Austin STR Market 2026. What the Data Shows for Investors in Texas’s Most Watched Short-Term Rental Market

Austin’s short-term rental market generated $2,794 in average monthly revenue per listing over the last twelve months, spread across 14,659 active properties pulling a 57.7% occupancy rate. Think of that occupancy figure like a batting average: a .577 hitter is getting on base more often than not, but there is room to sharpen the swing. For a market that draws 30 million visitors a year and hosts some of the biggest events on the American calendar, those numbers tell a story that is both encouraging and more nuanced than the headlines suggest.

I have been tracking STR markets long enough to know that Austin is the city everyone asks about first. The tech economy, the culture, the events. It carries a reputation that runs ahead of its actual numbers in some respects and behind them in others. StaySTRA data gives us a clear look at where this market stands heading into 2026, and I want to walk you through what the numbers reveal for investors considering an entry (or existing hosts measuring their performance against the field).

Austin STR Market Performance by the Numbers

Let’s start with the core metrics. StaySTRA tracks 14,659 active short-term rental listings in Austin, making it one of the largest STR markets in the country by supply volume alone.

Last-Twelve-Months Overview:

• ADR: $225.00
• Occupancy Rate: 57.7%
• RevPAR: $112.74
• Average Monthly Revenue: $2,794
• Active Listings: 14,659

That $225 ADR is solid for a mid-tier Sun Belt market, though it sits below what you will find in resort-driven destinations or luxury-heavy metros. The 57.7% occupancy rate tells you Austin fills its rooms consistently, even with a supply base approaching 15,000 units. Not every listing is booked every night (very few markets achieve that), but more than half the available nights are generating revenue across the year.

The Monthly Revenue Calendar: Where the Spikes Live

Austin’s revenue pattern is shaped almost entirely by its event calendar. If you have spent any time looking at STR data, you know that most markets have a “high season.” Austin has three of them, packed into distinct months that create a revenue curve unlike almost any other U.S. city.

Here is the monthly breakdown from StaySTRA data:

March is the clear winner, pulling $3,663 in average monthly revenue on the back of SXSW. That festival brings over 200,000 attendees, and properties within a few miles of downtown routinely command rates two to three times their normal nightly price. The 67.7% occupancy rate for March is the highest of any month, nearly 21 percentage points above January’s trough.

October delivers the highest ADR of the year at $253 per night, driven by Austin City Limits. ACL spans two weekends and draws over 450,000 music fans. Properties near Zilker Park see three-night minimum stays and rates that run 50% to 100% above standard pricing. Don’t let the lower occupancy rate fool you here. Hosts in well-positioned neighborhoods are booked solid during both ACL weekends; the lower market-wide number reflects the fact that not every listing captures that event demand equally.

November brings the Formula 1 United States Grand Prix at Circuit of the Americas. The F1 weekend pushes ADR above $223 and sustains occupancy through what would otherwise be the start of the slow season.

Stay with me on the math here. The gap between the best month (March at $3,663) and the worst (January at $2,015) is $1,648. That is an 82% premium from peak to trough. For investors modeling cash flow, this seasonal swing means your annual projections cannot rely on a single monthly average. You need to account for the event-driven peaks and the January-through-February valley.

Austin’s Regulatory Framework: Type 1, Type 2, and What Investors Must Know

This is where Austin gets interesting for investors, and where I have seen the most confusion when people call asking about the market. Austin uses a tiered licensing system that directly affects whether you can operate a non-owner-occupied rental property.

Type 1 STR: An owner-occupied short-term rental. You live in the home (or on the same property) and rent part or all of it for stays under 30 days. These are available in all residential zoning districts.

Type 2 STR: A non-owner-occupied short-term rental. The owner does not live on the property. This is the license type that matters most for investors. These are now permitted in all residential zoning districts as an accessory use (as of February 2025), but they come with density limits.

Type 3 STR: A commercial short-term rental operation, typically in commercial zoning districts. Longer processing times (8 to 10 weeks for initial applications).

Here is what the density rules look like in practice:

• Single-family properties: An operator may run up to two STR units on a single site. Additional STRs elsewhere must be at least 1,000 feet apart.
• Multifamily residential: STR licenses capped at 10% of units (or one unit, whichever is greater).
• Mixed-use buildings: Capped at 25% of units (or one unit, whichever is greater), and the building must have four or more residential units plus a commercial use.

The 1,000-foot separation rule is the one that catches investors off guard. Think of it like a chess move: you can place a second piece on the same square, but your third piece needs to be on a completely different part of the board. This limits the kind of portfolio clustering that works in unrestricted markets.

What Changed in 2025 (and What Is Coming in 2026)

Austin’s regulatory landscape shifted significantly over the past year. In February 2025, the city expanded STR eligibility to all residential zoning districts with a valid license. Then in October 2025, several more changes took effect:

• License validity extended from one year to two years
• Certificate of Occupancy and insurance requirements removed for new applicants
• Tenant operators now permitted (with landlord written consent)
• The geographic separation rule (1,000 feet) was codified
• Neighbor notification required at every renewal

The big date on the horizon is July 1, 2026. Starting that day, platforms like Airbnb and Vrbo must display license status on listings and honor city requests to remove unlicensed operators. This is a meaningful enforcement mechanism. Cities that rely on complaint-based enforcement have historically struggled to manage STR compliance. Austin is moving toward platform-level accountability, which should thin out unlicensed competition over time.

License fees run $836.30 for new applications and $385.30 for renewals. Not cheap, but not prohibitive either. Every operator must designate a local contact who lives in the Austin metro area (Travis, Williamson, Hays, Bastrop, or Caldwell County) and can respond to emergencies within two hours.

What Austin’s Supply Looks Like: 14,659 Listings by Bedroom Count

Understanding the composition of Austin’s supply helps investors identify where competition is thickest and where gaps might exist.

One-bedroom units dominate at 22.3% of the market. That makes sense for a city where a large share of visitor demand comes from business travelers, conference attendees, and solo travelers visiting during tech and music events. The 5+ bedroom segment (830 listings) is where group bookings and event-weekend demand tend to concentrate, and where ADR premiums run highest during SXSW and ACL. If you are looking at a larger property purchase, that 5.7% market share represents less competition per listing than the crowded one-bedroom segment.

How Austin Compares to Nashville and Denver

Investors often evaluate Austin alongside other high-profile STR markets. We published deep dives on Nashville (March 22) and Denver (March 24), and the comparison reveals where Austin fits in the spectrum.

Nashville leads on raw revenue, pulling nearly double Austin’s monthly average on the strength of a $301 ADR. But Nashville also has higher property values ($426,125 typical) and a tighter regulatory environment with its own permit system. Denver beats Austin on occupancy by almost 15 percentage points, partly because Denver’s primary residence requirement limits supply to roughly 3,400 active listings, a fraction of Austin’s nearly 15,000.

Austin’s story is one of volume and accessibility. It has the largest supply base of the three, the lowest barrier to entry from a licensing perspective (especially post-February 2025 expansion), and a triple-event revenue calendar that no other market in this comparison can match. The trade-off is thinner margins per listing due to that larger supply pool.

From my desk in Santa Fe, I have watched all three of these markets evolve over the past decade, and each one rewards a different kind of investor. Nashville favors operators who can command premium nightly rates. Denver rewards patience and the ability to navigate a primary-residence gate. Austin? Austin rewards hosts who understand event-driven pricing and can capture those three peak periods where the real money lives.

What Investors Should Watch Going Forward

Three factors will shape Austin’s STR investment landscape through the rest of 2026:

1. July 1 platform enforcement. When Airbnb and Vrbo begin displaying license status and removing unlicensed listings, the effective supply should contract. Licensed operators who are already compliant will benefit from reduced competition. If you are buying into this market, make sure your property and license are buttoned up before that date.

2. Event calendar stability. Austin’s three anchor events (SXSW in March, ACL in October, F1 in November) remain confirmed for 2026. These events are the revenue engine that separates Austin from markets with similar baseline occupancy. Any disruption to the event calendar would ripple through STR performance immediately.

3. Supply growth versus demand. With 14,659 active listings, Austin is already one of the most supplied STR markets in Texas. The February 2025 zoning expansion opened new residential districts to STR licensing. Whether that translates to meaningful supply growth or gets absorbed by the July enforcement cleanup remains to be seen.

Data note: StaySTRA market data reflects approximately November 2025 figures due to a data pipeline update in progress. We do our best to keep our data accurate and up to date, but markets move fast and we are only human. Always verify current figures directly with local sources before making investment decisions.

Run the Numbers for Your Austin Property

Every market looks different at the property level. A one-bedroom near downtown and a four-bedroom in South Austin will have completely different revenue profiles, even in the same city. Use the StaySTRA Austin Analyzer to plug in a specific address and see projected revenue, occupancy, and comparables based on real listing data. You can also explore the full Austin STR market page for the latest metrics.