Performance indicators for the Hondo short-term rental market based on reliable data.
Listings
Reliable / Active
Cap Rate
Middle-Earners Gross Yield
Revenue
Middle-Earners Revenue
Occupancy
Middle-Earners Occupancy
Home Value
Median Home Sale Price
Top Earners
Top-Earners Revenue
The highest-performing listings in Hondo.
Loading top listings...
Very Investor friendly
STRs are explicitly allowed with no city-level permits, caps, or local fees; only Texas hotel occupancy tax compliance is needed and there are no identified bans or onerous rules.
Local STR Agent
STR specialist · Hondo, TX
Hondo is a small city in Medina County, Texas, where it serves as the county seat. With a population of roughly 8,000 to 9,000 residents, the town carries the unhurried pace of rural South-Central Texas, where ranching heritage, wide skies, and historic main-street storefronts shape daily life. Long promoted as the "Armadillo Capital of the World," Hondo has built a small brand around the distinctive armored mammal that roams the surrounding brush country. The city lies about 40 miles west of San Antonio along the I-35 corridor, which gives it a practical position as a stopover for travelers moving between San Antonio and the Hill Country or West Texas, while also offering a quieter base for visitors who want a more laid-back alternative to the big city.
A short drive north of Hondo brings visitors to Medina Lake, a long, spring-fed reservoir that has been a regional recreation spot for generations. Approximately 20 to 30 minutes from downtown Hondo, the lake draws locals and out-of-towners for boating, fishing, and waterfront camping, and its tree-lined coves become especially popular during the warmer months. The surrounding shoreline includes a mix of public parks and private cabins, giving the area a relaxed Hill Country feel that contrasts with the open brushland closer to Hondo itself.
About 20 minutes east of Hondo, Castroville is a small town founded in the 1840s by Alsatian immigrants, and its European roots remain visible in the limestone houses, wrought-iron balconies, and a long-established bakery culture along the Medina River. Visitors often come for the day to wander the historic district, sample the regional cuisine, and browse the antique shops. The town's compact layout makes it a natural pairing with a Hondo stay, adding a cultural layer to a trip otherwise focused on rural Texas scenery.
Farther afield, the broader Hill Country unfolds to the north and west of Hondo, with destinations like Lost Maples State Natural Area and Bandera — the self-styled "Cowboy Capital of the World" — within roughly an hour's drive. Closer in, Hill Country State Natural Area offers miles of horseback riding and hiking trails across several thousand acres of ranchland, appealing to travelers who want to experience the landscape the way the region was settled. For guests willing to drive east, San Antonio Missions National Historical Park and the rest of the city's offerings sit less than an hour away, expanding the day's options without requiring a hotel change.
Hondo's appeal for short-term rental operators rests on its combination of small-town character and strategic geography. Visitors who book a stay here can spend their mornings at Medina Lake or on the trails at Hill Country State Natural Area, their afternoons exploring the Alsatian streets of Castroville, and their evenings back in a quiet residential setting — all while remaining within an easy drive of San Antonio's restaurants, missions, and river walk. The result is a base that feels removed from the rush of the interstate but never out of reach of the region's marquee experiences.