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Neighborhoods
Short, honest sketches of a handful of Austin neighborhoods — what they are like, where short-term-rental demand concentrates, and the local wrinkles (HOAs, historic rules, jurisdiction) worth knowing. These are our own descriptions, not a ranking and not anyone’s “best of” list.
78702, 78721, 78722
East of I-35, Austin’s most-licensed STR territory by a wide margin. A fast-changing mix of historic bungalows, new builds and bars and taquerias within walking distance. Close to downtown and the music, which is exactly why it draws both guests and gentrification debates. If you host here, be a good neighbor — the city’s notification rules put you on record with the people next door.
78704
The postcard strip — shops, food trailers, live music and the skyline view from South Congress Avenue. Walkable, heavily visited, and premium-priced. Demand for short stays is reliable; so is the competition, and 78704 is one of the most STR-dense ZIPs in the city.
78704
Just east of South Congress, a leafy, hilly older neighborhood of character homes near Lady Bird Lake and the hike-and-bike trail. Quieter than the SoCo strip but minutes from it — a draw for guests who want walkable and calm at once.
78723
A planned community on the old airport site: parks, a farmers market, modern homes and a town-center feel. Family-friendly and close to the Dell Children’s / medical district, which brings longer and healthcare-related stays. HOA and design rules are real here — check them before planning a rental.
78704
Home to Zilker Park, Barton Springs and the Austin City Limits festival grounds. Green, central and in demand, with event-season spikes. Prices reflect the location. Watch for parking and occupancy limits if you host near the park.
78751
One of Austin’s oldest neighborhoods, near the University of Texas: tree-lined streets, historic homes and a tight-knit feel. Walkable and central, with historic-district rules that can affect what you change on a property. Steady demand from campus and medical visitors.
78732, 78734, 78738
West of the city around the lake — bigger lots, waterfront and hill-country views, and a resort-leisure demand pattern that peaks in summer. Some of this area sits outside Austin’s full-purpose jurisdiction, so the license and city hotel tax picture can differ parcel by parcel. Confirm the jurisdiction before you count on STR rules either way.
Wherever you land, the Austin STR license is the same requirement: a type, a fee, a two-year term, density limits, a local contact and the 17% hotel tax inside the full-purpose jurisdiction. Neighborhood character changes the demand and the price — not the rules.
BNB ATX
A free field guide to Austin short-term rentals and real estate: the city license rules, which license type fits, the live registry of licensed rentals, and honest market tools. Built by the BNB ATX team.
© 2026 BNB ATX · Austin, Texas. Independent resource; not affiliated with the City of Austin, Airbnb, Vrbo or any platform named. Not legal or tax advice — verify current rules with the City of Austin before you act.
Austin STR rules verified against City of Austin pages on 2026-11-09. Registry data: City of Austin Open Data, “Short Term Rental Locations.”