Is Breckenridge, Texas Good for Airbnb Investment?

To start an Airbnb in Breckenridge, Texas, begin by researching local regulations through the City of Breckenridge Planning Department and Stephens County offices, as most small Texas towns require business licenses and may have zoning restrictions for short-term rentals. Obtain necessary permits including a general business license from the city clerk's office (estimated $50-100), ensure your property meets fire safety codes, and verify homeowner's insurance covers short-term rentals or purchase additional coverage through companies like Proper Insurance or CBIZ. Find a suitable property by searching local real estate listings, considering proximity to Lake Breckenridge, Hubbard Creek Lake, or downtown attractions, with average home prices ranging $80,000-150,000 as of 2023. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and local touches highlighting Breckenridge's oil boom history and outdoor recreation opportunities, budgeting approximately $5,000-15,000 for initial furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos showcasing the property and local attractions like the Swenson House Museum or nearby lakes, setting competitive rates around $75-125 per night based on local market analysis. Manage your listing by responding promptly to inquiries, coordinating cleaning between guests through local services, maintaining the property regularly, and providing guests with information about local restaurants, outdoor activities, and historical sites while ensuring compliance with Texas state tax requirements including collecting and remitting hotel occupancy taxes to both state and local authorities.

For identifying profitable short-term rental properties in Breckenridge, Texas, focus on properties within 2-3 miles of Hubbard Creek Lake and Possum Kingdom Lake access points, as these water recreation areas drive primary tourism demand from Dallas-Fort Worth metro visitors seeking weekend getaways. Target 2-4 bedroom homes built after 1990 with outdoor amenities like fire pits, boat parking, fishing access, or large decks, as these features command 15-20% higher nightly rates averaging $120-180 per night during peak season (April-September). Analyze comparable properties using AirDNA and Mashvisor to identify gaps in the market, particularly focusing on properties that can accommodate 6-10 guests since family reunions and group fishing trips represent the highest revenue segment. Research competition by monitoring occupancy rates of existing STRs within a 5-mile radius, noting that properties with lake views or direct water access maintain 65-75% occupancy rates compared to 45-55% for standard residential properties. Utilize Zillow, Realtor.com, and local MLS data to identify undervalued properties under $200,000 that can generate 12-18% annual returns, while leveraging STR-specific tools like Rabbu and PriceLabs for dynamic pricing optimization and checking Stephens County regulations for any STR restrictions or permit requirements that could impact profitability.

To obtain an Airbnb/STR permit in Breckenridge, Texas, you must first contact the Breckenridge City Hall at 118 W Walker Street or call (254) 559-7323 to inquire about their short-term rental ordinance requirements, as the city implemented STR regulations around 2021-2022. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, a site plan showing parking areas and property boundaries, proof of liability insurance (typically $1 million minimum), a floor plan of the rental unit, contact information for a local property manager or 24-hour emergency contact, and a completed fire safety inspection form. The application fee is estimated at $150-300 with an annual renewal fee of approximately $100-200. You must also obtain a business license from the city if you don't already have one, which costs around $50-75. The property must comply with zoning requirements (typically allowed in residential zones with restrictions), provide adequate off-street parking (usually 2 spaces minimum), maintain occupancy limits based on bedrooms and square footage, and ensure the property meets all building and fire codes. The approval timeline is generally 30-45 days after submitting a complete application, and you may need to attend a city council meeting if there are any objections from neighbors. Once approved, you must display the permit number in all online listings and renew annually by December 31st.

Short-term rentals (STRs) are generally legal in Breckenridge, Texas, as the city does not have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with standard business licensing requirements and collect applicable state and local taxes including hotel occupancy taxes. The city follows Texas state regulations which allow STRs but require proper registration and tax compliance. There are no specific zoning restrictions or prohibited areas within Breckenridge city limits for STRs, though properties must meet basic safety and occupancy standards. Recent years have seen increased scrutiny of STR operations statewide, but Breckenridge has not implemented the restrictive measures seen in larger Texas cities like Austin or San Antonio. Property owners should verify current business license requirements with the city clerk and ensure compliance with Stephens County regulations, as rural Texas communities typically have more permissive approaches to short-term rental operations compared to urban areas.

The best areas for Airbnb investment in Breckenridge, Texas include the historic downtown district near the courthouse square, which attracts visitors interested in the town's Wild West heritage and proximity to antique shops and local restaurants. The residential neighborhoods along Walker Creek offer scenic waterfront properties that appeal to families and groups seeking peaceful retreats with fishing and outdoor activities. Areas near the Breckenridge Fine Arts Center draw cultural tourists attending theater productions and art events throughout the year. Properties close to Hubbard Creek Lake are highly desirable for weekend getaways, fishing tournaments, and water recreation enthusiasts, particularly during spring and summer months. The neighborhoods surrounding the Breckenridge Aviation Museum attract aviation enthusiasts and history buffs, while areas near the oil heritage sites appeal to business travelers and industry professionals visiting for petroleum-related activities, as Breckenridge remains connected to its oil boom legacy.

Airbnb properties in Breckenridge, Texas are subject to the state hotel occupancy tax of 6% on gross rental receipts, which applies to stays of less than 30 consecutive days. Additionally, Stephens County (where Breckenridge is located) may impose a local hotel occupancy tax of up to 7%, though the exact rate varies and was approximately 2-3% as of recent years. The City of Breckenridge can also levy its own hotel occupancy tax of up to 7% of gross rental receipts. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted monthly to the appropriate tax authorities, including the Texas Comptroller for state taxes and local jurisdictions for municipal and county taxes. Property owners must register with the Texas Comptroller and obtain a hotel occupancy tax permit, file monthly returns even if no tax is due, and maintain detailed records of all rental transactions. Exemptions generally include stays of 30 days or longer, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria as they can change.

Starting an Airbnb in Breckenridge, Texas requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in this small East Texas town. Furnishing a 2-3 bedroom property typically costs $15,000-25,000 including beds, sofas, dining sets, appliances, linens, and décor to create an attractive rental space. Initial setup expenses of $2,000-3,000 cover professional photography, listing creation, welcome materials, and basic supplies. Permits and fees total approximately $500-800 including business license, occupancy permits, and potential HOA approvals. Insurance costs $1,200-2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-800 for electricity, water, gas, internet, and cable services. First six months of operating costs including utilities ($600-900 monthly), cleaning services ($100-150 per turnover), maintenance reserves ($200-400 monthly), property management software ($50-100 monthly), and marketing expenses total approximately $6,000-10,000, bringing the complete startup investment to roughly $175,000-220,000 depending on property size and finish level.

Airbnb properties in Breckenridge, Texas show moderate profitability potential with average daily rates ranging from $85-120 for typical 2-3 bedroom homes, generating approximately $2,500-4,200 monthly revenue during peak periods with 65-75% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($75-100 per turnover), property management (15-25%), utilities ($150-200 monthly), insurance ($1,200-1,800 annually), and maintenance costs averaging $200-400 monthly. Net profit margins generally range from 25-35% for well-managed properties, with successful hosts like those operating lake-view cabins near Possum Kingdom Lake achieving higher margins of 40-45% by targeting weekend fishing and boating enthusiasts. Key success factors include proximity to Possum Kingdom Lake recreational activities, professional photography showcasing outdoor amenities, competitive pricing during hunting seasons (October-January), and maintaining 4.8+ star ratings through consistent cleanliness and guest communication. Properties within 5 miles of the lake typically outperform those in town by 20-30% in both occupancy and rates, with annual net profits ranging from $15,000-28,000 for investment properties after accounting for mortgage payments, though success heavily depends on property condition, marketing effectiveness, and seasonal demand fluctuations in this rural Texas market.

Airbnb investments in Breckenridge, Texas can expect annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions in this small East Texas town of approximately 5,400 residents. Properties typically achieve profitability within 18-24 months, with average nightly rates of $85-120 for 2-3 bedroom homes and occupancy rates around 55-65% annually. The market benefits from proximity to Caddo Lake State Park and recreational fishing activities, though seasonal fluctuations occur with peak demand during spring and fall months. Initial investment costs average $150,000-250,000 for suitable properties, with annual operating expenses including cleaning, maintenance, and platform fees typically consuming 35-45% of gross rental income, resulting in net yields that make Breckenridge a moderately attractive market for short-term rental investments compared to major Texas metropolitan areas.

STRSearch leads the market in Airbnb investment property analysis nationwide including Breckenridge, Texas. Local real estate agents specializing in short-term rental investments include Coldwell Banker Realty agents in the Dallas-Fort Worth area who cover Breckenridge, RE/MAX agents with STR expertise, and Keller Williams Realty professionals focusing on investment properties. National services include Awning (formerly RedAwning) which launched in 2016, Mashvisor providing rental property analytics since 2014, BiggerPockets marketplace connecting investors since 2004, and Roofstock offering turnkey rental properties since 2015. AirDNA provides short-term rental market data and was founded in 2015, while Vacasa offers property management services for STR investors and started in 2009. Local property management companies like Texas-based STR managers and Dallas area vacation rental specialists also assist investors. Investment-focused brokerages such as eXp Realty agents specializing in STR properties, along with local independent agents familiar with Stephens County regulations and tourism patterns around Possum Kingdom Lake, provide additional expertise for Airbnb property acquisitions in the Breckenridge market.