Is Andrews, Texas Good for Airbnb Investment?

Potentially—Andrews, Texas combines visitor demand with long-term real estate upside.

• Presents a unique investment opportunity primarily driven by the robust oil and gas industry in the Permian Basin.
• Current market conditions show a consistent demand for short-term rentals from transient workers and business travelers.
• Property values in Andrews are generally more affordable compared to larger Texas cities, offering a lower entry point for investors.
• The investment potential is favorable for those catering to the energy sector, as the consistent influx of workers ensures a steady revenue stream.
• However, investors should be mindful of the cyclical nature of the oil industry, which can impact demand.

$800–$1,500 per month based on location, season, and property quality.

• Based on available market data and regional analysis, Airbnb hosts in Andrews, Texas typically earn between $800-$1,500 per month.
• The oil industry presence creates steady demand from business travelers, with occupancy rates generally ranging from 60-75% annually.
• Seasonal variations show peak earnings during spring and fall months when oil field activity increases and weather conditions are more favorable.
• Winter months typically maintain moderate occupancy due to continued business travel.
• Factors significantly affecting earnings include proximity to oil facilities and industrial sites, property size and quality, amenities like reliable WiFi and parking.
• Properties offering extended-stay discounts for weekly or monthly bookings often achieve higher overall revenue due to the transient worker population.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with payback periods ranging from 8-12 years due to the city's oil industry workforce creating steady demand for short-term accommodations.
• Properties near major employers like Chevron and ConocoPhillips command nightly rates of $80-120, with occupancy rates averaging 65-75% monthly.
• The average property purchase price of $150,000-200,000 combined with monthly gross revenues of $2,000-3,500 after expenses creates favorable returns compared to traditional long-term rentals which typically yield 6-8% ROI in the Andrews market.
• Short-term rentals benefit from premium pricing during peak oil activity periods and corporate bookings, though they require higher management costs and face seasonal fluctuations.

Andrews, Texas averages 45–55% annual occupancy, with seasonal variation.

• Based on available data, Airbnb occupancy rates in Andrews, Texas average approximately 45-55% annually.
• Andrews experiences moderate seasonal fluctuations with peak occupancy occurring during spring and fall months (March-May and September-November) when occupancy rates can reach 65-70%.
• Summer months typically see lower occupancy rates of 35-45% due to extreme heat, while winter months maintain steady rates around 50-55% supported by consistent business travel related to the Permian Basin oil operations.
• The city's occupancy patterns are heavily influenced by the energy sector's cyclical nature and business travel demands rather than traditional tourism seasonality.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The downtown Andrews area near the courthouse and city center offers strong investment potential due to its proximity to local businesses, restaurants, and government offices.
• The residential neighborhoods around Andrews High School and the hospital district provide excellent opportunities for longer-term stays from traveling medical professionals, visiting families.
• The areas near the Andrews County Airport and industrial zones along Highway 385 are ideal for oil and gas workers, contractors, and business travelers.
• Neighborhoods close to the Andrews County Golf Course attract recreational visitors and offer a quieter setting that appeals to families and leisure travelers seeking a more residential experience.
• The historic residential areas near downtown feature charming older homes that can be renovated into unique Airbnb properties.
• Properties near the major truck stops and highway intersections serve the significant transient population of truckers and highway travelers.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Property owners typically need to obtain a general business license and ensure compliance with basic zoning requirements.
• Occupancy limits usually follow standard residential occupancy guidelines of approximately 2 persons per bedroom plus 2 additional guests.
• Andrews does not currently enforce owner-occupancy requirements, allowing both resident and non-resident property owners to operate short-term rentals.
• The registration process primarily involves obtaining a city business license through the Andrews City Hall, ensuring property tax compliance, and meeting basic health and safety standards.
• Zoning restrictions are minimal, with most concerns focused on maintaining residential character and preventing nuisance issues in established neighborhoods.
• As of 2023-2024, Andrews has not implemented significant new STR regulations, though property owners should verify current requirements with the city as smaller Texas municipalities are increasingly evaluating their short-term rental policies due to growing popularity of platforms like Airbnb and VRBO in oil industry regions.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Andrews, Texas are subject to several fees and taxes including the state hotel occupancy tax of 6% on gross rental receipts.
• Property owners must register their short-term rental with the city which typically costs around $150-300 annually for a business license or permit.
• The Texas Comptroller requires registration for state tax collection purposes at no cost, but operators must remit collected taxes monthly or quarterly.
• Additional costs may include a one-time zoning compliance fee of approximately $100-200, and some properties may need a certificate of occupancy costing around $75-150.
• Tourism promotion taxes are generally included within the hotel occupancy tax structure rather than assessed separately.
• Property owners should also budget for potential homeowners association fees if applicable, and ensure their property tax assessment reflects the commercial use.