From what I’ve read in Bloomberg, certain markets like Austin and San Antonio are still seeing solid appreciation despite higher rates...

You have to adjust your expectations to match current reality, which includes higher mortgage rates, higher prices, more expensive taxes and insurance, more competition, etc.

For example, in higher-end or luxury markets, where the price point is much higher, full-service staging can be a game-changer.

Per square foot, does one or the other have a higher likelihood of returning a higher return?  

The interest on the rental is an offset to rental income, and is by definition deducted from your taxes.A 4% interest rate on a primary is like a 4.88% after rate for a taxpayer in the 22% federal tax bracket, or higher if in a state with state income taxes. 

There’s huge retal income potential if you nail that balance between improvements that wow tenants and improvements that merely look fancy but don’t justify higher rents.I’d also keep an eye on how your high end plan fits the local demand.

So, it's still a viable way of investing, but does not have the same scale of success in today's economic environment in higher appreciation markets.

Hey Joanne, you’re definitely onto something with room rentals.. it can be an excellent strategy for offsetting a hefty mortgage and, in some cases, bringing in higher total rent than a single lease.

I would suspect once investors digest the higher rate environment and some of the hurricane damage is moved inventory will settle out in neutral territory. 

These areas might have higher property prices, but they can offer premium rental rates and higher occupancy.