Real revenue data by bedroom count for Fredericksburg, Wimberley, Dripping Springs, and the broader Texas Hill Country STR market.
Texas Hill Country STR Revenue Overview
Texas Hill Country has become one of the most popular vacation rental markets in the South, driven by its proximity to Austin and San Antonio, its growing wine country reputation, and the unique property types (A-frames, modern ranch houses, converted barns) that dominate the market.
But how much do these properties actually make? Here’s the data.
Revenue by Bedroom Count (Annual Gross, Trailing 12 Months)
These figures represent 50th to 90th percentile performance, meaning the top half of the market, not the bottom.
| Bedroom Count | 50th Percentile | 75th Percentile | 90th Percentile |
|---|---|---|---|
| 1 BR | $26,000 | $36,000 | $50,000 |
| 2 BR | $28,000 | $39,000 | $55,000 |
| 3 BR | $40,000 | $54,000 | $72,000 |
| 4 BR | $56,000 | $80,000 | $105,000 |
| 5 BR | $75,000 | $108,000 | $145,000 |
| 6+ BR | $110,000 | $161,000 | $215,000+ |
Overall Market Percentiles
- Median property (50th percentile): $36,830/year
- Top quartile (75th percentile): $61,149/year
- Top 10% (90th percentile): $96,752/year
What Drives Revenue in Hill Country?
The revenue spread in Texas Hill Country is one of the widest of any STR market. A generic 3-bedroom house in Johnson City might gross $40K. A design-forward 3-bedroom with a hot tub, fire pit, and Hill Country views on 5 acres can gross $72K+. Same bedroom count, nearly double the revenue.
The biggest revenue drivers:
- Property uniqueness. A-frames, converted barns, modern farmhouses, and unique architectural properties outperform standard houses by 30-40%. Hill Country rewards Instagram-worthy design.
- Acreage and views. Properties on 2-10 acres with open Hill Country views command a significant premium over in-town properties.
- Proximity to Fredericksburg Main Street or wineries. Walkability to Main Street or location on the 290 Wine Trail are direct booking drivers.
- Pool. Critical for summer months when temperatures exceed 100°F. A stock tank pool or plunge pool can work on smaller properties.
- Hot tub. Expected on any rural/cabin property. Non-negotiable.
- Pet-friendly. Hill Country has a large pet-traveling guest segment. Allowing dogs (with a pet fee) meaningfully increases bookings.
Revenue by Sub-Market
- Fredericksburg: Highest nightly rates and demand. Peak spring (bluebonnets) and fall (wine harvest). Median property grosses $40K-$50K; top performers $80K-$120K+.
- Wimberley: Strong couples/weekend market. Jacob’s Well, Blue Hole drive demand. Slightly lower rates than Fredericksburg but solid occupancy.
- Dripping Springs: “Wedding Capital of Texas”: event venue proximity drives bookings. 25 minutes from Austin. Growing distillery/brewery scene.
- New Braunfels: Highest summer volume (Guadalupe River tubing, Schlitterbahn). More seasonal than Fredericksburg but massive peak-season revenue.
- Johnson City / Marble Falls: Lower prices, emerging market. Good value-play for investors.
How to Self-Manage and Keep More Revenue
A property manager in Hill Country charges 20-30% of gross revenue. On a property grossing $60K, that’s $12,000-$18,000/year going to someone else.
Self-management tech stack:
- PriceLabs ($20-$30/month): Dynamic pricing for Hill Country’s seasonal demand
- Hospitable ($25-$40/month): Automated guest messaging
- Ring doorbell ($10-$15/month): Remote check-in monitoring
Total: ~$80/month vs. $1,000-$1,500/month for a property manager. We’ve trained 5,000+ investors to self-manage. It takes about 2 hours per week from your phone.
The STR Tax Advantage
Texas has no state income tax, making the federal STR tax loophole even more powerful here:
- Buy a $450K Hill Country property
- Cost segregation study identifies $112K-$150K in accelerable depreciation
- 100% bonus depreciation (permanent as of 2026) lets you deduct it all in year one
- At a 37% marginal rate: $41,000-$56,000 in year-one tax savings
- You still own the property and it’s still generating rental income
Material participation requires 100+ hours/year, easily met through self-management.
Ready to See What a Hill Country STR Would Make For You?
The Short Term Shop runs revenue projections based on actual trailing data, not estimates. Our Texas Hill Country agent will analyze any property you’re considering and tell you what it should realistically gross.
📞 Call 800-898-1498 | 🌐 theshorttermshop.com
FAQ
Q: Is Hill Country oversaturated?
A: No. While Fredericksburg has grown, the market rewards unique, well-designed properties. Generic houses underperform, but distinctive properties with views, hot tubs, and modern design are grossing more than ever.
Q: What's the best bedroom count for Hill Country?
A: 3-4 bedrooms is the sweet spot. Captures couples traveling together and small families, the two largest booking demographics. Purchase price typically $350K-$600K for this range.
Q: When is peak season?
A: Spring (March-May) is the strongest season, bluebonnets, spring break, perfect weather. Fall (October-November) is the second peak with wine harvest and Oktoberfest. Summer is hot but busy with river activities. January-February is the softest period.
More on Texas Hill Country STR Investing
- Texas Hill Country: Find the Best STR Agent
- Texas Hill Country: STR Expenses Breakdown
- Texas Hill Country: STR Regulations
- Texas Hill Country: Best Neighborhoods
- Texas Hill Country: Is It a Good Investment?
- Texas Hill Country: Market Comparison
- Texas Hill Country: STR Tax Guide
Essential STR Investor Resources
- The STR Tax Loophole Explained: save $30K-$60K+ in year-one taxes
- How to Buy a Short Term Rental: step-by-step guide
- The Mortgage Shop: DSCR and investment property loans
Explore Other STR Markets
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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.