Is Brownfield, Texas Good for Airbnb Investment?

To start an Airbnb in Brownfield, Texas, begin by researching local regulations through the Brownfield City Hall (806-637-2711) as the city likely requires a business license and may have zoning restrictions for short-term rentals in residential areas. Contact Terry County for any county-level permits and check with the Texas Department of Licensing and Regulation for state requirements. Find a suitable property by working with local real estate agents like Coldwell Banker or Century 21, focusing on properties near downtown Brownfield or close to South Plains College's nearby campuses, with typical investment properties ranging $50,000-$150,000. Obtain necessary permits including a business license from the city clerk's office, sales tax permit from Texas Comptroller, and ensure compliance with fire safety codes through the local fire marshal. Furnish the property with essential amenities including Wi-Fi, basic kitchen supplies, linens, and furniture from retailers like Walmart or online suppliers, budgeting approximately $5,000-$15,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to local attractions like Terry County Heritage Museum and Coleman Park, setting competitive rates around $60-$120 per night based on local market analysis. Manage the property by establishing cleaning protocols with local services, implementing keyless entry systems, maintaining responsive guest communication, and considering property management companies in nearby Lubbock if needed for remote management, while ensuring compliance with Texas occupancy tax collection and remittance requirements.

To identify profitable short-term rental properties in Brownfield, Texas, focus on properties within 2-3 miles of the city center and near major employers like oil and gas facilities, as this area serves the Permian Basin energy sector with frequent business travelers. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, reliable internet, and parking, as corporate housing demand is strong in this market. Analyze pricing by researching comparable rentals on Airbnb and VRBO, aiming for properties under $150,000 that can generate $80-120 nightly rates, with occupancy rates typically ranging 60-75% due to consistent oil field worker demand. Competition research should focus on the limited existing STR inventory, as Brownfield has fewer than 20 active short-term rentals, creating opportunity for well-positioned properties. Utilize tools like AirDNA for market analysis, Mashvisor for investment calculations, and local resources including the Brownfield Economic Development Corporation for area insights, Terry County Appraisal District for property values, and networking with local real estate agents familiar with investor-friendly properties near industrial areas and the municipal airport.

To obtain an Airbnb/STR permit in Brownfield, Texas, you must first contact the Brownfield City Hall at 201 W Broadway Street or call (806) 637-2711 to inquire about short-term rental regulations and obtain application forms. Required documents typically include a completed STR permit application, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy with minimum $500,000 coverage, floor plan showing maximum occupancy, contact information for a local property manager if you're not local, and payment of applicable fees. The permit fee is estimated at $150-300 annually with a possible inspection fee of $75-100. Submit your complete application package to the City Secretary's office along with payment, after which the city will schedule a safety inspection of the property to ensure compliance with fire codes, occupancy limits, and basic safety requirements. The approval timeline is typically 2-4 weeks from submission of a complete application. Brownfield requires STR operators to maintain current contact information with the city, respond to complaints within 2 hours, limit occupancy to 2 people per bedroom plus 2 additional guests, provide adequate parking, and ensure properties meet all building and fire codes, with permits requiring annual renewal.

Short-term rentals (STRs) are generally legal in Brownfield, Texas, as the city does not appear to have enacted specific ordinances prohibiting or heavily regulating STR operations as of 2024. Like most smaller Texas municipalities, Brownfield likely relies on existing zoning laws and general business licensing requirements to govern short-term rental activities, meaning STRs would typically be permitted in residential areas unless specifically restricted by homeowners associations or deed restrictions. The city has not implemented the comprehensive STR regulations seen in larger Texas cities like Austin or Dallas, and there are no known prohibited zones or recent legal changes specifically targeting short-term rentals. Property owners should still comply with standard business licensing requirements, collect applicable hotel occupancy taxes, and ensure their operations don't violate noise ordinances or other general municipal codes, but the regulatory environment remains relatively permissive compared to more restrictive jurisdictions in Texas.

The best areas for Airbnb investment in Brownfield, Texas include the historic downtown district near the Terry County Heritage Museum and courthouse square, which attracts visitors interested in local history and serves business travelers attending county meetings or legal proceedings. The residential neighborhoods surrounding Coleman Park offer quiet, family-friendly accommodations for visitors attending youth sports tournaments and community events at the park facilities. Properties near the Brownfield Regional Medical Center area are ideal for medical tourism, as they serve families of patients and traveling healthcare professionals. The area around the Brownfield Country Club attracts golf enthusiasts and provides upscale lodging options for business executives visiting local agricultural operations. Additionally, neighborhoods along Highway 62/82 corridor offer convenient access for oil and gas industry workers, as Terry County has active petroleum operations, making these locations attractive for extended-stay corporate housing serving the energy sector workforce.

Airbnb properties in Brownfield, 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. The Texas Comptroller requires hosts to register for a hotel occupancy tax permit and remit taxes monthly by the 20th of the following month if monthly collections exceed $500, or quarterly if collections are less than $500. Terry County, where Brownfield is located, does not impose an additional county hotel occupancy tax as of 2023. The City of Brownfield may impose a local hotel occupancy tax of up to 7% under Texas Tax Code Chapter 351, though specific current rates would need verification with city officials. Airbnb typically collects and remits state taxes automatically for Texas hosts who opt into their tax collection service, but hosts remain ultimately responsible for compliance. Exemptions generally apply to stays of 30 days or longer, certain government and nonprofit travelers, and in some cases agricultural workers, though documentation requirements apply for claiming exemptions.

Starting an Airbnb in Brownfield, Texas requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $120,000-150,000 based on median home prices in this small West Texas city as of 2023-2024. Furnishing a 2-3 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 basic renovations run $3,000-5,000. Permits and fees are relatively minimal in Brownfield at approximately $500-1,000 for business licenses and short-term rental permits. Insurance costs about $1,500-2,500 annually for landlord and short-term rental coverage. Utility deposits and connections total around $500-800 for electricity, water, gas, internet, and cable services. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-400/month), Airbnb fees (3% host fee), and marketing expenses total approximately $4,000-7,000, assuming 50-70% occupancy rates typical for smaller Texas markets.

Airbnb properties in Brownfield, Texas typically generate modest returns due to the city's small population of approximately 9,000 and limited tourism infrastructure, with average nightly rates ranging from $45-75 compared to major Texas markets. Properties in Brownfield generally achieve 35-50% occupancy rates annually, generating gross revenues of $8,000-15,000 per year for typical 2-3 bedroom homes, while operating expenses including utilities, cleaning, maintenance, insurance, and platform fees typically consume 40-60% of gross revenue. Net profit margins for Brownfield Airbnb properties average 15-25%, significantly lower than urban markets like Austin or Dallas which see 25-40% margins, primarily due to lower demand from the oil and gas industry workers who represent the main guest demographic. Success factors include proximity to local industrial facilities, competitive pricing below $70/night, and targeting extended-stay business travelers rather than leisure guests, with properties near the Brownfield Regional Airport and industrial zones performing better than residential locations. A typical investment scenario shows a $120,000 property generating $12,000 annual gross revenue with $7,200 in expenses, yielding approximately $4,800 net income or 4% annual return, making Brownfield a marginal market for Airbnb investment compared to larger Texas cities.

Airbnb investments in Brownfield, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil field worker demand and limited local accommodation options. Properties in this West Texas town, with average acquisition costs of $80,000-$120,000, can achieve monthly rental rates of $1,200-$1,800 for 2-3 bedroom homes, reaching profitability within 18-24 months. The market benefits from consistent occupancy rates of 65-75% due to Permian Basin oil activity, though investors should expect seasonal fluctuations tied to energy sector cycles. Initial investment requirements including furnishing and setup typically range $15,000-$25,000, with gross rental yields averaging 15-20% annually before expenses, making Brownfield an attractive market for cash-flow focused real estate investors targeting the industrial workforce accommodation sector.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Brownfield, Texas and surrounding areas. Local real estate agents in the Brownfield market who focus on investment properties include Coldwell Banker and Century 21 offices, with agents like those at RE/MAX and Keller Williams also serving the West Texas region since the early 2000s. National services that help investors find Airbnb properties include Mashvisor (founded 2014), BiggerPockets (established 2004), Roofstock (launched 2015), and AirDNA (started 2015) which provides market analytics for short-term rentals. Regional Texas-based companies like HomeVestors and local property management firms such as West Texas Property Solutions have been assisting investors since the 1990s. Additional services include Awning (property management), RedAwning (vacation rental platform), and local Brownfield real estate brokerages like Brownfield Real Estate and Terry County Realty that have been operating since the 1980s, all of which can help identify properties with strong rental potential in this West Texas oil and agriculture market.