Is Hye, Texas Good for Airbnb Investment?

To start an Airbnb in Hye, Texas, begin by researching local regulations since Hye is an unincorporated community in Blanco County, meaning you'll need to comply with county zoning laws and Texas state regulations rather than city ordinances. Contact Blanco County's planning department to verify short-term rental permissions and obtain any required permits, which typically include a business license and may require a conditional use permit depending on your property's zoning. Find a suitable property by searching rural areas around Hye, focusing on properties near popular attractions like Salt Traders Coastal Cooking or wineries along Highway 290, with purchase prices ranging from $200,000-$500,000 for suitable homes. Furnish the property with comfortable, durable furniture emphasizing the Texas Hill Country aesthetic, including essentials like quality bedding, kitchen appliances, Wi-Fi, and outdoor seating to capitalize on the scenic location. Create your Airbnb listing with professional photos highlighting the rural charm and proximity to Dripping Springs and Johnson City, setting competitive rates around $150-$300 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, creating detailed house rules about noise and occupancy limits to respect neighbors, and maintaining responsive communication with guests while monitoring reviews to ensure consistent quality service in this growing Texas Hill Country tourism market.

To identify profitable short-term rental properties in Hye, Texas, focus on properties within 2-3 miles of major wineries like Salt Traders Coastal Cooking and Garrison Brothers Distillery, as this small Hill Country town attracts wine tourists and distillery visitors year-round. Target 2-4 bedroom homes or cabins with outdoor amenities like hot tubs, fire pits, and scenic views of the rolling hills, as guests pay premium rates ($200-400/night) for experiential stays. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Dripping Springs and Johnson City, aiming for properties under $400,000 that can generate 15-25% annual returns. Research competition by studying listings within a 10-mile radius on Airbnb and VRBO, noting that Hye has limited inventory which creates opportunity for well-positioned properties. Utilize STR-specific tools like Rabbu and AllTheRooms for market analysis, partner with local property management companies familiar with Hays County regulations, and consider properties near Highway 290 for easy access while maintaining the rural charm that attracts visitors seeking Hill Country experiences.

To obtain an Airbnb/STR permit in Hye, Texas, you'll need to work with Blanco County since Hye is an unincorporated community. Contact the Blanco County Planning and Development Department at 830-868-7357 or visit their office at 101 E Pecan St, Blanco, TX 78606 to apply for a Short-Term Rental permit. Required documents typically include a completed STR application form, property deed or lease agreement, site plan showing parking and septic system details, proof of liability insurance ($1 million minimum), contact information for a local property manager if you're not local, and septic system inspection certificate. The application fee is approximately $200-300 with an annual renewal fee of $150-200. Submit your complete application to the county, which will conduct a site inspection within 2-3 weeks to verify compliance with setback requirements, parking availability (minimum 2 spaces), septic capacity, and fire safety standards. The approval process typically takes 4-6 weeks from submission, and once approved, you must display your permit number in all online listings and maintain occupancy limits based on septic system capacity (usually 2 people per bedroom plus 2 additional guests). Annual renewals are required by December 31st each year, and you must maintain detailed guest records and respond to any complaints within 24 hours.

Short-term rentals (STRs) are generally legal in Hye, Texas, as this small unincorporated community in Blanco County operates under county regulations rather than municipal ordinances. Blanco County permits STRs but requires operators to obtain a permit and comply with health and safety standards, including septic system inspections and occupancy limits based on the property's septic capacity. The county implemented these regulations around 2019-2020 in response to growing STR activity in the Texas Hill Country wine region where Hye is located. Properties must maintain adequate parking, follow noise ordinances, and provide emergency contact information to the county. There are no specific prohibited areas within Hye itself, but operators must ensure their septic systems can handle the increased usage that comes with short-term rental operations. Recent changes have focused on strengthening enforcement mechanisms and clarifying permit renewal processes, with the county requiring annual renewals and periodic inspections to ensure ongoing compliance with health and safety standards.

The best areas for Airbnb investment in Hye, Texas are primarily centered around the Texas Hill Country wine corridor along Highway 290, particularly properties within 1-2 miles of Dripping Springs Road and the Salt Traders Coastal Cooking area, which attract wine tourists visiting nearby vineyards like Salt Traders and Wimberley Valley Winery. The Ranch Road 1623 corridor offers excellent potential due to its proximity to multiple wineries and the scenic Hill Country landscape that draws weekend visitors from Austin and San Antonio, approximately 45 minutes away. Properties near the Blanco River access points are highly attractive for vacation rentals as they offer water activities, fishing, and scenic views that appeal to families and groups seeking rural retreats. The area around Dripping Springs (technically adjacent but serving the same market) benefits from wine trail tourism, corporate retreats, and wedding venue traffic from establishments like Mercer Street Dance Hall and Treaty Oak Distilling, creating year-round demand. Investment properties should focus on larger homes or ranch-style accommodations that can host 6-12 guests, as the area primarily attracts group bookings for wine tours, family reunions, and corporate events, with peak seasons during spring wildflower blooms (March-May) and fall harvest season (September-November).

Airbnb properties in Hye, Texas are subject to the state hotel occupancy tax of 6% on gross rental receipts, which is collected by the Texas Comptroller's office and must be remitted monthly if collections exceed $500 or quarterly if less. Additionally, Hye falls under Blanco County jurisdiction, which imposes a county hotel occupancy tax of 2%, collected and remitted to Blanco County on a monthly basis. Since Hye is an unincorporated community, there is no city hotel occupancy tax, but hosts must register with both the state and county tax authorities before beginning operations. The state tax applies to rentals of less than 30 consecutive days, while stays of 30 days or longer are generally exempt from hotel occupancy taxes. Airbnb typically collects and remits these taxes automatically for hosts in Texas through their platform, but hosts remain ultimately responsible for ensuring compliance and may need to file returns even when Airbnb handles collection, with penalties ranging from 5-50% of unpaid taxes plus interest for non-compliance.

To start an Airbnb in Hye, Texas, the total estimated costs would be approximately $385,000-$425,000. Property purchase represents the largest expense at $300,000-$350,000 for a median-priced home in this rural Hill Country area near Dripping Springs. Furnishing costs would range $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup including professional photography, listing creation, and basic renovations would cost $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations would total approximately $500-$1,500. Insurance including landlord and short-term rental coverage would cost $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, internet, and cable would require $500-$1,000. First six months operating costs including property management software, cleaning supplies, maintenance reserves, marketing, and utilities would total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes of approximately $6,000-$8,000 annually, and maintaining 10-15% of gross revenue for ongoing maintenance and repairs.

Airbnb properties in Hye, Texas, a small unincorporated community in the Texas Hill Country near Dripping Springs, can be highly profitable due to the area's proximity to popular wine country destinations and Austin tourism. Properties in this region typically generate $150-300 per night during peak seasons (spring and fall) with occupancy rates averaging 65-75% annually, resulting in gross revenues of $35,000-65,000 per year for well-positioned properties. Operating expenses including cleaning fees ($75-100 per turnover), property management (20-25% of revenue), utilities ($200-400 monthly), insurance ($1,500-2,500 annually), and maintenance typically consume 40-50% of gross revenue. Successful properties in the Hye area often feature amenities like hot tubs, fire pits, and vineyard views, with profit margins ranging from 25-40% after expenses. Properties within 10 miles of popular wineries like Salt Traders Coastal Cooking or Duchman Family Winery command premium rates, and those offering unique experiences like glamping or luxury cabins can achieve even higher profitability, with some operators reporting net profits of $20,000-30,000 annually on properties purchased for $300,000-500,000.

Airbnb investments in Hye, Texas can expect annual ROI of 12-18% based on the area's proximity to popular Hill Country destinations like Dripping Springs and Austin, with cash-on-cash returns typically ranging from 8-14% for well-positioned properties near wineries and outdoor attractions. Properties in Hye generally achieve profitability within 18-24 months, benefiting from strong weekend and holiday demand driven by wine tourism and the scenic Texas Hill Country location, with average daily rates of $150-250 depending on property size and amenities. The market shows particular strength during spring and fall seasons when wine country tourism peaks, and investors can optimize returns by targeting 2-4 bedroom properties that cater to couples' getaways and small group retreats visiting local establishments like Salt Traders Coastal Cooking and nearby Wimberley attractions.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors across markets including Hye, Texas. In the Hye area, local real estate agents like Hill Country Realty Group and Dripping Springs Realty have expertise in vacation rental properties around the Texas Hill Country region. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, AirDNA for market analysis and property identification, and Mashvisor's Airbnb calculator and investment property finder. Local property management companies such as Hill Country Short Term Rentals and Austin Area Short Term Rental Management often help investors identify profitable properties while offering management services. Real estate investment firms like Roofstock and Arrived Homes occasionally feature short-term rental opportunities in Texas markets. Regional brokerages including Keller Williams Lake Travis and Coldwell Banker United Realtor have agents experienced in investment properties suitable for Airbnb conversions in the greater Austin-Hill Country area where Hye is located.