Fredericksburg, TX
Texas Hill Country wine country - romantic weekend escape
Fredericksburg is the heart of the Texas Hill Country wine region, with 50+ wineries on the Fredericksburg Wine Road drawing over 1.5 million visitors annually. The German heritage town's Main Street, peach orchards, and lavender farms create a uniquely romantic getaway that commands premium ADR on weekends year-round. San Antonio and Austin (both ~70 miles) provide enormous drive-to feeder markets.
Across 88 active STR-viable listings analyzed this month, Fredericksburg shows a 2.4% median cap rate at a $465K median list price, 39% occupancy, and $196/night. That ranks #36 of 57 markets in STRROI's live ranking. At typical prices, cash flow is tight: most listings only pencil out with a large down payment, a below-list purchase, or above-market nightly rates.
Fredericksburg real estate market right now
As of October 18, 2026, STRROI is tracking 88 homes for sale in Fredericksburg that could run as short-term rentals, at a median list price of $465,000. The middle half are priced between $318K and $889K. That works out to a median of $397 per square foot for a typical 1,668 square foot home. Homes here have been on the market 120 days on average, longer than the 101 days typical across the 56 markets in STRROI's ranking, which usually leaves more room to negotiate on price. 26 of them were listed in the last 30 days.
These numbers cover the homes for sale STRROI analyzes as potential short-term rentals in Fredericksburg, ZIP 78624. They are not every home sale in the area, so they can differ from MLS-wide figures. Month-by-month price history starts Oct 2026 and fills in as the market is re-checked each month.
What's for sale in Fredericksburg right now
Of the 88 homes for sale we analyzed in Fredericksburg, 5 (6%) project positive monthly cash flow with 20% down at a 7.5% rate, and none rate Buy or better on STRROI's 1-10 scale. 3-bedroom homes are the most common (36 for sale, median $490K). Returns are strongest in 5+ bedroom homes at a 3.4% median cap rate, and weakest in 4-bedroom homes at 1.8%. By property type, multi-family lead at a 4.6% median cap rate across 4 listings.
- Weak: 20
- Avoid: 68
| Beds | For sale | Median price | Cap rate |
|---|---|---|---|
| 1 | 16 | $331K | 2.3% |
| 2 | 17 | $385K | 2.5% |
| 3 | 36 | $490K | 2.9% |
| 4 | 13 | $1.4M | 1.8% |
| 5+ | 6 | $1.3M | 3.4% |
| Type | For sale | Median price | Cap rate |
|---|---|---|---|
| Single-family homes | 40 | $856K | 1.8% |
| Condos | 23 | $342K | 2.4% |
| Manufactured homes | 20 | $266K | 4.2% |
| Multi-family | 4 | $908K | 4.6% |
Top-ranked homes for sale in Fredericksburg this month
Scored 1-10 against real Airbnb comps. Addresses, photos and the full underwriting are in the app.
- #1Weak · 4/103 bd · 2 ba manufactured homeZIP 78624 · listed at $95K
- Cap rate
- 11.7%
- Cash flow
- +$397/mo
- Nightly
- $186 at 39%
- #2Weak · 4/102 bd · 2 ba manufactured homeZIP 78624 · listed at $68K
- Cap rate
- 9.7%
- Cash flow
- +$170/mo
- Nightly
- $129 at 39%
- #3Weak · 4/103 bd · 2 ba manufactured homeZIP 78624 · listed at $135K
- Cap rate
- 8.3%
- Cash flow
- +$174/mo
- Nightly
- $186 at 39%
How Fredericksburg compares
Fredericksburg ranks #4 of 6 South Central markets in STRROI's live ranking; South Padre Island leads the region with a median cap rate of 4.8%. Its 2.4% cap rate is 0.5 points below the 2.9% median across all 57 ranked markets, and its $465K typical list price is cheaper than the South Central median of $551K.
| Rank | Market | Cap rate | Typical price |
|---|---|---|---|
| #12 | South Padre Island, TX | 4.8% | $794K |
| #26 | Port Aransas, TX | 3.4% | $543K |
| #34 | Broken Bow, OK | 2.6% | $560K |
| #36 | Fredericksburg, TX | 2.4% | $465K |
| #37 | Galveston, TX | 2.4% | $380K |
| #48 | Austin, TX | 2.0% | $787K |
Rank is national, by median cap rate across active STR-viable listings. Cash flow uses STRROI's default financing assumptions. See the full ranking
Estimated Annual Performance
* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.
Why Investors Choose Fredericksburg
Fredericksburg STR investing, answered
Is Fredericksburg, TX a good short-term rental market?
Fredericksburg is a South Central STR market with a 2.4% median cap rate, 39% annual occupancy, and $196/night across STR-viable listings, based on 88 active listings. It ranks #36 of 57 markets by median cap rate in STRROI's live ranking. This month none of its 88 homes for sale rate Buy or better.
What is the average Airbnb occupancy rate in Fredericksburg?
STR-viable properties in Fredericksburg average about 39% occupancy across the year. Peak season is Spring (bluebonnets), fall (harvest), Valentine's Day. Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.
How much do short-term rentals earn in Fredericksburg?
At $196/night and 39% occupancy, a typical Fredericksburg STR grosses roughly $27,758 per year before expenses, leaving an estimated $16,655 in net operating income. Across analyzed listings the median cap rate is 2.4%. Individual results depend on property, amenities, and management.
What types of properties work best for STR in Fredericksburg?
Among homes for sale right now, 5+ bedroom homes post the strongest median cap rate by size (3.4%), and multi-family lead by property type (4.6%). With guests, the best-performing STR types here are Cottage, Farmhouse, Cabin, Single Family. Matching the local guest profile and the amenities that drive bookings matters more than raw square footage.
How many homes for sale in Fredericksburg cash flow as an Airbnb?
5 of 88 STR-viable listings (6%) project positive monthly cash flow after the mortgage, assuming 20% down at a 7.5% rate on a 30-year loan. The top-ranked listing this month is a 3-bedroom manufactured home in ZIP 78624 listed at $95K, projecting a 11.7% cap rate and +$397 a month.
What is the median home price in Fredericksburg, TX right now?
The median list price of the 88 homes for sale STRROI tracks in Fredericksburg is $465,000, and the middle half are priced between $318K and $889K. The median price per square foot is $397. These are homes that could run as short-term rentals, ZIP 78624, not every sale in the area. Against a 2.4% median cap rate, that price level sets the return baseline you'd underwrite against.
How long do homes stay on the market in Fredericksburg?
Homes for sale in Fredericksburg have been listed 120 days on average, longer than the 101 days typical across the 56 markets in STRROI's ranking, which usually leaves more room to negotiate on price. 26 of them were listed in the last 30 days.
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.Stats sourced from 88 active listings · last updated Oct 18, 2026
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