Ed Neuhaus 
If you are seriously considering a move to Dripping Springs, one of the first questions you need to answer is which neighborhood you actually want to live in. This is not a city where you can just pick any old subdivision and call it good. The differences between communities here are massive. We are talking differences in lot size, tax burden, amenities, school zoning, home style, and most importantly, long-term value.
I have been working this market long enough to have opinions. Some of these neighborhoods are fantastic deals. Some are wildly overpriced for what you get. Some I would personally buy in tomorrow. Some I would tell my own family to skip. So lets cut through the marketing fluff and talk about what these communities are actually like, who they are great for, and where you are going to get the best bang for your buck in 2026.
Why Neighborhood Selection Matters in Dripping Springs
In a city like Austin, neighborhoods can feel pretty interchangeable. Sure, there are differences, but you are generally dealing with similar lot sizes, similar tax structures, similar HOA setups. Dripping Springs is the opposite. You have communities with quarter-acre lots and communities with five-acre lots. You have MUD taxes that can run you an extra $8,000 a year and communities with no MUD at all. You have master-planned amenity kingdoms and you have rural subdivisions with zero community features.
This is why picking the right neighborhood matters so much here. You could end up in a beautiful new home in a master-planned community and find yourself paying $15,000 a year in property taxes plus another $1,500 in HOA dues. Or you could be in a three-acre lot with a barndominium and your total annual cost of ownership is half that. Both are in Dripping Springs ISD. Both are 10 minutes from downtown. But the financial reality of owning in those two places is completely different.
So before you fall in love with a floor plan or a specific house, you need to understand what neighborhood makes sense for your situation. Here is how I rank them.
Ed’s Ranking System
I am going to break these down by category, because there is no single “best” neighborhood in Dripping Springs. The best neighborhood for a California tech worker relocating with $2 million cash is not the same as the best neighborhood for a young family stretching to get into DSISD on a $600K budget. Here is what I am looking at when I rank these communities.
- Value: Are you getting what you pay for, or are you paying a premium for the name?
- Cost of ownership: What are the MUD taxes, HOA fees, and total tax burden?
- Lot size and privacy: Can you see your neighbors from your kitchen window?
- Amenities: Pools, trails, gyms, events. Do you actually use them or just pay for them?
- School zoning: Which elementary, middle, and high school does this feed to?
- Resale potential: Will this hold value in five years, or is it overbuilt?
I will tell you straight up where I think you are overpaying, where I see red flags, and where I would put my own money. Lets start with the established communities and then move to the new developments that are coming online in 2026.
Established Communities: The Proven Players
Belterra: The Amenity King
Price Range: $400K–$1.2M
Lot Sizes: 50’–70′ wide lots, mostly quarter-acre
HOA Fees: $576/year ($144/quarter), some sections higher
MUD/PID: Yes (WCID 1 and 2)
Schools: Varies by section (rezoning in 2025-26), feeds to DSHS
Belterra is the 800-pound gorilla of Dripping Springs neighborhoods. This is the one everyone has heard of. It has 400 acres of green space, resort-style pools, a state-of-the-art gym, basketball courts, miles of trails, and enough planned community events to make you feel like you live at a country club. The marketing is top-notch. The amenities are legitimately impressive. And the price point reflects all of that.
Here is my take. If you are the kind of person who will actually use a community pool three times a week, take your kids to the splash pad every Saturday, and walk the trails every evening, Belterra makes sense. You are paying for those amenities in your HOA dues and in the premium on your home price, so you better use them. But if you are like most people I know, you will use the pool twice the first summer, maybe hit the gym in January, and then forget the amenities exist while you keep paying for them.
The other thing to know about Belterra is that it is massive. There are multiple sections, multiple builders, and the quality varies. The Cove and Wellington have additional HOA fees on top of the base $576/year. Some sections feel like you are in a dense suburb. Some sections have more space. You need to know which part of Belterra you are actually buying into, because they are not all the same.
Belterra also sits partially in Hays County, which means the tax situation can be different depending on where exactly your lot is. Make sure you are looking at the actual tax bill for the specific property you are considering, not just a general estimate.
Who It Is Great For: Families who want amenities, social events, and a neighborhood feel. People relocating from other master-planned communities who expect a certain lifestyle.
Who Should Skip It: Anyone who values lot size and privacy over amenities. Anyone who does not want to pay $600/year for a pool they will use twice.
Ed’s Honest Take: Belterra is fine. It is not my personal style, but I get why people like it. The amenities are real, the schools are good, and it has a strong resale history. But you are paying a premium for the name and the lifestyle, and I think there are better values in Dripping Springs if you are willing to look past the branding. If I were buying here, I would target the larger lots on the edges, not the 50-foot-wide cookie-cutter sections.
Caliterra: The Luxury Tax Trap
Price Range: $600K–$1.5M
Lot Sizes: 50’–80′ wide lots
HOA Fees: $1,500/year
MUD/PID: Yes, MUD rate is brutal at 2.7% (total tax rate including county/city/school)
Schools: Elementary #6 (new, opening 2025), feeds to DSHS
Caliterra is beautiful. The homes are high-end. The finishes are sharp. The community has trails, parks, and a resort-style pool. It is marketed as a luxury master-planned community, and it looks the part. But here is the thing no one tells you until you are three months into ownership: the tax burden here is absolutely punishing.
The MUD rate in Caliterra is 2.7%. That is the total tax rate, which includes your county, city, school district, and MUD taxes combined. But that MUD component is what really stings. On a $700,000 home, you are looking at close to $19,000 a year in property taxes. Add the $1,500 HOA fee and you are over $20,000 a year just to own the house. That is before your mortgage, insurance, or utilities.
I have had multiple clients fall in love with Caliterra and then run the numbers on total cost of ownership and back out. It is not that the homes are not worth $700K. It is that the ongoing cost of living there is higher than a lot of people expect. You are essentially paying for the infrastructure buildout through the MUD, and that does not go away. This is a long-term cost, not a temporary surcharge.
Now, if you are coming from California or another high-tax state, you might look at a 2.7% total tax rate and think that is reasonable. And compared to some places, it is. But compared to other Dripping Springs neighborhoods where the total tax burden is closer to 1.8% or 1.9%, Caliterra is expensive.
Who It Is Great For: High-income buyers who want a new build in a luxury community and do not care about an extra $5K–$8K a year in MUD taxes.
Who Should Skip It: Anyone who is budget-conscious or trying to minimize their ongoing cost of ownership. Anyone who wants more land for the money.
Ed’s Honest Take: Caliterra is overpriced for what you get. Yes, the homes are nice. Yes, the amenities are solid. But you can find comparable or better homes in other Dripping Springs neighborhoods with half the tax burden. This is one of those communities where the marketing is better than the value. I would not buy here unless I had money to burn and I really wanted that specific floor plan from one of the builders. There are smarter ways to spend $700K in Dripping Springs.
Headwaters: The Eco-Conscious Premium
Price Range: $650K–$1.4M
Lot Sizes: Varies, generally larger than Belterra/Caliterra
HOA Fees: Estimated $1,000–$1,500/year
MUD/PID: Yes
Schools: Elementary #6 (new school opening 2025), feeds to DSHS
Headwaters is the newest of the big master-planned communities, and it is marketing itself as the eco-conscious, conservation-focused alternative to Belterra and Caliterra. The community preserves over 1,000 acres of Hill Country landscape, emphasizes native landscaping, and has trails that connect to natural areas. The builders here are top-tier: David Weekley, Dream Finders, Drees, Taylor Morrison.
If you care about sustainability, conservation easements, and living in a community that prioritizes green space over maximizing lot density, Headwaters is worth a look. The lots are generally larger than what you will find in Belterra or Caliterra, and the vibe is more naturalistic, less manicured subdivision.
That said, you are paying for that vision. Prices here start in the mid-$600Ks and go well over $1 million. The MUD taxes are a factor, just like Caliterra. And while the conservation angle is appealing in theory, I have not seen strong evidence yet that buyers are willing to pay a significant premium for it at resale. This is still a new community, so the resale track record is not there yet.
Who It Is Great For: Buyers who prioritize conservation, open space, and a more natural Hill Country feel. Families who want a new build from a top-tier builder in a thoughtfully planned community.
Who Should Skip It: Budget buyers. Anyone who does not care about the eco-conscious branding and just wants the best value per square foot.
Ed’s Honest Take: Headwaters is well-executed, but it is expensive. You are paying a premium for the conservation vision and the top-tier builders, and I am not convinced that premium is going to hold up at resale compared to other DSISD neighborhoods. If the eco-conscious angle resonates with you personally, go for it. But if you are purely value-shopping, there are better deals in Dripping Springs.
Arrowhead Ranch: The Land Buyer’s Sweet Spot
Price Range: $550K–$1M
Lot Sizes: 1–3 acres
HOA Fees: Minimal or none (varies by section)
MUD/PID: No MUD, total tax rate around 1.88%
Schools: Varies, feeds to DSHS
Now we are talking. Arrowhead Ranch is one of the few neighborhoods in Dripping Springs where you can get a modern new build on one to three acres without getting crushed on MUD taxes. The total tax rate here is around 1.88%, which is significantly lower than Caliterra or Headwaters. There is no MUD, or if there is, it is minimal. HOA fees are low or nonexistent depending on which section you are in.
The trade-off is that you do not get the resort-style amenities. No massive pool complex. No gym. No planned community events. This is a neighborhood for people who want land, privacy, and lower ongoing costs. You are buying space and freedom, not a lifestyle brand.
If you want to own horses, have a shop, let your kids run around on acreage, or just not see your neighbors from your back porch, Arrowhead Ranch is one of the best values in Dripping Springs. You are getting legitimate acreage at a price point that is only slightly higher than the quarter-acre master-planned communities, and your annual cost of ownership is thousands of dollars lower.
Who It Is Great For: Buyers who want acreage without breaking the bank. Families who prioritize land and privacy over community amenities. Anyone who wants to minimize their annual tax burden.
Who Should Skip It: People who want amenities, social events, and a neighborhood feel. Anyone who needs to be within walking distance of a pool or playground.
Ed’s Honest Take: This is one of my top picks in Dripping Springs for value. You are getting real land at a reasonable price with low ongoing costs. If I were buying in Dripping Springs today and I wanted acreage, this is where I would start. The lack of MUD taxes alone saves you thousands of dollars a year compared to Caliterra or Headwaters, and the larger lots give you actual privacy. This is a smart buy.
Rim Rock: The Estate Lot Play
Price Range: $700K–$1.5M+
Lot Sizes: Large estate lots, varies widely
HOA Fees: Minimal
MUD/PID: Low or none
Schools: Feeds to DSHS
Rim Rock is for buyers who want serious privacy, serious views, and serious acreage. This is not a master-planned community. There are no amenities to speak of. What you get is large estate lots with Hill Country views, minimal restrictions, and a rural feel while still being in Dripping Springs ISD.
The price point here reflects the lot size and the location. You are typically looking at $700K and up, and a lot of the homes are custom builds. This is not a neighborhood for someone who wants a turnkey move-in-ready experience. This is for buyers who want to build exactly what they want on a piece of land they love.
Who It Is Great For: Custom build buyers. People who prioritize views, privacy, and estate-sized lots over everything else.
Who Should Skip It: Anyone who wants a move-in-ready home in a planned community with amenities.
Ed’s Honest Take: Rim Rock is a solid choice if you are in the market for a custom build and you value privacy above all else. You are not paying for amenities or branding. You are paying for land and location. Just make sure you are comfortable with the custom build process, because that is what you are signing up for here.
Howard Ranch: The Vintage-Inspired Outlier
Price Range: $500K–$700K (garden homes), $1M–$2M (estate homes)
Lot Sizes: Varies widely
HOA Fees: Low
MUD/PID: Total tax rate around 1.7% (one of the lowest in the area)
Schools: Feeds to DSHS
Howard Ranch is different. This is not a cookie-cutter subdivision. The homes here have a vintage-inspired, farmhouse-meets-Hill-Country aesthetic that you do not find in the master-planned communities. Lot sizes vary widely, from smaller garden home lots up to estate-sized parcels. The total tax rate here is around 1.7%, which is one of the lowest you will find in any Dripping Springs neighborhood.
The appeal here is the unique architecture and the low cost of ownership. If you want something that does not look like every other new build in Central Texas, Howard Ranch gives you that. And the tax savings compared to Caliterra or Headwaters are substantial. On a $700K home, you could be saving $5,000–$7,000 a year in property taxes compared to the high-MUD communities.
The downside is that Howard Ranch is a smaller community, so your resale pool is narrower. Not everyone loves the vintage aesthetic. If you are buying here, you are buying because you love the style, not because you are chasing maximum resale liquidity.
Who It Is Great For: Buyers who want unique architecture and low ongoing costs. People who are tired of the generic modern farmhouse look and want something with character.
Who Should Skip It: Anyone who wants a more traditional resale-safe home style. Buyers who prioritize maximum resale liquidity.
Ed’s Honest Take: I like Howard Ranch. The tax rate is fantastic, the architecture is distinct, and it feels different from the master-planned monotony you get in some of the other communities. If the aesthetic works for you, this is a great value. Just go in knowing that you are buying something a bit more niche, and that can affect resale.
Saratoga Hills: The Low-Cost, Low-Fuss Winner
Price Range: $450K–$900K
Lot Sizes: 1–5 acres
HOA Fees: Minimal or none
MUD/PID: None
Schools: Feeds to DSHS
If you want acreage, low taxes, and minimal HOA nonsense, Saratoga Hills is one of the best values in Dripping Springs. Period. You are looking at 1–5 acre lots with no MUD taxes, minimal or no HOA fees, and home prices that start in the $450Ks. There are no community amenities. No pools, no gyms, no events. Just land, privacy, and low ongoing costs.
This is the neighborhood I recommend to buyers who are moving from out of state, want to be in Dripping Springs ISD, and do not care about living in a branded master-planned community. You get the same schools, the same location, and you save a fortune on ongoing costs. The difference between owning a $600K home in Saratoga Hills versus a $600K home in Caliterra could be $8,000–$10,000 a year in taxes and fees. Over 10 years, that is $80,000–$100,000. That is real money.
Who It Is Great For: Value buyers. Families who want acreage without paying a premium. Anyone who wants to minimize their annual cost of ownership.
Who Should Skip It: People who want community amenities and a neighborhood feel.
Ed’s Honest Take: This is my number one value pick in Dripping Springs. You are getting real acreage, low taxes, and no MUD. You are not paying for amenities you will not use or branding you do not need. If I were advising my own family on where to buy in Dripping Springs on a budget, I would point them here first. This is smart money.
New and Coming Communities: The Next Wave
Dripping Springs is experiencing a development boom. There are several massive new communities that are either currently selling or about to start selling in 2026. These neighborhoods will fundamentally change the scale of Dripping Springs. Here is what you need to know about each one.
Big Sky Ranch: The Affordable Entry Point (Final Phases)
Price Range: $350K–$600K
Lot Sizes: Smaller, traditional subdivision lots
HOA Fees: TBD, likely $500–$1,000/year
MUD/PID: Yes
Schools: Feeds to DSHS
Big Sky Ranch is one of the most affordable entry points into Dripping Springs ISD. The final phase is expected to be released in 2026, and you are looking at prices starting in the $350Ks for smaller homes. The community has 48 acres of parkland, a neighborhood pool, playground, and trails that connect to nearby Founders Memorial Park.
This is a good option for first-time buyers or families who need to get into DSISD on a tight budget. You are not getting a lot of space or privacy, but you are getting into one of the best school districts in Texas at a price point that is lower than most other options.
The trade-off is that Big Sky is not going to feel like Belterra or Caliterra. The lots are smaller, the homes are more modest, and the resale potential is less proven. This is an entry-level play, not a luxury investment.
Who It Is Great For: First-time buyers, young families on a budget, anyone who just needs to get into DSISD schools and does not care about lot size or luxury finishes.
Who Should Skip It: Move-up buyers, anyone who wants acreage or privacy, anyone who is looking for strong appreciation potential.
Ed’s Honest Take: Big Sky serves a purpose. It is affordable, and it gets you into DSISD. But I would not expect strong appreciation here. This is a utilitarian purchase, not a wealth-building investment. If you are buying here, you are buying for the schools, not for the home value growth.
Wild Ridge: The Big Unknown (900+ Homes Coming)
Price Range: TBD, likely $400K–$800K
Lot Sizes: TBD
HOA Fees: TBD
MUD/PID: Likely yes
Schools: Feeds to DSHS, specific elementary TBD
Wild Ridge is a 283-acre development that will host 960 new homes. It is adjacent to Big Sky Ranch, and it is being designed with nature in mind, featuring rolling hills, mature trees, and scenic parks and trails. The first homes are expected to be available in late 2026 or early 2027.
The problem with Wild Ridge is that we do not have pricing yet, we do not have builder lineups, and we do not have a clear picture of what the MUD tax situation will look like. It is too early to make a strong recommendation one way or the other. The location is good, the concept sounds solid, but the details matter.
Who It Is Great For: TBD, need more information on pricing and tax structure.
Who Should Skip It: Anyone who needs to buy in the next 6–12 months. This is not going to be available soon enough.
Ed’s Honest Take: I will reserve judgment until I see actual pricing and builder info. The concept is fine, but 960 new homes in one development is a lot of supply hitting the market at once. I would want to see strong demand signals before I would recommend buying here early. Wait and see how the first phase sells before committing.
Double L Ranch: The 2,200-Home Mega Development
Price Range: TBD, likely $600K–$1.5M+
Lot Sizes: TBD
HOA Fees: TBD, likely $1,000–$2,000/year
MUD/PID: Likely yes
Schools: Feeds to DSHS, specific elementary TBD
Double L Ranch is the big one. This is a 1,600-acre luxury community that will feature over 2,200 homes and 500 acres of parkland. The development includes a four-lane arterial road between RM 12 and US 290 to provide connectivity to Big Sky and Wild Ridge. Homes are expected to be available by late 2026.
This is being marketed as a high-end master-planned community with top-tier builders. The scale here is massive. We are talking about adding 2,200 homes to Dripping Springs, which is a significant increase in housing stock. That kind of supply has implications for the broader market.
Here is my concern. When you add 2,200 homes to a market in a short time frame, you create downward pressure on prices. Buyers have more options, sellers have to compete harder, and appreciation slows down. I have seen this play out in other Texas markets where mega developments come online and flood the market with inventory. It is great for buyers in the short term, but it is not great for appreciation over the next 5–10 years.
The other question is MUD taxes. A development this size is going to have significant infrastructure costs, and those costs are typically passed on to homeowners through MUD districts. Until we see actual tax projections, I would be cautious about assuming this will be a low-cost-of-ownership community.
Who It Is Great For: Buyers who want a new build in a large master-planned community and are not concerned about potential oversupply issues.
Who Should Skip It: Anyone who is worried about appreciation potential in a market with massive new supply hitting all at once.
Ed’s Honest Take: I am skeptical of mega developments like this. The scale is impressive, but 2,200 homes is a lot of inventory, and I think it is going to create headwinds for appreciation. If you are buying here, you are buying for the lifestyle and the schools, not for the investment upside. I would wait until the first phase is built and see how pricing and resale activity looks before I would commit to a pre-sale here.
Heritage: The Luxury Wildcard
Price Range: $800K+
Lot Sizes: TBD
HOA Fees: TBD, likely $1,500+/year
MUD/PID: Likely yes
Schools: Feeds to DSHS, specific elementary TBD
Heritage is a 188-acre community being built by Tri Pointe Homes and M/I Homes, with around 600 homes planned. It is currently in the building phase, with new homes going up now. This is being positioned as a luxury community with modern living and country charm.
The price point here is high, starting around $800K and going up from there. This is competing directly with Caliterra and Headwaters for the luxury buyer segment. The question is whether there is enough demand in that segment to support all three communities plus the high-end sections of Double L Ranch.
My take is that the luxury segment in Dripping Springs is getting crowded. You have Caliterra, Headwaters, Heritage, and soon Double L Ranch all competing for the same buyer pool. That is a lot of supply at the $800K+ price point. I would want to see strong sales velocity and low days-on-market before I would feel confident that this segment is not overbuilt.
Who It Is Great For: Luxury buyers who want a new build from a national builder in a master-planned community.
Who Should Skip It: Value buyers. Anyone who is concerned about oversupply in the luxury segment.
Ed’s Honest Take: Heritage is fine if you are in the market for a luxury new build and you do not care about value optimization. But I think the luxury segment in Dripping Springs is getting saturated, and I would not expect strong appreciation here in the near term. There are just too many competing options at this price point.
Ed’s Final Rankings: Who Should Buy Where
Ok, so you have read through all the neighborhoods. Now you want to know where you should actually buy. Here is how I would rank these communities based on different buyer profiles.
Best for Families
Winner: Belterra
If you have kids and you want a neighborhood where they can walk to the pool, ride bikes to friends’ houses, and have community events to attend, Belterra is the best option. Yes, you are paying for it, but the amenities are real and the family-friendly vibe is strong.
Runner-Up: Big Sky Ranch (if budget is tight)
If you need to get into DSISD on a budget and you just need a functional home in a safe neighborhood, Big Sky gets you there at the lowest price point.
Best Value
Winner: Saratoga Hills
This is not even close. You are getting 1–5 acre lots with no MUD taxes and minimal HOA fees. The cost of ownership here is thousands of dollars lower per year than the master-planned communities, and you are getting way more land. This is the smart money play.
Runner-Up: Arrowhead Ranch
If you want a newer build with 1–3 acres and low taxes, Arrowhead is a close second. You are getting legitimate acreage without the MUD tax burden.
Best for Land and Privacy
Winner: Rim Rock
If you want estate-sized lots, Hill Country views, and minimal neighbors, Rim Rock is the answer. This is the privacy play.
Runner-Up: Arrowhead Ranch
If you want acreage but do not need quite as much space as Rim Rock offers, Arrowhead gives you 1–3 acres at a lower price point.
Best for Luxury
Winner: Headwaters
If you are willing to pay a premium for top-tier builders, conservation-focused design, and a thoughtfully planned community, Headwaters is the best luxury option. It is expensive, but it is well-executed.
Runner-Up: Caliterra (if you love the specific builders)
If you are committed to a specific builder in Caliterra and you do not care about the MUD taxes, it is a solid luxury option. Just know you are paying a premium for it.
Best for Investment and Appreciation Potential
Winner: Saratoga Hills
Low cost of ownership, strong demand for acreage, and no MUD taxes make this the best long-term hold. You are not betting on appreciation from community branding. You are betting on the fundamentals: land, location, and low taxes.
Runner-Up: Arrowhead Ranch
Same logic as Saratoga Hills. Acreage, low taxes, and strong fundamentals.
What to Avoid
Caliterra: Overpriced for the tax burden. You can find better value elsewhere.
Double L Ranch: Too much supply hitting the market at once. Wait and see how it performs before buying early.
Heritage: Crowded luxury segment with too many competing options. Not confident in near-term appreciation.
Final Thoughts: Know What You Are Paying For
The biggest mistake I see buyers make in Dripping Springs is falling in love with a house or a floor plan without understanding the total cost of ownership. You can find two nearly identical homes in two different neighborhoods, and one will cost you $10,000 more per year to own because of MUD taxes and HOA fees. Over 10 years, that is $100,000. Over 20 years, that is $200,000. That is the down payment on another house.
So before you make an offer, run the numbers. Look at the total tax rate. Look at the HOA fees. Look at the lot size. Ask yourself if you are actually going to use the amenities you are paying for. And then decide if the premium is worth it.
If you want help running those numbers or you want to tour homes in any of these neighborhoods, reach out to Ed Neuhaus. I have been working the Dripping Springs market for years, and I can walk you through the real cost of ownership in each of these communities. Or if you want to start browsing listings, check out homes for sale in Dripping Springs and see what is available right now.
The right neighborhood is out there. You just need to know what you are actually buying.
