Dripping Springs STR market holds 418 active listings with March occupancy peaking at 54% and median revenue at $1,628 per month.
Market Overview
Dripping Springs is a Hill Country market located roughly 25 miles west of Austin, drawing approximately 300,000 annual visitors to its wineries, distilleries, wedding venues, and natural landmarks. As of February 2026, the market supports 418 active short-term rental listings, a figure that has ranged from 310 (2021) to a peak of 438 (2025) over the past five years.
The average daily rate as of the most recent data point stands at $367, with the median at $227. ADR has climbed steadily from $302 in 2021 to $401 in 2025, reflecting continued pricing power even as occupancy has compressed. Average market-wide occupancy in February 2026 was 27%, consistent with the slow-season baseline the market has shown in January and February each year.
Annual average occupancy has declined from 61.4% in 2021 to 33.9% in 2025. Much of this decline reflects supply expansion: the market added roughly 90 to 128 listings between 2021 and peak supply in 2025. Revenue per available rental (RevPAR) stands at $103 market-wide as of the latest month. The market skews toward higher-end inventory, with typical home values at $672,623, and top-quartile properties generating significantly more revenue than the median. Demand remains tied closely to Austin metro growth, Hill Country tourism, and the wedding and event tourism corridor running through the area.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 32% | $333 | $3,300 | 392 |
| Feb | 38% | $324 | $3,437 | 392 |
| Mar | 54% | $339 | $5,987 | 366 |
| Apr | 50% | $344 | $5,514 | 367 |
| May | 49% | $349 | $5,643 | 345 |
| Jun | 50% | $359 | $6,003 | 377 |
| Jul | 50% | $374 | $6,509 | 397 |
| Aug | 42% | $351 | $5,239 | 398 |
| Sep | 42% | $347 | $4,888 | 399 |
| Oct | 49% | $365 | $5,648 | 388 |
| Nov | 46% | $360 | $5,089 | 391 |
| Dec | 42% | $359 | $4,757 | 392 |
Dripping Springs follows a clear seasonal pattern with the strongest occupancy concentrated in spring and early summer. March is the peak month by occupancy at 53.8%, followed closely by June (50.4%), May (49.2%), and July (49.6%). These four months represent the core revenue window for most operators.
ADR shows a different but complementary pattern. July commands the highest average daily rate at $374, followed by October ($365) and June ($359). The combination of high occupancy and rising ADR in June and July makes those two months the strongest for total revenue, with June averaging $6,003 and July averaging $6,509 per month across active listings.
The slowest months are January (32.4% occupancy, $333 ADR, $3,300 avg revenue) and February (37.6% occupancy, $324 ADR, $3,437 avg revenue). August and December also underperform relative to the spring-summer core, each at 41.6% occupancy. October (48.6% occupancy, $365 ADR) is a notable bright spot in the fall, likely driven by the area’s wedding season and fall foliage visitors from the Austin metro.
Operators should plan pricing strategies that capture the March spring break surge, sustain rates through the June-July summer peak, leverage October’s fall demand, and accept softer January-February periods as a planning reality rather than a management failure.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $775 | $1,628 | $3,434 | $5,842 |
| ADR | $143 | $227 | $393 | $800 |
| Occupancy | 14% | 24% | 38% | 54% |
Revenue performance across Dripping Springs listings varies sharply by percentile. Using February 2026 as the reference month:
– Bottom quartile (p25): $775 per month
– Median (p50): $1,628 per month
– Top quartile (p75): $3,434 per month
– Top decile (p90): $5,842 per month
– Market average: $2,876 per month
The market average of $2,876 is higher than the median of $1,628 because a small number of high-performing properties pull the mean upward. Investors should benchmark against the median for conservative underwriting and the p75 for an optimistic but achievable scenario with a well-positioned property.
On an annualized basis, median-performing properties generate approximately $19,500 in gross revenue. Top-quartile properties reach approximately $41,200 per year. Properties at the p90 level generate roughly $70,100 per year before platform fees, taxes, cleaning, and maintenance costs are deducted. These figures are based on February 2026 snapshot data and will vary seasonally.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $7,164 | $231 | $292 |
| Apr 2021 | $6,974 | $233 | $300 |
| May 2021 | $7,290 | $235 | $303 |
| Jun 2021 | $7,189 | $240 | $302 |
| Jul 2021 | $7,348 | $237 | $302 |
| Aug 2021 | $6,657 | $215 | $310 |
| Sep 2021 | $5,913 | $197 | $299 |
| Oct 2021 | $6,806 | $220 | $325 |
| Nov 2021 | $5,930 | $198 | $295 |
| Dec 2021 | $5,711 | $184 | $296 |
| Jan 2022 | $4,442 | $143 | $293 |
| Feb 2022 | $5,025 | $179 | $309 |
| Mar 2022 | $7,019 | $226 | $324 |
| Apr 2022 | $6,386 | $213 | $323 |
| May 2022 | $6,510 | $210 | $344 |
| Jun 2022 | $7,325 | $244 | $358 |
| Jul 2022 | $7,595 | $245 | $365 |
| Aug 2022 | $6,094 | $197 | $307 |
| Sep 2022 | $6,137 | $205 | $312 |
| Oct 2022 | $6,475 | $209 | $322 |
| Nov 2022 | $6,019 | $201 | $329 |
| Dec 2022 | $5,288 | $171 | $313 |
| Jan 2023 | $3,798 | $123 | $310 |
| Feb 2023 | $3,818 | $136 | $290 |
| Mar 2023 | $6,115 | $197 | $330 |
| Apr 2023 | $5,515 | $184 | $331 |
| May 2023 | $5,206 | $168 | $327 |
| Jun 2023 | $5,785 | $193 | $323 |
| Jul 2023 | $6,331 | $204 | $348 |
| Aug 2023 | $5,130 | $166 | $323 |
| Sep 2023 | $5,042 | $168 | $354 |
| Oct 2023 | $4,822 | $156 | $355 |
| Nov 2023 | $4,281 | $143 | $370 |
| Dec 2023 | $3,923 | $127 | $385 |
| Jan 2024 | $2,624 | $85 | $316 |
| Feb 2024 | $2,575 | $89 | $316 |
| Mar 2024 | $4,360 | $141 | $362 |
| Apr 2024 | $4,268 | $142 | $381 |
| May 2024 | $4,375 | $141 | $361 |
| Jun 2024 | $4,515 | $151 | $381 |
| Jul 2024 | $5,291 | $171 | $408 |
| Aug 2024 | $3,870 | $125 | $382 |
| Sep 2024 | $3,834 | $128 | $376 |
| Oct 2024 | $5,193 | $168 | $406 |
| Nov 2024 | $4,684 | $156 | $393 |
| Dec 2024 | $4,440 | $143 | $385 |
| Jan 2025 | $2,758 | $89 | $343 |
| Feb 2025 | $2,891 | $103 | $340 |
| Mar 2025 | $5,279 | $170 | $390 |
| Apr 2025 | $4,427 | $148 | $384 |
| May 2025 | $4,832 | $156 | $412 |
| Jun 2025 | $5,200 | $173 | $429 |
| Jul 2025 | $5,980 | $193 | $446 |
| Aug 2025 | $4,446 | $143 | $436 |
| Sep 2025 | $3,515 | $117 | $395 |
| Oct 2025 | $4,943 | $160 | $415 |
| Nov 2025 | $4,533 | $151 | $414 |
| Dec 2025 | $4,426 | $143 | $413 |
| Jan 2026 | $2,880 | $93 | $403 |
| Feb 2026 | $2,876 | $103 | $367 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 66% | 285 |
| Jun 2021 | 67% | 310 |
| Sep 2021 | 55% | 315 |
| Dec 2021 | 58% | 318 |
| Mar 2022 | 67% | 319 |
| Jun 2022 | 60% | 414 |
| Sep 2022 | 52% | 419 |
| Dec 2022 | 47% | 419 |
| Mar 2023 | 54% | 416 |
| Jun 2023 | 53% | 409 |
| Sep 2023 | 43% | 398 |
| Dec 2023 | 34% | 370 |
| Mar 2024 | 41% | 361 |
| Jun 2024 | 37% | 295 |
| Sep 2024 | 32% | 417 |
| Dec 2024 | 36% | 438 |
| Mar 2025 | 41% | 450 |
| Jun 2025 | 35% | 455 |
| Sep 2025 | 28% | 447 |
| Dec 2025 | 33% | 415 |
The Dripping Springs STR market presents a bifurcated investment picture. Median monthly revenue across all active listings is $1,628, meaning roughly half of all properties earn below that threshold. The top quartile (p75) earns $3,434 per month, and properties in the top decile (p90) average $5,842 per month. The gap between median and top-decile performance is substantial at $4,214 per month, indicating that property differentiation, positioning, and management quality drive outsized results.
Entry costs are meaningful. Typical home values in the area are $672,623, which at a standard 25% down payment implies approximately $168,000 in upfront equity plus closing costs. At median revenue of $1,628 per month, gross annual revenue comes to roughly $19,500, a gross yield of about 2.9% on a $672,623 asset before operating expenses. At the p75 revenue level of $3,434 per month, gross annual revenue is approximately $41,200, a 6.1% gross yield.
Occupancy has declined four consecutive years (from 61.4% in 2021 to 33.9% in 2025), while ADR has risen from $302 to $401 over the same period. Net revenue has compressed: the market-wide average annual revenue dropped from $6,698 in 2021 to $4,169 in 2024 before recovering modestly to $4,436 in 2025. Investors should price in continued supply pressure and model conservatively against the median rather than the average, which is pulled upward by outlier performers.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $590,720 |
| Dec 2021 | $765,943 |
| Sep 2022 | $852,971 |
| Jun 2023 | $763,290 |
| Mar 2024 | $740,488 |
| Dec 2024 | $722,724 |
| Sep 2025 | $691,526 |
Booking Insights
Dripping Springs guests book an average of 42.4 days in advance, with a median lead time of 25 days. The gap between mean and median indicates a segment of guests who book well in advance (60 to 90 days out) for special events such as weddings, Hill Country wine weekends, and spring break, while the majority of bookings arrive within four weeks of arrival.
Average length of stay is 4.9 nights, but the median is just 2.0 nights. This split suggests a two-tier guest profile: a large volume of short weekend stays (two to three nights) and a smaller but revenue-significant group booking week-long or longer stays. The weekend-dominant pattern is consistent with proximity to Austin, where residents treat Dripping Springs as a quick-escape destination.
For pricing strategy, this data supports: maintaining strong rates for Friday-Saturday-Sunday inventory; offering moderate mid-week discounts to capture the 4.9-night average stay segment; and setting minimum stay requirements during peak weeks (March, July, October) at three to four nights to reduce turnover costs without sacrificing occupancy. Given the 25-day median lead time, last-minute discounting windows typically open inside the three-week mark for non-peak dates.
Short-Term Rental Regulations
Dripping Springs requires short-term rental operators to obtain a permit through the Planning and Zoning Commission before listing a property. The permit application requires submission of documentation and payment of a filing fee. Zoning restrictions apply and not all properties in the area are eligible for STR use, so confirming zoning eligibility before purchase is a critical pre-investment step.
The city mandates collection and remittance of a hotel occupancy tax at a rate of 7%. This tax applies to short-term rental income and must be collected from guests and reported to the city on a regular basis. Operators who fail to collect or remit this tax face penalties.
Safety requirements include functional smoke detectors and fire extinguishers in each rental unit. These are minimum code requirements and most experienced operators exceed them to maintain positive guest ratings and reduce liability exposure.
Dripping Springs also sits within the broader Hays County jurisdiction, and some properties in the area may fall under county-level rules rather than city ordinances depending on their precise location relative to city limits. Investors should verify the governing jurisdiction for any specific property before assuming city-level rules apply.
Note: Regulations change. Always verify current requirements directly with the Dripping Springs Planning and Zoning office and consult a local attorney or STR-experienced property manager before investing.
Market Comparison
Dripping Springs occupies a distinct niche within the Texas STR landscape. Its ADR of $367 as of February 2026 is meaningfully above typical urban Texas STR markets, reflecting the premium attached to Hill Country retreat properties, event-adjacent venues, and properties with acreage or distinctive features. By comparison, most urban Texas metros operate at ADRs in the $150 to $220 range.
Occupancy of 27% in February 2026 is below the national STR average for the same period (typically 40 to 50% in warmer Sun Belt markets), but this reflects a seasonal trough. The annual average occupancy of 33.9% for 2025 is below the 2021 peak of 61.4%, a trend shared by many leisure-focused markets that expanded supply rapidly following the 2020-2021 STR boom.
RevPAR of $103 in the latest month sits modestly below comparable Hill Country leisure markets during their off-season. The market’s core differentiation is its event-driven and nature-driven demand base, which sustains ADR above urban comparables even as occupancy normalizes. Investors comparing Dripping Springs to Austin proper should expect lower volume but higher per-night rates, and a stronger dependence on seasonal and event-driven demand cycles.
Frequently Asked Questions About Dripping Springs, Texas
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