Fredericksburg, TX Short-Term Rental ROI Calculator
Analyze your Airbnb investment with live Fredericksburg market data. Pre-populated with real ADR, occupancy, and revenue benchmarks.
Investor Quick Take
Strengths
- Solid occupancy — 62% market average
- Premium ADR — $287/night average
- High revenue potential — $65K+ avg/yr
- STR-friendly regulations — low compliance burden
Risks
- Rising competition — 22% more listings vs last year
- Moderate seasonality — plan for slower months
Solid Market
Based on ADR, occupancy, and supply metrics
Fredericksburg properties generate above-average revenue with $65K in annual income potential.
We've pre-populated this calculator with Fredericksburg's market averages. Adjust the values to match your specific property.
Fredericksburg Short-Term Rental Market Overview
Fredericksburg offers a distinctive STR opportunity: authentic regional character, affordable property prices relative to coastal markets, and a growing appetite among urban visitors for unique rural getaways. Wine tourism, outdoor recreation, and destination events drive demand in a market with far fewer listings competing for that attention.
The average STR in Fredericksburg generates approximately $64,900 in annual revenue, with an average daily rate of $287 and a 62% occupancy rate across the year. These metrics position Fredericksburg among the higher-performing US STR markets — particularly attractive to investors seeking consistent year-round cash flow.
Active listings in Fredericksburg grew by 22% year-over-year, currently sitting at approximately 2,400 active STR units. This rapid supply growth warrants attention — markets with accelerating inventory can see downward pressure on occupancy as new listings compete for the same pool of guests. Investors should track supply trends quarterly using tools like AirDNA or Rabbu before committing capital.
Key considerations for Fredericksburg investors: regulatory risk is rated low — Fredericksburg currently has minimal STR regulation, making it an investor-friendly market from a compliance perspective. Monitor local policy, as regulations can change. Property management costs, cleaning turnover for short stays, and platform fee optimization are the primary levers operators use to improve net margin in this market.
Market Metrics
Fredericksburg Airbnb Revenue by Property Size
| Property Size | Avg ADR | Avg Occupancy | Avg Annual Revenue | Est. Cap Rate Range |
|---|---|---|---|---|
| Studio | $129 | 62% | $29K | 2.5–3.4% |
| 1BR | $187 | 62% | $42K | 3.6–4.9% |
| 2BR | $287 | 62% | $68K | 5.8–7.9% |
| 3BR | $445 | 62% | $107K | 9.2–12.4% |
| 4BR+ | $631 | 62% | $156K | 13.4–18.1% |
Fredericksburg STR Revenue Calendar
Seasonal Insight: Peak season runs July, June, and August. Expect up to 38% higher revenue during peak months. Plan for January and December as your slowest period — approximately 28% below the annual average.
Is Fredericksburg a Good Market for Short-Term Rentals?
Why investors choose Fredericksburg
- ✓High revenue ceiling: top-performing properties average $91K+ annually
- ✓Strong occupancy: 62% market average leaves limited dead inventory risk
- ✓Year-round demand: Fredericksburg's diverse visitor base prevents the seasonal cliffs common in resort markets
- ✓Growing market: 22% annual listing growth signals strong investor and visitor confidence
Key risks to consider
- !Moderate seasonality: revenue varies materially by month — budget conservatively for shoulder and off-peak periods
- !Rapid supply growth: 22% YoY listing increase may pressure occupancy rates over 12–24 months
Fredericksburg STR Regulatory Overview
LowFredericksburg and Gillespie County are very STR-friendly. The wine country tourism economy depends on vacation rentals and Texas generally protects STR rights.
Key Requirements
- ·City registration required
- ·Texas hotel occupancy tax (6%) plus local (7%)
- ·Business license
- ·Standard zoning compliance
Source: City of Fredericksburg · Last verified: 2026-01. Regulations change frequently — always verify current requirements with local authorities before investing.
Compare Fredericksburg to Similar Markets
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| Metric | Fredericksburg | Austin | San Antonio | South Padre Island |
|---|---|---|---|---|
| ADR | $287 | $201 | $163 | $198 |
| Occupancy | 62% | 57% | 55% | 52% |
| Avg Revenue | $65K | $42K | $33K | $38K |
| Median Home Value | $545K | $545K | $295K | $385K |
| Regulatory Risk | Low | High | Low | Low |
Fredericksburg Short-Term Rental FAQs
Is Fredericksburg a good market for short-term rentals?+
Fredericksburg, TX is one of the stronger US STR markets. With an average daily rate of $287 and 62% occupancy, the average listing earns approximately $64,900 per year. Market performance varies significantly by property type, location within the city, and management quality — this calculator helps you model your specific scenario.
What is the average Airbnb income in Fredericksburg?+
The average STR listing in Fredericksburg generates approximately $64,900 in gross annual revenue at a $287 average daily rate and 62% occupancy. Top-performing listings with premium amenities, strong reviews, and professional management can earn 30–50% above the market average. After platform fees (3–5%), cleaning costs, and other expenses, net revenue typically ranges 60–75% of gross.
What occupancy rate can I expect for an Airbnb in Fredericksburg?+
The market-average occupancy in Fredericksburg is approximately 62%. New listings typically underperform the market average for the first 3–6 months while accumulating reviews. Properties with professional photography, competitive pricing, and consistently high ratings can reach 74–80% occupancy. This market is moderately seasonal — plan for meaningful variation between peak and off-peak months.
What are the STR regulations in Fredericksburg?+
Regulatory risk in Fredericksburg is rated Low. Fredericksburg currently has minimal STR regulation, making it investor-friendly from a compliance standpoint. Always verify current requirements — local policies can change. Regulations change frequently; always confirm current rules with local authorities.
What type of property performs best as an Airbnb in Fredericksburg?+
In Fredericksburg, the highest-performing STR properties are typically unique properties: farmhouses, cabins, and historic homes. Guests in Fredericksburg prioritize privacy, unique ambiance, and well-equipped spaces. The most efficient segment by revenue-per-dollar-invested is typically the 2-bedroom category.
What is the best season for Airbnb in Fredericksburg?+
Fredericksburg sees peak STR demand during summer (June–August). During peak season, top properties can command rates 38% above their annual average. Demand remains relatively stable throughout the year, with only moderate seasonal variation.
How much does it cost to buy an STR investment property in Fredericksburg?+
The median home value in Fredericksburg is approximately $545,000. With a 20% down payment, you'd invest roughly $125K in cash (including closing costs and setup). At the market-average revenue of $64,900/year, a property at median value would generate a gross revenue yield of approximately 11.9%. Use this calculator to model your specific purchase price, financing terms, and expense assumptions.
How does Fredericksburg compare to other STR markets?+
Fredericksburg performs above the national average for STR revenue. The $287 ADR is above the national STR average of roughly $185. For comparison, markets like Aspen and Malibu exceed $450 ADR but require significantly higher acquisition costs. Fredericksburg offers a strong combination of revenue potential and market accessibility.
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