Written by: Ashley Durmo
Introduction
Austin, Texas, has become a highly desirable city for short-term rental investments, thanks to its vibrant music scene, tech industry, and cultural festivals. This guide explores the top-performing ZIP codes for short-term rentals in Austin, featuring information on gross yield, annual revenue, and property values. Each area presents unique investment potential based on location and demand.
78725 – East Austin/Colony Park
- Gross Yield: 9%
- Annual Revenue: $26,410
- Zillow Home Value: $304.1K
ZIP code 78725 is located in East Austin, covering neighborhoods like Colony Park. Known for its affordable housing and up-and-coming vibe, this area offers the highest gross yield at 9%, with an annual revenue of $26,410. The relatively low home value of $304.1K makes it an accessible entry point for investors. With easy access to downtown Austin and the Colorado River, this area is growing in popularity among younger travelers and professionals looking for affordable stays near the city’s core.
78732 – Steiner Ranch/Lake Travis
- Gross Yield: 8%
- Annual Revenue: $64,856
- Zillow Home Value: $828.2K
ZIP code 78732 covers the upscale Steiner Ranch and Lake Travis areas, known for their scenic views, luxury homes, and proximity to outdoor activities like boating and hiking. This area has a gross yield of 8% and an impressive annual revenue of $64,856, making it an ideal choice for investors targeting high-end vacationers and families. The higher home value of $828.2K reflects the premium market appeal, attracting visitors looking for a luxurious experience close to Austin’s natural attractions.
78728 – Wells Branch/North Austin
- Gross Yield: 7%
- Annual Revenue: $31,214
- Zillow Home Value: $425.8K
Located in North Austin, ZIP code 78728 includes the Wells Branch neighborhood, a popular suburban area with easy access to tech companies and shopping centers. With a gross yield of 7% and an annual revenue of $31,214, this ZIP code provides a balance between affordability and rental income. The home value of $425.8K makes it a mid-range investment, suitable for those looking to cater to both business and leisure travelers who prefer a quieter stay outside downtown Austin.
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78735 – West Oak Hill/Barton Creek
- Gross Yield: 7%
- Annual Revenue: $59,050
- Zillow Home Value: $827.5K
ZIP code 78735 covers the West Oak Hill and Barton Creek areas, known for their natural beauty and proximity to Barton Creek Greenbelt. This area has a gross yield of 7% and a substantial annual revenue of $59,050, driven by the neighborhood’s appeal to outdoor enthusiasts and families seeking a peaceful retreat. With a high home value of $827.5K, this ZIP code is ideal for investors targeting upscale visitors looking for both luxury and easy access to Austin’s outdoor spaces.
78729 – Anderson Mill/Northwest Austin
- Gross Yield: 7%
- Annual Revenue: $32,105
- Zillow Home Value: $452.6K
The 78729 ZIP code includes the Anderson Mill area in Northwest Austin, a family-friendly neighborhood with good schools and parks. With a gross yield of 7% and an annual revenue of $32,105, this area is attractive to both local and out-of-town visitors. The home value of $452.6K is moderately high, but the area’s appeal for families and business travelers makes it a solid choice for investors aiming to attract a consistent flow of guests.
Conclusion
Austin offers a range of investment opportunities across different neighborhoods, from affordable up-and-coming areas in East Austin to high-end markets near Lake Travis. Each ZIP code provides unique characteristics that can appeal to different types of travelers, making Austin a versatile market for short-term rental investors.
