Austin Short-Term Rental
Investment Opportunities
Data-driven valuations on live MLS listings, market intelligence, and STR performance data.
Austin Has Opportunity — But Execution Matters
Market Grade
69/100
Surge Score™
Our data-driven market assessment — updated with the latest metrics
Assessment
Austin's short-term rental market earns an overall Surge Score of 69/100, driven by an average monthly revenue of $3,743 across 13,153 active listings with 57.5% average occupancy and a $234 nightly rate.
Over the past year, revenue has declined 0.1% while occupancy is up 4.0%. The market is holding steady — prices are adjusting downward while demand remains. This can indicate a maturing market resetting to sustainable levels.
Seasonality plays a significant role — peak revenue in March is 79% higher than the January trough. Investors should plan cash reserves for slower months and price aggressively during peak periods.
The sweet spot for Austin is 4-bedroom properties at $5,242/month. Larger properties command premium nightly rates and attract families and groups, though they require more investment in furnishing and upkeep.
The highest-performing neighborhoods are Westlake Hills, Steiner Ranch, Dripping Springs. These areas consistently outperform the market average — if you're choosing where to buy, these zip codes deserve first consideration.
This analysis is generated from proprietary market data, Census demographics, and economic indicators. Not financial advice — always perform your own due diligence before investing.
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Get StartedAustin Airbnb Investment Overview
Houston is one of the strongest short-term rental markets in the United States, driven by its position as the energy capital of the world, home to the Texas Medical Center (the largest medical complex globally), and a thriving tourism ecosystem anchored by NRG Stadium, the George R. Brown Convention Center, and Space Center Houston.
Unlike many major metros that have restricted or banned short-term rentals, Houston remains one of the most STR-friendly cities in the country. There is no citywide ban on Airbnb or VRBO properties, making it an attractive market for real estate investors looking for consistent rental income with minimal regulatory risk.
Why Investors Choose Houston
Houston's investment properties present opportunities across a range of neighborhoods and price points. The city's average annual STR revenue of $34,200 for a 3-bedroom property, combined with a median home price significantly below other major metros like Austin, Miami, or Los Angeles, creates favorable cap rates and cash-on-cash returns for investors.
Key demand drivers include the 65+ million annual visitors to the greater Houston area, over 10,000 conventions and events, and the steady flow of medical professionals and patients to the Texas Medical Center. Business travelers in the energy sector provide consistent midweek bookings, while leisure travelers fill weekends and holidays.
When Does Austin Make Money?
Average monthly revenue & occupancy across 5 years of data
Peak Month
Mar
$4,751/mo · 64.5% occ
Trough Month
Jan
$2,657/mo · 48.8% occ
Revenue Swing
79%
Peak vs trough variance
Why This Matters for STR Investors
Seasonality is one of the most important factors in underwriting an STR investment. It tells you how much of your annual income is concentrated in a few peak months versus spread evenly throughout the year. In Austin, Mar generates 79% more revenue than Jan — that's a significant swing. Markets with high seasonality can deliver exceptional peak-month returns, but you need to plan for slower months when revenue drops. Smart investors budget with the trough months in mind, not the peaks. Dynamic pricing tools become essential here — they help you capture maximum revenue during high demand while keeping occupancy up during off-season by adjusting rates downward. If your mortgage payment is based on annual averages, make sure you have 3-4 months of reserves to cover the gap.
Revenue & Occupancy Trends
36-month performance trajectory — is this market growing or saturating?
Avg Revenue (Last 12mo)
$3,743
-0.1% YoY
Avg Occupancy (Last 12mo)
57.5%
Current Revenue
$4,349
Latest month
Market Signal
Stable
Mixed signals
Why This Matters for STR Investors
Revenue and occupancy trends over time reveal whether a market is gaining momentum or losing steam — and that directly impacts your investment thesis. Austin's market is showing mixed signals — revenue is down 0.1% YoY while occupancy is up 4.0%. This is common in mature markets where growth has stabilized. The opportunity here is in operational excellence rather than market timing. Investors who optimize their pricing strategy, maintain high review scores, and target underserved niches (business travelers, families, extended stays) can outperform the market average even when top-line growth is flat.
Which Amenities Drive the Most Revenue?
How each amenity impacts revenue, rates, and occupancy in Austin
Highest Revenue Lift
Hot Tub
+98.4% vs market avg
Highest ADR Lift
Hot Tub
+136.0% vs market avg
Best for Occupancy
Gym
+7.8% vs market avg
Why This Matters for STR Investors
In Austin, listings with a hot tub earn 98% more revenue than the market average — the single biggest amenity driver. Pool access adds +39% to monthly revenue. These premiums compound with bedroom count: larger properties with premium amenities see the widest gap versus comparable listings without them. Use this data to prioritize renovation spending and amenity investments that directly lift your bottom line.
How Crowded Is Austin?
STR density, competitive landscape, and market concentration
Saturation Level
Moderate Saturation
5.5 STRs per 1K households
Active Listings
13,153
Competing for guests
Market-Wide Occupancy
57.5%
Average across all STRs
Saturation Indicators
STR Density
5.5 per 1K
Below average density — less competition per household
Market Occupancy
57.5%
Lower demand signal — pricing and positioning are key
Annual Revenue per STR
$44,918.88
Strong revenue per listing — market supports good ADRs
Market Concentration
20%
Revenue is spread evenly — more neighborhoods can perform well
Why This Matters for STR Investors
Market saturation tells you how crowded the playing field is — and it's one of the biggest risks new investors overlook. Austin has 13,153 active short-term rentals across approximately 2400K households, which works out to 5.5 STRs per 1,000 households. For context, heavily saturated markets like Nashville and Scottsdale run 15-20+ STRs per 1,000 households. At 5.5, Austin still has room for new operators to enter without being drowned out by competition. Lower saturation generally means less price pressure, higher occupancy rates, and more forgiving margins if your listing isn't perfect from day one. This is especially important for first-time investors who are still learning the operational side. Revenue is relatively well-distributed across neighborhoods, which gives you more flexibility in where you invest without being locked into a small number of 'must-buy' zones.
Market News & STR Alerts
Austin Airbnb Market Insights FAQ
Austin's STR market has grown significantly but shows resilience against saturation due to its diversified demand base. With 65+ million annual visitors across business, medical, and leisure segments, the city absorbs new supply better than tourism-dependent markets. Our Saturation Score tracks the ratio of listing growth to demand growth — when supply outpaces demand, per-listing revenue declines. Check the Insights tab for Austin's current saturation signal and whether the market is in a growth, stable, or saturating phase.
Key Austin STR trends: supply has grown 15–20% annually as more investors enter the market, but revenue per listing has remained relatively stable due to strong demand growth. ADR has trended upward driven by inflation and property improvements. Seasonality shows peak booking periods in spring (March–May) and fall (October–November), with summer seeing higher ADR but slightly lower occupancy. Our Revenue & Occupancy Trends chart tracks these patterns month by month with historical data.
Houston's STR demand comes from four main segments: (1) Business travel — energy sector, aerospace, and corporate relocations drive strong midweek demand with high ADR. (2) Medical travel — the Texas Medical Center generates year-round bookings from patients, families, and healthcare professionals. (3) Events — NRG Stadium, Minute Maid Park, and the George R. Brown Convention Center host 10,000+ events annually. (4) Leisure tourism — Space Center Houston, the Museum District, and a growing food/culture scene attract weekend visitors.
Supply-demand balance directly impacts your returns. When new listings grow faster than demand, average occupancy and ADR decline — squeezing per-listing revenue. Austin's advantage is demand diversification: even if leisure travel dips, business and medical demand provides a floor. Our Supply & Demand chart tracks active listings, available nights, and booked nights over time. If supply growth exceeds 20% while demand grows under 10%, it's a signal to be more selective about neighborhoods and property types.
Three trends to monitor: (1) Supply growth rate — if new listings in your target neighborhood exceed 15% annually, competition will intensify and you'll need stronger differentiation. (2) ADR compression — falling average daily rates signal oversupply or demand weakness; stable or rising ADR indicates a healthy market. (3) Regulatory changes — With no citywide STR ban and a straightforward registration requirement, Houston remains one of the more investor-friendly major metros in the US for Airbnb. Our Insights tab tracks all three with live data and Surge's proprietary market signal analysis.
Before investing in any STR market, track five key trends: occupancy rate direction (declining = warning sign), ADR trajectory (rising = pricing power), supply-to-demand ratio (listings growing faster than bookings = saturation risk), seasonal patterns (determines cash flow consistency), and regulatory direction (tightening restrictions reduce property pool but benefit existing operators). Our Insights tab monitors all of these for Austin with live data visualizations and trend analysis.
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Deep Market Analytics
Granular STR performance data, competitive landscape, and demand forecasts
Monthly Revenue Seasonality
19,468
Total Active STR Listings
14 days
Avg Booking Lead Time
3.2 nights
Avg Length of Stay
+12.3%
Supply Growth (YoY)
Revenue Distribution
Competitive Landscape
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