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 department, as the city 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 Certificate of Occupancy for short-term rentals, business license, and ensure compliance with fire safety codes and health department requirements, which may cost approximately $200-500 in total fees. Find a suitable property by analyzing Round Rock's popular areas like downtown, near Dell Diamond, or close to major employers like Dell Technologies, considering properties that meet the city's requirements for adequate parking (typically 2 spaces minimum) and proper egress windows. Furnish the property with quality furniture, linens, kitchen essentials, and amenities that appeal to business travelers and families visiting the area, budgeting around $15,000-25,000 for a complete 2-3 bedroom setup. Create compelling listings on Airbnb, VRBO, and other platforms with professional photography highlighting proximity to Austin (20 minutes), local attractions, and business centers, setting competitive rates based on Round Rock's average of $80-150 per night depending on property size and location. Manage the property by establishing cleaning protocols between guests, implementing keyless entry systems, maintaining responsive communication with guests, tracking city compliance requirements including occupancy limits (typically 2 people per bedroom plus 2), and consider hiring local property management companies like Vacasa or RedAwning if managing multiple properties, while maintaining detailed records for tax purposes and annual permit renewals with the city.

To identify profitable short-term rental properties in Round Rock, Texas, focus on locations within 2-3 miles of major employers like Dell Technologies headquarters, near the Premium Outlets for shopping tourism, or close to recreational areas like Lake Pflugerville and Round Rock Sports Center. Target 3-4 bedroom single-family homes or 2-bedroom condos built after 2000 with modern amenities, pools, and parking, as these attract families visiting for youth sports tournaments and business travelers. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $150-250 per night depending on size and location, while monitoring occupancy rates of 65-75% annually. Research competition by studying listings within a 5-mile radius, identifying gaps in amenities or underserved areas, particularly near the Dell Diamond baseball stadium and emerging developments along I-35. Utilize tools like Rabbu for Round Rock-specific market data, STR Helper for local regulation compliance, and connect with Round Rock real estate agents specializing in investment properties, while monitoring the city's STR permit requirements and HOA restrictions that may limit operations in certain neighborhoods.

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 typically include a completed short-term rental 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 payment of applicable fees. The application fee is approximately $200-300 with an annual renewal fee of around $150-200, though fees may vary based on property type and size. You must also obtain a Certificate of Occupancy if the property will be used differently than its original zoning designation, schedule required inspections for fire safety and building code compliance, and ensure compliance with HOA restrictions if applicable. The timeline typically ranges from 4-8 weeks depending on inspection scheduling and any required corrections. Round Rock specific requirements include maintaining off-street parking for each bedroom, limiting occupancy to 2 people per bedroom plus 2 additional guests, prohibiting rentals for less than 2 consecutive nights in residential areas, maintaining a noise ordinance compliance plan, and ensuring the property meets all fire safety codes including smoke detectors in each bedroom and common areas. Once approved, you must display your permit number in all online listings and renew annually by December 31st.

Short-term rentals (STRs) are legal in Round Rock, Texas, but are subject to specific regulations implemented by the city. 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 properties to maintain primary residence status in some cases. Operators must collect and remit hotel occupancy taxes, maintain liability insurance, and ensure compliance with fire safety codes. Recent changes around 2019-2021 included stricter permitting processes and enhanced enforcement mechanisms following community concerns about neighborhood impacts. The city conducts regular inspections and can revoke permits for violations, with particular attention to properties that generate noise complaints or parking issues that affect surrounding residential areas.

The best Airbnb investment areas in Round Rock, Texas include the downtown historic district near Main Street and Bagdad Avenue, which attracts visitors to local festivals, restaurants, and the Dell Diamond baseball stadium hosting the Round Rock Express games and concerts. The area near Dell Technologies headquarters and the La Frontera mixed-use development offers strong business travel demand, while neighborhoods close to IKEA and the Premium Outlets capture shopping tourists and families visiting Austin. Properties near Round Rock Premium Outlets specifically benefit from retail tourism, and areas within walking distance of Kalahari Resorts see spillover demand from families seeking alternative accommodations. The neighborhoods around University Boulevard and IH-35 provide easy access to both Austin and the Austin-Bergstrom International Airport, making them attractive for business travelers and tourists exploring the greater Austin area, while the proximity to major employers like Dell, IKEA, and various tech companies in the area ensures consistent corporate housing demand throughout the year.

In Round Rock, Texas, Airbnb properties are subject to multiple lodging taxes including the Texas state hotel occupancy tax of 6%, Williamson County hotel occupancy tax of 2%, and the City of Round Rock hotel occupancy tax of 7%, totaling 15% in combined occupancy taxes on short-term rental stays. 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 individual hosts should verify their registration status with each jurisdiction. The Texas Comptroller of Public Accounts oversees state tax collection, while Williamson County and the City of Round Rock manage their respective local taxes, with remittance generally occurring monthly or quarterly depending on volume. Properties rented for more than 30 consecutive days to the same guest are typically exempt from these occupancy taxes, and some jurisdictions may offer exemptions for certain types of accommodations or guests, such as government employees on official business, though hosts should confirm current exemption criteria with local tax authorities as regulations can change.

The total cost to start an Airbnb in Round Rock, Texas is approximately $420,000-$480,000. Property purchase costs around $350,000-$400,000 based on median home prices in the area. Furnishing a 3-bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including short-term rental license, business registration, and city permits cost approximately $500-$1,500. Insurance for short-term rental coverage adds $2,000-$3,000 annually. Utilities including electricity, water, gas, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services, supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees, property taxes, and a reserve fund for unexpected repairs or vacancy periods.

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 mortgage payments, property taxes ($3,000-5,000 annually), insurance ($1,200-2,000), cleaning fees ($75-100 per turnover), utilities ($150-250 monthly), and maintenance typically consume 60-75% of gross revenue, leaving net profit margins of 25-40% for well-managed properties. Success factors include proximity to Dell Technologies headquarters and other tech companies, competitive pricing 15-20% below Austin rates, professional photography, and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. Properties near the Premium Outlets and within 10 miles of major employers like IKEA and Amazon fulfillment centers achieve higher occupancy rates of 70-85% annually. A typical case involves a 3-bedroom home purchased for $350,000 generating $42,000 annual revenue with $28,000 in expenses, yielding $14,000 net profit (40% margin), though properties requiring significant mortgage payments may see margins drop to 15-25% in the first few years.

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, Dell Technologies headquarters, and consistent business traveler demand. Properties near the Dell campus and downtown Austin corridor command premium rates of $120-180 per night with 65-75% occupancy rates, while residential areas achieve $90-130 nightly rates with 60-70% occupancy. Initial profitability usually occurs within 18-24 months, with break-even on cash investment typically reached in 6-8 years for properties purchased at Round Rock's median home price of $380,000-420,000. The market benefits from year-round demand due to corporate relocations, university events at UT Austin, and SXSW overflow, with seasonal peaks during spring and fall generating 20-25% higher revenues than winter months.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations for Round Rock, Texas. Local real estate agents in the area include Keller Williams Realty specialists like Sarah Martinez and David Thompson who focus on investment properties, while Coldwell Banker United Realtor Jennifer Walsh has extensive experience with Airbnb property acquisitions in the Round Rock market since 2019. RedAwning and Awning.com provide national short-term rental investment services with Texas market expertise, and AirDNA offers detailed market analytics for the Round Rock area. Local property management companies like Austin Short Term Rentals and Hill Country Short Term Rental Management assist investors with both acquisition and ongoing operations. National services include Mashvisor, which provides investment property analysis tools, and BiggerPockets, which connects investors with local experts in the Round Rock market. Local mortgage brokers such as Round Rock Investment Lending and Texas STR Financing specialize in short-term rental property loans, while companies like Vacasa and RedAwning also offer acquisition consulting services for investors looking to enter the Round Rock Airbnb market.