Is Marble Falls, Texas Good for Airbnb Investment?

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Marble Falls, Texas market research

Marble Falls, Texas Airbnb Investment Overview

$1,200–$4,500,Typical monthly host earnings
8–14%Typical annual ROI
65–70%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Marble Falls, Texas?

Potentially—Marble Falls, Texas combines visitor demand with long-term real estate upside.

  • Presents a promising outlook due to its burgeoning tourism and favorable market conditions.
  • Current trends show a steady increase in visitors drawn to the Highland Lakes area, known for its outdoor activities, wineries, and picturesque scenery.
  • This consistent influx of tourists drives demand for short-term rentals, contributing to healthy occupancy rates.
  • Property values in Marble Falls have seen a gradual appreciation, making real estate a stable long-term investment.
  • The city's relatively lower property acquisition costs compared to larger Texas metros, coupled with a strong rental income potential.
Earnings

How Much Does an Average Airbnb Earn in Marble Falls?

$1,200–$4,500, based on location, season, and property quality.

  • Based on available market data and regional analysis, Airbnb properties in Marble Falls, Texas typically generate monthly revenues ranging from $1,200 to $4,500, with lakefront properties and those near popular attractions commanding the higher end of this spectrum.
  • Seasonal variations show peak earnings during summer months when Lake LBJ activities drive demand, with revenues increasing approximately 40-60% above winter baseline rates.
  • Properties experience their lowest performance during January and February, often dropping to 35-45% occupancy rates.
  • Key factors affecting earnings include proximity to Lake LBJ (properties within walking distance earn 25-35% more), property size and amenities (hot tubs and lake access significantly boost rates).
  • The average daily rate ranges from $85-180 depending on property type and season, with successful hosts maintaining annual occupancy rates between 60-70%.
  • Market performance is influenced by Austin's proximity driving weekend demand, local tourism infrastructure, and the area's reputation as a Hill Country destination.
ROI Analysis

Airbnb Return on Investment in Marble Falls

Potentially strong—typical annual ROI is 8–14%.

  • Typically generate ROI between 8-14% annually, with properties near Lake LBJ and downtown areas achieving the higher end of this range due to strong tourist demand from Austin visitors and lake recreation enthusiasts.
  • The average payback period for initial investment ranges from 7-12 years depending on property type and location.
  • Compared to traditional long-term rentals in Marble Falls which average 6-9% ROI, short-term rentals outperform by approximately 3-5 percentage points.
Occupancy Rate

Average Airbnb Occupancy Rate in Marble Falls

Marble Falls, Texas averages 65–70% annual occupancy, with seasonal variation.

  • Airbnb occupancy rates in Marble Falls, Texas typically average around 65-70% annually, with significant seasonal variation driven by the area's popularity as a lake destination and proximity to Austin.
  • Peak occupancy occurs during summer months (June-August) when rates can reach 80-85%, coinciding with Lake LBJ recreational activities.
  • Fall months (September-November) maintain moderate occupancy around 60-65%, while winter (December-February) experiences the lowest rates at 45-55% as lake activities diminish.
  • These rates generally outperform the Texas state average of approximately 60% and closely match national Airbnb averages of 65-68%.
Best Neighborhoods

Best Neighborhoods for Airbnb in Marble Falls

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The best Airbnb investment neighborhoods in Marble Falls include the Lake LBJ waterfront area, which commands premium rates due to direct lake access and proximity to water activities.
  • The Historic Downtown district offers strong rental potential with walkability to restaurants, shops, and events.
  • The Horseshoe Bay Resort vicinity benefits from spillover demand when the resort is full, capturing guests seeking luxury amenities nearby while offering slightly lower rates around $180-300 per night.
  • The Blue Lake area provides excellent fishing access and scenic views, drawing outdoor enthusiasts and families for weekend getaways at $160-280 nightly rates.
  • The Granite Shoals neighborhood offers more affordable investment entry points while still providing lake proximity, targeting budget-conscious families and groups at $120-200 per night.
  • The Meadowlakes community appeals to golf enthusiasts and retirees visiting the area, offering steady mid-range demand at $140-220 nightly.
  • Finally, the Spicewood Springs Road corridor provides easy highway access for Austin visitors seeking lake retreats.
Regulations

Short-term Rental Regulations in Marble Falls

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Marble Falls, Texas requires short-term rental operators to obtain a specific STR permit through the city's planning department, with applications requiring property owner information, floor plans.
  • The city limits occupancy to two guests per bedroom plus two additional guests, with a maximum of 10 people total regardless of property size.
  • Owner-occupancy is not required for short-term rentals, allowing non-resident property owners to operate STRs.
  • The registration process involves submitting an application with a fee of approximately $200, passing safety inspections, and renewing annually.
  • Properties must maintain quiet hours from 10 PM to 7 AM, display the permit number in all advertisements, and provide 24-hour contact information for guests and neighbors.
  • Recent changes implemented in 2022 included stricter noise ordinances, mandatory trash collection schedules aligned with city services.
Fees and Taxes

Short-term Rental Fees and Taxes in Marble Falls

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Marble Falls, Texas are subject to several fees and taxes including the state hotel occupancy tax of 6%, Burnet County hotel occupancy tax of 7%, and City of Marble Falls hotel occupancy tax of 7%.
  • Property owners must obtain a short-term rental permit from the city at an estimated cost of $150-300 annually, along with a business license fee of approximately $50-100 per year.
  • Registration with the Texas Comptroller for tax collection purposes is required but typically free, though operators may need to pay a security deposit of $100-500 depending on expected tax liability.
  • Additional costs may include fire safety inspection fees of $75-150, health department permits where applicable at $50-100, and potential homeowners association fees if the property is in an HOA community.
  • Sales tax of 8.25% applies to cleaning fees and other taxable services, and property owners must also account for increased property tax assessments due to commercial use.
Common questions

Marble Falls, Texas Airbnb investment FAQs

How to start an Airbnb in Marble Falls, Texas?

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.

Launch checklist

  • Contact the city clerk at (830) 693 to 3615 to obtain the necessary short term rental permit, which costs approximately $200 to 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 to 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 to 25,000 for a complete 2 to 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 to 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.
What's the best way to identify good STR properties in Marble Falls, Texas?

To identify profitable short term rental properties in Marble Falls, Texas, focus on locations within 1 to 2 miles of Lake LBJ and the downtown historic district, as proximity to water activities and local attractions drives highest occupancy rates.

What to prioritize

  • Target 2 to 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 to 400 nightly range, calculating potential gross rental yields of 8 to 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 to 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.
How to get an Airbnb permit in Marble Falls, Texas?

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.

Documents and approvals

  • 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).
  • The application fee is estimated at $200 to 400 with an annual renewal fee of approximately $150 to 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 to 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.
  • Properties in certain residential zones may face additional restrictions or be prohibited entirely, so zoning verification is essential before applying.
Is it legal to operate a short-term rental in Marble Falls, Texas?

Short term rentals (STRs) are legal in Marble Falls, Texas, but operate under specific regulations established by the city.

Core operating requirements

  • 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.
What are the best places to invest in Airbnb in Marble Falls, Texas?

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.

Areas to research

  • 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.
  • 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.
Airbnb and lodging taxes in Marble Falls, Texas

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.

Taxes and filing responsibilities

  • 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.
Total cost to purchase, furnish and operate an Airbnb in Marble Falls, Texas

The total cost to start an Airbnb in Marble Falls, Texas is approximately $385,000 to $485,000.

Cost breakdown

  • Property purchase costs around $350,000 to $450,000 based on median home prices in the area as of 2023 to 2024.
  • Furnishing a 2 to 3 bedroom property ranges from $15,000 to $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 to $2,500.
  • Permits and fees including short term rental permits, business licenses, and city registration fees cost approximately $500 to $1,200.
  • Insurance for short term rental coverage adds $1,200 to $2,000 annually.
  • Utility deposits and connections for electricity, water, gas, internet, and cable total $800 to $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).
  • Additional considerations include potential HOA fees ($100 to $300/month) and initial inventory of consumables like toiletries, coffee, and cleaning supplies ($500 to $800).
Are Airbnb properties in Marble Falls, Texas profitable?

Airbnb properties in Marble Falls, Texas demonstrate strong profitability potential with average nightly rates ranging from $150 to 300 depending on property size and lake proximity, generating annual revenues of $35,000 to 65,000 for well managed properties with 60 to 70% occupancy rates.

Profitability indicators

  • Operating expenses typically include 25 to 30% for cleaning and maintenance, 3% Airbnb service fees, 8 to 12% property management if outsourced, plus utilities, insurance, and supplies totaling approximately 45 to 55% of gross revenue.
  • Properties near Lake LBJ command premium rates, with waterfront homes achieving $250 to 400 per night and profit margins of 35 to 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 to 12% cash on cash returns after mortgage payments.
What is the expected return on investment for an Airbnb in Marble Falls, Texas?

Airbnb investments in Marble Falls, Texas typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 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 to 300, with occupancy rates averaging 65 to 75% annually due to consistent weekend and holiday demand from Austin metro visitors seeking lakefront recreation.

Return planning figures

  • Initial investment recovery typically occurs within 6 to 8 years for well positioned properties, with monthly gross revenues of $3,000 to 6,000 for 2 to 4 bedroom homes after accounting for cleaning fees, property management costs of 15 to 25%.
  • The market benefits from limited hotel inventory and strong demand during peak seasons (March October), with properties purchased in the $300,000 to 500,000 range showing the strongest performance metrics when factoring in mortgage payments, maintenance, insurance.
What company can help me find and buy a profitable Airbnb in Marble Falls, Texas?

STRSearch leads the market in Airbnb investment property analysis nationwide including Marble Falls, Texas.

Companies and resources

  • 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.

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Success Rate
100% profitable track record
Data Accuracy
Proprietary filters, precise forecasts
Service Scope
End-to-end STR investment support
Risk Mitigation
Only cash-flow-positive matches
Expert Network
Vetted realtors, lenders, designers included
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Success Rate
Inconsistent ROI, no guarantees
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Partial services only
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