Is Georgetown, Texas Good for Airbnb Investment?

To start an Airbnb in Georgetown, Texas, begin by researching local regulations as Georgetown requires short-term rental permits and compliance with city ordinances that limit rentals to no more than 30% of units in certain residential areas, with registration fees around $200-300 annually. Obtain necessary permits including a Certificate of Occupancy, business license, and short-term rental permit from Georgetown's Planning Department, ensuring compliance with fire safety codes and occupancy limits typically set at 2 people per bedroom plus 2 additional guests. Find a suitable property in Georgetown's desirable areas like downtown historic district or near Southwestern University, considering proximity to attractions like the Georgetown Square and Lake Georgetown, with average property prices ranging $300,000-500,000 for suitable homes. Furnish the property with essential amenities including comfortable beds, full kitchen equipment, WiFi, smart TV, linens, towels, and local Georgetown guidebooks, budgeting approximately $15,000-25,000 for complete furnishing. List your property on Airbnb and VRBO platforms with professional photography highlighting Georgetown's charm, setting competitive rates around $100-200 per night based on local market analysis, and create detailed descriptions mentioning proximity to Austin (30 minutes), local attractions, and amenities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and potentially hiring local Georgetown property management companies like Vacasa or RedAwning if needed, while ensuring compliance with Texas state tax requirements including collecting and remitting hotel occupancy taxes to both the state and Georgetown city authorities.

To identify profitable short-term rental properties in Georgetown, Texas, focus on locations within 2-3 miles of downtown Georgetown's historic square, near Lake Georgetown recreational areas, and close to major employers like Williamson County facilities and the Georgetown Municipal Airport. Target 2-4 bedroom single-family homes or condos built after 1990 with modern amenities, outdoor spaces, parking, and unique features like lake views or historic charm that command premium rates of $150-250 per night. Analyze comparable STR properties using AirDNA and Mashvisor to identify gaps in the market, particularly during peak seasons like spring when wildflowers bloom and summer lake activities drive demand. Research competition by monitoring occupancy rates and pricing strategies of existing listings within a 5-mile radius, noting that Georgetown's proximity to Austin (30 minutes) creates spillover demand during major events like SXSW and UT football games. Utilize tools like Rabbu for Georgetown-specific market data, STR Helper for performance tracking, and consult local property management companies such as Vacasa or RedAwning who understand Georgetown's seasonal patterns, with properties near the San Gabriel River and within walking distance of Georgetown's antique shops and restaurants typically generating 15-20% higher revenues than suburban locations.

To obtain an Airbnb/STR permit in Georgetown, Texas, you must first contact the Georgetown Planning and Development Services Department at City Hall located at 808 Martin Luther King Jr. Street or call (512) 930-3652 to begin the application process. Required documents typically include a completed short-term rental permit application, proof of property ownership or lease agreement with landlord consent, a site plan showing parking arrangements, proof of liability insurance (minimum $1 million coverage), contact information for a local responsible party available 24/7, and payment of applicable fees. The permit fee is approximately $200-300 annually, with additional inspection fees of around $100-150. Georgetown requires STR properties to maintain adequate off-street parking (typically 2 spaces), comply with occupancy limits based on bedrooms plus 2 additional guests, display the permit number in all advertisements, and ensure a responsible party is available within 30 minutes of the property. The property must pass a city inspection focusing on fire safety, egress routes, and general code compliance. Submit your complete application with all documents and fees to the Planning Department, schedule the required inspection once approved, and upon passing inspection, you'll receive your permit within 30-45 days of initial application. The permit must be renewed annually, and you must collect and remit local hotel occupancy taxes quarterly to the Georgetown Finance Department.

Short-term rentals (STRs) are legal in Georgetown, Texas, but operate under specific regulations established by the city. Georgetown requires STR operators to obtain a short-term rental permit and comply with various operational requirements including occupancy limits, parking provisions, and noise restrictions. The city prohibits STRs in certain residential zoning districts and requires properties to maintain primary residence status in some areas. Recent changes around 2021-2022 included stricter enforcement mechanisms and updated permit requirements, with the city implementing a tiered system based on property type and location. Georgetown also requires STR operators to collect and remit hotel occupancy taxes, maintain liability insurance, and provide emergency contact information to the city and neighboring properties, with violations subject to fines and permit revocation.

The best Airbnb investment areas in Georgetown, Texas include the Historic Downtown District, which attracts tourists visiting the Victorian courthouse square, antique shops, and the popular Red Poppy Festival; the San Gabriel River corridor near Blue Hole Park, drawing visitors for swimming, tubing, and outdoor recreation year-round; neighborhoods near Southwestern University, providing steady demand from visiting families, prospective students, and academic events; areas around Wolf Ranch and the Georgetown Premium Outlets for shopping tourism and business travelers; and properties near Lake Georgetown, particularly around Cedar Breaks Park, which appeal to water sports enthusiasts, fishing groups, and weekend getaway seekers from Austin. These locations benefit from Georgetown's proximity to Austin (30 miles north), its designation as one of the fastest-growing cities in America, major employers like Dell Technologies and St. David's Georgetown Hospital generating business travel, and seasonal events like Poppy Fest and Christmas Market that drive tourism demand throughout the year.

Georgetown, Texas imposes a hotel occupancy tax of 7% on short-term rental accommodations including Airbnb properties, which is collected in addition to the state hotel occupancy tax of 6% and applicable local municipal hotel occupancy taxes that can range from 2-7% depending on the specific jurisdiction within Georgetown. The total combined rate typically ranges from 15-20% for most Airbnb stays in Georgetown. These taxes are collected by the host at the time of booking or check-in and must be remitted to the Georgetown Tax Office on a monthly basis by the 20th of the following month using the city's hotel occupancy tax return form. Hosts are required to register with the city as short-term rental operators and obtain a certificate of occupancy tax registration before collecting taxes. The taxes apply to stays of less than 30 consecutive days, with exemptions typically including stays of 30 days or longer, certain government employees on official business, and some non-profit organization activities. Failure to collect and remit these taxes can result in penalties and interest charges, and the city conducts periodic audits of short-term rental operators to ensure compliance with local tax ordinances.

Starting an Airbnb in Georgetown, Texas requires approximately $450,000-$500,000 in total initial investment. Property purchase costs around $380,000 based on Georgetown's median home price as of 2023. Furnishing a 3-bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic renovations total approximately $5,000-$8,000. Permits and fees in Georgetown include short-term rental registration ($200), business license ($50), and potential HOA approval costs totaling around $500-$1,000. Insurance for short-term rentals runs $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable cost approximately $1,500-$2,500. First six months of operating costs including utilities ($200/month), cleaning services ($100 per turnover), property management software ($50/month), maintenance reserves ($300/month), and marketing expenses total approximately $4,500-$6,000, assuming 60% occupancy rates during the initial period.

Airbnb properties in Georgetown, Texas demonstrate strong profitability potential with average daily rates ranging from $85-150 depending on property size and amenities, generating monthly revenues of $2,500-4,500 for well-managed properties with 70-80% occupancy rates. Operating expenses typically include 25-30% for Airbnb fees and payment processing, $200-400 monthly for cleaning services, $150-300 for utilities, $100-200 for maintenance and supplies, plus property taxes averaging $3,000-5,000 annually, resulting in net profit margins of 35-45% for successful operators. Georgetown's proximity to Austin (30 miles), lower property acquisition costs compared to Austin proper, and attractions like Lake Georgetown and the historic downtown square drive consistent demand from both business travelers and weekend tourists. Success factors include properties within 10 minutes of downtown Georgetown or lake access, professional photography, responsive guest communication, and competitive pricing strategies that capitalize on Austin event spillover demand, with top-performing hosts like those managing 2-3 bedroom homes near the lake reporting annual profits of $15,000-25,000 per property after all expenses.

Airbnb investments in Georgetown, Texas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the city's proximity to Austin and growing tech workforce. Properties near Lake Georgetown and downtown areas command premium nightly rates of $120-180, with occupancy rates averaging 65-75% annually. Initial profitability usually occurs within 18-24 months, considering Georgetown's median home prices of $400,000-500,000 and strong rental demand from Dell Technologies employees, University of Texas visitors, and Austin commuters. The market benefits from Georgetown's population growth of 4-6% annually and limited hotel inventory, with successful operators achieving gross rental yields of 10-14% before expenses, making it a favorable market for short-term rental investments compared to traditional long-term rentals yielding 6-8%.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment opportunities in Georgetown, Texas, offering comprehensive market analysis and property recommendations. Local Georgetown real estate agents like Keller Williams Realty and Coldwell Banker United Realtors have specialized teams focusing on investment properties suitable for Airbnb conversions in the area. National services including BiggerPockets, Mashvisor, and AirDNA provide market analytics and property identification tools specifically for Georgetown's vacation rental market. Local property management companies such as Austin Vacasa and Hill Country Short Term Rentals offer end-to-end services from property acquisition consultation to management. Real estate investment firms like HomeVestors and Offerpad actively purchase and flip properties in Georgetown that are ideal for Airbnb conversion. Additionally, specialized consultants such as STR Wealth and The STR Show provide coaching and property sourcing services for investors looking to enter the Georgetown short-term rental market, while platforms like Roofstock and Awning offer turnkey Airbnb investment properties in the Central Texas region.