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Texas offers some of the most diverse and lucrative short-term rental markets in the country. Austin draws SXSW crowds and tech industry travelers. The Texas Hill Country has become one of the hottest wine and weekend getaway destinations in the South. The Gulf Coast delivers strong beach rental demand. And off-the-beaten-path markets like Terlingua near Big Bend are capturing a growing adventure travel demographic. Explore Awning's Texas property management services to see which markets we operate in.
Before diving in, use the Airbnb estimator to model revenue for any Texas market, and check Airbnb market data to compare demand trends across cities.
Texas Market Overview
Austin: The highest-profile Texas STR market. Despite regulatory pressures, well-located properties continue to generate exceptional returns. Average daily rates for professionally managed Austin properties range from $200–$500, with peak demand around SXSW, Austin City Limits, and University of Texas events pushing rates significantly higher. See Austin market →
Texas Hill Country: Explosive growth over the past several years. The region's wineries, outdoor activities, and proximity to Austin and San Antonio make it an ideal weekend destination. Properties with pools and Hill Country views command premium rates.
Houston: A significant corporate and medical travel market with strong year-round demand from the Texas Medical Center, the Port of Houston, and major energy industry headquarters. See top Houston rental property investments → | Houston property management →
Gulf Coast (Galveston, Port Aransas, South Padre Island): Highly seasonal markets with peak demand in summer and spring break. Beach proximity is the primary demand driver. Properties within walking distance of the beach consistently outperform inland alternatives.
San Antonio: More stable year-round demand driven by strong tourism infrastructure. Properties near the River Walk, Pearl District, and King William neighborhood perform particularly well. See San Antonio market →
Terlingua: An emerging adventure travel destination at the gateway to Big Bend National Park. A niche market with a growing national profile, particularly for unique and off-grid property types. See Terlingua property management →
Best Property Management Companies in Texas
Awning
Awning operates across Texas's major markets — Austin, San Antonio, Houston, Dallas, the Hill Country, and the Gulf Coast — providing full-service vacation rental management with AI-powered dynamic pricing and professional photography. Awning's transparent all-in fee structure and technology-first approach make it the top choice for out-of-state investors and local owners looking to maximize returns without the operational burden of self-management.
Vacasa
Significant Texas presence, particularly in Gulf Coast markets and the Hill Country. Full-service management with broad channel distribution. Higher fees with some reported variability in local service quality as the portfolio has grown.
iTrip Vacations
A franchise model with local operators in key Texas markets. Quality varies by franchisee, but well-run local iTrip operators offer strong market knowledge combined with a national brand's systems and distribution.
Texas Regulatory Considerations
Short-term rental regulations in Texas vary significantly by city. Austin has complex STR permitting requirements with tiered license types based on whether the property is owner-occupied. Houston, Dallas, and San Antonio have generally lighter regulatory frameworks. Hill Country and Terlingua properties in unincorporated areas often face minimal restrictions. Always verify current local regulations before operating.
Protecting your investment with the right insurance is critical. Review best landlord insurance options for short-term rentals before going live.
Texas STR Tools
• Airbnb estimator — Estimate revenue for any Texas market
• Airbnb market data — Benchmark occupancy and ADR
• STR ROI calculator — Model full investment returns
• Best smart locks for Airbnb — Automate Texas property access
• Top Houston rental property investments →
Frequently Asked Questions
What is the best area in Texas for vacation rental investment?
The Texas Hill Country, Austin, Houston, and Gulf Coast markets (Galveston, Port Aransas) consistently rank among the best areas for vacation rental investment in Texas, offering strong demand, attractive ADRs, and growing tourism infrastructure.
How much do property managers charge in Texas?
Vacation rental property management fees in Texas typically range from 20–35% of gross revenue, with full-service national operators generally on the higher end and hybrid models on the lower end.
Are short-term rentals legal in Austin, Texas?
Short-term rentals are legal in Austin with proper licensing. The city uses a tiered permit system based on owner-occupancy. Regulations have evolved in recent years and require verification before operating.
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