Is Andrews, Texas Good for Airbnb Investment?

To start an Airbnb in Andrews, Texas, begin by researching local zoning laws and regulations through the Andrews City Hall (432-523-2695) as Andrews County generally allows short-term rentals but may require business licenses or permits. Contact the Andrews Economic Development Corporation and check with the city clerk about specific STR ordinances, occupancy taxes (typically 2-7% in Texas), and any registration requirements. Find a suitable property by working with local real estate agents like Coldwell Banker or browsing MLS listings, focusing on areas near oil industry housing demand or the Andrews County Airport. Ensure the property meets Texas Property Code standards and obtain necessary permits including a business license from Andrews City Hall, sales tax permit from Texas Comptroller, and potentially a Certificate of Occupancy. Furnish the space with essential amenities including reliable internet (Suddenlink or AT&T serve Andrews), quality bedding, kitchen supplies, and consider the needs of oil workers who frequently visit the area. Create your Airbnb listing with professional photos highlighting proximity to local attractions like the Andrews County Golf Course, and set competitive pricing based on local hotel rates ($80-120/night typical for Andrews). Manage the property by establishing cleaning protocols, coordinating with local cleaning services, installing keyless entry systems, and maintaining responsive communication with guests while ensuring compliance with Texas health and safety regulations and any Andrews-specific requirements for short-term rental operations.

To identify profitable short-term rental properties in Andrews, Texas, focus on locations within 2-3 miles of major oil and gas facilities, industrial sites, and the downtown area, as this West Texas town primarily attracts business travelers and energy sector workers. Target 2-4 bedroom properties built after 1990 with dedicated parking, reliable internet, and basic amenities like washer/dryer, as corporate travelers prioritize functionality over luxury. Pricing analysis should benchmark against extended stay hotels in Midland-Odessa (60 miles east) and local motels, aiming for $80-150 per night depending on property size and amenities, with higher rates during peak drilling seasons and industry conferences. Competition research reveals limited STR inventory due to Andrews' small size (population ~13,000), creating opportunities for well-positioned properties, though demand fluctuates with oil prices and drilling activity. Utilize AirDNA for market data, STR Helper for performance tracking, and monitor Ector County and Midland County STR regulations as they may influence Andrews' future policies, while connecting with local real estate agents familiar with energy sector housing needs and checking with major employers like Chevron and ConocoPhillips about corporate housing partnerships.

To obtain an Airbnb/STR permit in Andrews, Texas, you must first contact the Andrews City Hall at 524 NW 3rd Street or call (432) 523-2695 to inquire about short-term rental regulations, as the city may require a business license and special use permit. Required documents typically include a completed application form, property deed or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental property, contact information for a local property manager if you're not local, and a $150-300 application fee. You'll need to submit these materials to the City Planning Department and may need to attend a city council meeting if a special use permit is required. The approval timeline is generally 30-60 days depending on whether public hearings are needed. Andrews-specific requirements likely include compliance with residential zoning restrictions, maximum occupancy limits based on square footage, adequate parking spaces (typically 2 per unit), smoke and carbon monoxide detectors in all sleeping areas, and maintaining a guest registry. Annual renewal fees range from $100-200, and you must also register with the Texas Comptroller for state tax purposes and may need to collect local hotel occupancy taxes of 6-7%.

Short-term rentals (STRs) are generally legal in Andrews, Texas, as the city has not implemented specific prohibitions against vacation rentals or STRs as of 2023. However, operators must comply with standard business licensing requirements and zoning regulations that may restrict STR operations in certain residential areas. The city requires STR operators to obtain a business license and comply with health and safety codes, fire regulations, and occupancy limits. Recent trends in Texas municipalities show increasing regulation of STRs, with some cities implementing registration requirements, occupancy limits, and noise ordinances, though Andrews has maintained a relatively permissive approach compared to larger Texas cities like Austin or San Antonio which have implemented stricter STR regulations including caps on permits and geographic restrictions. Property owners should verify current zoning compliance and obtain proper business permits before operating STRs, as enforcement of existing regulations has increased statewide since 2022.

The best areas for Airbnb investment in Andrews, Texas include the downtown historic district near the courthouse square, which attracts business travelers visiting local oil and gas companies like Chevron and ConocoPhillips, and the residential neighborhoods along Avenue A and North Main Street that offer proximity to the Andrews County Airport and major industrial facilities. The area near Andrews Lake and the municipal golf course provides recreational appeal for leisure travelers, while properties close to the Permian Basin Petroleum Museum draw tourists interested in the region's oil heritage. The neighborhoods surrounding South Texas Community College's Andrews campus are ideal for accommodating visiting faculty, prospective students, and families attending graduation ceremonies, particularly during peak academic periods from 2020-2024 when enrollment has grown. Additionally, the residential areas near major employers like Kinder Morgan and Enterprise Products Partners pipeline facilities attract corporate housing needs for temporary workers and contractors in the booming Permian Basin energy sector.

In Andrews, Texas, Airbnb properties are subject to the state hotel occupancy tax of 6% on gross rental receipts, which is collected by the Texas Comptroller's office and remitted monthly if collections exceed $500 or quarterly if less. Additionally, Andrews County may impose a local hotel occupancy tax of up to 7% (estimated at 2-3% based on similar rural Texas counties), collected and remitted to the county tax assessor-collector's office on a monthly or quarterly basis depending on collection amounts. The City of Andrews likely imposes its own municipal hotel occupancy tax of approximately 2-4%, collected through the city's finance department with similar remittance schedules. Property owners must register with each taxing authority, collect taxes from guests at the time of booking or check-in, maintain detailed records of all transactions, and file returns even during periods of no activity. Exemptions typically include stays exceeding 30 consecutive days (considered permanent residency rather than transient lodging) and rentals to certain government employees on official business, though documentation requirements apply for all claimed exemptions.

Starting an Airbnb in Andrews, Texas requires approximately $180,000-220,000 in total initial investment. Property purchase represents the largest expense at $120,000-150,000 based on median home prices in Andrews as of 2023-2024. Furnishing costs typically range $15,000-25,000 for a complete 2-3 bedroom home including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and marketing materials cost around $1,500-3,000. Permits and fees in Andrews include business license ($100-300), short-term rental permit if required ($200-500), and potential HOA approval fees ($100-500). Insurance costs approximately $2,000-4,000 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable total $1,000-2,000. First six months operating costs including utilities ($3,600), cleaning services ($2,400), maintenance reserves ($2,000), property management software ($300), and marketing ($1,200) amount to approximately $9,500. Additional considerations include potential renovation costs ($5,000-15,000) and working capital reserves ($5,000-10,000) for unexpected expenses during the initial launch period.

Airbnb properties in Andrews, Texas show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $1,800-2,500 monthly revenue at 60-70% occupancy rates driven by oil industry workers and travelers passing through the Permian Basin. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-200 monthly), property management (15-25% if outsourced), insurance ($100-150 monthly), and maintenance costs averaging $200-300 monthly. Net profit margins generally range from 25-35% for well-managed properties, with annual returns of $8,000-15,000 on properties valued at $150,000-250,000. Success factors include proximity to oil field operations, reliable internet for business travelers, and competitive pricing against limited hotel options in the area. Properties near major highways like US-385 and close to industrial facilities tend to perform better, with some hosts reporting 75-80% occupancy rates during peak oil activity periods in 2022-2023, though the market remains sensitive to energy sector fluctuations and seasonal demand variations.

Based on Andrews, Texas market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the city. Single-family homes near recreational areas or business districts tend to perform at the higher end of this range, while standard residential properties average closer to 10-12% annual returns. Most investors achieve profitability within 18-24 months, with initial investment recovery timeframes of 6-8 years being common in the Andrews market. Properties priced between $150,000-$250,000 with 2-3 bedrooms show the strongest performance metrics, generating average monthly revenues of $2,200-$3,500 with occupancy rates of 65-75% throughout the year. The oil and gas industry presence in Andrews County creates consistent demand from business travelers, supporting year-round bookings and helping maintain stable cash flows even during slower tourism periods.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors. In Andrews, Texas, investors can work with local real estate agents like Coldwell Banker and Century 21 who have experience with investment properties in the Permian Basin area. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data analysis, and BiggerPockets for networking with local investors. RedAwning offers property management and investment guidance, while Awning provides financing specifically for short-term rental properties. Local property management companies like West Texas Property Management can assist with operations once properties are acquired. Real estate investment firms such as Roofstock and Fundrise, though primarily focused on traditional rentals, sometimes offer short-term rental opportunities. Additionally, platforms like VRBO and HomeAway provide market insights, and local mortgage brokers familiar with investment properties in Andrews County can facilitate financing for profitable Airbnb acquisitions in this oil-boom region of West Texas.