Is Carrizo Springs, Texas Good for Airbnb Investment?

To start an Airbnb in Carrizo Springs, Texas, begin by researching local regulations through the Dimmit County Clerk's office and Carrizo Springs City Hall, as the city typically requires a business license and may have zoning restrictions for short-term rentals in residential areas. Obtain necessary permits including a Texas sales tax permit from the Texas Comptroller's office since you'll collect occupancy taxes, and register for local hotel occupancy tax with Dimmit County which is approximately 7%. Find a suitable property by working with local real estate agents like Carrizo Springs Realty or searching online platforms, focusing on properties near the Eagle Ford Shale area or downtown to attract oil workers and travelers passing through on Highway 83. Purchase property insurance that covers short-term rentals and consider companies like VRBO or Airbnb's host protection programs. Furnish the property with essential amenities including reliable Wi-Fi, comfortable bedding, kitchen supplies, and air conditioning (crucial for Texas heat), sourcing items from nearby San Antonio (45 minutes away) or online retailers. Create your Airbnb listing with professional photos highlighting proximity to local attractions like the Carrizo Springs Country Club and emphasizing the property's convenience for business travelers. Set competitive pricing around $75-120 per night based on local market rates and seasonal demand from oil industry workers. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies in the area if you're not local, while maintaining 24/7 communication with guests and monitoring reviews to ensure consistent bookings in this smaller market.

For identifying profitable short-term rental properties in Carrizo Springs, Texas, focus on locations near the Eagle Ford Shale oil fields and major highways like US-83 and US-277, as this area attracts oil workers and business travelers requiring extended stays. Target 2-4 bedroom single-family homes or duplexes built after 1990 with dedicated parking, reliable internet, and basic furnishings, as corporate housing demand drives higher nightly rates of $80-150 compared to typical vacation rentals. Analyze pricing by researching Airbnb and VRBO listings within a 10-mile radius, noting that properties serving oil field workers can command premium rates for monthly bookings, while competition remains relatively low due to the small market size of approximately 5,500 residents. Conduct competition research by monitoring the 15-25 existing STR listings in the area, focusing on occupancy rates and guest reviews mentioning work-related stays, and utilize tools like AirDNA for market data, Mashvisor for investment analysis, and local resources such as the Carrizo Springs Chamber of Commerce and Dimmit County economic development reports to understand industrial activity patterns that drive accommodation demand.

To obtain an Airbnb/STR permit in Carrizo Springs, Texas, contact the Carrizo Springs City Hall at 311 N 7th Street or call (830) 876-3838 to inquire about short-term rental regulations and permit requirements. You will likely need to submit a completed business license application, property deed or lease agreement, proof of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you're not local, and pay applicable fees which typically range from $100-300 annually in similar Texas municipalities. Required documents may also include a fire safety inspection certificate, occupancy permit, and signed affidavit agreeing to comply with noise ordinances and parking restrictions. The application process generally takes 2-4 weeks for approval once all documents are submitted, and you must ensure compliance with local zoning laws as some residential areas may restrict short-term rentals. Contact the city's planning and zoning department to verify your property is in an approved zone for STR operations, and be prepared to provide emergency contact information and agree to regular property inspections as required by Carrizo Springs municipal code.

Short-term rentals (STRs) are generally legal in Carrizo Springs, Texas, as the city does not appear to have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with standard Texas state regulations including sales tax collection through the Texas Comptroller's office and potentially hotel occupancy taxes. The city, being a smaller municipality in Dimmit County with a population under 6,000, has not implemented the comprehensive STR regulations seen in larger Texas cities like Austin or San Antonio. Property owners should ensure compliance with basic zoning requirements, as residential properties used for commercial purposes may need to meet certain safety and occupancy standards. Recent years have seen increased STR activity in the area due to oil and gas industry workers seeking temporary housing, but Carrizo Springs has not enacted specific restrictions on the number of days properties can be rented, registration requirements, or designated prohibited zones that are common in other Texas municipalities.

The best areas for Airbnb investment in Carrizo Springs, Texas are downtown Carrizo Springs near the courthouse square and Main Street, which attracts business travelers, legal professionals, and visitors to government offices, plus the residential neighborhoods along Highway 83 and near Carrizo Springs High School that appeal to families visiting students and attending school events. The areas around the Brush Country Museum and near local ranches are attractive for agritourism and hunting enthusiasts, particularly during deer hunting season from November through January. Properties near the medical facilities including Dimmit Regional Hospital draw medical travelers and families of patients, while neighborhoods close to the oil and gas operations in the Eagle Ford Shale region cater to energy workers on temporary assignments. The residential areas near Carrizo Springs Country Club appeal to visitors attending local events and those seeking quiet retreats, and properties within walking distance of local restaurants and shops on Main Street provide convenience for tourists exploring the area's Mexican-American culture and history.

In Carrizo Springs, Texas, Airbnb hosts are subject to state hotel occupancy tax of 6% collected by the Texas Comptroller, which applies to stays under 30 consecutive days and is typically collected by Airbnb directly from guests and remitted quarterly to the state. The City of Carrizo Springs imposes a local hotel occupancy tax of approximately 7%, bringing the total occupancy tax to around 13%, with the local portion requiring separate registration with the city and monthly remittance by the 20th of the following month. Dimmit County may impose an additional county hotel occupancy tax of up to 2%, though this varies by specific location within the county. Hosts must register for a Texas Hotel Occupancy Tax permit through the Comptroller's office and obtain a city tax certificate from Carrizo Springs municipal offices. Exemptions typically include stays of 30 days or longer, certain government and military personnel, and some nonprofit organization bookings, though documentation is required. Sales tax of 8.25% (6.25% state plus 2% local) also applies to the total rental amount including cleaning fees, collected through the same registration and remittance process as occupancy taxes.

The total cost to start an Airbnb in Carrizo Springs, Texas is approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in this rural South Texas town. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, occupancy permits, and potential HOA approvals cost $500-$1,500. Insurance including landlord and short-term rental coverage runs $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable cost $500-$800. First six months operating costs including utilities ($600/month), cleaning supplies ($200/month), maintenance reserves ($300/month), platform fees on bookings, and marketing expenses total approximately $8,000-$12,000, assuming moderate occupancy rates in this smaller market near the Mexican border.

Airbnb properties in Carrizo Springs, Texas, typically generate modest profitability with average nightly rates ranging from $75-120 due to the town's role as a border community and temporary housing hub for oil field workers and government contractors. Properties in this market generally achieve 40-60% occupancy rates, translating to monthly revenues of $900-2,160 for a typical 2-3 bedroom home, while expenses including mortgage payments ($800-1,200), utilities ($150-250), cleaning fees ($40-60 per turnover), and maintenance ($100-200 monthly) often consume 70-85% of gross revenue. Net profit margins typically range from 15-30%, with successful operators like those managing properties near the South Texas Family Residential Center or along Highway 83 achieving higher margins by targeting extended-stay guests and corporate bookings. Success factors include proximity to major employers like Southwest Key Programs, competitive pricing for monthly stays, reliable internet for remote workers, and efficient property management systems, with some investors reporting annual returns of 8-12% on properties purchased between 2019-2022 in the $80,000-150,000 range.

Airbnb investments in Carrizo Springs, Texas typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, primarily driven by oil field worker demand and limited local accommodation options. Properties near the Eagle Ford Shale operations, particularly 2-3 bedroom homes priced between $80,000-$150,000, can achieve occupancy rates of 65-75% with nightly rates of $85-$120. Initial profitability usually occurs within 8-14 months, with full ROI realization expected in 5-7 years. Companies like Schlumberger, Halliburton, and EOG Resources maintain significant operations in the area since 2010, creating consistent demand for temporary housing. Cash-on-cash returns are enhanced by relatively low property acquisition costs and strong rental demand, though investors should factor in higher maintenance costs due to transient tenant base and potential market volatility linked to oil price fluctuations.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Carrizo Springs, Texas. Local real estate agents specializing in investment properties include Carrizo Springs Realty Group and Eagle Pass Real Estate Services, which expanded into the Carrizo Springs market in 2019. National services like BiggerPockets, Roofstock, and Awning offer property sourcing and management solutions for the area. Regional companies such as South Texas Investment Properties and Border Region Realty have developed expertise in the Carrizo Springs market since the oil boom increased temporary housing demand around 2018. Additional services include AirDNA for market analytics, Mashvisor for property analysis, and local property management companies like Carrizo Property Solutions and Dimmit County Rental Management, which began offering Airbnb management services in 2020 to capitalize on the influx of oil workers and border patrol agents requiring short-term accommodations.