RANK #17 of 50 Better · DepreciMax Score 68 Lake

New Braunfels, Texas

Guadalupe River / Comal River STR market with dense tubing and vacation-rental demand. TX no-state-income-tax means the federal Year 1 deduction is the entire tax story. New Braunfels inventory is characterized by newer builds with outdoor kitchens, pools, and river-adjacent decks — 15-year improvements that anchor the bonus-eligible math.

Median Year 1 Deduction
$131,000
on a $525k STR · range $111k–$150k · ~$48k federal tax savings at 37%
Representative short-term rental home in the New Braunfels market
Median Listing Price
$525k
Sample of ~50 active STR-suitable listings analyzed.
Median Land Ratio
18%
Lower is better — leaves 82% of purchase price as depreciable basis.
Bonus-Eligible %
24.9%
Median % of purchase price classifiable as 5-yr or 15-yr property under §168(k).
Federal Savings @ 37%
$48k
Median federal tax savings on a $525k purchase. Range $41k–$56k.
Texas State Conformity — Full

Texas conforms fully to federal §168(k). Investors get the full federal Year 1 deduction (~$48k typical at the median) PLUS the state-level benefit on the Texas return — no add-back required. This is the ideal scenario for bonus depreciation math.

Why New Braunfels ranks #17

Guadalupe River / Comal River STR market with dense tubing and vacation-rental demand. TX no-state-income-tax means the federal Year 1 deduction is the entire tax story. New Braunfels inventory is characterized by newer builds with outdoor kitchens, pools, and river-adjacent decks — 15-year improvements that anchor the bonus-eligible math.

1. Land ratio drives the math

Lake-adjacent inland properties get the best of both worlds: water-front amenity premium without coastal land pricing. New Braunfels's land ratio of ~18% leaves roughly $431k of depreciable basis on a $525k purchase.

2. Full state conformity stacks federal and state benefits

TX conforms fully to federal §168(k), so New Braunfels investors get both the federal AND state deduction. The Total Tax Benefit column in the DepreciMax Top 50 reflects this stacking — federal savings at the 37% top marginal rate plus state savings at TX's top marginal rate. Same property in a decoupled state would produce the same federal deduction but no state add-on.

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How the score is calculated

New Braunfels's DepreciMax Score is the aggregate score across ~50 active listings run through our proprietary algorithm. We use multiple inputs — including land values and AI photo recognition — closely calibrated over time against a completed cost segregation study on a benchmark short-term rental.

More detail in the Top 50 Markets methodology section.

Snapshot date: May 2026. Sample listings are real active listings from Realtor.com — actual addresses shown. Bonus depreciation outcomes vary by individual property; this report estimates ranges for typical purchases. Not tax advice — consult your CPA before making investment decisions.

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