Driftwood, TX Airbnb Market Data, Statistics, and Occupancy Rates

Driftwood Short-Term Rental Market Overview

Driftwood, TX is a small, niche short-term rental market southwest of Austin with just 47 active Airbnb listings and an average annual revenue of $33,431. While the area's proximity to Texas Hill Country attractions and high average daily rate of $283 (slightly above the $276 state average) hint at premium guest appeal, occupancy sits at just 25% — well below the 33% Texas average — and home values averaging $1,302,630 create a steep entry point. The ROI score of 32 out of 100 signals limited investment potential, meaning investors will need to identify specific property-level advantages to make the numbers work.

Key Market Statistics

According to Rabbu market data, the Driftwood short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Driftwood

Driftwood attracts investor attention for its Hill Country location near Austin and premium nightly rates, though current occupancy and revenue-to-price dynamics require careful property-level analysis.

Expert Market Assessment

"With an ROI score of 32 out of 100, Driftwood currently presents limited investment potential on a market-wide basis. The core challenge is a mismatch between high home values ($1,302,630 average) and modest annual revenue ($33,431), producing a below-average revenue-to-price ratio. Seasonality is pronounced — July peaks at $4,135 per month while January bottoms out near $1,578 — and occupancy stability is below average across most property sizes. That said, 4-bedroom properties stand out with $63,317 in annual revenue and a $134 RevPAN, suggesting that investors who target the right property type and manage seasonality aggressively could still find workable deals in this small market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Driftwood

Average revenue by month in Driftwood

Driftwood's revenue follows a pronounced seasonal curve, peaking in July at $4,135 and bottoming in January at $1,578 — a spread of over $2,500. The summer months (June–August) and a spring bump in March ($3,505) represent the strongest earning windows, while the winter shoulder season from November through February consistently underperforms.

Active Airbnb listings by property size in Driftwood

One-bedroom units dominate Driftwood's supply with 18 of the 47 active listings (38%), while 2-, 3-, and 4-bedroom properties are more evenly distributed at 6–7 each. The relative scarcity of larger units, combined with their stronger revenue performance, may signal an opportunity for investors willing to target the 3- or 4-bedroom segment.

Average daily rate (ADR) by property size in Driftwood

ADR in Driftwood scales sharply with size, jumping from $177 for 1-bedroom units to $473 for 4-bedroom properties — a nearly 2.7x premium. The gap between 2-bedroom ($244) and 3-bedroom ($248) ADR is minimal, suggesting the biggest pricing power gains come at the top end of the size spectrum.

Average RevPAN by property size in Driftwood

Four-bedroom properties deliver the highest RevPAN at $134, nearly double the next-best category (3-bedrooms at $73) and more than triple the 1-bedroom figure of $44. Two-bedroom units lag at just $37 RevPAN, reflecting their combination of moderate rates and the lowest occupancy in the market at 15%.

Average occupancy rates by property size in Driftwood

Occupancy rates range from a low of 15% for 2-bedroom units to a high of 30% for 3-bedroom properties, with 1-bedroom and 4-bedroom listings in between at 25% and 28% respectively. No property size approaches the 33% state average, underscoring the market-wide occupancy challenge that investors need to account for.

Average monthly revenue by property size in Driftwood

Monthly revenue climbs steadily with property size, from $1,152 for 1-bedroom units to $5,276 for 4-bedroom homes — a nearly 4.6x difference. Three-bedroom listings earn $2,548 per month, making them the midpoint option, while 2-bedroom units at $1,808 offer modest returns relative to the market's high property costs.

Average annual revenue by property size in Driftwood

Four-bedroom properties stand out decisively at $63,317 in average annual revenue, nearly double the 3-bedroom figure of $30,583 and more than four times the 1-bedroom result of $13,832. For investors evaluating Driftwood, the 4-bedroom configuration offers the most compelling revenue potential, though acquisition costs and operational complexity scale up as well.

Most common amenities for Airbnb listings in Driftwood

Parking (98%), kitchens (87%), and self check-in (87%) are near-universal, reflecting the rural, self-service nature of Driftwood's STR market. Outdoor-oriented amenities — patios (75%), outdoor furniture (72%), backyards (62%), and BBQ grills (62%) — dominate the middle tier, signaling that guests expect a Hill Country retreat experience; pools (38%) and hot tubs (30%) offer potential differentiation for listings that include them.

Understanding Driftwood's ROI Score: 32/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Driftwood's ROI score of 32 out of 100 places it in the "Limited investment potential" band, driven primarily by a below-average revenue-to-price ratio — average annual revenue of $33,431 against home values of $1,302,630 is a challenging equation. Occupancy stability and market growth trend also score below average, with the 164% surge in listings outpacing demand improvements. Investors considering Driftwood should pair this data with thorough local regulatory research and focus on property-specific advantages — particularly larger homes — that can outperform the market-wide averages.

Short-Term Rental Regulations in Driftwood

Understanding local STR regulations is essential before investing in Driftwood. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Driftwood, TX should verify whether Hays County or any applicable local jurisdictions require STR permits or registration. Texas does not impose a statewide STR licensing requirement, but local rules can vary, so checking directly with county and municipal authorities before listing is essential.

Key Restrictions

Common STR restrictions in Texas communities can include occupancy limits, minimum stay requirements, noise ordinances, parking regulations, and HOA-level restrictions that may prohibit or limit short-term rentals entirely. Driftwood's rural character means HOA and deed restriction review is particularly important, as some developments in the area may have their own covenants governing rental activity.

Tax Obligations

Texas requires collection of the state hotel occupancy tax (currently 6%) on short-term rentals, and Hays County or local taxing authorities may impose additional occupancy or tourism taxes. Platforms like Airbnb often collect and remit some of these taxes automatically, but hosts should confirm which obligations they need to handle directly.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Driftwood can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Driftwood's STR market is likely to face continued pressure from rapid supply growth — active listings surged 164% year over year — while occupancy remains soft at 25%. Seasonal demand should continue to peak in the summer months (July averaging $4,135), but off-peak periods like January ($1,578) could drag annual returns unless operators price aggressively. Investors might expect ADR to hold relatively steady given the market's premium positioning, but occupancy improvement will likely be modest — perhaps settling in the 26–30% range — unless new supply growth slows meaningfully. Conservative underwriting and a focus on larger, higher-RevPAN properties will be essential for anyone entering this market."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Driftwood, TX

What is the average Airbnb occupancy rate in Driftwood?

The average Airbnb occupancy rate in Driftwood is currently 25%, which falls below the Texas state average of 33%. Occupancy varies by property size — 3-bedroom listings lead at 30%, while 2-bedroom units trail at just 15%. Investors should factor this lower-than-average occupancy into their financial projections when evaluating properties in the area.

How much do Airbnb hosts make in Driftwood?

Airbnb hosts in Driftwood earn an average of $2,785 per month and approximately $33,431 per year, based on trailing 12-month performance data. Revenue varies significantly by property size: 1-bedroom listings average $13,832 annually, while 4-bedroom properties bring in roughly $63,317. Peak months like July can generate over $4,135, whereas January tends to dip to around $1,578.

Is Driftwood a good market for Airbnb investment?

Driftwood currently carries an ROI score of 32 out of 100, indicating limited investment potential at the market level. The primary headwinds are high home values (averaging $1,302,630), below-average occupancy (25%), and rapid supply growth (164% year over year). However, larger properties — particularly 4-bedroom units — perform meaningfully better, so investors willing to do property-specific diligence may still uncover opportunities in this niche Hill Country market.

What is the average daily rate (ADR) for Airbnb in Driftwood?

The average daily rate for Airbnb listings in Driftwood is $283, slightly above the Texas state average of $276. ADR scales notably with property size: 1-bedroom units average $177, 2-bedrooms come in at $244, 3-bedrooms at $248, and 4-bedroom properties command a significant premium at $473 per night.

Are short-term rentals legal in Driftwood?

Short-term rentals are generally permitted in Texas, but local regulations in Driftwood and Hays County may apply. Investors should check with Hays County authorities and review any HOA or deed restrictions on a specific property before purchasing. Requirements around permits, occupancy tax collection, and operational standards can vary, so verifying compliance at the local level is an important step.

When is peak season for Airbnb in Driftwood?

Peak season in Driftwood runs primarily through the summer months, with July leading at an average revenue of $4,135, followed by August at $3,700 and June at $3,267. March also shows a notable bump to $3,505, likely driven by spring events and pleasant Hill Country weather. The slowest months are January ($1,578) and February ($1,629), creating a significant seasonal swing that operators should plan for.

How many Airbnbs are there in Driftwood?

There are currently 47 active Airbnb listings in Driftwood as of April 2026. The market has seen substantial growth, with active listings increasing 164% year over year. One-bedroom properties make up the largest share at 18 listings, while 2-bedroom, 3-bedroom, and 4-bedroom units account for 7, 6, and 6 listings respectively.

How is Airbnb revenue calculated in Driftwood?

The annual and monthly revenue figures for Driftwood are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the results up to a market-level historical average. This approach anchors figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, location within the market, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Driftwood, TX market
• Average daily rates, occupancy rates, and RevPAN metrics across property sizes
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Supply growth trends and amenity prevalence across active listings

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and current snapshots; market conditions can shift due to regulatory changes, economic factors, or supply dynamics. Individual property results will vary based on location, condition, amenities, pricing strategy, and management quality.