Austin STR Market Report 2026: East Side Growth, Event Pricing & Revenue

Austin's short-term rental market is unlike any other in the United States. While most cities operate on seasonal tourism patterns, Austin runs on an event-driven calendar where four major annual events—SXSW, ACL Music Festival, Formula 1 Grand Prix, and University of Texas football—can generate 35-45% of an STR operator's annual revenue in just 25-30 days. Understanding how to price for these events while maintaining occupancy during non-event periods is the difference between elite revenue performance and mediocre results.

This comprehensive market report analyzes Austin's vacation rental landscape in 2026, breaking down event-driven pricing strategies, neighborhood dynamics across East Austin's emerging market and established districts like South Congress and Downtown, the economics of room rentals in shared houses, mid-term rental opportunities, regulatory considerations, and realistic revenue projections by property type.

Austin STR Market Overview: Event-Driven Economics

Austin's STR market operates on fundamentally different economics than traditional seasonal markets. Rather than smooth seasonal curves (beach towns peaking in summer, ski towns in winter), Austin's revenue follows a spiked pattern driven by major events. An average 3-bedroom home in East Austin might earn $200/night during a normal February weekend, then command $1,200/night during SXSW week two weeks later.

Market Fundamentals

Major Events: When Austin STRs Print Money

Understanding Austin's event calendar is non-negotiable for STR operators. These four events drive the majority of premium revenue opportunities:

SXSW (South by Southwest) - March

SXSW is Austin's Super Bowl. Ten days in mid-March when the city's population swells by 400,000+ attendees for music, film, and interactive conferences. Hotels book out 12+ months in advance, corporate groups secure housing for employees and clients, and STR operators see the highest ADR of the year.

SXSW Pricing Dynamics:

• Timing: Typically 2nd-3rd week of March (dates announced 12+ months out)
• Duration: 10 days (Friday-Sunday spanning two weekends)
• ADR Range: $800-2,000 for whole homes, $150-350 for private rooms
• Booking Window: Early bookers start reserving 8-12 months out, last-minute bookings 2-4 weeks before
• Minimum Stays: 5-10 night minimums enforceable

SXSW Strategy:

The key to SXSW pricing is understanding booking momentum. Corporate groups and experienced attendees book 6-12 months out at premium prices (they're expensing it and need certainty). Pricing should be HIGHEST 6-9 months before the event, then gradually decrease as inventory remains to capture last-minute bookers who waited too long.

Our Austin properties open SXSW booking 12 months out at 400-500% of normal rates. We capture early corporate bookers at maximum price, then monitor comp set availability. If we're still available 60 days out, we drop pricing 10-15% to capture remaining demand. If we're booked, we've maximized revenue. This approach consistently outperforms operators who hold firm on prices and risk going unbooked.

ACL Music Festival (Austin City Limits) - October

ACL Festival brings 75,000+ music fans per day across two consecutive weekends in October. Unlike SXSW's 10-day span, ACL creates two distinct 3-day pricing opportunities with a normal-rate gap week in between.

ACL Pricing Dynamics:

• Timing: Two consecutive weekends in early-mid October
• Duration: 3 days per weekend (Friday-Sunday)
• ADR Range: $500-1,200 for whole homes, $100-250 for private rooms
• Booking Pattern: Weekend 1 books faster (lineups announced 4-6 months out), Weekend 2 fills closer to dates
• Minimum Stays: 3-4 night minimums common

ACL Strategy:

The gap week between ACL weekends presents a strategic decision: maintain premium pricing and accept vacancy, or drop to normal rates to capture gap-week travelers? Our data shows gap-week pricing at 125-150% of normal rates (not full ACL pricing) captures corporate travelers, families visiting UT students, and overflow from sold-out hotels while maintaining premium positioning.

Formula 1 Grand Prix - October/November

F1 weekend at Circuit of the Americas brings international racing fans, corporate groups, and luxury travelers. While smaller than SXSW in total attendance, F1 attracts higher-income travelers with stronger willingness to pay premium rates.

F1 Pricing Dynamics:

• Timing: One weekend in late October or early November
• Duration: 4 days (Thursday-Sunday)
• ADR Range: $600-1,800 for whole homes, $120-300 for private rooms
• Traveler Profile: International guests, corporate hospitality, luxury market
• Minimum Stays: 3-5 night minimums enforceable

F1 Strategy:

F1 travelers are LESS price-sensitive than SXSW attendees. Corporate groups booking hospitality packages, international travelers on bucket-list trips, and racing enthusiasts willing to pay for proximity to downtown and entertainment. Properties can hold firm on premium pricing closer to event dates compared to SXSW.

UT Longhorns Football - September-November

University of Texas football creates 6-7 weekend pricing opportunities during fall. While individual game weekends don't reach SXSW/ACL premium levels, collectively they represent significant revenue (10-15% of annual revenue for well-positioned properties).

UT Football Pricing Dynamics:

• Timing: 6-7 home games, September-November (Thanksgiving weekend)
• Duration: 2-3 days per game (Friday-Sunday or Saturday only)
• ADR Range: $250-600 for whole homes (varies by opponent), $50-120 for rooms
• Traveler Profile: Alumni, visiting fans, families
• Game Importance: Rivalry games (Oklahoma, Texas A&M) command 2-3× rates of non-conference games

UT Football Strategy:

Not all game weekends are equal. Marquee matchups (SEC opponents, traditional rivalries) justify 200-250% premiums. Non-conference games against lesser opponents often see only 50-75% premiums. Check schedules when announced (typically February) and tier your pricing based on expected demand.

Neighborhood Breakdown: Where to Operate in Austin

East Austin: The Emerging Opportunity ($100-200 Rooms, $200-350 Homes)

East Austin has transformed from overlooked residential district to Austin's hottest STR micro-market over the past decade. The neighborhood's proximity to downtown (10-15 minute drive), emerging restaurant and bar scene, more affordable property acquisition costs, and authentic local character attract both budget-conscious travelers and cultural tourists.

Market Characteristics:

• Average ADR: $100-200 for private rooms (shared houses), $200-350 for whole homes
• Occupancy: 60-75% annually
• Property Types: Renovated bungalows, modern new builds, room rentals in shared houses
• Traveler Profile: Budget travelers, SXSW attendees, young professionals, artists, musicians
• Event Premiums: 300-400% during SXSW, 200-250% during ACL

The Room Rental Model:

East Austin has proven particularly successful for the room rental model—purchasing a 3-4 bedroom house and renting rooms individually as private rooms with shared common areas. This model offers superior ROI compared to whole-home rentals in the same neighborhood.

Revenue Projection for East Austin Private Room:

• SXSW week (10 nights @ $150 avg): $1,500
• ACL weekends (6 nights @ $100 avg): $600
• F1 weekend (4 nights @ $120 avg): $480
• UT Football (18 nights @ $50 avg): $900
• Standard nights (240 nights @ $30 avg): $7,200
• Off-peak nights (50 nights @ $20 avg): $1,000
• Total annual revenue: $11,680 per room

South Congress (SoCo): Hip & Walkable ($250-400 ADR)

South Congress represents Austin's most iconic neighborhood—vintage shops, eclectic restaurants, hotels, and walkable urban character. Properties here command premium rates due to location desirability and walkability to downtown Austin and entertainment districts.

Market Characteristics:

• Average ADR: $250-400 for whole homes
• Occupancy: 65-75% annually
• Property Types: Renovated bungalows, modern condos, historic homes
• Traveler Profile: Affluent leisure travelers, SXSW VIPs, ACL attendees seeking walkability
• Event Premiums: 250-350% during major events

SoCo properties succeed by emphasizing walkability and local character. Travelers pay premiums to walk to restaurants, bars, and Lady Bird Lake rather than drive and deal with Austin's challenging parking situation.

Downtown: Urban Core & Convention Access ($250-400 ADR)

Downtown Austin properties capture business travelers, convention attendees, and event-goers willing to pay for central location. The market balances event-driven leisure demand with steady corporate/convention demand year-round.

Market Characteristics:

• Average ADR: $250-400
• Occupancy: 68-78% (high corporate demand)
• Property Types: High-rise condos, converted lofts
• Traveler Profile: Business travelers, conference attendees, event-goers
• Event Premiums: 200-300% during SXSW/ACL/F1

Downtown operators should track Austin Convention Center calendar closely. Tech conferences, music industry events, and corporate conventions create mid-week demand that supplements weekend leisure bookings.

Domain/North Austin: Corporate & Suburban ($180-300 ADR)

North Austin around The Domain shopping center attracts corporate travelers (Apple, Dell, Oracle campuses nearby), families seeking space and parking, and travelers who prefer suburban comfort over urban character.

Market Characteristics:

• Average ADR: $180-300
• Occupancy: 60-70% annually
• Property Types: Suburban homes, townhomes, apartment condos
• Traveler Profile: Corporate travelers, families, extended stays
• Event Premiums: 150-200% during major events (less event-driven than central Austin)

Mid-Term Rental Opportunity: The 30-90 Day Sweet Spot

Austin's booming tech sector, film production industry, and medical centers create strong demand for mid-term rentals (30-90 days). Traveling nurses, tech contractors, film production crews, and corporate relocations represent a stable revenue stream that complements event-driven STR income.

Mid-Term Economics:

• Typical Rates: 20-30% discount from nightly STR rates, but 100% occupancy during stay
• Lower Costs: Reduced cleaning, fewer guest turnovers, lower platform fees
• Cash Flow: Predictable monthly income during off-peak periods
• Risk Diversification: Less dependent on event calendars and tourism cycles

Regulatory Landscape: Austin STR Rules in 2026

Austin maintains one of the more complex STR regulatory frameworks in Texas, with different permit types based on property characteristics and neighborhood restrictions.

STR License Types:

Type 1: Owner-Occupied Short-Term Rental

• Owner lives on property, rents rooms or space
• Fewer restrictions, easier permitting
• Annual license fee: $285

Type 2: Non-Owner Occupied Short-Term Rental

• Whole-home rental, owner doesn't live on site
• More restrictions, limited in certain neighborhoods
• Annual license fee: $615
• Subject to density caps in some areas

Type 3: Bed & Breakfast

• Commercial B&B operation
• Higher regulatory requirements
• Most STR operators don't pursue this classification

Key Compliance Requirements:

• Hotel Occupancy Tax (HOT): 9% city tax + 6% state tax = 15% total
• Parking: One space per bedroom required
• Noise Ordinances: Strictly enforced, especially during SXSW and ACL
• Good Neighbor Guidelines: Contact info posted, local representative available
• Safety Requirements: Smoke detectors, carbon monoxide detectors, fire extinguisher

Operators should verify current regulations with the City of Austin Development Services Department, as rules continue evolving and neighborhood-specific restrictions apply in certain areas.

Revenue Projections: What Austin STR Operators Actually Earn

Austin's event-driven market creates wide revenue variance based on property type, location, and pricing strategy effectiveness. Here are realistic annual revenue targets:

East Austin Private Room (Shared House)

• ADR: $25-50 (non-event), $100-200 (events)
• Occupancy: 65-75%
• Annual Nights Booked: 237-274
• Annual Revenue: $9,000-18,000 per room
• Gross ROI: 10-16% (assuming $75,000-100,000 investment per room in 4-room house)

East Austin Whole Home (3-Bed)

• ADR: $200-300 (non-event), $800-1,500 (events)
• Occupancy: 60-70%
• Annual Nights Booked: 219-255
• Annual Revenue: $45,000-80,000
• Gross ROI: 11-15% (assuming $400,000-550,000 property value)

Downtown Condo (2-Bed)

• ADR: $250-350 (non-event), $700-1,200 (events)
• Occupancy: 68-75%
• Annual Nights Booked: 248-274
• Annual Revenue: $65,000-95,000
• Gross ROI: 9-13% (assuming $550,000-750,000 property value)

South Congress Bungalow (3-Bed)

• ADR: $300-400 (non-event), $900-1,600 (events)
• Occupancy: 65-72%
• Annual Nights Booked: 237-263
• Annual Revenue: $75,000-110,000
• Gross ROI: 10-14% (assuming $650,000-900,000 property value)

Pricing Strategy Insights from Calibr8ted's Austin Portfolio

Calibr8ted operates 4 room rentals in East Austin, all derived from our GreenKing anchor property. Here's what we've learned managing properties in Austin's event-driven market:

1. Event Booking Timing Determines Optimal Pricing

Austin's events exhibit different booking curves. SXSW sees early corporate bookings 8-12 months out, then a lull, then last-minute bookings 2-4 weeks before. ACL Festival books steadily 4-6 months out (when lineups drop). F1 sees late bookings 4-8 weeks out (international travelers booking later). UT Football varies by opponent (rivalry games book early, non-conference games stay available longer).

Generic pricing tools apply uniform event premiums regardless of booking momentum. Our strategy: monitor comp set availability and booking velocity, then adjust. If SXSW is 50% booked out 6 months before and we're still available, drop pricing 10-15%. If we're booked, we priced correctly. If ACL weekend 1 is 90% booked 3 months out but weekend 2 is at 40%, raise weekend 2 pricing to capture remaining demand.

2. Room Rental Pricing Requires Different Strategy Than Whole Homes

Room rentals target different travelers than whole homes. Budget-conscious solo travelers and small groups splitting costs care MORE about price than whole-home renters (who are often groups expensing travel or affluent families). This means room rental pricing must stay competitive even during events to maintain occupancy.

Our data shows room rentals achieve 65-75% occupancy during events at 300-400% premiums, while whole homes hit 75-85% occupancy at 400-600% premiums. Rooms have less pricing power but higher volume potential. We price rooms at the LOW end of event premium ranges to maximize occupancy rather than chasing maximum ADR.

3. Non-Event Periods Require Aggressive Occupancy Focus

Austin's challenge isn't event pricing—everyone knows to price SXSW high. The challenge is filling gaps between events without destroying ADR. January-February, April-May, June-August, and late November-December represent 60-70% of the calendar but only 35-45% of revenue.

Our strategy: maintain base pricing during non-event periods ($25-30 for rooms, $180-220 for whole homes) with aggressive lead time discounting (10-15% off for bookings 14+ days out). This captures early planners while preserving last-minute pricing power. We also actively market to mid-term renters during these periods, offering 20-25% discounts for 30-90 day stays to guarantee baseline occupancy.

4. Weekend Premiums Are Lower in Austin Than Coastal Markets

Austin's event-driven market means weekends don't automatically command major premiums outside of events. Business travel is limited, and leisure travel is discretionary. Our data shows weekend premiums of only 10-15% during non-event periods (versus 25-40% in beach markets), because Austin doesn't have consistent weekend demand like coastal destinations.

Exception: UT Football weekends, when weekend premiums jump to 100-200% depending on opponent.

Market Outlook: Austin STR Trends for 2026-2027

1. East Austin Continued Appreciation

East Austin property values continue climbing 8-12% annually, driven by development, new restaurants/bars, and proximity to downtown. STR operators who purchased properties 5+ years ago are seeing strong appreciation alongside rental income, creating compelling total returns (rental income + appreciation).

2. Event Sophistication Increasing

More operators are mastering event-driven pricing, creating increased competition for event bookings. The days of blindly pricing SXSW at 500% premiums and automatically booking are fading. Operators need data-driven pricing that accounts for comp set availability, booking momentum, and actual demand rather than assumed demand.

3. Mid-Term Rental Demand Growing

Austin's tech sector continues expanding (Apple's $1B campus, Tesla Gigafactory, Oracle HQ relocation), creating sustained mid-term rental demand from relocating employees, contractors, and corporate housing. Smart operators are blending STR and mid-term models to optimize revenue across the calendar.

4. Regulatory Monitoring Required

Austin City Council periodically revisits STR regulations. Operators should monitor proposed ordinance changes, especially regarding Type 2 license caps in specific neighborhoods and potential occupancy tax increases.