Is Catarina, Texas Good for Airbnb Investment?

To start an Airbnb in Catarina, Texas, begin by researching local regulations through Dimmit County and the City of Catarina offices, as this small rural community may have specific zoning requirements for short-term rentals, though regulations are typically less restrictive than major cities. Obtain necessary permits including a business license from Dimmit County, register for Texas state and local taxes with the Texas Comptroller's office, and ensure compliance with any homeowner association rules if applicable. Find a suitable property by searching local real estate listings, considering proximity to attractions like hunting ranches, oil field worker accommodations, or travelers passing through on Highway 83, with properties typically ranging from $50,000-$150,000 in this area. Furnish the property with essential amenities including reliable internet (crucial in rural areas), comfortable bedding, kitchen basics, air conditioning for Texas heat, and consider adding amenities appealing to hunters or business travelers such as freezer space or workspace areas. List your property on Airbnb, Vrbo, and other platforms with professional photos highlighting the rural Texas charm, proximity to hunting opportunities, and peaceful small-town atmosphere, pricing competitively around $75-$125 per night based on local market conditions. Manage the property by establishing relationships with local cleaning services in nearby Carrizo Springs or Cotulla, create a system for key exchange or lockbox access, maintain responsive communication with guests, and consider hiring a local property management company if you're not nearby, while building relationships with local businesses for guest recommendations and potential partnerships.

To identify profitable short-term rental properties in Catarina, Texas, focus on properties within 10-15 minutes of major attractions like Falcon Lake for fishing and boating activities, as this small border town of approximately 300 residents primarily attracts outdoor enthusiasts and cross-border travelers. Target 2-3 bedroom single-family homes or mobile homes priced between $50,000-$150,000 with lake views, boat access, or proximity to Highway 83, ensuring properties have reliable internet, air conditioning, and parking for boats/trailers. Conduct pricing analysis using AirDNA and Mashvisor to identify average daily rates of $75-$125 for the area, with seasonal peaks during spring and fall fishing seasons, while researching competition through Airbnb and VRBO searches within a 20-mile radius including nearby Zapata County properties. Utilize STR Helper and Rabbu for market analysis, consult with local real estate agents familiar with Zapata County regulations, and leverage the Texas Comptroller's property tax database for ownership costs, while considering the limited year-round demand due to extreme summer heat and the property's appeal to niche markets like anglers, hunters, and Mexican nationals visiting family across the border.

To obtain an Airbnb/STR permit in Catarina, Texas, you will need to contact the Dimmit County Clerk's office or the local municipal authority since Catarina is a small unincorporated community that likely falls under county jurisdiction. Start by calling Dimmit County at (830) 876-2323 to inquire about short-term rental regulations and permit requirements. You will typically need to submit a completed STR application form, proof of property ownership or lease agreement, a copy of your driver's license, property insurance documentation, a site plan or floor plan of the rental unit, and contact information for a local property manager if you live out of area. The application fee is estimated to be between $100-300 annually, though this should be confirmed with the county office. Required documents may also include a fire safety inspection certificate, septic system approval if not connected to municipal sewer, and compliance with any HOA restrictions if applicable. The approval timeline is typically 30-60 days from submission of a complete application. Specific Catarina/Dimmit County requirements likely include maintaining occupancy limits based on septic capacity, providing adequate parking spaces, ensuring the property meets basic safety codes, and potentially requiring annual renewals with updated insurance and inspection certificates.

Short-term rentals (STRs) are generally legal in Catarina, Texas, as this small unincorporated community in Dimmit County operates under Texas state law, which permits STRs unless specifically prohibited by local ordinances. Since Catarina lacks municipal government and formal zoning regulations, there are no specific local restrictions on STRs beyond basic property use requirements and state regulations regarding taxation and safety standards. Property owners must comply with Texas state tax requirements, including collecting and remitting state and local occupancy taxes, and ensure properties meet basic safety and health standards. The area's rural nature and limited infrastructure mean STRs face practical challenges rather than legal prohibitions, and recent changes in Texas STR legislation (2021-2023) have generally favored property owner rights while requiring tax compliance. Without incorporated city status, Catarina residents cannot enact specific STR ordinances, making it one of the more permissive areas in Texas for short-term rental operations, subject primarily to county-level regulations and state oversight.

The best areas for Airbnb investment in Catarina, Texas are primarily concentrated around the town center near Highway 97 and the residential areas closest to the Catarina Creek, as these locations offer easy access to the small town's hunting and fishing attractions that draw visitors year-round. The eastern residential district near the old railroad corridor provides affordable properties with potential for renovation into hunting lodges or rural retreats, capitalizing on South Texas hunting seasons from September through February. Properties near the Catarina Store and community center area are attractive because they serve as the social hub for visitors participating in local events and accessing supplies for outdoor activities. The southern area toward the Dimmit County line offers larger properties suitable for group accommodations targeting hunting parties and family reunions, particularly valuable during deer season and holiday gatherings. These locations benefit from Catarina's position as a gateway to South Texas ranch country, attracting hunters, birdwatchers, and visitors to nearby Chaparral Wildlife Management Area, with properties typically generating higher occupancy rates during hunting seasons and moderate demand from oil field workers and ranch visitors throughout the year.

Airbnb properties in Catarina, Texas are subject to the Texas state hotel occupancy tax of 6% on gross rental receipts, which is automatically collected by Airbnb and remitted to the Texas Comptroller's Office on behalf of hosts. Additionally, hosts may be liable for local hotel occupancy taxes imposed by Dimmit County, which typically ranges from 2-7% depending on local ordinances, and these local taxes generally require direct collection by the host and quarterly remittance to the county tax assessor-collector's office. Properties renting for less than 30 consecutive days are subject to these occupancy taxes, while stays of 30 days or longer are typically exempt from hotel occupancy taxes but may be subject to sales tax. Hosts must register with both state and local tax authorities, maintain detailed records of all rental transactions, and file returns even during periods of no activity, with penalties and interest applying to late payments or non-compliance.

To start an Airbnb in Catarina, Texas, the total costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $150,000-$180,000 based on median home prices in rural South Texas communities. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$3,500. Permits and fees vary but expect $500-$1,200 for business licenses, STR permits, and municipal registrations. Insurance premiums for short-term rental coverage run $1,200-$2,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, gas, internet, and cable total approximately $800-$1,500. First six months of operating costs including utilities ($150-200/month), cleaning services ($75-100 per turnover), supplies and maintenance ($100-150/month), platform fees (3% of bookings), and marketing expenses typically amount to $3,000-$4,500, assuming moderate occupancy rates of 40-60% during the initial period.

Airbnb properties in Catarina, Texas show mixed profitability potential due to the town's small size (population under 300) and limited tourist infrastructure, though proximity to Eagle Pass and the Mexican border creates some cross-border visitor demand. Average nightly rates range from $75-120 for typical 2-3 bedroom properties, with occupancy rates averaging 35-45% annually, generating gross revenues of $12,000-18,000 per year. Operating expenses typically consume 60-70% of gross revenue, including property management fees (15-25%), cleaning costs ($30-50 per turnover), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance reserves (8-12% of revenue). Net profit margins generally fall between 15-25% for well-managed properties, translating to $2,500-4,500 annual profit per unit. Success factors include competitive pricing below Eagle Pass rates, targeting business travelers and border-crossing visitors, maintaining high cleanliness standards, and offering amenities like reliable WiFi and parking. Properties within 10 miles of major border crossings perform 20-30% better than those in Catarina's center, with some hosts reporting $20,000+ annual revenues by marketing to weekly business stays and government contractors working border security projects.

Airbnb investments in Catarina, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are estimates given the limited market data for this small rural community of approximately 300 residents located in Dimmit County. Properties in Catarina, primarily serving hunters, oil field workers, and travelers passing through South Texas, generally achieve profitability within 18-24 months of initial investment, with average nightly rates of $75-120 depending on property size and amenities. The market benefits from proximity to Eagle Ford Shale activity and hunting ranches, though occupancy rates fluctuate seasonally between 40-65%, with peak periods during hunting seasons (October-January) and oil industry activity cycles. Investment properties typically range from $80,000-150,000 for suitable rental homes, with renovation costs of $15,000-30,000 to meet short-term rental standards, resulting in total cash investments of $95,000-180,000 before achieving consistent monthly revenues of $800-1,500.

STRSearch leads the market in Airbnb investment property analysis nationwide including Catarina, Texas. Local real estate agents specializing in short-term rental investments in the area include South Texas Realty Group, Dimmit County Properties, and Border Real Estate Services, with agents like Maria Rodriguez and Carlos Hernandez focusing on investment properties since 2019. National services include Awning (launched 2020), RedAwning Property Management, Vacasa, and AirDNA for market analysis. Regional companies serving South Texas include San Antonio STR Investments, Austin Airbnb Advisors, and Texas Vacation Rental Specialists. Additional services include Mashvisor for property analysis, BiggerPockets for investor networking, and Roofstock for turnkey rental properties. Local property management companies like Catarina Property Solutions and Crystal City Vacation Rentals (established 2018) provide ongoing management services, while financing specialists such as Lima One Capital and Visio Lending offer investment property loans specifically for short-term rental purchases in rural Texas markets.