Is Amherst, Texas Good for Airbnb Investment?

To start an Airbnb in Amherst, Texas, begin by researching local regulations as Amherst typically follows Lamb County zoning ordinances which generally allow short-term rentals in residential areas with basic safety compliance. Contact Lamb County Clerk's office at (806) 385-4222 to verify specific permit requirements, though most small Texas towns like Amherst don't require special STR permits beyond standard business registration. Find a suitable property by searching local real estate listings through Century 21 or local agents, focusing on 2-3 bedroom homes near Highway 84 for accessibility, with average purchase prices around $80,000-$120,000. Obtain necessary permits including a Texas sales tax permit from the Texas Comptroller's office and register with the city clerk for any required business license (estimated $25-$50 annually). Furnish the property with essential amenities including Wi-Fi, basic kitchen supplies, linens, and furniture from retailers like Walmart in nearby Littlefield, budgeting approximately $3,000-$5,000 for a complete setup. List your property on Airbnb and VRBO platforms with competitive pricing around $60-$80 per night, highlighting proximity to Lubbock (45 minutes) and agricultural tourism opportunities. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, maintaining responsive communication with guests, and considering hiring local cleaning services from Littlefield or Sudan for turnovers, while monitoring occupancy rates and adjusting pricing seasonally to maximize revenue in this rural West Texas market.

For identifying profitable short-term rental properties in Amherst, Texas, focus on locations within 15-20 minutes of major Dallas-Fort Worth employment centers and attractions, particularly properties near Highway 114 and Interstate 35E for easy airport access. Target 3-4 bedroom single-family homes built after 1990 with modern amenities, dedicated parking, and outdoor spaces, as these appeal to business travelers and families visiting the DFW metroplex. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40-50%, typically finding opportunities in the $200,000-$350,000 range in Amherst. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through relationships with Dallas-area real estate agents familiar with Denton County regulations, while monitoring the city's STR ordinances and HOA restrictions that may impact profitability in this smaller suburban market that benefits from proximity to DFW Airport and major corporate centers.

To obtain an Airbnb/STR permit in Amherst, Texas, you must first contact the Amherst City Hall at 940-552-5478 or visit their offices at 115 N Grand Avenue to inquire about short-term rental regulations, as this small town may have recently implemented STR ordinances similar to neighboring municipalities. You'll likely need to submit an application form along with required documents including a copy of your driver's license, property deed or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental property, and contact information for a local property manager if you live more than 50 miles away. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. You must also obtain a Texas sales tax permit from the Texas Comptroller's office and register to collect hotel occupancy taxes with Lamb County, which typically runs 7-15% of gross rental income. The approval timeline is generally 30-45 days after submitting a complete application, during which the city will conduct a safety inspection to ensure compliance with fire codes, occupancy limits (typically 2 people per bedroom plus 2 additional), adequate parking (minimum 1 space per bedroom), and proper smoke and carbon monoxide detectors. Amherst likely requires STR properties to maintain quiet hours from 10 PM to 7 AM, display the permit number in all advertising, and limit rentals to no more than 30 consecutive days to maintain short-term status.

Short-term rentals (STRs) are generally legal in Amherst, Texas, as the city does not have specific ordinances prohibiting them as of 2023. However, STR operators must comply with standard zoning regulations and homeowners association rules that may apply in residential areas. The city requires STRs to meet basic safety and occupancy standards similar to other rental properties, and operators should obtain proper business licenses and collect applicable taxes. There are no specific prohibited areas designated by the city, though individual HOA covenants in neighborhoods may restrict or prohibit short-term rentals. Recent legal changes have been minimal, with the city taking a relatively hands-off approach compared to larger Texas municipalities like Austin or Dallas that have implemented more restrictive STR regulations. Property owners should verify compliance with state tax requirements and any applicable HOA restrictions before operating an STR in Amherst.

The best areas for Airbnb investment in Amherst, Texas include the neighborhoods near Texas A&M University-Commerce (approximately 15 miles away), which attract visiting families, prospective students, and academic conference attendees year-round. The historic downtown district offers charm for weekend tourists exploring East Texas, while areas near Caddo Mills and Greenville provide access to business travelers working with companies like L-3 Communications and Emerson Process Management. Properties near Lake Tawakoni (about 20 miles south) are highly attractive for fishing enthusiasts and water recreation visitors, particularly during spring and summer months. The residential areas along Highway 380 corridor benefit from proximity to the Dallas-Fort Worth metroplex, capturing overflow visitors during major events at AT&T Stadium or when Dallas hotels are at capacity, with drive times under 90 minutes making it a viable alternative accommodation option.

Airbnb properties in Amherst, Texas are subject to state hotel occupancy tax of 6% collected by the Texas Comptroller, plus local hotel occupancy taxes that vary by municipality, typically ranging from 2-7% in small Texas towns like Amherst, bringing the total occupancy tax rate to approximately 8-13%. The Texas state tax applies to rentals under 30 consecutive days and is collected through Airbnb's automated system for participating hosts, with the platform remitting directly to the state quarterly, though hosts may need to register separately if their property isn't covered by Airbnb's collection agreement. Local occupancy taxes in Amherst are typically collected by the city and may require separate registration and monthly or quarterly remittance by the host directly to the city clerk or tax collector's office, with payments usually due by the 20th of the following month. Exemptions generally apply to stays of 30 days or longer, certain government travelers, and in some cases nonprofit organizations, while properties generating less than $1,200 annually in occupancy taxes may be exempt from state registration requirements but should still comply with local ordinances.

Starting an Airbnb in Amherst, Texas requires approximately $285,000-$320,000 in total initial investment. Property purchase costs around $220,000-$250,000 based on median home prices in this Dallas suburb as of 2023-2024. Furnishing a 3-bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and marketing materials run $1,500-$3,000. Permits and fees in Collin County include short-term rental registration ($200-$500), business license ($100-$300), and potential HOA approval costs ($0-$500). Insurance for short-term rentals costs $2,000-$4,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable total $500-$1,000. First six months of operating costs including utilities ($1,200-$1,800), cleaning services ($2,400-$3,600), maintenance and repairs ($1,000-$2,000), property management software ($300-$600), and marketing expenses ($500-$1,000) add approximately $5,400-$9,000 to startup costs.

Airbnb properties in Amherst, Texas, which is part of the Dallas-Fort Worth metroplex, typically generate annual revenues between $18,000-$35,000 for single-family homes and $12,000-$25,000 for apartments, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-$50 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% by focusing on competitive pricing, professional photography, quick response times, and strategic location selection near Dallas employment centers or entertainment districts. Properties within 20 miles of downtown Dallas or near major highways like I-35E tend to perform better, with some hosts reporting annual net profits of $8,000-$15,000 on properties purchased specifically for short-term rental investment, though success heavily depends on local regulations, market saturation, and the host's ability to maintain high guest satisfaction ratings above 4.7 stars.

Airbnb investments in Amherst, Texas typically generate annual ROI of 12-18% based on the area's proximity to Dallas-Fort Worth metroplex and steady demand from business travelers and visitors to nearby attractions. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $120-180 per night depending on size and amenities. Most investors achieve profitability within 18-24 months, with single-family homes and duplexes performing best due to Amherst's suburban family-friendly appeal. The market benefits from consistent occupancy rates of 65-75% throughout the year, driven by corporate housing needs from companies like American Airlines and AT&T in the broader DFW area. Properties purchased in 2022-2023 have shown appreciation of 6-9% annually while generating rental income, with total returns often exceeding 20% when combining cash flow and appreciation over a 3-5 year investment horizon.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Amherst, Texas, using data analytics and market insights. Local real estate agents specializing in Airbnb investments in the area include Keller Williams Realty agents who focus on investment properties, RE/MAX professionals with short-term rental expertise, and Coldwell Banker agents familiar with the Amherst market dynamics. National services like Mashvisor provide property analysis and ROI calculations for Amherst properties, while AirDNA offers market data and revenue projections for the region. Roofstock and Awning are national platforms that occasionally feature turnkey Airbnb properties in Texas markets including Amherst. Local property management companies such as RedAwning and Vacasa can assist with both property acquisition advice and subsequent management. Investment-focused real estate groups like BiggerPockets have members active in the Texas market who share insights about Amherst opportunities. Additionally, local mortgage brokers specializing in investment properties and short-term rental financing, such as those affiliated with First National Bank of Texas, can facilitate the purchasing process for investors looking to acquire profitable Airbnb properties in Amherst's growing market.