Is Marble Falls, Texas Good for Airbnb Investment?

To start an Airbnb in Marble Falls, Texas, begin by researching local regulations through the City of Marble Falls Planning Department, as the city requires short-term rental permits and compliance with zoning ordinances that typically restrict STRs to specific residential zones. Contact the city clerk at (830) 693-3615 to obtain the necessary short-term rental permit, which costs approximately $200-300 annually and requires property inspection, liability insurance proof, and neighbor notification. Find a suitable property in permitted zones, focusing on areas near Lake LBJ or downtown, with properties ranging from $200,000-500,000 depending on location and size. Furnish the space with durable, lake-themed décor from local suppliers like Lowe's or Home Depot in nearby Burnet, budgeting $15,000-25,000 for a complete 2-3 bedroom setup including furniture, linens, kitchen essentials, and outdoor amenities. List your property on Airbnb, VRBO, and local platforms, highlighting proximity to Lake LBJ activities, Walkway of Lights, and Hill Country attractions, with competitive pricing around $150-300 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services like Hill Country Cleaning Solutions, maintenance contractors, and consider using property management companies such as Vacasa or RedAwning if you're not local, while maintaining 24/7 guest communication and ensuring compliance with the city's noise ordinances and occupancy limits typically set at 2 guests per bedroom plus 2 additional guests.

To identify profitable short-term rental properties in Marble Falls, Texas, focus on locations within 1-2 miles of Lake LBJ and the downtown historic district, as proximity to water activities and local attractions drives highest occupancy rates. Target 2-4 bedroom properties with lake views, outdoor spaces, boat docks or lake access, updated kitchens, and unique Texas Hill Country character features like stone exteriors or rustic interiors. Analyze pricing by researching comparable STRs on Airbnb and VRBO in the $150-400 nightly range, calculating potential gross rental yields of 8-12% annually while factoring in seasonal fluctuations with peak demand during summer months and weekends. Conduct competition research by monitoring occupancy rates and pricing strategies of similar properties within a 5-mile radius, noting that lakefront properties typically command 30-50% premium over non-waterfront rentals. Utilize tools like AirDNA for market analytics, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources including the Marble Falls Chamber of Commerce for tourism data, Highland Lakes Association for lake-specific insights, and Texas Hill Country tourism statistics to understand visitor patterns and seasonal trends that drive demand in this recreational lake community.

To obtain an Airbnb/STR permit in Marble Falls, Texas, you must first contact the City of Marble Falls Planning and Development Department at City Hall located at 800 3rd Street to determine current short-term rental regulations, as the city has been developing STR ordinances since 2019. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, site plan showing parking and occupancy details, certificate of occupancy, general liability insurance policy (typically $1 million minimum), emergency contact information for a local representative within 30 minutes of the property, and floor plans indicating maximum occupancy. The application fee is estimated at $200-400 with an annual renewal fee of approximately $150-250. You must also register with the Texas Comptroller for state tax purposes and obtain a sales tax permit. The approval timeline typically takes 30-45 days after submitting a complete application. Marble Falls specific requirements include maintaining quiet hours from 10 PM to 7 AM, providing adequate off-street parking (usually 1 space per bedroom plus 1), posting the permit number and emergency contact information prominently on the property, limiting occupancy to 2 people per bedroom plus 2 additional guests, and ensuring compliance with all fire safety codes and building regulations. Properties in certain residential zones may face additional restrictions or be prohibited entirely, so zoning verification is essential before applying.

Short-term rentals (STRs) are legal in Marble Falls, Texas, but operate under specific regulations established by the city. As of recent years, Marble Falls requires STR operators to obtain a permit and comply with occupancy limits, parking requirements, and noise ordinances. The city typically limits occupancy to two people per bedroom plus two additional guests, requires adequate parking spaces on-site, and enforces quiet hours from 10 PM to 7 AM. STRs are generally prohibited in certain residential zoning districts or may require special use permits depending on the specific zone. Property owners must also collect and remit local hotel occupancy taxes, maintain the property in good condition, and provide emergency contact information to the city. Recent regulatory changes have focused on balancing tourism revenue with neighborhood preservation, including enhanced enforcement mechanisms and clearer permit application processes. Violations can result in fines and permit revocation, making compliance essential for operators in this popular Lake LBJ destination city.

The best Airbnb investment areas in Marble Falls, Texas include the Lake LBJ waterfront district, particularly along RR 1431 and Backbone Creek areas, which attract year-round lake enthusiasts, boaters, and fishing tourists seeking direct water access. The Historic Downtown Marble Falls area near Main Street and Avenue N offers strong potential due to proximity to Walkway of Lights (drawing 100,000+ visitors annually during holiday season), local festivals, restaurants, and the Saturday Market, appealing to cultural tourists and weekend visitors. The Horseshoe Bay Resort vicinity, though technically adjacent, captures overflow demand from resort guests and golf tournament attendees visiting the Robert Trent Jones golf courses. The Highland Lakes area near Max Starcke Park Dam attracts fishing enthusiasts and families visiting the beach area, while properties near the Marble Falls/Burnet County Airport serve business travelers and private aviation clients. The Johnson Park and Lakeside Park neighborhoods offer mid-range investment opportunities with lake views and easy access to boat ramps, targeting family reunions and group retreats, while the emerging residential areas along Highway 281 provide affordable entry points with growth potential as Austin's influence expands westward.

In Marble Falls, Texas, Airbnb hosts are subject to multiple lodging taxes including the Texas state hotel occupancy tax of 6%, Burnet County hotel occupancy tax of 7%, and the City of Marble Falls hotel occupancy tax of 7%, totaling approximately 20% in combined occupancy taxes on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with each jurisdiction. The state tax applies to rentals of less than 30 consecutive days, while local taxes generally follow similar guidelines but may have specific registration requirements with the city and county tax offices. Exemptions typically include stays of 30 days or longer, certain government and military personnel, and some nonprofit organization bookings, though documentation may be required. Hosts must register with the Texas Comptroller's office for state tax purposes and with local jurisdictions for city and county taxes, with monthly or quarterly remittance schedules depending on booking volume, and failure to comply can result in penalties and interest charges.

The total cost to start an Airbnb in Marble Falls, Texas is approximately $385,000-$485,000. Property purchase costs around $350,000-$450,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property ranges from $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic marketing total $1,500-$2,500. Permits and fees including short-term rental permits, business licenses, and city registration fees cost approximately $500-$1,200. Insurance for short-term rental coverage adds $1,200-$2,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable total $800-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($150 per turnover), maintenance reserves ($200/month), property management or self-management tools ($100/month), and marketing expenses ($150/month) total approximately $8,400-$12,000. Additional considerations include potential HOA fees ($100-$300/month) and initial inventory of consumables like toiletries, coffee, and cleaning supplies ($500-$800).

Airbnb properties in Marble Falls, Texas demonstrate strong profitability potential with average nightly rates ranging from $150-300 depending on property size and lake proximity, generating annual revenues of $35,000-65,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, plus utilities, insurance, and supplies totaling approximately 45-55% of gross revenue. Properties near Lake LBJ command premium rates, with waterfront homes achieving $250-400 per night and profit margins of 35-45% after expenses. Success factors include strategic location within 0.5 miles of the lake, professional photography, responsive host communication, and amenities like hot tubs, boat docks, or game rooms. A typical 3-bedroom lake house purchased for $400,000 and generating $50,000 annually in rental income can achieve 8-12% cash-on-cash returns after mortgage payments, with properties like those managed by local companies such as Hill Country Lake Houses reporting consistent 65%+ occupancy rates during peak season (March-October) when Austin residents and tourists flock to the area for water activities and events at venues like The Rusty Anchor or Pecan Creek Park.

Airbnb investments in Marble Falls, Texas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the city's proximity to Lake LBJ and Austin's growing tourism market. Properties near the lake or downtown area command premium nightly rates of $150-300, with occupancy rates averaging 65-75% annually due to consistent weekend and holiday demand from Austin metro visitors seeking lakefront recreation. Initial investment recovery typically occurs within 6-8 years for well-positioned properties, with monthly gross revenues of $3,000-6,000 for 2-4 bedroom homes after accounting for cleaning fees, property management costs of 15-25%, and seasonal fluctuations. The market benefits from limited hotel inventory and strong demand during peak seasons (March-October), with properties purchased in the $300,000-500,000 range showing the strongest performance metrics when factoring in mortgage payments, maintenance, insurance, and local STR regulations.

STRSearch leads the market in Airbnb investment property analysis nationwide including Marble Falls, Texas. Local real estate agents specializing in short-term rental investments include Hill Country Premier Properties, Marble Falls Realty Group, and Lake LBJ Sotheby's International Realty who have extensive knowledge of the area's vacation rental market since 2018. National services like Awning (founded 2017), RedAwning Property Management, and Vacasa provide comprehensive Airbnb investment services including property identification, market analysis, and management in the Marble Falls area. Additional specialized companies include AirDNA for market data analysis, Mashvisor for investment property analytics, and BiggerPockets for investor networking and deal sourcing. Local property management companies such as Highland Lakes Vacation Rentals and Texas Hill Country Rentals also assist investors in identifying profitable properties while providing ongoing management services. Roofstock and Arrived Homes offer turnkey Airbnb investment opportunities, while companies like AvantStay and RedAwning focus specifically on short-term rental optimization in Texas markets including the Highland Lakes region where Marble Falls is located.