A well-positioned short-term rental in Austin, Texas is estimated to gross $58,000 - $115,000 a year, at an average daily rate of $230 - $430 and annual occupancy of 55% - 66%. Net cash flow after a full expense load and debt service typically lands between $8,000 - $26,000. Those are estimates for illustration rather than a projection for any specific property.
Austin short-term rental numbers for 2026
| Metric | Estimated range |
|---|---|
| Entry price | $550,000 - $1,100,000 |
| Average daily rate | $230 - $430 |
| Annual occupancy | 55% - 66% |
| Gross annual revenue | $58,000 - $115,000 |
| Net cash flow after debt service | $8,000 - $26,000 |
| Peak season | Event driven, with March, football weekends, and festival dates spiking rate |
| Do we buy here? | Yes, this is an active market for us. |
Figures are estimates assembled from our own closings and active-listing comparables, offered for illustration. They are not projections for any specific property, and actual performance varies with location, condition, amenities, management, and season.
What drives demand in Austin
Austin is the most event-dependent market we buy in. A handful of dates each year, led by the March festival period, can produce multiples of a normal weekend rate, and pricing those dates correctly is a meaningful share of annual revenue. Between events, a deep business travel base holds occupancy up.
Texas has no state income tax, which improves the after-tax picture relative to a taxed state.
Regulation in Austin
Austin's short-term rental ordinance has been the subject of extended litigation, and the licensing framework for non-owner-occupied properties has been contested and revised. This is the least settled regulatory environment among our active markets. Underwrite it as a real risk rather than a formality.
Regulation is a pass or fail gate, not a factor to weigh against revenue. Confirm the rules for the specific parcel and the HOA before you write an offer, because county-level permissiveness frequently does not apply inside city limits. See how to check STR regulations before buying.
What a deal has to clear here
- Revenue supported by real comps. Eight to twelve active listings within one bedroom of the subject, live at least twelve months, underwritten to the median rather than the mean.
- Cash flow after a full expense load. Management at market rate, cleaning, supplies, utilities, insurance at short-term rental rates, property tax at the reassessed value, and debt service at the rate you will actually get.
- A reserve sized to the trough. Peak season is Event driven, with March, football weekends, and festival dates spiking rate. Model the worst three consecutive months against fixed costs, because those costs do not pause.
- Regulatory headroom. A permit you can actually obtain, in a jurisdiction that is not mid-moratorium, with governing documents that permit nightly stays.
- An exit that does not depend on the STR premium. If the only buyer is another short-term rental investor, you carry regulatory risk twice.
Our take on Austin
Yes, with the regulatory caveat stated plainly. Austin earns its place on demand strength and the absence of state income tax, but it is the market where we most insist on a current, parcel-level regulatory review before an offer goes out.
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Frequently asked questions
How much can you make on Airbnb in Austin?
A well-positioned short-term rental in Austin is estimated to gross $58,000 - $115,000 a year, at an average daily rate of $230 - $430 and annual occupancy of 55% - 66%. Net cash flow after a full expense load and debt service typically lands in the $8,000 - $26,000 range. Figures are estimates for illustration, and actual performance varies with location, capacity, amenities, and management.
What does it cost to buy a short-term rental in Austin?
Entry prices in Austin generally run $550,000 - $1,100,000 for property that can compete in the nightly rental market. On top of the purchase you should budget closing costs, furnishing of roughly $20,000 to $45,000 depending on size, and an operating reserve sized to the shoulder season.
Is Austin a good short-term rental market in 2026?
Yes, with the regulatory caveat stated plainly. Austin earns its place on demand strength and the absence of state income tax, but it is the market where we most insist on a current, parcel-level regulatory review before an offer goes out.
What is the peak season in Austin?
Peak demand runs Event driven, with March, football weekends, and festival dates spiking rate. Because fixed costs continue through the shoulder months, the reserve requirement should be modelled against the worst three consecutive months rather than against the annual average.
- Texas short-term rental regulations
- Lake house investing guide
- Case study: Laxman & Sabitri, 6BR Hill Country property in Johnson City
- Case study: Dan M. & Kimberly, City short-term rental in Austin
- Johnson City and the Hill Country wine corridor
- How to build a revenue projection for this market
- Financing a purchase in this market