Wimberley gets lumped in with Austin a lot, usually by people who've only driven through it on a Saturday. As an STR market it behaves differently, and the rules that apply to a property can change completely depending on which side of a city limit line it sits on. If you're used to underwriting Austin, both of those things matter more than the drive time.
Start with the numbers. AirDNA's Wimberley page, updated Oct. 13 with data through September, shows 853 active short-term rental listings averaging about $54,600 in annual revenue, with 45% occupancy and a $359 average daily rate. For comparison, AirDNA's Austin page shows an average of about $42,000 in revenue, 58% occupancy and a $217 average daily rate. So the typical Wimberley listing earns more per year on a much higher nightly rate and noticeably lower occupancy.
That pattern tells you what kind of market it is. Wimberley is a leisure destination, and guests come for the river, the swimming holes, the shops around the square and the Hill Country itself. Blue Hole and Jacob's Well are big draws, and Wimberley Market Days runs on the first Saturday of the month from March through December. Weekends and holidays carry the calendar, and midweek nights are harder to fill. That isn't a flaw, but it changes how you underwrite. I want to see the revenue by month and by day of week, and I want to know how a property does in January, not just over the Fourth of July.
It also means averages are especially slippery here. The Wimberley market includes cabins, cottages, river homes, larger group properties and everything in between, and 853 listings spread across very different property types won't tell you much about any single house. The useful comparison is a handful of truly similar properties: same size, similar amenities, similar access to the things guests drive out for.
City limits, county land and why the answer changes
Inside the City of Wimberley, short-term rentals require a Conditional Use Permit, and the City Council makes the final call. According to the City, the planner notifies property owners within 200 feet, posts a sign and publishes a legal notice, and the application goes through a public hearing at Planning and Zoning and then a second one at City Council. If owners of 20% or more of the contiguous land oppose it, approval takes a supermajority, four of the five council members. The City lists typical processing at 45 to 60 days.
The City also changed its zoning rules on Aug. 20, 2026. Among other things, the new ordinance removed the ability to get a non-owner-occupied STR (what the City calls STR 2) Conditional Use Permit in the R-3 single-family district and allowed owner-occupied STRs by right in the commercial districts. Just as important for buyers, the City says existing STR permits are preserved. A validly approved CUP stays in effect, without expiration or renewal, subject to its original conditions.
That last point is genuinely good news, and it's a real contrast with Austin. A City of Austin STR license doesn't transfer to a new owner. A Wimberley CUP becomes an amendment to the zoning of the property and, in the City's words, remains on the property indefinitely. If you're buying inside Wimberley's city limits, a property with an existing, valid CUP is a different asset than one without, and it's worth confirming the permit and its conditions (things like a maximum guest count) early. STRs inside the city also collect the 6% state hotel tax plus Wimberley's 7% hotel tax.
Plenty of properties with a Wimberley address aren't in the city at all, though. Outside city limits you're generally dealing with Hays County, and Texas counties have very few land-use tools. The Hill Country Alliance's director put it bluntly in a Texas Standard interview, noting that Texas is the only state where counties don't have land-use management tools. In practice, that usually means no city-style STR permit to apply for. It doesn't mean no rules. Deed restrictions and HOA covenants can still prohibit or limit short-term rentals, the 6% state hotel tax still applies, and the property still has to be safe and functional for the number of guests you plan to host.
The Hill Country diligence that Austin buyers skip
The bigger risks out here tend to be physical, not regulatory. Many Wimberley-area homes are on septic, and septic capacity is tied to the house's design, not to how many people you'd like to sleep there. Hays County handles septic permitting in unincorporated areas, so if you're planning to add bedrooms or a guest unit, find out what the system was permitted for before you plan the layout. Water source matters too, and so does road access, cell coverage and how far the nearest cleaner or repair person has to drive.
Then there's water of the other kind. The Blanco River runs through Wimberley, and the Memorial Day flood in 2015 is still part of the town's memory. River frontage is one of the most bookable features a property can have, and it's also the one that most deserves a floodplain check, an elevation certificate if one exists and real insurance quotes before you're under contract, not after.
None of this is a reason to avoid Wimberley. It's a reason to underwrite it like Wimberley instead of like a cheaper version of Austin. The properties that do well here tend to give guests a reason to make the drive, and the buyers who do well tend to know exactly which jurisdiction they're in, what's recorded against the land and what the property can physically support.
If you're thinking about buying an STR in Wimberley or elsewhere in the Hill Country, or you own one and are thinking about selling, I'd be glad to talk it through with you.
ATX|STRS, a division of E-Rae Realty
