Where to buy an Airbnb in Austin, by neighborhood, guest type, and event proximity.
Neighborhood Comparison
| Neighborhood | Avg Price | Revenue Potential | Event Proximity | Best For |
|---|---|---|---|---|
| East Austin/East 6th | $500K-$800K | $70K-$120K | SXSW walkable | Event tourism, bars/restaurants |
| South Congress (SoCo) | $600K-$1M+ | $80K-$130K | ACL nearby | Trendy, dining, shopping |
| Zilker | $700K-$1.2M | $90K-$150K | ACL walkable | ACL premium, outdoor lifestyle |
| Downtown/Rainey | $400K-$700K (condos) | $60K-$100K | Everything walkable | Highest event rates, condos |
| South Lamar | $450K-$750K | $60K-$90K | Moderate | Growing food scene, value |
| North Loop/Hyde Park | $400K-$650K | $50K-$80K | UT adjacent | UT events, couples, quirky |
| Travis Heights | $600K-$900K | $75K-$120K | Near SoCo + ACL | Premium residential, families |
| Mueller | $400K-$600K | $45K-$70K | East side | Families, planned community |
Critical: STR license availability varies by neighborhood. Some areas have zero Type 2 licenses available. Always verify before targeting a neighborhood.
East Austin / East 6th Street
The SXSW play. East Austin is ground zero for Austin’s music, arts, and food culture. Walking distance to downtown and the convention center makes it the highest-demand neighborhood during SXSW.
- Why buy here: SXSW walkability, bar/restaurant density, young professional appeal
- Nightly rates: $200-$500+ (SXSW: $500-$1,500+)
- Guest type: Festival-goers, foodies, creative professionals
- Risk: Gentrification pushback, evolving neighborhood dynamics
South Congress (SoCo)
Austin’s signature street. Iconic food trucks, boutique shopping, and the famous “I love you so much” mural. SoCo is Austin’s most Instagrammable neighborhood.
- Why buy here: Strongest year-round demand, walkability, brand recognition
- Nightly rates: $225-$550+
- Guest type: Couples, design-conscious travelers, foodies
- Risk: Highest prices, most competitive
Zilker
The ACL play. Zilker Park hosts ACL Festival (two weekends, 450,000+ attendees). Properties within walking distance of Zilker command the highest event premiums in Austin.
- Why buy here: ACL walkability (2 weekends = $4K-$10K revenue), Barton Springs, Lady Bird Lake
- Nightly rates: $250-$600+ (ACL: $600-$2,000+)
- Guest type: Festival-goers, outdoor enthusiasts, families
- Risk: Highest purchase prices in Austin
Downtown / Rainey Street
Volume play. Walkable to everything, conventions, 6th Street, the Capitol, F1 watch parties. Condos are the typical product type.
- Why buy here: Maximum event proximity, strong corporate travel
- Nightly rates: $175-$400+ (events: $400-$1,000+)
- Guest type: Business travelers, event attendees, groups
- Risk: Condo HOA STR restrictions, higher fees
How to Choose
- Start with license availability, no license = no STR, regardless of how good the neighborhood looks
- Match to your budget. Zilker/SoCo require $700K+; East Austin/South Lamar are more accessible
- Consider event exposure, are you near SXSW venues, ACL, UT stadium, or COTA?
- Verify HOA rules if buying a condo, many downtown condos restrict STRs
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FAQ
Q: What is the best area to buy a short term rental in Austin?
A: It depends on your budget and investment strategy. Each sub-market has different price points, guest demographics, and revenue profiles. Our Austin agent can match you to the right area based on your goals.
Q: How important is location for STR revenue?
A: Critical. Two identical properties in different neighborhoods can have 30-50% revenue differences. Proximity to attractions, walkability, and views are the biggest location factors in Austin.
Q: Who is the best real estate agent for short term rentals in Austin?
A: The Short Term Shop has agents who know every sub-market in Austin and can tell you exactly what each area will gross. Call 800-898-1498.
Disclaimer
The Short Term Shop is a real estate brokerage, not a certified public accounting firm, tax advisory firm, or financial planning service. Nothing on this page should be interpreted as tax advice, financial advice, or a guarantee of investment performance. Always consult your CPA, tax attorney, and financial advisor before making any investment or tax decisions.
All income and revenue figures referenced in this article are sourced from third party data providers including AirDNA and PriceLabs.co. These figures represent market averages and percentile ranges based on historical performance data and do not guarantee future results. Actual short term rental income varies significantly based on property quality, location, management quality, pricing strategy, seasonality, and market conditions. Your results may differ.
