info that you might find helpful. Good luck!

[Lily Wang]

Quote from @River Sava:

Hey Lily, I think you're on the right track by considering MTRs, especially with the challenges you're facing in the Section 8 space. MTRs can offer a nice balance between the steady income of long-term rentals and the high cash flow of STRs without the constant turnover.

In terms of locations, I've noticed that areas close to hospitals or corporate hubs tend to do well since travel nurses and professionals on temporary assignments often seek out these rentals. Property sizes can vary, but something with a couple of bedrooms usually appeals to a wider range of tenants.

As for Houston, it seems like a solid market for MTRs with its strong medical presence and diverse industries. Happy to connect and send over some info that you might find helpful. Good luck!

Thank you for your reply. As to near medical center for traveling nurses, is 1b1b works better? To be honestly, I do not like condo/townhome as investment.  how about locations near energy corridor and woodlands? will 3b has a steady market? I know insurance company need large unit. is it easier for 3b~4b to find tenant? 

[Allen Duan]

Hi Lily! I have a few connections to MTR operators in Houston I can share. 

Speaking to the more frequent turnovers, it is more than LTR but not as much as STR =) You just need a good system to handle turnovers and you'll be fine.

Overall, for the MTRs my company manages, we get 80% occupancy.

It will differ by market, but I find 1 bedroom units and 3 bedroom houses do the best for MTRs. It matches the typical demographics who rent MTRs: individuals or couples for 1 bedrooms, families for 3-4 bedroom homes. I'm in Los Angeles, so it should be similar to a larger market like Houston. 

Happy to answer any further questions!

[Lily Wang]

Quote from @Allen Duan:

Hi Lily! I have a few connections to MTR operators in Houston I can share. 

Speaking to the more frequent turnovers, it is more than LTR but not as much as STR =) You just need a good system to handle turnovers and you'll be fine.

Overall, for the MTRs my company manages, we get 80% occupancy.

It will differ by market, but I find 1 bedroom units and 3 bedroom houses do the best for MTRs. It matches the typical demographics who rent MTRs: individuals or couples for 1 bedrooms, families for 3-4 bedroom homes. I'm in Los Angeles, so it should be similar to a larger market like Houston. 

Happy to answer any further questions!

 Hi, Allen, Thank you very much. Could you please share the MTR operators to me? 

[Nicole Heasley Beitenman]

Quote from @Lily Wang:

Thank you for your reply. As to near medical center for traveling nurses, is 1b1b works better? To be honestly, I do not like condo/townhome as investment.  how about locations near energy corridor and woodlands? will 3b has a steady market? I know insurance company need large unit. is it easier for 3b~4b to find tenant? 

Anything with an HOA isn't ideal. If the HOA decides to ban rentals or restrict lease length, you're out of luck. I strongly suggest you go to some local REI meetups. That's the best place to go for market-specific feedback.

[Wesley I.]

@Lily Wang

What zip code are you in? Im in 77388 and thinking about MTR as well.

[Lily Wang]

@Wesley I.

I live in central Houston, not far from energy corridor. I’ve notice there are several extended stay hotel.

Any location within 30min from my home is acceptable for me.

I think 77388 might be good as well.

[Wale Lawal]

@Lily Wang

Houston's varied economy and rising population make mid-term rentals (MTRs) an attractive alternative for a variety of tenant groups. Proximity to hospitals, corporate hubs, and schools is an important factor. MTRs should be 1-3 bedrooms, furnished, and provide facilities that the target group appreciates. Despite obstacles like as vacancy and rent gaps, Houston's robust job market and low real estate costs make MTRs financially viable.

Good luck!