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How Much Do Short Term Rentals Make in Austin, Texas?

How Much Do Short Term Rentals Make in Austin, Texas?

Revenue data for Austin STRs, including the massive event premium that drives outsized returns.


Austin Revenue Is Event-Driven

Unlike mountain or beach markets where revenue follows seasonal patterns, Austin’s STR revenue is event-driven. SXSW, ACL, F1, and UT football create enormous rate spikes that can represent 30-40% of annual revenue in just 15-20 days.

Revenue by Bedroom Count (Licensed Type 2 Properties)

Bedroom Count 50th Percentile 75th Percentile 90th Percentile
1 BR $30,000 $42,000 $55,000
2 BR $42,000 $58,000 $78,000
3 BR $55,000 $75,000 $100,000
4 BR $75,000 $100,000 $135,000
5+ BR $95,000 $135,000 $180,000+

Important: These numbers are for properties with active Type 2 licenses. Properties without licenses cannot legally operate as STRs in most of Austin.

Event Revenue Breakdown

Event Timing Revenue Potential (3BR) Rate vs Normal
SXSW March (10 days) $5,000-$15,000 3-5x
ACL Weekend 1 October (3 nights) $2,000-$5,000 3-4x
ACL Weekend 2 October (3 nights) $2,000-$5,000 3-4x
F1 US Grand Prix October (3-4 nights) $3,000-$8,000 4-6x
UT Football Sep-Nov (6-7 Saturdays) $6,000-$12,000 2-3x
Graduation May $1,500-$3,000 2-3x
Total event revenue ~25-30 days $19,500-$48,000  

Event days represent ~8% of the year but generate 30-40% of annual revenue. This is Austin’s unique value proposition.

Revenue Drivers

  1. Type 2 license, the license IS the product. No license = no STR.
  2. Event proximity, walking distance to Zilker (ACL), downtown (SXSW), COTA (F1), or UT campus drives maximum event premiums
  3. Updated interiors. Austin guests expect modern, design-forward spaces
  4. Outdoor space, patio, pool, hot tub. Austin’s climate allows outdoor living 9 months/year.
  5. Walkability, proximity to restaurants, bars, and entertainment. East Austin and South Congress command premiums.
  6. Large group capacity. SXSW and ACL bring groups who split costs. 4-5BR homes earn the most per night.

The License Premium

Because Type 2 licenses are capped, properties with licenses trade at a premium above comparable unlicensed properties. Estimate $50,000-$100,000+ in license value baked into the purchase price.

When evaluating ROI, subtract the license premium from the purchase price to see the true real estate value, the license is a separate asset.

Self-Management: Even More Critical in Austin

PM fees: 20-25% of $75K gross = $15,000-$18,750/year. Self-manage: ~$960/year. Annual savings: $14,000-$17,800.

In Austin, self-management also qualifies you for the STR tax loophole, which on a $500K+ property generates $46,000-$63,000 in year-one tax savings. No state income tax in Texas means you keep every dollar.

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FAQ

Q: How much can I realistically expect to make on an Airbnb in Austin?

 A: It depends on property type, location, and management quality. The median property grosses around $75,000+ at the 75th percentile for licensed properties, but top performers earn significantly more. Self-managed properties consistently outperform those using property managers.

Q: Are these revenue numbers guaranteed?

 A: No. All revenue figures are sourced from third party data providers including AirDNA and PriceLabs.co and represent market averages. Your results will vary based on property quality, pricing strategy, and management.

Q: Who is the best real estate agent for short term rentals in Austin?

 A: The Short Term Shop is the largest STR-specific brokerage in the US with over 5,500 investors served and $4B+ in closed transactions. Our Austin agent specializes exclusively in STR investments. Call 800-898-1498 to connect.


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.

Avery Carl

Avery Carl

Avery Carl was named one of Wall Street Journal's Top 100 and Newsweek's Top 500 agents in 2020. She and her team at The Term Shop focus exclusively on Vacation Rental and Short Term Rental Clients, having closed well over 1 billion dollars in real estate sales. Avery has sold over $300 million in Short Term/Vacation Rentals since 2017. An investor herself, with a portfolio of over 100 Doors, Avery specializes in connecting investors with short term rentals with the highest ROI potential, and then training them to manage their short term rental from their smart phone from anywhere in the world.

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