South Central7.1% avg cap rate

Austin, TX

Live music capital of the world — SXSW and events-driven STR

Austin is one of the most event-dense STR markets in the country. SXSW, Austin City Limits, Formula 1 at COTA, and a packed convention calendar drive ADR spikes that rival any US market. The city has a complex and evolving STR licensing framework — non-owner-occupied Type 2 licenses are capped in residential zones — which creates scarcity value for permitted properties. Tech industry growth continues to fuel baseline demand.

7.1%
Avg Cap Rate
Net operating income / price
68%
Avg Occupancy
Annual average
$375
Avg Nightly Rate
All property types
$575K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
68% occ × $375/night
$93,075
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $37,230
Est. net operating income
Before mortgage & depreciation
$55,845
At median price
Implied cap rate
9.7%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Austin

SXSW and ACL Festival weeks produce some of highest ADR spikes nationally
Formula 1 US Grand Prix fills every STR within 30 miles of COTA
Type 2 (non-owner-occupied) STR licenses capped — verify availability
No Texas state income tax on rental income
Peak season: Mar (SXSW), Oct (ACL/F1), summer
Top property types: Single Family, Condo, Bungalow, Townhouse
Primary zip: 78701, 78702, 78703, 78704, 78741

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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