Is Burnet, Texas Good for Airbnb Investment?

To start an Airbnb in Burnet, Texas, begin by researching local regulations through the Burnet City Hall and Burnet County offices, as Texas generally allows short-term rentals but municipalities may have specific zoning requirements and occupancy limits. Contact the Burnet Building Department at (512) 756-6093 to determine if you need a business license or special permits, and verify your property is in a zone that permits short-term rentals. Find a suitable property by working with local real estate agents familiar with Burnet's market, focusing on areas near Inks Lake State Park or downtown Burnet for tourist appeal, with properties typically ranging from $200,000-$400,000 depending on size and location. Obtain necessary permits including a Texas sales tax permit through the Texas Comptroller's office since you'll collect occupancy taxes, and ensure compliance with fire safety codes and ADA requirements if applicable. Furnish your property with durable, comfortable furniture from retailers like Ashley Furniture in nearby Austin or online suppliers, focusing on a Hill Country theme that appeals to visitors seeking lakefront or rural experiences. Create your Airbnb listing with professional photography highlighting nearby attractions like Longhorn Cavern State Park and Lake Buchanan, setting competitive rates based on comparable properties in the area (typically $100-250 per night). Manage your property by establishing cleaning protocols between guests, installing keyless entry systems, creating a guidebook with local restaurant recommendations like Storm's Drive-In and activities like fishing and hiking, and maintaining responsive communication with guests while monitoring reviews to ensure consistent quality service.

To identify profitable short-term rental properties in Burnet, Texas, focus on locations within 5-10 minutes of Lake Buchanan or Inks Lake State Park, as these water recreation areas drive significant tourism demand year-round. Target properties with 2-4 bedrooms, outdoor amenities like decks or fire pits, boat parking or lake access, and rustic Hill Country charm that appeals to Austin metro visitors seeking weekend getaways. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for $150-300 per night depending on size and amenities, with peak seasons during summer months and hunting season (October-January). Research competition by studying existing STRs within a 15-mile radius, noting their occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu and STR Helper for market analysis, partner with local property management companies familiar with Burnet's tourism patterns, and leverage the Highland Lakes Association and Burnet Chamber of Commerce for market insights. Properties near downtown Burnet's antique district or within 20 minutes of Longhorn Cavern State Park typically command premium rates, while ensuring compliance with Burnet County's STR regulations and obtaining proper permits before investment.

To obtain an Airbnb/STR permit in Burnet, Texas, you must first contact the Burnet City Planning and Zoning Department at City Hall located at 2001 South Water Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires STR operators to obtain a Conditional Use Permit (CUP) which typically costs between $200-400. Required documents include a completed CUP application, property deed or lease agreement, site plan showing parking and property layout, proof of liability insurance (minimum $1 million), contact information for a local property manager if you're not local, and a detailed operational plan addressing noise control, occupancy limits, and neighbor relations. You must also register for a city business license ($50-100 annually) and obtain a Texas State Hotel Occupancy Tax permit from the Texas Comptroller's office. The application process involves submitting documents to the Planning Department, scheduling a public hearing before the Planning and Zoning Commission (required 15-day notice to neighboring properties), and potentially appearing before City Council for final approval, with the entire timeline typically taking 45-90 days. Additional Burnet-specific requirements include maintaining occupancy limits based on septic system capacity (usually 2 people per bedroom plus 2), providing adequate off-street parking (minimum 2 spaces), ensuring 24/7 local contact availability, and complying with noise ordinances with quiet hours typically from 10 PM to 7 AM.

Short-term rentals (STRs) are generally legal in Burnet, Texas, as the city has not implemented a comprehensive ban on vacation rentals. However, STRs must comply with standard zoning regulations and building codes, and operators typically need to obtain proper business licenses and collect applicable taxes including hotel occupancy tax. The city requires STR properties to meet health and safety standards and may have noise ordinances that apply to rental operations. Burnet follows Texas state law regarding STR regulations, which generally favors property rights while allowing local municipalities to implement reasonable restrictions. There are no specific prohibited zones for STRs within city limits, though properties must comply with existing residential zoning requirements. Recent years have seen increased scrutiny of STR operations statewide, but Burnet has maintained a relatively permissive approach compared to larger Texas cities like Austin or San Antonio that have implemented stricter licensing requirements and occupancy limits.

The best areas for Airbnb investment in Burnet, Texas include the Historic Downtown District near the courthouse square, which attracts visitors year-round for antique shopping, local festivals, and proximity to restaurants and cafes. The Lake Buchanan area on the northern edge of town is highly desirable due to water recreation activities, fishing tournaments, and weekend getaways, particularly during spring and summer months. Properties near Inks Lake State Park benefit from consistent outdoor enthusiast traffic seeking hiking, swimming, and camping alternatives. The Highway 281 corridor offers excellent accessibility for business travelers and those visiting nearby Marble Falls or Austin, approximately 60 miles southeast. Areas close to the Burnet Bluebonnet Festival grounds see seasonal spikes in demand during March and April when wildflower tourism peaks. The residential neighborhoods around Delaware Springs Golf Course attract golf enthusiasts and provide a quieter setting while maintaining proximity to town amenities, making them ideal for longer-term stays and family vacations seeking Hill Country experiences.

In Burnet, Texas, Airbnb hosts are subject to state hotel occupancy tax of 6% on gross rental receipts, which applies to stays of less than 30 consecutive days. Burnet County imposes an additional 7% hotel occupancy tax, bringing the total occupancy tax rate to 13%. The City of Burnet may also levy a municipal hotel occupancy tax of up to 7%, though the exact current rate would need verification with city officials. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the appropriate tax authorities on behalf of hosts. However, hosts should verify their registration status with the Texas Comptroller's office and local jurisdictions, as some may require separate registration and direct remittance. Properties rented for 30 days or more are generally exempt from occupancy taxes, and certain agricultural or recreational vehicle parks may have different classification requirements. Hosts should maintain detailed records of all bookings and tax collections, as they remain ultimately responsible for compliance even when using Airbnb's collection services.

Starting an Airbnb in Burnet, Texas requires approximately $285,000-$350,000 in total initial investment. Property purchase costs average $275,000-$325,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-$3,500. Permits and fees vary but generally include short-term rental permits ($200-$500), business license ($50-$200), and potential HOA approvals. Insurance specifically for short-term rentals costs approximately $1,200-$2,400 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable typically require $500-$1,000 upfront. First six months of operating costs including utilities ($200-$400/month), cleaning services ($75-$150 per turnover), maintenance reserves ($200-$500/month), platform fees (3% of bookings), and marketing expenses total approximately $4,000-$8,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Burnet, Texas typically generate annual revenues between $25,000-$45,000 for well-positioned properties near Lake Buchanan and Inks Lake, with average daily rates ranging from $120-$200 depending on proximity to water activities and seasonal demand. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($50-75 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $3,000-5,000 yearly. Properties within walking distance of lake access or featuring amenities like hot tubs and fire pits achieve occupancy rates of 65-75% with profit margins of 25-35%, while standard residential properties typically see 45-55% occupancy and 15-25% margins. Success factors include strategic location near Highland Lakes recreational areas, professional photography showcasing outdoor amenities, competitive pricing during peak summer and fall seasons when Austin residents seek weekend getaways, and maintaining high cleanliness standards to secure repeat bookings. A typical 3-bedroom lakefront property purchased for $350,000 in 2022 generates approximately $38,000 in annual revenue with $22,000 in expenses, yielding a 4.6% cash-on-cash return before mortgage considerations, while properties further from water access show returns closer to 2-3% annually.

Airbnb investments in Burnet, Texas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the area's proximity to Lake Buchanan and Inks Lake State Park which attract consistent tourist traffic year-round. Properties near the lake or downtown historic district command premium nightly rates of $150-250, while standard residential properties average $100-175 per night with occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with vacation rental management companies like Vacasa and RedAwning reporting strong performance metrics in the Highland Lakes region. The market benefits from Austin's overflow tourism, weekend lake visitors, and seasonal fishing enthusiasts, with peak seasons during spring and summer months generating 20-30% higher returns, while off-season months maintain steady 50-60% occupancy rates due to corporate retreats and hunting season activities.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations in Burnet, Texas. Local real estate agents in the area include Burnet County Realty, Hill Country Properties, and Lake LBJ Realty, who have expertise in vacation rental markets around Lake Buchanan and Inks Lake. National services like Mashvisor, AirDNA, and BiggerPockets provide market analytics and investment tools for the Burnet area, while companies such as RedAwning and Vacasa offer property management services for investors. Local property management companies including Highland Lakes Property Management and Texas Hill Country Rentals specialize in short-term rental operations, and real estate investment firms like Austin-based STR Capital and Hill Country Investment Properties focus on acquiring and optimizing vacation rental properties in the Texas Hill Country region including Burnet County.