Investing in Fredericksburg: Why This Short-Term Rental at 849 West Live Oak Street is a Smart Hill Country Opportunity

by Justin Cofield

If you’ve ever spent a weekend in Fredericksburg, Texas, especially near downtown and West Live Oak Street, you already know why visitors keep coming back. From award-winning wineries and charming boutiques to historic German roots and breathtaking Hill Country views, this small town consistently ranks as one of the top weekend getaways in Texas.

And for investors? That popularity translates into a strong, steady short-term rental (STR) market.

Today, we’re excited to highlight one of our newest listings in Fredericksburg: a beautifully positioned short-term rental property that offers both lifestyle appeal and income potential.

Why Fredericksburg is a Top STR Market in Texas

Fredericksburg has quietly become one of the strongest short-term rental destinations in the state. Here’s why:

1. Year-Round Tourism

Unlike many vacation towns that rely on seasonal traffic, Fredericksburg attracts visitors all year long. Popular draws include:

Wine tasting along Highway 290
Oktoberfest and Christmas Pyramid festivities
Wildflower season in spring
Peach season in summer
Fall festivals and holiday markets

This consistent tourism helps STR owners maintain healthy occupancy throughout the year.

2. Easy Access from Major Cities

Located about 90 minutes from Austin and San Antonio, and under four hours from Dallas and Houston, Fredericksburg is perfectly positioned for weekend getaways.

Many guests are repeat visitors who book multiple stays each year.

3. Strong Demand for Private Stays

Travelers to Fredericksburg increasingly prefer private cottages, homes, and cabins over traditional hotels. Couples, small groups, and wine tourists value privacy, outdoor space, and unique Hill Country charm.

This demand keeps well-maintained STRs highly competitive.

Understanding Fredericksburg’s STR Regulations

One reason Fredericksburg remains attractive to investors is its relatively clear short-term rental framework.

While regulations can evolve, the city currently allows STRs in designated zones and requires proper permitting and registration.

Key considerations include:

City registration and permit requirements
Hotel Occupancy Tax (HOT) compliance
Local safety and parking guidelines

Working with experienced local professionals helps ensure your investment stays compliant and profitable.

Spotlight: Our Featured Fredericksburg STR Listing

This property checks all the boxes today’s guests are looking for.

Property Highlights: 849 West Live Oak Street, Fredericksburg, TX

Prime location at 849 West Live Oak Street near downtown Fredericksburg and Highway 290 wineries
Thoughtfully designed interior with Hill Country character
Outdoor space ideal for relaxing and entertaining
Turnkey setup for short-term rental operations
Strong rental history and income potential

Whether you’re seeking a full-time investment, a hybrid personal getaway, or a long-term wealth-building asset, this home offers flexibility and appeal.

What Makes a Successful STR in Fredericksburg?

Based on market trends and guest preferences, top-performing properties tend to share a few common traits:

1. Location Matters

Homes within minutes of Main Street, wineries, and major attractions command higher nightly rates and stronger occupancy.

2. Experience Over Square Footage

Guests aren’t just booking a place to sleep—they’re booking an experience. Properties that offer:

Fire pits
Hot tubs
Hill Country views
Stylish interiors
Outdoor patios

consistently outperform basic accommodations.

3. Professional Management

Successful STR owners often partner with experienced property managers who handle:

Guest communication
Cleaning and turnover
Dynamic pricing
Maintenance coordination

This allows owners to maximize revenue while minimizing stress.

Investment Potential: What Buyers Should Know

While every property is different, Fredericksburg STRs have historically shown strong performance due to limited supply and steady demand.

Many owners see:

Above-average nightly rates
High weekend and holiday occupancy
Strong appreciation over time
Multiple exit strategies

This combination makes Fredericksburg appealing for both first-time and seasoned investors.

Why Work With a Local Austin-to-Hill Country Expert

As Austin-area real estate professionals with deep knowledge of Central Texas markets, we help our clients evaluate not just the home, but the numbers, regulations, and long-term strategy behind it.

From income projections to management referrals, we guide you through every step of building a successful STR portfolio.

Ready to Explore This Fredericksburg Opportunity at 849 West Live Oak Street?

If you’ve been considering investing in a short-term rental, or adding to your existing portfolio, this Fredericksburg property deserves a closer look.

We’d love to share: