Dripping Springs, Texas Short-Term Rental Market
Dripping Springs STRs averaged $231/night at 58.2% occupancy in April 2026, with houses earning $4,413 per month.
Quick Answer: Dripping Springs, Texas is an active short-term rental market. average occupancy is 58%. average monthly revenue is $3,825. average daily rate is $231. the top operator is AvantStay with 358 listings. market score is 56/100 (grade C).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Dripping Springs sits roughly 20 miles west of Austin in the Texas Hill Country, drawing guests to its wedding venues, wineries, and state parks. In April 2026, the market recorded an average daily rate of $231 and a 58.2% occupancy rate, producing an average monthly revenue of $3,825 per active listing. RevPAR stood at $134.
Occupancy rose 4.1% year-over-year while ADR declined 5.8%, reflecting softer nightly pricing against steadier demand. Monthly revenue grew 3.3% year-over-year, indicating that volume gains are more than offsetting rate compression.
Entire-place listings dominate the supply mix, accounting for 21,219 of approximately 24,604 tracked listings, or roughly 86% of the market. Private rooms represent another 3,296 listings (13%), and shared rooms a marginal 89. On the bedroom breakdown, 1-bedroom units lead with 10,631 records, followed by 2-bedrooms (5,175), 3-bedrooms (4,396), 4-bedrooms (2,655), and 5-bedrooms (1,684). The channel mix shows strong Airbnb concentration at 12,931 listings compared to 1,599 on VRBO, with 10,074 operators cross-listing on both platforms. The market’s composite score from StaySTRA’s scoring model is 56.5 out of 100, with rental demand the highest sub-score at 65.6 and seasonality scoring 89.7, indicating a relatively contained seasonal swing compared to many comparable markets.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 50% | $161 | $2,254 |
| Feb | 59% | $180 | $2,581 |
| Mar | 63% | $233 | $3,869 |
| Apr | 57% | $220 | $3,452 |
| May | 57% | $223 | $3,423 |
| Jun | 59% | $225 | $3,535 |
| Jul | 60% | $216 | $3,527 |
| Aug | 57% | $202 | $3,130 |
| Sep | 56% | $206 | $2,975 |
| Oct | 59% | $231 | $3,562 |
| Nov | 53% | $201 | $3,002 |
| Dec | 51% | $180 | $2,630 |
Top Short-Term Rental Operators in Dripping Springs
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | AvantStay | 358 | 1,931 | ★ 4.77 |
| 2 | Landing, Inc. | 311 | 520 | ★ 4.30 |
| 3 | Hill Country Premier Lodging | 287 | 24,078 | ★ 4.61 |
| 4 | Landing | 270 | 53 | ★ 3.67 |
| 5 | Vacasa | 250 | 17,006 | ★ 4.70 |
What Kind of STR Should I Buy in Dripping Springs?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 10,631 |
| 2 bed | 5,175 |
| 3 bed | 4,396 |
| 4 bed | 2,655 |
| 5 bed | 1,684 |
ADR by Property Tier
| Entire Home | $252 |
| Luxury | $535 |
| Professionally Managed | $268 |
Revenue by Dwelling Type
| Apartment | $2,680 |
| Entire Place | $4,150 |
| House | $4,413 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 52.6% |
| vrbo | 6.5% |
| both | 40.9% |
Investment Analysis
At a typical home value of $697,271, Dripping Springs carries a higher entry cost than most Texas STR markets. Using April 2026’s average monthly revenue of $3,825 annualized ($45,902 per year), the implied gross yield is approximately 6.6%, before operating expenses, property management fees, and financing costs.
The pricing tier spread provides meaningful upside for well-positioned properties. The average ADR across all listings is $231. Entire-home listings average $252 per night, professionally managed properties average $268 per night, and luxury-tier listings average $535 per night. An operator able to position in the luxury segment captures more than double the baseline ADR.
Property type matters for revenue projection. Houses average $4,413 per month, entire-place listings average $4,150, and apartments average $2,680. Investors targeting the Hill Country wedding and retreat market with purpose-designed properties have historically outperformed the market average.
The year-over-year trend shows occupancy recovering (+4.1%) against moderate rate softening (-5.8%), with net revenue still positive (+3.3%). Looking at annual averages, revenue peaked in 2021 at $3,735 per month, compressed through 2023 ($3,272), and has been gradually recovering toward $3,457 in 2024 and $3,414 in 2025. The market does not show dramatic growth, but the long-term direction from 2017 ($2,245/mo) to the April 2026 reading of $3,825 represents substantial appreciation in earning potential.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
The average booking lead time in Dripping Springs is 40 days, meaning guests typically reserve roughly six weeks in advance. This window creates opportunity for dynamic pricing: operators who hold rates at a modest premium in the 45-to-60-day pre-arrival window can capture demand compression as the date approaches, then discount selectively in the final two weeks if gaps remain.
Average length of stay is 4.4 nights. That figure reflects the market’s event-driven demand, where wedding weekends and Hill Country retreats often span Thursday through Sunday or Friday through Monday. A 4.4-night average keeps turnover moderate: roughly six to seven full turnovers per month at peak occupancy. Operators should factor cleaning and restocking costs into nightly pricing at this stay length, as per-turnover costs are spread across fewer nights than markets with 2-to-3-night averages.
Short-Term Rental Regulations
Dripping Springs requires an STR License for all short-term rentals inside city limits and the Extraterritorial Jurisdiction (ETJ). STRs are explicitly permitted; a license is mandatory for operation.
Under Ordinance 2025-37, effective October 1, 2025, licenses converted from annual to biennial (two-year) renewal cycles. The Certificate of Occupancy and proof-of-insurance requirements were removed for both new applicants and renewals. Tenants may operate an STR with written landlord permission.
Zoning rules vary by parcel type. On single-family parcels, operators may run up to two STR units. Additional units at separate locations are permitted if they are at least 1,000 feet apart. Mixed-use sites allow the greater of one unit or 25% of units on sites with four or more residential units plus commercial use. Multi-family sites allow the greater of one unit or 10% of units.
The combined occupancy tax rate is 13%: 6% Texas state hotel occupancy tax plus 7% city hotel occupancy tax. Airbnb and VRBO do not remit the city portion on behalf of Dripping Springs operators. Operators must collect and remit the city’s 7% directly to the City Treasurer quarterly, due 20 days after each quarter’s end. The state 6% is remitted separately to the Texas Comptroller.
There is no owner-occupancy or primary-residence requirement. The permit fee amount was not publicly available at the time of research; operators should confirm current fees directly with the City Treasurer’s office. Properties in unincorporated Hays County outside the ETJ are not subject to the city license but may face county-level development rules. Enforcement is rated moderate.
Market Comparison
Against U.S. STR medians (approximately 55% occupancy, $220 ADR), Dripping Springs performs above average on both occupancy at 58.2% and ADR at $231. Average monthly revenue of $3,825 reflects the Hill Country’s positioning as a premium leisure and event destination rather than a high-volume urban or beach market.
The investability score of 56.5 and revenue growth score of 57.4 suggest a stable rather than rapidly appreciating market, consistent with a maturing destination that has absorbed post-pandemic demand normalization.
AvantStay leads the professional management segment with 358 listings and a 4.77 average rating across 1,931 reviews. Hill Country Premier Lodging manages 287 listings and carries the deepest review base among local operators, with 24,078 reviews at a 4.61 rating, reflecting long-standing market presence. Vacasa operates 250 listings with 17,006 reviews at a 4.70 rating. Together the top three operators manage 895 listings, representing roughly 3.6% of the approximately 24,604 tracked listing records. The market is not highly consolidated; independent operators retain the large majority of inventory.
Frequently Asked Questions About Dripping Springs, Texas
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