Is Round Rock, Texas Good for Airbnb Investment?

To start an Airbnb in Round Rock, Texas, begin by researching local regulations through the City of Round Rock's Planning and Development Services department, as Round Rock requires short-term rental permits and compliance with zoning ordinances that typically allow STRs in residential areas with specific restrictions on occupancy and parking. Obtain necessary permits including a Short-Term Rental Permit from the city (approximately $200-300 annually), Texas sales tax permit from the Texas Comptroller, and ensure compliance with HOA restrictions if applicable. Find a suitable property in neighborhoods like downtown Round Rock, near Dell Diamond, or close to major employers like Dell Technologies, considering proximity to attractions, walkability, and parking availability. Furnish the property with essential amenities including comfortable bedding, kitchen supplies, high-speed internet, smart TV, keyless entry system, and local guidebooks, budgeting approximately $5,000-15,000 for initial furnishing depending on property size. List your property on Airbnb and other platforms like VRBO with professional photography, competitive pricing research (Round Rock averages $80-150 per night), and detailed descriptions highlighting proximity to Austin (20 minutes), local attractions, and business centers. Manage your listing by implementing dynamic pricing strategies, maintaining 4.8+ star ratings through excellent guest communication, coordinating professional cleaning between stays, handling maintenance promptly, collecting and remitting city occupancy taxes (7% in Round Rock), and considering property management companies like Vacasa or RedAwning if managing multiple properties or living remotely.

To identify profitable short-term rental properties in Round Rock, Texas, focus on locations within 10-15 minutes of major employers like Dell Technologies headquarters, close to Highway 35 or 130 for Austin accessibility, and near popular attractions such as the Dell Diamond baseball stadium or Round Rock Premium Outlets. Target 3-4 bedroom single-family homes or 2-bedroom condos built after 2000 with modern amenities, pools, and dedicated workspaces to attract both business travelers and families visiting the area. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically finding sweet spots in the $300,000-$500,000 purchase range that can generate $150-$250 per night. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved areas, particularly focusing on properties near the IKEA corridor and Stone Hill Town Center. Utilize tools like Rabbu, STR Helper, and local MLS data through Austin Board of Realtors, while consulting Round Rock's specific STR regulations and HOA restrictions, and consider partnering with local property management companies like Awning or RedAwning who understand the Austin metro market dynamics and seasonal demand patterns driven by SXSW, UT events, and corporate relocations.

To obtain an Airbnb/STR permit in Round Rock, Texas, you must first apply through the City of Round Rock's Development Services Department located at 221 West Bagdad Avenue or online through their permitting portal. Required documents 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), contact information for a local responsible party available 24/7, and a floor plan indicating maximum occupancy. The application fee is approximately $200 with an annual renewal fee of $150. You must also obtain a Certificate of Occupancy if the property hasn't been previously inspected, which requires a separate building inspection costing around $75. The timeline typically takes 4-6 weeks for initial approval, including a mandatory 10-day public notice period during which neighbors can provide input. Round Rock specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests, maintaining off-street parking for each bedroom, ensuring the property manager or owner responds to complaints within 2 hours, prohibiting rentals for less than 2 consecutive nights, and maintaining the property in accordance with all residential building codes and HOA restrictions if applicable.

Short-term rentals (STRs) are legal in Round Rock, Texas, but are subject to specific regulations implemented by the city. As of 2023, Round Rock 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 a minimum distance between STR properties in some areas. Operators must register with the city, pay applicable fees, collect hotel occupancy taxes, and maintain liability insurance. Recent changes have included stricter enforcement mechanisms and enhanced penalty structures for non-compliant operators, with the city conducting regular inspections and responding to neighbor complaints. Properties must meet safety standards including smoke detectors and emergency egress requirements, and operators are required to provide 24-hour contact information for issues. The regulations aim to balance the economic benefits of short-term rentals with neighborhood compatibility and quality of life concerns for permanent residents.

The best Airbnb investment areas in Round Rock, Texas include the downtown historic district near Main Street and Bagdad Avenue, which attracts visitors for its charming walkable atmosphere, local restaurants, and proximity to Dell Diamond baseball stadium that hosts the Round Rock Express games and concerts throughout the year. The area near Dell Technologies headquarters and the La Frontera mixed-use development offers strong potential for business travelers, especially given Dell's significant employee base and frequent corporate visitors, while La Frontera provides shopping, dining, and entertainment venues that draw both locals and tourists. The neighborhoods around Round Rock Premium Outlets are attractive for retail tourism, particularly during peak shopping seasons and holidays when visitors come from Austin and surrounding areas. Areas near the University of Texas golf course and close to major highways like I-35 and Highway 79 provide convenient access for Austin commuters who prefer staying outside the city center, especially during major events like South by Southwest, Austin City Limits, or University of Texas football games when Austin accommodations are at premium pricing and availability is limited.

In Round Rock, Texas, Airbnb hosts are subject to multiple lodging taxes including the state hotel occupancy tax of 6%, Travis County hotel occupancy tax of 2%, and the City of Round Rock hotel occupancy tax of 7%, totaling 15% on gross rental receipts. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking, with Airbnb automatically collecting and remitting state and local taxes on behalf of hosts in most cases since 2018. Hosts must register with the Texas Comptroller's office and obtain a hotel occupancy tax permit, file monthly returns by the 20th of the following month, and remit collected taxes even if Airbnb is handling collection to ensure compliance. The City of Round Rock requires separate registration and monthly reporting, with penalties for late filing including 5% per month up to 25% plus interest. Exemptions include stays of 30 days or longer, certain government employees on official business, and qualifying nonprofit organizations, though documentation must be maintained for exempt transactions.

The total cost to start an Airbnb in Round Rock, Texas is approximately $385,000-$425,000. Property purchase represents the largest expense at $350,000-$380,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run $1,500-$2,500. Permits and fees in Round Rock include short-term rental registration ($200-$400), business license ($50-$100), and potential HOA approval processes. Insurance costs approximately $2,000-$3,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable total $500-$800 initially. First six months of operating costs including utilities ($1,200), cleaning services ($1,800), maintenance reserves ($1,000), property management software ($300), and marketing ($500) add approximately $4,800. Additional considerations include potential property improvements or renovations which could add $5,000-$15,000 depending on the property condition and desired rental tier positioning in the competitive Austin metro market.

Airbnb properties in Round Rock, Texas typically generate average monthly revenues of $2,800-$4,200 for 2-3 bedroom homes, with annual gross revenues ranging from $35,000-$50,000 based on 2023-2024 market data. Operating expenses including cleaning fees ($75-$125 per turnover), utilities ($150-$250 monthly), property management (15-25% of revenue), insurance ($1,200-$2,000 annually), and maintenance ($200-$400 monthly) typically consume 40-55% of gross revenue. Net profit margins generally range from 15-25% for well-managed properties, with successful hosts near Dell Technologies campus and downtown Austin commuter routes achieving higher occupancy rates of 70-85%. Properties within 10 miles of major employers like Dell, IBM, and the Austin metro area command premium rates of $120-$180 per night compared to $80-$120 for standard locations. Success factors include proximity to business districts, professional photography, consistent 4.8+ star ratings, and strategic pricing during SXSW, Austin City Limits, and University of Texas events when rates can increase 200-300%. Case studies show that investors purchasing $300,000-$400,000 properties with 20% down payments typically achieve 8-12% annual returns after all expenses, with break-even occupancy rates around 45-50% in this market.

Airbnb investments in Round Rock, 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, strong tech sector employment, and consistent demand from business travelers and families visiting the area. Properties near major employers like Dell Technologies and close to Interstate 35 corridor command premium nightly rates of $120-180, with average occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors seeing break-even on cash invested by month 20-28 depending on property acquisition costs and renovation expenses. The market benefits from Round Rock's growing population, limited hotel inventory, and steady influx of corporate relocations, with single-family homes in desirable neighborhoods like Teravista and Walsh Ranch showing the strongest performance metrics and fastest path to positive cash flow.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Round Rock, Texas. Local real estate agents like Keller Williams Realty in Round Rock and Coldwell Banker United Realtors have agents experienced in investment properties and Airbnb markets. National services include Mashvisor, which provides Airbnb analytics and property recommendations, and BiggerPockets, which connects investors with local professionals. AirDNA offers market data and investment analysis for the Round Rock area. Local property management companies like RedAwning and Vacasa can help identify properties with strong rental potential. Real estate investment firms such as Roofstock and Fundrise also provide services for identifying profitable rental properties. Austin-based companies like ATX Real Estate Investments serve the Round Rock market given its proximity to Austin. Additional services include SmartBnB for property analysis, AllTheRooms Analytics for market insights, and local mortgage brokers like Fairway Independent Mortgage who understand investment property financing in the Round Rock market.