Austin Airbnb Profitability Report: Neighborhood-by-Neighborhood
Not all of Austin performs equally as a short-term rental market. A property two miles from Zilker Park can outperform one near the Domain by 30% — not because it's a better property, but because of location dynamics, event proximity, and guest demand patterns. This report breaks down what we're seeing across the major Austin neighborhoods in our portfolio as of Q1 2026.
Not all of Austin performs equally as a short-term rental market. A property two miles from Zilker Park can outperform one near the Domain by 30% — not because it's a better property, but because of location dynamics, event proximity, and guest demand patterns. This report breaks down what we're seeing across the major Austin neighborhoods in our portfolio as of Q1 2026.
Note: these figures represent managed properties optimized with dynamic pricing and professional listing management. Self-managed properties with static pricing typically underperform these numbers by 15–25%.
The Full Picture: Neighborhood Comparison
| Neighborhood | Avg. ADR (2BR) | Occupancy | Monthly Rev. |
|---|---|---|---|
| Downtown / 6th St | $265 | 74% | $5,870 |
| East Austin | $228 | 79% | $5,410 |
| South Congress (SoCo) | $242 | 76% | $5,520 |
| Rainey Street District | $258 | 72% | $5,590 |
| Hyde Park | $195 | 75% | $4,390 |
| Zilker / Bouldin Creek | $218 | 77% | $5,040 |
| Mueller | $188 | 73% | $4,120 |
| North Loop / Cherrywood | $185 | 72% | $4,000 |
How to read this data: Monthly revenue is gross — before management fees, cleaning costs, utilities, platform fees, and taxes. For a typical 2BR in East Austin, net operating income after all expenses runs roughly 55–65% of gross revenue, depending on mortgage status and property age.
East Austin: The Consistent Performer
East Austin continues to be our strongest performing neighborhood in terms of risk-adjusted returns. Properties here — particularly in the 78702 zip code around Cesar Chavez and 6th Street East — benefit from walkability to restaurants on East 6th, proximity to the Convention Center, and the artsy neighborhood aesthetic that resonates strongly with the Airbnb demographic.
Occupancy in East Austin runs consistently high (78–82% for well-managed properties) because demand sources are diverse: SXSW delegates, ACL attendees, weekend leisure travelers, and convention visitors all target this area. It's not entirely event-dependent the way Downtown can be.
One-bedroom units in East Austin targeting digital nomads and solo travelers have seen particularly strong performance in 2025–2026, with ADRs of $145–$165 and occupancy above 80%.
Downtown and Rainey Street: High ADR, Higher Variance
Downtown properties near 6th Street and Rainey Street command the highest ADRs in Austin — often $300–$400+ per night during SXSW and F1 at COTA — but also show more seasonal variance. During slow periods (January, August), occupancy can drop to 60–65% even for well-managed listings.
The math still works in your favor if you have a property near Rainey Street. Rainey has become Austin's premier nightlife district, and guests who stay there are specifically seeking that experience. Premium pricing is justified, and guests are generally less price-sensitive than those choosing properties further from the action.
One important consideration: Downtown properties face more stringent city permitting requirements under Austin's short-term rental ordinance. Make sure any property you're acquiring in the urban core is eligible for an STR permit before closing.
Hyde Park and Mueller: The Steady-Yield Neighborhoods
Hyde Park and Mueller don't get the glamour coverage, but they're solid, predictable performers. These are neighborhoods that appeal to families visiting UT Austin, parents dropping off students, and medical tourists visiting Dell Seton or St. David's. Demand here is less spikey — less peak-and-valley — which means lower stress and more consistent monthly income.
If you're looking at your first investment property and want predictability over maximum upside, a well-priced 3BR in Hyde Park at $750,000–$850,000 can pencil at a reasonable cap rate when run as a short-term rental. Larger groups (4–6 guests) targeting these neighborhoods are often willing to pay $250–$320/night for the space.
The event premium is real: During SXSW (2 weeks in March), F1 Austin (November), and ACL (two weekends in October), every Austin neighborhood sees demand surge. Well-managed properties apply 2.5–4x pricing multipliers during these events. Over a year, this can add $6,000–$12,000 in incremental revenue to a single property.
What the Numbers Don't Show
Revenue data doesn't tell the whole story. Two equally-located properties can perform very differently based on listing quality, review history, and responsiveness to guests. A 4.85-star listing in Mueller will outperform a 4.6-star listing in Rainey Street because of how Airbnb's search algorithm weights review scores.
If you're evaluating whether to acquire an Austin property as an STR investment, look at Airbnb listing data for comparable properties in the target neighborhood — note how many reviews they have, their star ratings, and whether they're running professionally or by self-managing owners. That competitive landscape tells you more than any summary table.