Hudson Bend vs. Lakeway: What's the Difference?

by Amanda Zito

If you're looking for a home near Lake Travis, you may see Hudson Bend and Lakeway mixed together online.

They sit right next to each other. They share the 78734 ZIP code. Both are in Lake Travis ISD. And some Hudson Bend homes even have an Austin mailing address.

But there is one big difference:

Lakeway is an incorporated city. Hudson Bend is not.

That changes who makes the rules, how properties are taxed, what permits you may need, and even what you may be able to do with your home.

So if you're deciding between the two, don't just compare the houses.

Compare the rules around the houses too.

Hudson Bend vs. Lakeway at a Glance

	Lakeway	Hudson Bend
Government	City of Lakeway	Unincorporated Travis County
Law Enforcement	Lakeway Police Department	Travis County Sheriff's Office
Property Rules	City rules + HOA/deed restrictions	Mainly county rules + HOA/deed restrictions
Short-Term Rentals	City permit required	No city STR permit; HOA/deed restrictions may apply
Water & Sewer	Depends on the property	Depends on the property; septic is common
City Property Tax	Yes	No city tax
Schools	Lake Travis ISD	Lake Travis ISD
Fire & EMS	Lake Travis Fire Rescue	Lake Travis Fire Rescue

A lot of the things buyers care about are actually the same.

The biggest difference is who makes the rules for your property.

Lakeway: More City Rules

Lakeway became an incorporated city in 1974.

Today, it has its own police department, city government, zoning rules, permits, parks, and code enforcement.

But here's something buyers sometimes miss.

Living in Lakeway can mean dealing with two sets of rules.

You may have:

City zoning and permit requirements
HOA or deed restrictions

And one does not automatically override the other.

For example, the city may allow something, but your HOA may still restrict it.

That's why checking the neighborhood documents is important before buying.

Hudson Bend: Fewer Government Layers

Hudson Bend is different because it isn't its own city.

It's an unincorporated area of Travis County.

That usually means fewer city-style rules.

But that doesn't mean there are no rules.

Depending on the property, you may still have:

HOA restrictions
Deed restrictions
County permits
Septic requirements
Building or subdivision rules

And these can change from one street or neighborhood to another.

Some areas have active HOAs. Others have older deed restrictions. Some properties may have fewer restrictions.

That's part of Hudson Bend's appeal for some buyers.

But it also means you need to do a little more homework.

More freedom on your property can also mean your neighbor has more freedom on theirs.

What Does That Look Like in Real Life?

Let's say you want to add a detached garage or make changes near the lake.

In Lakeway, you may need city permits plus approval from your HOA or architectural committee.

In Hudson Bend, you may work with Travis County and then check whatever HOA or deed restrictions apply to that specific property.

Neither one is automatically easier.

They're just different.

Short-Term Rentals Can Be a Big Difference

If you're planning to use the property as an Airbnb or VRBO, pay close attention here.

Short-Term Rentals in Lakeway

Lakeway requires a special use permit for short-term rentals.

The city also limits the number of single-family short-term rental permits and has spacing requirements between permitted properties.

So don't buy a Lakeway home assuming you'll automatically be able to use it as a short-term rental.

Check the property and permit availability before you make an offer.

Short-Term Rentals in Hudson Bend

Hudson Bend does not have the same city short-term rental permit system because it isn't inside the City of Lakeway.

But you still need to check:

HOA rules
Deed restrictions
Property-specific restrictions

Some neighborhoods may allow short-term rentals. Others may limit or prohibit them.

I've co-hosted on Airbnb for five years, and this is one of the biggest things I tell buyers to check.

Don't run the rental income numbers until you know the home can actually be used the way you're planning.

What About Property Taxes?

Lakeway homeowners pay a City of Lakeway property tax.

Hudson Bend homeowners do not have that city tax.

But that doesn't automatically mean a Hudson Bend property will have a much lower total tax bill.

Lakeway's city portion is only one part of the overall property tax bill.

Other taxing entities may include:

Travis County
Lake Travis ISD
Utility districts
Emergency service districts
Other local taxing units

That's why I recommend comparing the actual Travis Central Appraisal District record for each property instead of looking only at whether it is inside Lakeway.

If you're moving from California, this is especially important.

Texas doesn't have state income tax, but property taxes work very differently than California's Prop 13 system.

And the seller's current tax bill may not be what you'll pay after you purchase the home.

Water, Sewer, and Septic Can Vary

This is another area where buyers shouldn't make assumptions.

You might think:

Lakeway = sewer
Hudson Bend = septic

It's not that simple.

Different utility districts serve different parts of Lakeway, and some older Lakeway neighborhoods still have septic systems.

In Hudson Bend, septic is common, and many homes receive water through Travis County WCID No. 17.

But again, this is very property-specific.

Before buying, confirm:

Who provides the water
Whether the home is connected to sewer
Whether it has a septic system
The septic permit history
The condition of the septic system

If a home has septic, I also recommend getting it inspected during your option period.

What Is Daily Life Like?

This is where the two areas can feel very different.

Living in Lakeway

Lakeway feels more like a small city.

You have city parks, recreation programs, a swim center, an activity center, shopping, restaurants, and other services close by.

Most everyday errands are fairly convenient, especially around RM 620 and Lohmans Crossing.

For buyers who want more structure and services nearby, Lakeway may feel familiar.

Living in Hudson Bend

Hudson Bend feels more tucked away.

It's a peninsula surrounded by Lake Travis on three sides and sits near Mansfield Dam.

Many errands still take you into Lakeway, Bee Cave, or nearby areas.

For some people, that's exactly what they want.

They like being closer to the lake and a little farther away from the busier parts of town.

For others, the extra drive can get old.

That's why I always tell buyers to drive the area at different times of day before making a decision.

What About Schools?

Both Hudson Bend and Lakeway are served by Lake Travis ISD.

But the exact school assignment depends on the property address.

School boundaries can change, so always confirm the current campus assignment directly with Lake Travis ISD before buying.

Lakeway May Make Sense If You Want:

City services and local police
Parks and recreation programs
Shopping and restaurants close by
More defined city rules
A primary residence rather than a short-term rental property

Hudson Bend May Make Sense If You Want:

Fewer government layers
No City of Lakeway property tax
A quieter setting close to Lake Travis
More flexibility depending on the property
The possibility of using the home as a short-term rental
And you're comfortable doing more property-specific research

Here's a good example.

Let's say you're moving from California and want a second home near Lake Travis.

You'd like to use the home yourself and rent it when you're away.

In Lakeway, you need to check whether the city will allow a short-term rental permit for that property.

In Hudson Bend, you're more likely to focus on the HOA and deed restrictions.

Same goal.

Different homework.

Before You Buy in Hudson Bend or Lakeway

For any home you're seriously considering, I would check these six things:

Confirm whether the property is actually inside Lakeway city limits.
Don't rely on the ZIP code or mailing address.
Check the water and wastewater setup.
Find out who provides water and whether the home has sewer or septic.
Read the HOA and deed restrictions.
Pay special attention to rentals, boats, RV parking, docks, and future additions.
Check short-term rental rules before making an offer.
Especially if rental income is part of your plan.
Check the property's tax record.
Look at all taxing entities, not just the current total tax bill.
Get insurance quotes during your option period.
Insurance costs can vary depending on the home, location, roof, flood exposure, and other factors.

Frequently Asked Questions

Do Hudson Bend and Lakeway have the same schools?

Both areas are served by Lake Travis ISD.

The exact school depends on the home's address, so always confirm the current school assignment directly with the district.

Can You Have an Airbnb in Lakeway?

Potentially, yes.

But Lakeway requires a city special use permit for short-term rentals, and there are limits on single-family permits and where they can be located.

Always check permit availability for the specific property before buying.

Can You Have an Airbnb in Hudson Bend?

Possibly.

Hudson Bend doesn't have Lakeway's city permit system, but HOA rules and deed restrictions can still limit or prohibit short-term rentals.

Check the specific property before assuming it can be rented.

Are Property Taxes Lower in Hudson Bend?

Hudson Bend properties don't pay the City of Lakeway tax.

But that doesn't automatically mean the total tax bill will be much lower.

Utility districts and other taxing entities can make a big difference.

Compare the tax records for the specific homes you're considering.

Thinking About Hudson Bend or Lakeway?

Hudson Bend and Lakeway can look almost the same when you're searching for homes online.

But once you start looking at taxes, utilities, deed restrictions, permits, and rental rules, the differences become much clearer.

And that's why I don't think buyers should choose based only on the neighborhood name.

Choose based on the specific property and how you plan to use it.

If you're moving to the Lake Travis area, especially if you're relocating from California, I can help you compare homes on both sides of RM 620 and understand what comes with each property.

Call or text me at 949-484-9486 for a private consultation.

Amanda Zito, REALTOR®
Real Broker, LLC
TX TREC #840088 | CA DRE #01740063
SoldByZito.com

This article is for general information only and is not legal, tax, or insurance advice. Rules, tax rates, permits, and property restrictions can change. Always verify the details for a specific property with the appropriate agency or professional.