Is Big Spring, Texas Good for Airbnb Investment?

To start an Airbnb in Big Spring, Texas, begin by researching local regulations through the Big Spring City Hall and Howard County offices, as Texas generally allows short-term rentals but municipalities may have specific zoning requirements and occupancy limits. Contact the Big Spring Planning and Zoning Department to verify if your intended property location permits short-term rentals and obtain any required business licenses or permits, which typically cost $50-200 annually. Find a suitable property by searching MLS listings, working with local realtors like Coldwell Banker or RE/MAX offices in Big Spring, focusing on properties near attractions like Big Spring State Park or the downtown area, with purchase prices ranging from $80,000-150,000 for typical homes. Secure financing through local banks such as American State Bank or First Bank of West Texas if needed. Furnish the property with essential amenities including quality mattresses, linens, kitchen appliances, WiFi, and local touches highlighting Big Spring's oil heritage and outdoor recreation, budgeting $8,000-15,000 for complete furnishing. Create your Airbnb listing with professional photos showcasing the property's proximity to Scenic Mountain Medical Center, Howard College, and local attractions, setting competitive rates around $75-120 per night based on comparable listings in the area. Manage the property by establishing cleaning protocols with local services, implementing keyless entry systems, maintaining responsive communication with guests, and ensuring compliance with Texas state tax requirements including collecting and remitting hotel occupancy taxes to both the state and potentially Howard County, while monitoring reviews and adjusting pricing seasonally to maximize occupancy in this smaller West Texas market.

To identify profitable short-term rental properties in Big Spring, Texas, focus on locations within 10-15 minutes of major employers like the Big Spring State Hospital, Federal Correctional Institution, and industrial facilities along Highway 87, as these drive consistent business traveler demand. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, reliable HVAC systems, and outdoor spaces, as oil field workers and traveling professionals prefer comfortable, private accommodations over hotels. Analyze pricing by researching comparable STRs on Airbnb and VRBO, aiming for properties under $150,000 that can command $80-120 nightly rates with 60-70% occupancy, while factoring in Big Spring's seasonal patterns tied to oil industry activity and hunting seasons. Study competition by examining existing listings within a 5-mile radius, noting gaps in amenities like high-speed internet, washer/dryer, or pet-friendly policies that could differentiate your property. Utilize AirDNA for market data specific to Howard County, STR Helper for performance tracking, and connect with local real estate agents familiar with investment properties, while monitoring Big Spring Economic Development Corporation reports and Permian Basin activity to understand demand drivers and ensure your investment aligns with the area's economic cycles.

To obtain an Airbnb/STR permit in Big Spring, Texas, contact the Big Spring City Planning Department at City Hall located at 310 Nolan Street or call (432) 264-2513 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement, submit a site plan showing parking and property layout, obtain a business license from the city clerk's office, and provide proof of liability insurance with minimum $500,000 coverage. Required documents include a valid Texas driver's license, property deed or lease, floor plan of the rental unit, and contact information for a local property manager if you live more than 50 miles away. The application fee is typically $150-200 with an annual renewal fee of $100, and processing takes approximately 30-45 days once all documents are submitted. Big Spring requires STR properties to have adequate off-street parking (minimum 2 spaces), comply with residential occupancy limits of 2 people per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertising. Properties must pass a city inspection for safety and zoning compliance, and operators must collect and remit local hotel occupancy tax of 7% to the Big Spring Economic Development Corporation quarterly.

Short-term rentals (STRs) are generally legal in Big Spring, Texas, as the city does not have specific ordinances prohibiting them as of 2024. Big Spring operates under Texas state law, which allows STRs unless specifically restricted by local municipalities. The city has not implemented comprehensive STR regulations like larger Texas cities such as Austin or Dallas, meaning property owners can typically operate vacation rentals and short-term accommodations without special permits or licenses. However, STR operators must still comply with standard zoning regulations, building codes, and tax requirements including state and local occupancy taxes. Properties must meet basic safety standards and cannot violate existing residential zoning restrictions that prohibit commercial activities in certain neighborhoods. While there are no specific prohibited areas designated for STRs, operators should verify that their property's zoning allows transient accommodations. The regulatory landscape for STRs in smaller Texas cities like Big Spring remains relatively permissive compared to major metropolitan areas, though this could change as the industry grows and local governments consider implementing more specific oversight measures.

The best areas for Airbnb investment in Big Spring, Texas include the downtown historic district near Main Street, which attracts visitors interested in the city's oil boom heritage and vintage architecture, and neighborhoods close to the Big Spring State Park area on the south side of town, popular with outdoor enthusiasts and families visiting the scenic park and prairie dog town. The area around Howard College draws consistent demand from visiting families, prospective students, and academic travelers, while properties near the Big Spring McMahon-Wrinkle Airpark cater to business travelers and aviation enthusiasts. The neighborhoods surrounding Comanche Trail Park offer appeal to visitors attending local events and festivals, and the residential areas near the Big Spring VA Medical Center provide opportunities for medical tourism and extended-stay guests visiting patients or attending medical appointments.

In Big Spring, Texas, Airbnb properties are subject to the state hotel occupancy tax of 6% and a local hotel occupancy tax of 7%, totaling 13% on gross rental receipts for stays less than 30 consecutive days. The Texas Comptroller of Public Accounts collects the state portion, while the City of Big Spring collects the local portion. Property owners must register with both the state and city, file monthly returns by the 20th of the following month, and remit taxes collected from guests. Airbnb can collect and remit these taxes on behalf of hosts through their platform since approximately 2017-2018 under voluntary collection agreements with Texas and participating municipalities. Exemptions typically include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though documentation may be required. Hosts remain responsible for ensuring compliance and may need to register directly with tax authorities if not using Airbnb's automated collection service or if operating on other platforms.

To start an Airbnb in Big Spring, Texas, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $140,000-$160,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections from the City of Big Spring. Insurance costs approximately $2,000-$3,500 annually for landlord and short-term rental coverage. Utility setup and deposits for electricity, water, gas, internet, and cable total around $1,000-$2,000. First six months of operating costs including utilities ($200-$300 monthly), cleaning services ($75-$100 per turnover), maintenance reserves, property management software, and Airbnb platform fees add another $8,000-$12,000 to your startup investment.

Airbnb properties in Big Spring, Texas typically generate modest returns with average daily rates ranging from $65-95 for standard 2-3 bedroom homes, resulting in monthly revenues of $1,200-2,400 assuming 50-60% occupancy rates common in smaller Texas markets. Operating expenses including cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance ($200-400 monthly) typically consume 45-65% of gross revenue. Properties near Howard College or targeting oil industry workers and medical professionals visiting Scenic Mountain Medical Center tend to perform better, with profit margins of 25-40% achievable for well-managed properties. A typical 3-bedroom home purchased for $120,000-180,000 can generate annual net profits of $8,000-15,000, though success heavily depends on property condition, location proximity to major employers like the Federal Prison Complex or Big Spring State Hospital, and effective marketing to business travelers. The market benefits from limited hotel inventory but faces challenges from economic fluctuations tied to the oil industry and seasonal demand variations, with properties requiring 12-18 months to establish consistent booking patterns.

Based on Big Spring, Texas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and occupancy rates. Properties in Big Spring generally achieve profitability within 18-24 months, with average daily rates of $75-$95 and occupancy rates around 55-65% annually. The oil industry presence from companies like Chevron and ConocoPhillips creates steady demand for short-term rentals, particularly for business travelers and temporary workers. Initial investment costs are relatively low compared to major Texas markets, with median property prices around $85,000-$120,000, allowing for faster break-even periods. Market analysis from 2022-2024 shows consistent performance despite economic fluctuations, with properties near downtown or industrial areas performing 15-20% better than residential neighborhoods, and investors typically seeing full return on initial capital investment within 8-10 years while maintaining positive monthly cash flow after the second year of operation.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Big Spring, Texas. Local real estate agents in Big Spring who work with investors include Coldwell Banker Realty agents, RE/MAX Associates professionals, and Century 21 Judge Fite Company representatives who understand the local market dynamics. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for the Big Spring area. BiggerPockets connects investors with local professionals, while companies like Awning and RedAwning offer property management and investment guidance. Local property management companies such as West Texas Property Management and Howard County property managers can assist with operations. Real estate investment firms like HomeVestors and national platforms like Roofstock occasionally feature properties in the Big Spring market. Additionally, local mortgage brokers and investment-focused lenders like Lima One Capital and Visio Lending can provide financing solutions for Airbnb investment properties in the area.