Wimberley Short-Term Rentals: Rules, Taxes And ROI

Looking at a cabin in Wimberley and wondering if it will pencil out as a short-term rental? You’re not alone. The Hill Country draws steady weekend demand, but the details matter: permits, taxes, occupancy rules, and real operating costs can make or break your numbers. In this guide, you’ll learn how to confirm what’s allowed, how Texas STR taxes work, and a simple, data-first way to model ROI before you buy. Let’s dive in.

Why Wimberley rentals attract guests

Wimberley sits in the Texas Hill Country with natural draws that bring visitors year-round. Guests come for outdoor recreation, river access and a relaxed downtown vibe. Blue Hole Regional Park, the Blanco River and the shops and dining around Wimberley Square help anchor weekend and seasonal demand. Proximity to the Austin metro adds a steady stream of short stays, especially for holidays and special events.

Expect seasonality. Spring, summer and holiday weekends often book first. Midweek nights are typically softer, which makes pricing strategy and marketing important.

Is a short-term rental allowed?

Before you model returns, confirm the rules for your specific property. Texas leaves most STR regulation to local governments and private communities, so location and deed restrictions are critical.

City vs. county: confirm your location

Start with a map and your legal description. If the home is inside Wimberley city limits, check the City of Wimberley’s municipal code and contact the planning or permitting office. If the property is in unincorporated Hays County, review county requirements that may apply to health, septic or addressing.

Look for these common items:

• Registration or permit requirements for short-term rentals
• Occupancy limits by bedroom or square footage, and the limit on unrelated occupants
• Safety standards or inspections for smoke/CO detectors, egress, parking and septic
• Noise, trash and parking rules and how they are enforced
• Zoning or overlay districts that may restrict transient use
• Signage, advertising and address posting rules

HOA and deed restrictions

Many neighborhoods, rural subdivisions and ranch communities around Wimberley have covenants that limit or prohibit STRs. These private rules are enforceable even if the city allows STRs. Review recorded CC&Rs from the county clerk’s records and contact the HOA or its management company for current policies.

Who to call to verify

• City of Wimberley city clerk, planning and permit offices
• Hays County permitting and health departments
• The HOA board or management company and the recorded CC&Rs

Document what you learn. Save copies of emails, applications and any written approvals.

Permits and compliance steps

If short-term rentals are allowed for your property, plan a simple compliance checklist before you list:

1. Confirm municipal status. Verify whether the City of Wimberley requires STR registration, a permit or inspections. Ask about renewal schedules and fees.
2. Verify county requirements. For unincorporated Hays County, confirm any septic, well, addressing and health rules tied to occupancy.
3. Align with HOA rules. Obtain any required HOA approvals in writing.
4. Prepare for safety. Install smoke and carbon monoxide detectors, fire extinguishers and clear egress routes. Provide emergency contacts, parking plans and house rules.
5. Septic and capacity. Many rural homes rely on septic systems. Confirm permitted capacity and set guest limits that match the system.
6. Local contact. Some municipalities ask for a local contact or manager available to resolve issues. This is also a best practice for guest satisfaction and neighbor relations.

Taxes you must collect and remit

Short-term rentals in Texas are subject to state and often local lodging taxes, and your rental income is taxable at the federal level. Registration and accurate remittance protect your investment from penalties.

Hotel occupancy and sales taxes

• Texas imposes lodging taxes on short stays. Many cities and counties add local hotel occupancy taxes and special district taxes. Confirm which taxes apply to your property based on its location.
• Some platforms may collect and remit certain taxes on your behalf. Do not assume they cover all of them. Verify what each platform collects and what you still need to register for and remit yourself.

Registration and filing cadence

• Register with the Texas Comptroller of Public Accounts for required state permits and filing accounts.
• If the City of Wimberley or Hays County requires local lodging tax registration, complete those steps as well.
• Filing frequency is usually monthly or quarterly depending on volume. Late filing can trigger penalties and interest.
• Track each booking carefully: gross rent, taxes collected, taxable versus nontaxable line items and cleaning fees.

Property tax and federal income tax

• Property taxes are assessed annually by the Hays Central Appraisal District based on value; STR use does not typically change the valuation method.
• Rental income is taxable. Track deductible expenses, depreciation and personal use days versus rental days for proper allocation. Consult a CPA who understands Texas STRs.

Estimating ROI in Wimberley

You can model returns with a few simple inputs and market data from providers such as AirDNA, Transparent, Mashvisor or local property managers. Use comparable listings to estimate your average daily rate (ADR) and occupancy.

Core formulas

• Annual gross revenue = ADR × Occupancy rate × 365
• Net operating income (NOI) = Gross revenue − Operating expenses
• Cap rate = NOI ÷ Purchase price
• Cash-on-cash return = (NOI − Debt service) ÷ Initial cash invested
• Break-even occupancy = (Annual fixed costs + Debt service) ÷ [ADR × 365 − Variable cost per occupied night × 365]

What to include in expenses

• Fixed: property taxes, insurance, utilities, internet, lawn and septic service, HOA dues
• Variable: cleaning per stay, consumables, platform fees, laundry, repairs and maintenance
• Management: 15–35 percent of revenue for full-service management, typically less if self-managed
• Reserves: 5–10 percent of gross for maintenance and future capital items like HVAC or septic
• Startup: furnishings, photography, permits and safety upgrades

Example scenarios for illustration

These examples show how assumptions flow through a model. Replace the numbers with comps from Wimberley listings and local managers.

• Conservative
  • ADR 200, occupancy 45 percent
  • Gross revenue: 200 × 0.45 × 365 ≈ 32,850
  • Operating costs at 45 percent of revenue ≈ 14,780
  • NOI ≈ 18,070
• Base
  • ADR 240, occupancy 55 percent
  • Gross revenue: 240 × 0.55 × 365 ≈ 48,180
  • Operating costs at 45 percent of revenue ≈ 21,680
  • NOI ≈ 26,500
• Optimistic
  • ADR 280, occupancy 65 percent
  • Gross revenue: 280 × 0.65 × 365 ≈ 66,430
  • Operating costs at 45 percent of revenue ≈ 29,890
  • NOI ≈ 36,540

To estimate cap rate, divide NOI by the purchase price. For cash-on-cash, subtract your annual loan payments from NOI, then divide by your total cash invested. Test sensitivity by lowering ADR 5 percent or occupancy 10 points and note the change in cash flow. Seasonality in Wimberley means weekends and peak months may carry your year, so model weekday pricing and off-season strategies.

Compare to a long-term rental

Short-term rentals can produce higher gross revenue than a traditional lease, but they come with more variability, management time and operating cost. Long-term leases may offer steadier income and simpler oversight. Weigh your risk tolerance, time commitment and the availability of reliable management.

Operations that protect your returns

The best returns come from consistent, guest-ready operations that also keep you compliant.

Insurance and liability

Standard homeowner policies often exclude frequent short-term rental use. Ask your agent about a rental or commercial endorsement or a specialized STR policy with strong liability limits. Consider an umbrella policy for additional protection. Some cities or HOAs may ask for proof of coverage during registration.

Safety, septic and parking

Outfit the home with smoke and carbon monoxide detectors, fire extinguishers and clear exit paths. If you have a septic system, set guest limits that match permitted capacity and include clear guidance in your house manual. Plan parking to avoid blocking narrow rural roads and communicate the plan to guests upfront.

Guest compliance and neighbor relations

Set clear house rules for noise, parking and trash. Consider simple noise monitoring devices, a guest manual and a local point of contact who can respond quickly. A responsive local manager can improve guest reviews and reduce nuisance issues.

Pricing and booking management

List on more than one platform to broaden exposure and maintain a synced calendar to prevent double bookings. Use dynamic pricing by day of week and season. Review local events and school calendars to adjust rates during peak weekends.

Due-diligence checklist

Use this checklist before you buy or list a Wimberley STR:

• Verify city limits vs. unincorporated Hays County
• Confirm municipal STR registration, permit and inspection requirements
• Review HOA CC&Rs and get written approval if needed
• Check septic capacity, well and utility constraints
• Register with the Texas Comptroller for state lodging or sales tax
• Confirm city or county lodging tax accounts if applicable
• Build an ADR and occupancy comp set from local data sources
• Model conservative, base and optimistic scenarios with sensitivity tests
• Price insurance with STR coverage and set up a reserve fund
• Line up cleaning, maintenance and a local contact or manager

Next steps

• Call the City of Wimberley planning or permit office to confirm current STR requirements for your address.
• Contact Hays County permitting and health departments about septic, well and addressing rules.
• Register with the Texas Comptroller for required tax accounts and set a filing calendar.
• Gather ADR and occupancy comps from STR data providers and local property managers.
• Build your model, test scenarios and decide on self-management or a professional manager.

If you want a local, numbers-first sounding board for a Wimberley purchase or to prep your home for a compliant STR launch, reach out to Esther Talley. We’ll help you confirm the rules, pressure-test the ROI and connect you with trusted local resources.

FAQs

Are short-term rentals legal within Wimberley city limits?

• It depends on your address and zoning; confirm with the City of Wimberley’s municipal code and planning office, and verify any required STR registration or permits.

What taxes apply to a Wimberley short-term rental?

• Expect Texas state lodging taxes and possibly local city or county hotel occupancy taxes; register with the Texas Comptroller and any local offices that require remittance.

How do I estimate ROI for a Wimberley vacation rental?

• Use ADR and occupancy from local comps, apply the revenue and expense formulas in this guide and run conservative, base and optimistic scenarios with sensitivity tests.

Do HOAs around Wimberley allow short-term rentals?

• Many HOAs have restrictions or bans; review recorded CC&Rs and obtain written confirmation from the HOA or its management company.

What insurance do I need for a Wimberley STR?

• Seek a policy tailored to short-term rentals or a rental/commercial endorsement, confirm liability limits and consider an umbrella policy; some authorities may require proof of insurance.