South Central8.5% avg cap rate

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.

8.5%
Avg Cap Rate
Net operating income / price
68%
Avg Occupancy
Annual average
$310
Avg Nightly Rate
All property types
$475K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
68% occ × $310/night
$76,942
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $30,777
Est. net operating income
Before mortgage & depreciation
$46,165
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 Fredericksburg

50+ wineries on the Fredericksburg Wine Road
1.5M+ annual visitors — fastest growing TX wine region
Drive-to from Austin AND San Antonio (70 miles each)
Unique German-heritage character drives strong listing photography
Peak season: Spring (bluebonnets), fall (harvest), Valentine's Day
Top property types: Cottage, Farmhouse, Cabin, Single Family
Primary zip: 78624

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.

Run a live analysis in Fredericksburg

Search active MLS listings in Fredericksburg and instantly see cap rates, cash flow projections, and STR comp-backed nightly rates — all in one underwriting report.