Hillsboro, TX

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Hillsboro short-term rental market based on reliable data.

Listings

13 / 27

Reliable / Active

Cap Rate

11%

Middle-Earners Gross Yield

Revenue

$22,431

Middle-Earners Revenue

Occupancy

53%

Middle-Earners Occupancy

Home Value

$210,946

Median Home Sale Price

Top Earners

$37,619

Top-Earners Revenue

Hillsboro

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Hillsboro.

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B

Generally Investor friendly

Hillsboro Regulations

Hillsboro explicitly allows STRs via a Specific Use Permit; moderate permitting steps and public review add cost and time, but the process is structured and consistent across many residential zoning districts.

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About Hillsboro

Hillsboro is a small city in central Texas that serves as the county seat of Hill County, with a population of approximately 8,000 residents. The city sits along Interstate 35, the main artery connecting Dallas–Fort Worth to Austin and San Antonio, and functions as a popular rest-and-shopping stop for road-trippers, roughly 60 miles south of Dallas and about 30 miles north of Waco. Long marketed as the "Outlet Capital of Texas," Hillsboro blends small-town character with convenient highway access, giving it an outsized role as a gateway between two of the state's busiest metro areas.

The outlet shopping center on the east side of I-35 is the city's most recognizable draw, a sprawling complex of brand-name retail stores that has anchored the local economy and visitor traffic for years. Just minutes from downtown, the outlet mall draws day-trippers from across North Texas looking for deals on clothing, home goods, and accessories, and its proximity to the interstate makes it an easy first or last stop for travelers passing through.

About 25 miles southwest of Hillsboro, Lake Whitney State Park wraps around the shores of a large reservoir on the Brazos River. The park is a year-round destination for boating, fishing, swimming, and camping, with limestone bluffs and open water drawing weekend visitors from across the region. For short-term-rental guests in Hillsboro, it offers a full day of outdoor recreation within a short drive.

Downtown Hillsboro is centered on a striking late-19th-century courthouse, an ornate Romanesque Revival building that gives the surrounding square a quiet, walkable feel. Around it, visitors find a small cluster of antique shops, cafes, and locally owned stores that offer a slower counterpoint to the commercial strips along the interstate. Antique hunters in particular often stop in Hillsboro on their way to larger shows in nearby communities.

Roughly 30 miles to the south, Waco has become a tourism draw in its own right, anchored by Magnolia Market at the Silos and the broader appeal of the city's revitalized downtown. Hillsboro's position on I-35 places it within an easy half-hour drive of those attractions, making it a quieter, more affordable alternative for guests who want to visit the Waco scene without paying downtown rates.

Together, these offerings position Hillsboro as a compelling base for short-term rentals. It is close enough to Dallas–Fort Worth, Waco, and the Brazos River reservoirs to satisfy a wide range of itineraries, yet small enough to provide a peaceful, distinctly Texan setting for travelers who prefer something off the main tourist circuit.

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