Austin's STR market holds 9,289 active listings with occupancy softening to 38% in early 2026.
Market Overview
Austin’s short-term rental market is one of the largest in Texas, with 9,289 active listings as of February 2026. The city draws roughly 30 million annual visitors to a metro population of just over 1 million, creating consistent underlying demand for short-term accommodations.
That said, the market has shifted meaningfully since its post-pandemic peak. Average occupancy sat at 69% in 2021 and has declined steadily to 38.5% through early 2026. Average monthly revenue per listing followed the same trajectory, dropping from $6,034 in 2021 to $2,994 in the current year. The active listing count expanded sharply from around 6,846 in 2021 to over 10,000 by 2023 and 2025, which contributed significantly to the per-listing revenue compression.
One stabilizing signal: average daily rates have actually held up reasonably well. ADR was $247 in 2021 and has risen to $275-$288 in 2024 and 2025, meaning operators have partially offset occupancy losses through higher nightly pricing. The market is not collapsing but it is normalizing after an unusually strong run.
For buyers entering today, the key question is supply. When listing counts spike above 10,000, as they did in 2023 and 2025, occupancy suffers noticeably. The pullback to around 9,283 active listings in 2026 suggests some natural market correction is underway. Austin remains a large, demand-supported market, but operators should plan for occupancy in the 45-55% range rather than the 60%+ figures seen earlier in the decade.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 46% | $240 | $3,284 | 9,254 |
| Feb | 52% | $244 | $3,546 | 9,291 |
| Mar | 64% | $283 | $5,822 | 8,639 |
| Apr | 61% | $265 | $5,049 | 8,593 |
| May | 58% | $267 | $5,080 | 8,041 |
| Jun | 57% | $259 | $4,751 | 8,938 |
| Jul | 56% | $254 | $4,805 | 9,536 |
| Aug | 55% | $247 | $4,592 | 9,568 |
| Sep | 56% | $261 | $4,636 | 9,611 |
| Oct | 59% | $310 | $5,638 | 9,013 |
| Nov | 55% | $263 | $4,298 | 9,019 |
| Dec | 49% | $249 | $3,733 | 9,162 |
Austin’s STR market follows a clear seasonal pattern driven largely by events, weather, and the university calendar.
March is the peak month by a wide margin. Historically, March averages 63.6% occupancy and $283 ADR, producing average revenue of $5,822 per listing. The concentration of conferences, festivals, and spring events during this period drives demand well above any other month. Active listings also drop to around 8,639 in March, the lowest of the year, which further tightens available supply.
April and May hold up well, averaging 60.8% and 58.2% occupancy respectively, with revenue around $5,000-$5,050. October is the other major spike month, reaching 59.2% occupancy and the year’s highest ADR at $310, generating average revenue of $5,638. Fall events and favorable weather make October nearly as valuable as spring.
Summer months from June through August show moderate occupancy in the 55-57% range with ADR in the $247-$259 band. Revenue averages $4,592-$4,805 during these months. It is a serviceable period but not exceptional.
January and February are the softest months. January averages 46.2% occupancy and $240 ADR, with revenue around $3,284. February pulls slightly ahead at 51.8% occupancy and $244 ADR, averaging $3,546, though February 2026 specifically came in much weaker at 38% occupancy.
Operators should price aggressively around March and October, maintain competitive rates through summer, and use January and February to focus on longer-stay bookings to fill gaps.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $893 | $1,967 | $3,695 | $6,516 |
| ADR | $134 | $198 | $316 | $555 |
| Occupancy | 18% | 35% | 55% | 73% |
Revenue potential in Austin varies enormously depending on how a listing performs relative to the market.
In February 2026, the bottom quartile of listings brought in $893 or less per month. These are likely properties with location challenges, weaker reviews, or limited availability. The median listing earned $1,967, which is a more realistic baseline for a competently managed property in a slow month.
The 75th percentile reached $3,695 per month, and the 90th percentile hit $6,516. That top-decile figure represents properties that are likely well-located, professionally managed, and capturing strong demand during even the slower winter period.
ADR tells a similar story. The median ADR in February was $198, while the 75th percentile was $316 and the 90th percentile was $555. Occupancy ranged from 18% at the 25th percentile to 73% at the 90th percentile, highlighting that execution and positioning matter enormously in a market this competitive.
Looking at peak season, March historically averages $5,822 across all listings. A top-quartile operator in March could reasonably expect to exceed $7,000-$8,000 in a single month based on the distribution spread observed in slower months.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $6,281 | $203 | $231 |
| Apr 2021 | $6,063 | $202 | $239 |
| May 2021 | $6,412 | $207 | $246 |
| Jun 2021 | $6,279 | $209 | $245 |
| Jul 2021 | $6,452 | $208 | $249 |
| Aug 2021 | $6,320 | $204 | $250 |
| Sep 2021 | $5,947 | $198 | $250 |
| Oct 2021 | $6,740 | $217 | $290 |
| Nov 2021 | $5,254 | $175 | $247 |
| Dec 2021 | $4,591 | $148 | $226 |
| Jan 2022 | $4,182 | $135 | $229 |
| Feb 2022 | $4,516 | $161 | $240 |
| Mar 2022 | $6,542 | $211 | $275 |
| Apr 2022 | $5,908 | $197 | $263 |
| May 2022 | $6,159 | $199 | $277 |
| Jun 2022 | $5,885 | $196 | $249 |
| Jul 2022 | $5,686 | $183 | $251 |
| Aug 2022 | $5,136 | $166 | $229 |
| Sep 2022 | $5,566 | $186 | $245 |
| Oct 2022 | $6,109 | $197 | $273 |
| Nov 2022 | $4,785 | $160 | $231 |
| Dec 2022 | $3,864 | $125 | $214 |
| Jan 2023 | $3,441 | $111 | $209 |
| Feb 2023 | $3,792 | $135 | $214 |
| Mar 2023 | $5,896 | $190 | $273 |
| Apr 2023 | $4,845 | $162 | $247 |
| May 2023 | $4,604 | $149 | $239 |
| Jun 2023 | $4,218 | $141 | $229 |
| Jul 2023 | $4,504 | $145 | $238 |
| Aug 2023 | $4,274 | $138 | $220 |
| Sep 2023 | $4,268 | $142 | $252 |
| Oct 2023 | $5,027 | $162 | $297 |
| Nov 2023 | $3,631 | $121 | $260 |
| Dec 2023 | $3,087 | $100 | $266 |
| Jan 2024 | $2,906 | $94 | $254 |
| Feb 2024 | $3,091 | $107 | $236 |
| Mar 2024 | $4,964 | $160 | $314 |
| Apr 2024 | $4,405 | $147 | $296 |
| May 2024 | $4,234 | $137 | $283 |
| Jun 2024 | $3,561 | $119 | $285 |
| Jul 2024 | $3,703 | $119 | $264 |
| Aug 2024 | $3,613 | $117 | $261 |
| Sep 2024 | $3,693 | $123 | $269 |
| Oct 2024 | $4,957 | $160 | $323 |
| Nov 2024 | $3,626 | $121 | $269 |
| Dec 2024 | $3,474 | $112 | $259 |
| Jan 2025 | $2,865 | $92 | $240 |
| Feb 2025 | $3,367 | $120 | $248 |
| Mar 2025 | $5,428 | $175 | $323 |
| Apr 2025 | $4,024 | $134 | $280 |
| May 2025 | $3,992 | $129 | $290 |
| Jun 2025 | $3,812 | $127 | $287 |
| Jul 2025 | $3,682 | $119 | $270 |
| Aug 2025 | $3,617 | $117 | $275 |
| Sep 2025 | $3,706 | $124 | $287 |
| Oct 2025 | $5,359 | $173 | $365 |
| Nov 2025 | $4,194 | $140 | $307 |
| Dec 2025 | $3,648 | $118 | $282 |
| Jan 2026 | $3,025 | $98 | $267 |
| Feb 2026 | $2,963 | $106 | $284 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 71% | 6,104 |
| Jun 2021 | 72% | 6,719 |
| Sep 2021 | 72% | 7,117 |
| Dec 2021 | 62% | 7,261 |
| Mar 2022 | 73% | 7,661 |
| Jun 2022 | 67% | 10,951 |
| Sep 2022 | 66% | 11,002 |
| Dec 2022 | 52% | 10,825 |
| Mar 2023 | 67% | 10,790 |
| Jun 2023 | 59% | 10,478 |
| Sep 2023 | 54% | 10,345 |
| Dec 2023 | 42% | 8,541 |
| Mar 2024 | 52% | 8,030 |
| Jun 2024 | 44% | 5,700 |
| Sep 2024 | 46% | 9,011 |
| Dec 2024 | 45% | 9,939 |
| Mar 2025 | 55% | 10,612 |
| Jun 2025 | 45% | 10,842 |
| Sep 2025 | 44% | 10,580 |
| Dec 2025 | 44% | 9,244 |
Austin STR investment math looks very different in 2026 than it did three years ago. With a typical home value of $494,727 and a median sale price of $534,966, acquisition costs are substantial. At current average revenue of roughly $2,994 per month, or about $35,928 annually, a property purchased at median price would generate a gross yield of approximately 6.7% before expenses, mortgage, and taxes.
Top-performing listings tell a different story. Properties at the 90th percentile averaged $6,516 per month in February 2026, which annualizes to roughly $78,192. That level of performance would meaningfully change the investment case, but it requires a property, location, and management approach that can consistently outperform most of the market.
The median operator earned $1,967 in February 2026, which is a slow month. Seasonal data shows March is the strongest month historically, averaging $5,822 per listing. October is the second-strongest at $5,638. Investors who can capture those peak months effectively can significantly improve annual yield.
Risk factors are real. The listing count has more than doubled since 2021, and occupancy has nearly halved over the same period. Austin’s hotel industry also competes aggressively for event-driven demand. The 81-day median days to pending in the housing market signals that buyers have negotiating room, which may allow some price discovery before committing.
The market rewards well-located, professionally managed properties. Investors entering at average performance levels should stress-test assumptions using median revenue figures, not averages, since the distribution is wide.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $495,818 |
| Dec 2021 | $604,634 |
| Sep 2022 | $660,652 |
| Jun 2023 | $591,834 |
| Mar 2024 | $570,860 |
| Dec 2024 | $557,039 |
| Sep 2025 | $524,173 |
Booking Insights
Austin guests book with a moderate lead time. The average booking lead time is 31.4 days, but the median is just 20 days, meaning more than half of all bookings are made within three weeks of the stay. This compressed booking window has direct implications for pricing strategy.
Operators who lock in rates too early and too low miss the opportunity to capture last-minute demand at higher prices. A dynamic pricing approach that holds firm or increases rates in the final two to three weeks before high-demand dates tends to perform better in markets with short booking windows like Austin.
Length of stay data shows a similar split. The average stay is 7.1 nights, pulled up by extended bookings, but the median stay is just 3 nights. Most guests are coming for a weekend or a short event-driven trip. Minimum stay settings should account for this. Setting a 4-night minimum to avoid gaps may work during peak periods but will likely cost bookings during slower months when 2 and 3-night stays are the dominant demand pattern.
For major events like South by Southwest or Formula 1, operators often see extended lead times and can reasonably require longer minimum stays and charge premium rates. Outside those windows, flexibility on stay length and competitive last-minute pricing are likely to produce better occupancy outcomes.
Short-Term Rental Regulations
Austin requires all short-term rental operators to obtain a short-term rental license before listing a property. The licensing process is managed through the City of Austin and must be completed before taking any bookings. Operating without a license exposes owners to penalties.
Zoning is a critical compliance factor. Austin’s STR regulations specify where short-term rentals are permitted, and not every property in the city qualifies regardless of other conditions. Buyers should verify zoning eligibility for a specific address before purchasing with STR intent. This is not a step to handle after closing.
Tax obligations are significant. Austin STR operators are responsible for collecting and remitting hotel occupancy taxes. The state of Texas charges 9% and the City of Austin charges an additional 7%, bringing the combined hotel occupancy tax rate to 16%. These taxes apply to the rental amount charged to guests. Many booking platforms collect and remit some portion of these taxes automatically, but operators should confirm exactly which taxes the platform covers and which require direct remittance.
Safety requirements include functional smoke detectors and fire extinguishers at minimum. Meeting these baseline safety standards is required for licensure and helps protect both guests and the owner’s liability exposure.
Regulations in Austin have evolved over the years and could continue to change. Prospective investors should review current requirements directly through the City of Austin’s official website at austintexas.gov and consult with a local attorney or STR management company familiar with current enforcement practices before finalizing any investment decision.
Market Comparison
Austin is a large, high-supply STR market that has undergone significant normalization since 2021. With 9,289 active listings, it sits among the most competitive STR markets in the country by listing count.
The average ADR of $284 in February 2026 is well above typical national averages for non-resort markets, reflecting Austin’s strong event calendar and visitor volume of 30 million annually. However, the 38% occupancy rate in February 2026 is below what many comparable large urban markets sustain even in their slow months, largely because Austin’s supply growth has outpaced demand growth since 2022.
For context, a market with strong fundamentals might sustain 55-65% annual average occupancy. Austin averaged 57.2% in 2023, 47.2% in 2024, and 46.3% in 2025. The downward trend is clear and primarily supply-driven given that ADR has held steady or grown slightly over the same period.
Buyers comparing Austin to other Texas markets should note that Austin’s acquisition costs are higher than most, with a median sale price of $534,966 and homes sitting on the market for a median of 81 days before going pending. That slower pace gives buyers more negotiating room than existed during the 2021-2022 housing run-up, which partially offsets the tighter STR revenue environment.
Frequently Asked Questions About Austin, Texas
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