Is Albany, Texas Good for Airbnb Investment?

To start an Airbnb in Albany, Texas, begin by researching local regulations through the Shackelford County Clerk's office and Albany City Hall, as Texas cities typically require short-term rental permits and business licenses, with Albany likely requiring registration and potentially limiting rentals to certain zoning areas. Obtain necessary permits including a business license from the city, sales tax permit from the Texas Comptroller's office, and ensure compliance with fire safety codes and occupancy limits, which in small Texas towns like Albany typically allow 2-4 guests per bedroom. Find a suitable property by searching local real estate listings, considering proximity to Albany's historic downtown district and Lake Hubbard recreation areas, with properties typically ranging from $80,000-$200,000 for suitable homes. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, and local touches highlighting Albany's Western heritage and proximity to outdoor activities, budgeting approximately $5,000-$15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos showcasing the property and Albany's attractions like the Old Jail Art Center and annual Fandangle musical, setting competitive rates around $75-$150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and ensuring compliance with Texas sales tax collection requirements of 6.25% plus any local hotel occupancy taxes that Albany may impose.

To identify profitable short-term rental properties in Albany, Texas, focus on properties within 2-3 miles of Fort Griffin State Historic Site and the courthouse square, as these areas attract history enthusiasts and business travelers. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, reliable WiFi, and parking, as Albany's rural location means guests prefer self-contained accommodations. Analyze pricing by researching comparable Airbnb listings within 25 miles including Breckenridge and Graham, aiming for $80-150 per night depending on size and amenities, with higher rates during hunting season (October-January) and Fort Griffin Fandangle performances in June. Competition research reveals limited STR inventory with fewer than 15 active listings in the immediate area, creating opportunity for well-positioned properties. Utilize AirDNA for market analysis, STR Helper for revenue projections, and monitor local Facebook groups and the Albany Chamber of Commerce website for event calendars that drive demand, particularly during cattle drives, historical reenactments, and oil industry meetings, while considering proximity to US Highway 180 for easy guest access.

To obtain an Airbnb/STR permit in Albany, Texas, contact the Albany City Hall at 325-762-2266 or visit their office at 300 S 2nd Street to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy ($1 million minimum coverage), floor plan of the property, contact information for a local responsible party within 30 miles, and pay applicable fees which typically range from $100-300 annually. Required documents may also include a fire safety inspection certificate, health department approval if applicable, and neighbor notification forms. The approval timeline is generally 30-45 days from submission of a complete application. Albany-specific requirements likely include maintaining occupancy limits based on bedrooms and square footage, providing adequate parking spaces, ensuring proper waste management, maintaining quiet hours typically from 10 PM to 7 AM, and having a local contact person available 24/7 for any issues that arise during guest stays.

Short-term rentals (STRs) are legal in Albany, Texas, but operate under state and local regulations that vary by jurisdiction. As a small city in Shackelford County, Albany likely follows Texas state law which generally permits STRs unless specifically prohibited by local ordinance. Most Texas municipalities that allow STRs require registration or permits, impose occupancy limits, mandate safety requirements like smoke detectors, and often restrict the number of guests and parking. Common restrictions include prohibiting STRs in certain residential zones, requiring owner registration with the city, limiting rental duration to less than 30 days, and implementing noise ordinances. Recent changes across Texas since 2021-2023 have seen many cities tightening regulations due to neighborhood complaints, with some implementing caps on STR permits, increasing fees, or requiring conditional use permits in residential areas. Albany specifically may have minimal restrictions given its small size and rural nature, but property owners should verify current local ordinances with the city clerk as regulations can change and enforcement varies significantly between Texas municipalities.

The best Airbnb investment areas in Albany, Texas include the downtown historic district near the courthouse square, which attracts visitors interested in the town's frontier heritage and proximity to Fort Griffin State Historic Site. The residential areas along Highway 180 offer good accessibility for business travelers and oil industry workers, as Albany sits in the heart of Shackelford County's energy sector. Properties near the Old Jail Art Center benefit from cultural tourism, while neighborhoods close to the annual Fandangle outdoor musical (running since 1938) see seasonal demand during summer performances. The areas around Clear Fork of the Brazos River appeal to outdoor enthusiasts and hunters, particularly during deer season from November through January. Properties within walking distance of local restaurants and the historic business district perform well year-round due to Albany's role as a regional hub for surrounding rural communities and its appeal to history buffs exploring West Texas heritage sites.

In Albany, Texas, Airbnb properties are subject to the state hotel occupancy tax of 6% plus local hotel occupancy taxes imposed by the city, which typically range from 2-7% for small Texas municipalities like Albany, bringing the total estimated rate to approximately 8-13%. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking, with Airbnb automatically collecting and remitting state taxes since 2019 under agreements with the Texas Comptroller's office. For local Albany taxes, hosts may need to register directly with the city, obtain a tax permit, and file monthly or quarterly returns depending on volume, though some smaller Texas cities have also entered collection agreements with Airbnb. Exemptions typically include stays of 30 days or longer, certain government and military travelers, and some nonprofit organization bookings, while hosts earning under certain thresholds may qualify for simplified reporting procedures.

To start an Airbnb in Albany, Texas, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in this small Bell County town. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, living room furniture, kitchen essentials, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Bell County include business license ($50-$100), short-term rental permit if required ($200-$500), and potential HOA approval costs. Insurance for short-term rentals runs $1,200-$2,400 annually, significantly higher than standard homeowner's policies. Monthly utilities including electricity, water, internet, and cable average $200-$350 in Texas. First six months operating costs encompass utilities ($1,200-$2,100), cleaning services ($1,800-$3,600 assuming $75-$150 per turnover), maintenance reserves ($1,000-$2,000), platform fees to Airbnb averaging 3% of bookings, supplies and amenities ($600-$1,200), and marketing expenses ($500-$1,000). Additional considerations include property taxes averaging 2.5% annually in Bell County and potential property management fees of 10-25% if outsourced.

Airbnb properties in Albany, Texas show moderate profitability potential with average daily rates ranging from $85-120 for typical 2-3 bedroom homes, generating monthly revenues of $2,100-3,600 assuming 70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs ($200-400/month). Net profit margins generally range from 15-25% after expenses, with successful properties achieving $500-1,200 monthly profit. Key success factors include proximity to Lake Whitney recreational activities, competitive pricing below Austin markets (2 hours south), professional photography, and responsive guest communication. Properties within 10 miles of Lake Whitney State Park command premium rates during peak seasons (March-October), while those targeting corporate travelers from nearby industrial facilities maintain steadier year-round occupancy. The market benefits from limited hotel inventory in the area, though hosts must navigate seasonal demand fluctuations and compete with approximately 50-75 active Airbnb listings in the broader Albany-Breckenridge region as of 2024.

Airbnb investments in Albany, Texas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location within the market. Properties in Albany generally reach profitability within 18-24 months, with initial investment recovery occurring faster for well-positioned homes near recreational areas or business districts. The market shows consistent occupancy rates of 65-75% annually, with average daily rates between $85-$140 for typical 2-3 bedroom properties. Investors can expect gross rental yields of 10-14% before expenses, with net yields settling around 6-10% after accounting for property management, maintenance, and local taxes. Properties purchased in the $150,000-$250,000 range typically perform best, generating monthly cash flows of $800-$1,500 after all expenses, making the 24-36 month timeframe realistic for full investment recovery in Albany's short-term rental market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Albany, Texas and surrounding areas. Local real estate agents like Keller Williams Brazos Valley and Coldwell Banker United Realtors have agents experienced in investment properties who understand the Albany market dynamics. RE/MAX and Century 21 also maintain offices serving the Albany area with agents knowledgeable about rental property investments. National services include Mashvisor, which provides Airbnb analytics and property search tools, and BiggerPockets, which offers investment property analysis resources. AirDNA provides short-term rental market data and performance analytics for the Albany region. Local property management companies like Vacasa and RedAwning can assist with identifying properties suitable for Airbnb conversion. Real estate investment firms such as Roofstock and Fundrise offer turnkey rental property solutions, though their Albany inventory may be limited. Local mortgage brokers and lenders like First National Bank of Albany can provide specialized financing for investment properties. Property inspection services and contractors familiar with short-term rental requirements are available through local networks, and platforms like VRBO and Airbnb themselves offer host onboarding resources to help investors understand market potential in the Albany area.