Finding High-ROI STR Investments in Austin

Ed Neuhaus Ed Neuhaus March 5, 2025 2 min read

Editor’s note (updated May 2026): This post was originally written in March 2025. Austin’s short-term rental ordinance was overhauled on September 11, 2025 (effective October 1, 2025). Licenses are now valid for two years, tenants may operate STRs with landlord permission, site-to-site distance rules apply, and multifamily properties are capped at 10% STR units per building. Verify current rules at Austin Development Services before underwriting any STR purchase. License fees and contact: Austin Code Department, 512-974-9144, [email protected].

One of the things I love most about real estate is helping investors find and maximize profitable short-term rentals. Its not just about buying a house, its about identifying properties with strong revenue potential, smart layouts, and the right amenities to attract high occupancy and premium nightly rates.

A recent opportunity in Northwest Austin is a good example. With the right setup, a spacious 4-bedroom home in this submarket can compete for premium nightly rates against nearby pool-home STRs.

Why this property stands out:

  • Strong Location – Near Apple and Flextronics campuses in the 78759 corridor, supporting steady weekday and weekend demand
  • Great Layout – 4BD/2BA with space to optimize for guest stays
  • Resort-Style Backyard – Pool, pergola, and outdoor entertaining area
  • Proven Market – Austin STR market averages roughly $24K to $47K in annual revenue per active listing, with top-quartile pool homes earning materially more (AirDNA Austin overview)

Its not turnkey, but with the right strategy and an honest pro forma, it could be a high-performing STR in a prime area. Revenue assumptions should be modeled against verified comp data, not headline numbers.

If youre looking for the right investment property, I can help you navigate the numbers, analyze revenue potential, and make sure youre buying something that actually cash flows.

Lets talk STR strategy. Contact me if youre ready to find the right investment.

Originally published on LinkedIn March 5, 2025. Updated May 2026 for the post-October 2025 Austin STR ordinance.

Ed Neuhaus

Written by Ed Neuhaus

Neuhaus is pronounced NIGH-house, rhymes with "my house."

Ed Neuhaus is the broker and owner of Neuhaus Realty Group, a boutique real estate brokerage based in Bee Cave, Texas. With 19 years in Austin real estate and more than 2,000 transactions under his belt, Ed writes about the local market, investment strategy, and what buyers and sellers actually need to know. These posts are written by Ed with help from AI for editing and polish. Every post published under his name is personally reviewed and approved by Ed before it goes live.

Learn more about Ed →

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