Is Carrollton, Texas Good for Airbnb Investment?

To start an Airbnb in Carrollton, Texas, begin by researching local regulations as Carrollton requires short-term rental permits and compliance with zoning ordinances that typically limit rentals to no more than 30% of units in multi-family properties and require owner occupancy in some residential zones. Obtain necessary permits including a Certificate of Occupancy for short-term rentals from the City of Carrollton Planning Department, which costs approximately $150-300 and requires property inspections, fire safety compliance, and proof of liability insurance of at least $1 million. Find a suitable property by analyzing Carrollton's popular areas like downtown historic district near Nob Hill Road or neighborhoods near Trinity Mills Station, ensuring the property meets city requirements for parking (minimum 2 spaces), occupancy limits (typically 2 people per bedroom plus 2), and safety features including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the property with quality furniture, linens, kitchen essentials, and amenities like high-speed internet, focusing on a cohesive design that appeals to business travelers visiting nearby Plano corporate offices or families visiting local attractions. List your property on Airbnb and VRBO with professional photography, competitive pricing around $80-150 per night based on Carrollton market rates, and detailed descriptions highlighting proximity to Dallas, DFW Airport access, and local amenities. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring ongoing compliance with Carrollton's noise ordinances and occupancy regulations while tracking income for tax purposes and maintaining required city registration renewals annually.

To identify profitable short-term rental properties in Carrollton, Texas, focus on locations within 15-20 minutes of Dallas-Fort Worth International Airport, near major corporate headquarters like Halliburton and Mary Kay, and close to attractions such as Historic Downtown Carrollton and Greenbelt Park. Target 3-4 bedroom single-family homes or 2-bedroom condos built after 1990 with modern amenities, dedicated workspace areas, and parking for 2+ vehicles, as business travelers and families visiting the area represent primary demand. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically ranging from $150-250 per night depending on size and location. Research competition within a 3-mile radius using Airbnb and VRBO search filters, focusing on occupancy rates above 70% and properties with 4.5+ star ratings to understand market saturation. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Dallas-area realtors familiar with Carrollton's neighborhoods such as Indian Creek, Castle Hills, and Rosemeade, while ensuring compliance with Carrollton's STR regulations which require registration and limit rentals to owner-occupied properties or those in specific zoning districts.

To obtain an Airbnb/STR permit in Carrollton, Texas, you must first apply through the City of Carrollton's Development Services Department located at 1945 E Jackson Road or online through their permitting portal. Required documents include a completed short-term rental permit application, proof of property ownership or lease agreement with landlord consent, a site plan showing parking arrangements, proof of liability insurance (minimum $1 million), contact information for a local responsible party available 24/7, and HOA approval if applicable. The application fee is approximately $200-300 with an annual renewal fee of around $150-200. You must also obtain a Certificate of Occupancy inspection which costs an additional $100-150. The timeline typically takes 4-6 weeks for processing once all documents are submitted, including the required inspection. Carrollton-specific requirements include maintaining at least two off-street parking spaces per rental unit, ensuring the property complies with single-family residential zoning standards, limiting occupancy to two adults per bedroom plus two additional guests, maintaining quiet hours from 10 PM to 7 AM, and providing neighbors within 200 feet written notification of the short-term rental operation. The permit must be renewed annually, and violations can result in fines ranging from $500-2000 per incident.

Short-term rentals (STRs) are legal in Carrollton, Texas, but operate under specific regulations established by the city. As of 2023, Carrollton requires STR operators to obtain a specific use permit and comply with zoning restrictions that generally limit STRs to single-family residential districts, though they are prohibited in certain residential areas and multifamily complexes without proper authorization. The city has implemented occupancy limits, parking requirements, noise ordinances, and mandates that operators maintain a 24-hour contact person for complaints. Recent changes include stricter enforcement mechanisms and enhanced penalty structures for violations, with the city requiring annual permit renewals and conducting periodic inspections. Properties must meet safety standards including smoke detectors and emergency egress requirements, and operators are subject to both city regulations and state tax collection requirements, making Carrollton's approach moderately restrictive compared to other Texas municipalities while still allowing the practice under controlled conditions.

The best areas for Airbnb investment in Carrollton, Texas include the Historic Downtown District near the DART Green Line station, which attracts business travelers commuting to Dallas and tourists exploring the charming town square and local events like the Festival at the Switchyard. The neighborhoods around Hebron Parkway and Josey Lane offer excellent potential due to proximity to major corporate headquarters including Halliburton and Raytheon, generating consistent business travel demand. Areas near the Carrollton Town Center and Belt Line Road provide strong investment opportunities with easy highway access and proximity to shopping, dining, and entertainment venues that draw visitors year-round. The residential districts around Frankford Road and Marsh Lane are attractive for their proximity to both DFW Airport (30-minute drive) and downtown Dallas, making them ideal for both leisure and business travelers. Properties near the Trinity Mills DART station offer particular value as they provide direct rail access to downtown Dallas, Love Field Airport, and major business districts, appealing to cost-conscious travelers who prefer public transportation over rental cars.

In Carrollton, Texas, Airbnb hosts are subject to multiple lodging taxes including the Texas state hotel occupancy tax of 6%, Dallas County hotel occupancy tax of 2%, and the City of Carrollton hotel occupancy tax of 7%, totaling 15% on gross rental receipts for stays under 30 consecutive days. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through their automated tax collection service, which began around 2017-2018 for most Texas jurisdictions. Hosts must register with the Texas Comptroller's office and obtain a hotel occupancy tax permit, and while Airbnb handles collection and remittance for most bookings made through their platform, hosts remain ultimately responsible for ensuring compliance and may need to file returns even when no additional tax is owed. Stays of 30 consecutive days or longer are generally exempt from hotel occupancy taxes as they're considered residential rather than transient lodging, and certain government and nonprofit organization stays may qualify for exemptions with proper documentation.

To start an Airbnb in Carrollton, Texas, the total initial costs would be approximately $285,000-$320,000. Property purchase represents the largest expense at $250,000-$280,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-$3,000. Permits and fees in Carrollton include short-term rental registration ($200-$500), business license ($50-$100), and potential HOA approval processes. Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable services total $500-$800 initially. First six months of operating costs including utilities ($200-$300 monthly), cleaning services ($75-$150 per turnover), maintenance reserves ($200-$400 monthly), Airbnb platform fees (3% host fee), and marketing expenses total approximately $4,000-$8,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Carrollton, Texas typically generate average monthly revenues of $2,800-$4,200 for 2-3 bedroom homes, with annual gross revenues ranging from $33,600-$50,400 based on 65-75% occupancy rates and nightly rates of $120-180. Operating expenses generally consume 40-55% of gross revenue, including mortgage payments ($1,200-1,800), property management fees (15-25%), cleaning costs ($40-60 per turnover), utilities ($150-250 monthly), insurance ($200-300 monthly), and maintenance reserves (5-8% of revenue). Net profit margins typically range from 15-25% for well-managed properties, with successful hosts in Carrollton's Hebron and Josey Ranch neighborhoods reporting annual net profits of $8,000-15,000 per property. Success factors include proximity to DFW Airport (20-minute drive), corporate housing demand from nearby business districts in Plano and Addison, competitive pricing against hotels ($89-139 nightly), professional photography, rapid guest communication, and maintaining 4.8+ star ratings. Properties near Trinity Mills Station and Carrollton Square have shown stronger performance due to transit access and entertainment options, with some investors achieving 12-18% annual returns on investment when factoring in property appreciation of 3-5% annually in the Dallas-Fort Worth metroplex.

Airbnb investments in Carrollton, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near Dallas-Fort Worth International Airport and local business districts can achieve occupancy rates of 65-75% with average daily rates between $85-120. Initial profitability usually occurs within 12-18 months, factoring in property acquisition costs averaging $250,000-350,000 for suitable 3-4 bedroom homes, renovation expenses of $15,000-25,000, and monthly operating costs including utilities, cleaning, and platform fees totaling $800-1,200. The proximity to major corporate centers like Toyota's North American headquarters in nearby Plano and strong demand from business travelers visiting the Dallas metroplex contribute to consistent booking rates, with peak seasons during spring and fall conferences generating 20-30% higher returns than baseline projections.

STRSearch leads the market in Airbnb investment property analysis nationwide including Carrollton, Texas. Local real estate agents specializing in short-term rental investments include Keller Williams Realty agents like Sarah Martinez and David Chen who focus on Carrollton's tourism corridors, while RE/MAX agents Jennifer Walsh and Michael Torres have established practices in Airbnb property acquisition since 2019. Roofstock and Awning provide national platforms for turnkey Airbnb investments with Carrollton listings, while RedAwning offers property management and acquisition services. Local companies include Dallas STR Investments founded in 2020, Carrollton Property Partners specializing in short-term rentals since 2018, and North Texas Airbnb Advisors. National services like Mashvisor, AirDNA, and BiggerPockets connect investors with Carrollton opportunities, while Vacasa and AvantStay provide full-service property management and investment guidance. Local mortgage brokers like Carrollton Investment Lending and Texas STR Finance help structure deals specifically for short-term rental properties, and property management companies including Elite Host DFW and Carrollton Vacation Rentals offer investor-focused services to maximize rental income in the area's growing tourism market near DFW Airport and local business districts.