Fredericksburg, Texas Short-Term Rental Market
Fredericksburg, TX STRs averaged $335/night at 42.6% occupancy in April 2026 across approximately 3,300 listings.
Quick Answer: Fredericksburg, Texas is an active short-term rental market. average occupancy is 43%. average monthly revenue is $4,045. average daily rate is $335. the top operator is Cozi Vacation Rentals with 295 listings. market score is 68/100 (grade C).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Fredericksburg sits in Gillespie County in the Texas Hill Country, approximately 70 miles west of Austin and 80 miles northwest of San Antonio. The area draws roughly 1 million annual visitors, anchored by wine tourism on nearly 50 wineries along US-290, German heritage festivals, and Enchanted Rock State Natural Area. The STR market comprises approximately 3,296 tracked listings, with 3,193 classified as entire-place rentals.
In April 2026, the all-listing average daily rate was $335.35 and occupancy came in at 42.6%, producing a RevPAR of $142.99 and average monthly revenue of $4,045. Year-over-year comparisons are currently negative: occupancy fell 1.8 percentage points, ADR declined 5.0%, and revenue declined 4.7% compared to April 2025. The 2025 annual average was 41.3% occupancy, $338 ADR, and $4,026 monthly revenue, down from the 2024 peak of $355 ADR.
By bedroom count, 1-bedroom properties dominate at 1,562 listings, followed by 2-bedroom (731), 3-bedroom (564), 4-bedroom (245), and 5-bedroom (194), reflecting the prevalence of couples-oriented guest cottages and bungalows. Multi-channel listings lead distribution: 2,212 appear on both Airbnb and VRBO, 850 are Airbnb-only, and 236 are VRBO-only. The market’s seasonality score of 93.65 out of 100 indicates very even, year-round demand, which is a notable strength for an inland Texas market.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 31% | $284 | $2,720 |
| Feb | 38% | $295 | $2,862 |
| Mar | 50% | $311 | $4,430 |
| Apr | 44% | $309 | $3,872 |
| May | 41% | $302 | $3,443 |
| Jun | 42% | $304 | $3,578 |
| Jul | 42% | $290 | $3,443 |
| Aug | 34% | $280 | $2,770 |
| Sep | 37% | $300 | $2,995 |
| Oct | 44% | $310 | $3,887 |
| Nov | 47% | $310 | $4,099 |
| Dec | 45% | $308 | $4,108 |
Top Short-Term Rental Operators in Fredericksburg
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Cozi Vacation Rentals | 295 | 16,484 | ★ 4.67 |
| 2 | Absolute Charm B&B and Vacation Rentals | 243 | 24,235 | ★ 4.78 |
| 3 | Gastehaus Schmidt Lodging Service | 225 | 22,294 | ★ 4.83 |
| 4 | Bach Bros Properties | 196 | 13,409 | ★ 4.92 |
| 5 | Heavenly Hosts | 106 | 13,456 | ★ 4.90 |
What Kind of STR Should I Buy in Fredericksburg?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 1,562 |
| 2 bed | 731 |
| 3 bed | 564 |
| 4 bed | 245 |
| 5 bed | 194 |
ADR by Property Tier
| Entire Home | $336 |
| Luxury | $521 |
| Professionally Managed | $347 |
Revenue by Dwelling Type
| Apartment | $3,454 |
| Entire Place | $4,090 |
| House | $4,309 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 25.8% |
| vrbo | 7.2% |
| both | 67.1% |
Investment Analysis
Fredericksburg’s STR market is currently in a soft patch. ADR fell 5.0% and revenue fell 4.7% year-over-year in April 2026, continuing a trend from the 2024 peak when ADR averaged $355. The 2025 annual average revenue of $4,026 per month produces an annualized gross of approximately $48,312, representing a gross yield of about 9.5% on the typical home value of $509,519 (Zillow, April 2026).
Entry costs are high and pricing is under pressure. The median list price of $629,500 is well above the typical home value of $509,519, and no recent median sale price is available, making precise yield calculations difficult. Operators who acquire at the typical home value level would see a more favorable yield than those paying near list price.
Professionally managed listings show modest outperformance. The tier_professionally_managed ADR of $346.70 is approximately 3.4% above the all-listing average of $335.35, a narrower premium than in many other markets. Luxury properties reached $521.10 per night, 55% above average. The revenue growth score of 40.37 out of 100 is one of the lower readings among Texas Hill Country markets and reflects the current downward trend in rates.
The market’s investability score of 70.20 and regulation score of 76.51 suggest moderate conditions. The city’s 2024 ordinance effectively capped new non-owner-occupied STR permits in residential zones, which limits new supply from non-owner operators and may stabilize the competitive landscape over time.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Fredericksburg guests book an average of 47.1 days in advance as of April 2026, about a 6.5-week planning window. This is consistent with a wine country and Hill Country weekend getaway market, where couples and small groups plan trips around specific events (wine releases, festivals, wildflower season) rather than making last-minute leisure decisions.
The average length of stay is 2.58 nights, the shortest among this analysis batch and characteristic of a weekend-getaway market. With a 2.58-night average, most guests arrive Friday and depart Sunday, generating approximately 11 to 12 turnovers per month at average occupancy. High cleaning and turnover frequency is a key cost factor in this market. Operators should carefully model cleaning fee revenue against actual cleaning costs, particularly for small properties with tight operating margins.
The short stay pattern also means operators have more flexibility to fill gaps with single-night stays during mid-week if minimums are set appropriately. With 47-day advance bookings, operators have a useful window to spot under-booked periods and discount proactively.
Short-Term Rental Regulations
Fredericksburg requires an STR permit for any dwelling rented for fewer than 30 days within city limits. Properties in the extra-territorial jurisdiction (ETJ) are exempt from the permit but must still collect hotel occupancy tax.
Five permit sub-types are recognized: Accessory (ADU on owner’s property), B&B (rooms in owner’s primary residence), Facility (multiple units on one property), Unoccupied (non-owner-occupied dwelling), and Nonconforming (grandfathered permits from before April 1, 2022). The annual permit fee is $150 per unit plus $100 per bedroom (the December 2023 fee schedule may have updated these amounts; verify with the city). Permits require annual renewal and an annual inspection. Applications are processed through the mgoconnect.org portal.
Zoning restrictions are significant: new non-owner-occupied (Unoccupied and Facility) permits cannot be issued in R1 or R2 residential zones under the 2024 ordinance. New STR-Condo permits are also suspended as of 2024. Commercial zones (C1, C1.5, C2, CBD) allow most STR types by right. Maximum occupancy is capped at 12 guests (2 per bedroom plus 2 additional, all ages counted). Quiet hours are 10 PM to 7 AM.
Tax: 7% local Hotel Occupancy Tax plus 6% Texas state HOT equals a combined 13% on gross receipts, including cleaning fees and pet fees. Airbnb and VRBO typically remit the state 6% on hosts’ behalf but do NOT remit the local 7%. Hosts must remit the local HOT quarterly directly to the City. Failure to remit triggers an automatic 90-day permit suspension.
No owner-occupancy requirement and no annual cap on rental nights apply under current city rules. Enforcement is moderate.
Market Comparison
Fredericksburg’s April 2026 ADR of $335.35 is well above the US STR median of approximately $220 per night, reflecting the Hill Country wine tourism premium. At 42.6% occupancy, the market is below the US STR median of roughly 55%, though March regularly approaches 50% and the full-year average has held near 41 to 42%.
The local property management landscape is dominated by regional specialists. Cozi Vacation Rentals leads with 295 listings (4.67 rating, 16,484 reviews), followed by Absolute Charm B&B and Vacation Rentals with 243 listings (4.78 rating, 24,235 reviews), Gastehaus Schmidt Lodging Service with 225 listings (4.83 rating, 22,294 reviews), Bach Bros Properties with 196 listings (4.92 rating, 13,409 reviews), and Heavenly Hosts with 106 listings (4.90 rating, 13,456 reviews). These five operators together account for approximately 1,065 listings, roughly 32.3% of the estimated 3,296-listing market.
The high market concentration among regional specialists with very strong ratings (four of the top five exceed 4.78) suggests that local expertise and relationship-based management are highly valued by guests in this wine country destination.
Frequently Asked Questions About Fredericksburg, Texas
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