10 Best Places to Buy Short-Term Rentals in Austin (2026)

According to Chalet Data, short-term rental returns in Austin are clustering east and north of downtown, where entry prices have dropped and guest demand remains resilient. Among the top 10 neighborhoods, gross yields range from 10.0% up to a striking 15.1%, with the lowest median home value at just $201,188 in North Burnet. That’s a sharp contrast to the citywide median of $510,722, which itself dipped 8.2% over the past year.

The best-performing areas pair accessible prices with strong seasonal surges, especially in late summer, while higher-end markets like Barton Hills and Govalle show that premium nightly rates can still drive double-digit yields. Citywide, occupancy is up 22% year-over-year, and ADRs have surged 31%, even as listings have thinned by 21%.

The result is a market where well-positioned properties can outperform national benchmarks, but local rules and licensing are tightening.

The Best Austin Neighborhoods for Airbnb, Ranked by Yield

Data as of July 11, 2026. Each listing’s annual revenue is calculated from its own ADR × occupancy × 365 on trailing 12-month data, gross before expenses. The table reports the median listing’s revenue, alongside median ADR and median occupancy computed independently, multiplying ADR by occupancy will not reproduce the revenue figure.

Gross yield divides the median revenue by the median home value (Zillow Home Value Index). See our full methodology. The active-operator benchmark filters to listings with real, sustained booking activity and is the figure a committed buyer should underwrite against.

1. North Burnet: Austin’s Deep Value Yield Play

North Burnet leads Austin’s short-term rental landscape with a 15.1% gross yield, the highest on this list and firmly in the 89th percentile nationwide. The median home value here has dropped to $201,188, down 18.4% year-over-year, making it the most accessible entry point among the city’s top performers. That affordability, paired with a summer occupancy surge, 70% in August, creates a rare combination for investors looking to maximize cash-on-cash returns.

Revenue here is driven by a steady stream of budget-minded travelers and proximity to major employers and the Domain retail district. Seasonality is pronounced, with summer generating 36% of annual revenue and occupancy dipping to just 20% in December. The typical property is a 1-bedroom unit, and the payback period is just over seven years on gross active-operator revenue, a pace few Austin neighborhoods can match.

Active listings have dropped 36% in the past year, intensifying the supply squeeze. For those seeking more granular performance details, the North Burnet analytics page breaks down bedroom-level returns and booking patterns.

Who this market is ideal for: Value-focused buyers seeking rapid payback and lower capital outlay.

2. Pleasant Valley: Balanced Returns with Strong Spring Demand

Spring’s strong performance in Pleasant Valley, delivering 31% of annual revenue, underscores how the neighborhood’s calendar favors hosts who can optimize for seasonal peaks. Occupancy climbs to 66% in August, while the lowest month, April, still pulls in 37%, showing a steadier flow of guests than many US markets. These patterns help explain why Pleasant Valley’s 52% median occupancy rate outpaces the national median of 45%, and its 13.0% gross yield ranks in the 81st percentile nationwide.

With 32 active full-time listings and a payback period of just under eight years, underwriting here benefits from both operational consistency and relatively affordable entry costs. Most properties are 2-bedroom homes, 22 out of 32 listings, targeting small families and groups who value proximity to downtown and Riverside.

The sharp 55% year-over-year jump in ADR, paired with a 3% rise in occupancy and a 39% drop in listings, signals that remaining hosts are capturing higher rates in a tightening market. For a closer look at how Pleasant Valley stacks up against other eastside neighborhoods, see the Pleasant Valley analytics.

Who this market is ideal for: Buyers seeking stable, year-round demand and manageable price points.

3. Rogers Hill: High ADRs, But Volatile Occupancy

Price-driven investors will note that Rogers Hill’s $206 average daily rate sits well above the US median, yet the area’s 31% occupancy is far below the national benchmark of 45%. August brings a sharp surge in demand, with occupancy peaking at 63% as event calendars fill, while June drops to just 15%, underscoring the market’s pronounced seasonality.

These swings translate into a spring-heavy revenue mix, where 34% of annual income arrives in the spring months and only 25% in summer, making timing and pricing strategies critical for operators.

With a gross yield of 12.6%, Rogers Hill stands in the 79th percentile nationally, but the active-operator annual revenue of $39,452 and a median home value of $322,344 (down 11.0% year-over-year) mean investors face both opportunity and risk.

The current payback period of about 8.2 years is competitive, yet a 67% year-over-year drop in occupancy, paired with a 38% jump in ADR, signals shrinking demand and more reliance on standout properties or special events. Underwriting here demands a conservative approach, favoring homes with unique amenities or location advantages. Explore the Rogers Hill analytics for a breakdown of property types and booking windows.

Who this market is ideal for: Investors with a high risk tolerance who can optimize for event-driven demand.

4. Barton Hills: Premium Rates, Consistent Bookings

High-end travelers find Barton Hills especially attractive during late summer, with occupancy peaking at 70% in August and a $184 average daily rate, while winter still delivers a substantial 28% of annual revenue.

This market posts a 12.1% gross yield, placing it in the 76th percentile among 501 US short-term rental markets and well above the US median yield of 9.0%. Occupancy also outperforms the national norm, holding at 56% versus the US median of 45%, a testament to Barton Hills’ sustained demand and year-round appeal.

Revenue momentum is strong, as June 2026 saw occupancy up 5% and ADR up 38% year-on-year, even as listings fell by 21%, creating a clear supply squeeze that supports premium pricing. Investors underwriting here should note the payback period of roughly 8.3 years, which is competitive for a luxury neighborhood with a median home value of $894,731.

The property mix is diverse, with one-bedrooms popular among solo travelers and couples (41 listings, $22,633/year at $157 ADR), while three-bedrooms lead in earnings at $51,369/year and a $346 ADR, making Barton Hills a viable option for both entry-level and upscale investors. For more on Barton Hills’ property mix and performance, see the analytics page.

Who this market is ideal for: Buyers targeting premium guests and larger groups willing to pay top dollar.

5. Parker Lane: Steady Returns in a Transitional Zone

Pricing power has shifted notably in Parker Lane over the past year, with average daily rates surging 48% even as occupancy slipped by 3% and active listings fell by 35%. September stands out as the strongest month for demand, with occupancy reaching 59% at a lower ADR of $123, while January marks the low point at just 26% occupancy, underscoring the area’s pronounced seasonality and the need for revenue management strategies that adapt to fluctuating guest interest.

With a gross yield of 11.9%, Parker Lane ranks in the 75th percentile of US short-term rental markets, outperforming the national median yield of 9.0% and maintaining a higher occupancy (50% vs 45% US median) despite a modest ADR ($144 vs $232 US median). The majority of listings are 1-bedrooms, which see lower annual revenue ($12,414), so investors should underwrite using active-operator figures ($39,001) and expect a payback period of roughly 8.6 years.

The neighborhood’s mix of older homes and new infill attracts budget-conscious travelers seeking proximity to downtown and the airport, which helps support consistent demand even as home values have declined by 10% year-over-year. For more details on Parker Lane’s evolving rental landscape, visit the analytics page.

Who this market is ideal for: Investors seeking reliable returns in a transitional, centrally located neighborhood.

6. Montopolis: High Occupancy and Rapid ADR Growth

ADR growth has sharply accelerated in Montopolis, with average daily rates surging 51% year-over-year and peaking at $160. Occupancy also stands out, hitting 58% overall, well above the US median of 45%, and reaching a high of 65% in August. These numbers reflect a market where both pricing power and demand have strengthened, despite a 17% drop in active listings that signals a tightening supply and greater competition for available homes.

Spring brings the highest share of annual revenue at 28%, but even the slowest month, April, holds steady with 41% occupancy, underscoring consistent guest demand across the calendar. For underwriting, the area’s 9.3-year payback period is notably efficient given the $324,697 median home value and strong active-operator revenue of $34,870.

The dominance of 1-bedroom units (43 listings) indicates starter-friendly entry points, while 2-bedrooms deliver the top annual earnings, making Montopolis a flexible choice for investors targeting both value and income. For a full breakdown of Montopolis’ revenue mix, see the analytics page.

Who this market is ideal for: Buyers seeking high occupancy and strong ADR momentum at a moderate price point.

7. Garrison Park: Family-Friendly with Steady Gains

Suburban stability shapes Garrison Park’s short-term rental performance, where a 10.6% gross yield places the neighborhood in the 67th percentile among 501 US markets and comfortably ahead of the national median.

Occupancy rates here peak at 69% in September, reflecting strong late-summer demand, while December’s trough at 30% highlights the area’s pronounced off-season. Annual revenue for active operators stands at $43,261, with a median home value of $420,923, down 6.8% year-over-year, offering a more accessible entry point for investors compared to pricier Austin locales.

Momentum has accelerated, with occupancy up 21% and ADR rising 23% year-over-year, even as active listings have dropped by 24%. This supply squeeze helps explain why the median payback period is a competitive 9.7 years, making underwriting more attractive for buyers seeking quicker returns.

The even split of seasonal revenue, 26% each in winter and spring, 25% in fall, and 23% in summer, shows that demand is not overly reliant on a single peak season. Three-bedroom homes dominate the market, appealing to families and groups drawn by Garrison Park’s residential character and proximity to South Austin employers. For a closer look at Garrison Park’s booking patterns, the analytics dashboard offers property-level insights.

Who this market is ideal for: Buyers targeting families and longer-stay guests in a stable, residential setting.

8. West University: Student-Driven, Surging Occupancy

Rental demand in West University has surged, as evidenced by a dramatic 144% year-over-year jump in occupancy, reaching a median of 52%, well above the US median of 45% and placing this neighborhood in the 63rd percentile for gross yield among 501 US markets.

June stands out as the high point for bookings, when occupancy peaks at 78% and average daily rates hit $156, while July marks a sharp seasonal trough with occupancy dropping to 40%. Spring is the top revenue season, generating 28% of annual income, but winter is nearly as strong at 25%, reflecting a steady flow of guests tied to the university calendar and local events.

With 94 full-time listings and a median home price of $303,228 (down just 2.6% year-over-year), West University offers a balanced entry point for investors. The payback period of roughly 10.2 years, based on active-operator revenue, signals a stable long-term investment, especially given the consistently high occupancy and the area’s appeal to students and visiting families.

The dominance of 1-bedroom units (55 listings) and the strong performance of studios highlight a market tailored to short stays and smaller groups, which helps sustain bookings year-round. For a detailed analysis of West University’s booking trends, check the analytics page.

Who this market is ideal for: Investors seeking steady bookings near campus and downtown.

9. Govalle: High ADRs and Eastside Appeal

Strong pricing power defines Govalle, where the $249 average daily rate leads the top 10 and sits well above the US median of $232. Seasonality shapes returns, with occupancy peaking at 58% in August when festival crowds arrive, while January dips to 41% as travel tapers off. This pattern, combined with a spring revenue share of 29%, highlights how creative events and mild weather drive demand in shoulder months more than in summer itself.

Govalle’s 10.0% gross yield places it in the 62nd percentile nationally, reflecting both healthy demand and an accessible median home value of $544,278 (down 12.6% year-over-year). The area’s 91 active full-time listings suggest a stable operator base, and a payback period of 10.5 years is competitive for Austin.

Investors should note that 2-bedroom homes dominate supply, but 3-bedrooms command the highest earnings at $27,493 annually with a $309 ADR, making them particularly attractive for underwriting. The recent 28% ADR surge, paired with a 20% drop in listings, signals that reduced competition has allowed operators to capture higher rates, even as occupancy edged down 2% year-over-year. For more on Govalle’s eastside dynamics, see the analytics dashboard.

Who this market is ideal for: Buyers drawn to Austin’s creative eastside and willing to pay for higher ADR potential.

10. Windsor Park: High Occupancy in a Classic Austin Neighborhood

Occupancy rates in Windsor Park consistently outperform much of the US, with a 63% median that places the neighborhood well above the national median of 45%. June brings the highest demand, with occupancy surging to 74% and average daily rates settling at $180, while December marks the slowest period at 45% occupancy.

This pattern underscores Windsor Park’s strong appeal during peak travel months, driven by its family-friendly environment and proximity to major Austin attractions, which help sustain robust spring and fall revenue contributions of 27% each.

Recent supply contraction, with listings down 23% year-over-year, has intensified competition and supported notable gains in both occupancy (+35%) and ADR (+14%) for June 2026, signaling a classic supply squeeze. Investors should note the payback period of about 10.3 years, which aligns with the 61st percentile for gross yield among 501 US markets, reflecting both solid revenue potential and the impact of a median home value now at $463,411 after a 9.2% decline.

The dominance of 3-bedroom properties (26 active listings, $29,878 in annual revenue, $249 ADR) further positions Windsor Park as a strategic choice for those targeting stable, group-oriented bookings in a central Austin setting. For a detailed breakdown of Windsor Park’s short-term rental performance, see the Windsor Park analytics page.

Who this market is ideal for: Investors seeking high occupancy and family-friendly layouts in a stable, central neighborhood.

How to read these rankings before you buy

Gross yield is a quick way to compare neighborhood-level returns, but it only measures topline revenue against purchase price. It doesn’t account for operating expenses, taxes, or the impact of seasonality. Headline annual revenue averages all listings, while the active-operator benchmark focuses on properties with sustained booking activity, this is the figure most buyers should use for underwriting.

Multiplying ADR by occupancy gives a rough revenue estimate, but the actual median revenue reflects booking patterns and calendar gaps. Always verify at the property level, as homes with unique amenities or better management can outperform the median.

How to Act on This

Buying in Austin’s short-term rental market means balancing yield potential with regulatory compliance and seasonality. The city requires all STRs to hold a valid operating license, renewed every two years through Austin Development Services. As of July 2026, unlicensed properties are subject to removal from platforms, and recent ordinance changes allow STRs as an accessory use in all residential zones with a license.

The hotel occupancy tax rate is 11% on bookings of 30 days or less, so factor this into your underwriting. Buyers should confirm the latest licensing requirements and neighborhood-specific restrictions before closing, as enforcement has tightened.

Neighborhoods with lower home values and strong summer demand, like North Burnet and Pleasant Valley, offer faster payback but may see more price volatility. High-ADR markets such as Barton Hills and Govalle reward premium property types and unique amenities.

Across the city, a shrinking pool of active listings means competition is rising for the best-located homes. Work with a local agent who understands both the regulatory landscape and the micro-markets within Austin. Get matched with an Austin Airbnb agent to identify properties that fit your strategy and stay ahead of compliance shifts.