When it comes to short term rental (STR) investments in Austin, many people assume there’s a single “best” location for profitability. In reality, successful Airbnb properties can be found all over the greater Austin area, from downtown high-rises to Hill Country retreats. The key to a lucrative investment isn’t just about location—it’s about finding the right combination of bedroom and bathroom count, amenities, and purchase price that align with guest demand.
Location: A Diverse Market, Not a One-Size-Fits-All Approach
While areas like downtown Austin, South Congress, and East Austin have strong STR demand, they aren’t the only profitable markets. Investors should look beyond these hotspots and consider neighborhoods that offer unique guest experiences, such as:
- The Hill Country (Dripping Springs, Spicewood, Lago Vista) – Ideal for group getaways, wedding guests, and nature lovers.
- Suburban Homes (Round Rock, Cedar Park, Leander) – Great for families visiting Austin for events or extended stays.
- Lakeside Properties (Lake Travis, Lake Austin, Bastrop) – High demand for waterfront rentals, especially with boat access.
- South and Southeast Austin – Offers a balance of affordability and proximity to downtown events like ACL and SXSW.
Rather than focusing solely on one part of town, the best investors analyze each area’s unique advantages and target properties accordingly.
Bedroom and Bathroom Mix: Maximizing Guest Appeal
The right bedroom-to-bathroom ratio is crucial for optimizing bookings. Consider these guidelines:
- 1-Bedroom, 1-Bath Units – Best for solo travelers and couples, especially in walkable downtown areas.
- 2-Bedroom, 2-Bath Units – Ideal for small families or two couples traveling together.
- 3- to 4-Bedroom Homes – Highly versatile; appeals to families, groups of friends, and business travelers.
- 5+ Bedroom Luxury Homes – Premium pricing potential for retreats, wedding parties, and large groups.
The best-performing properties offer enough bathrooms to match the number of bedrooms, preventing guest frustrations over shared spaces.
Must-Have Amenities for High-Performing STRs
No matter where your investment is located, top-tier amenities can make or break its performance. Features that consistently boost bookings include:
- Pet-Friendly Accommodations – Many travelers search specifically for pet-friendly stays.
- Hot Tubs & Pools – A major draw, especially in suburban or Hill Country locations.
- Fast Wi-Fi & Dedicated Workspaces – Essential for business travelers and remote workers.
- Fully Stocked Kitchens – Encourages longer stays and appeals to families.
- Outdoor Spaces (Patios, Fire Pits, Game Areas) – Enhances guest experience and sets listings apart.
The Right Price: Balancing Cost and Revenue Potential
A great Airbnb investment isn’t just about buying at the lowest price—it’s about ensuring the purchase price makes sense given expected rental income. Key considerations include:
- Regulatory Compliance – Check Austin’s STR rules to avoid legal pitfalls.
- Property Taxes & Insurance – These can vary significantly across different areas.
- Seasonality & Demand Trends – Some areas perform better during peak tourist seasons.
- Furnishing & Setup Costs – Higher-end properties require larger upfront investments in décor and amenities.
Final Thoughts
The best Airbnb investments in Austin aren’t limited to one location or price point. By focusing on the right bedroom/bathroom mix, essential amenities, and a smart purchase price, investors can find profitable properties throughout the greater Austin area. Whether it’s a luxury retreat in the Hill Country, a lakeside escape, or a well-designed suburban home, success comes from strategic decision-making—not just picking the trendiest neighborhood.
If you're looking for guidance on your next STR investment in Austin, reach out today—I’d love to help you find the perfect property!
