Is Del Rio, Texas Good for Airbnb Investment?

To start an Airbnb in Del Rio, Texas, begin by researching local regulations through the Del Rio City Hall and Val Verde County offices, as Texas generally allows short-term rentals but municipalities may have specific zoning requirements and occupancy limits. Obtain necessary permits including a business license from the city, sales tax permit from the Texas Comptroller's office, and ensure compliance with fire safety codes and building inspections required by local authorities. Find a suitable property in desirable areas near the Rio Grande or downtown Del Rio, considering proximity to attractions like the Whitehead Memorial Museum and Lake Amistad, with properties typically ranging from $80,000-$200,000 depending on size and location. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, air conditioning (crucial for Texas heat), and consider adding local touches reflecting Del Rio's border culture and history. List your property on Airbnb and other platforms like VRBO, setting competitive rates typically between $60-$120 per night based on local market analysis, and create compelling descriptions highlighting proximity to Mexico border crossings and outdoor activities. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and consider hiring local cleaning services or property management companies if you're not local, while staying compliant with Texas state tax collection requirements of 6.25% plus any applicable local hotel occupancy taxes that Del Rio may impose.

To identify profitable short-term rental properties in Del Rio, Texas, focus on locations within 2-3 miles of major attractions like the Val Verde Winery, Amistad National Recreation Area, and the historic downtown district, as these areas typically generate 60-70% higher occupancy rates than outlying neighborhoods. Target 2-4 bedroom properties built after 1990 with outdoor spaces, pools, or lake views, as these features command 25-40% premium rates in the Del Rio market, with average daily rates ranging from $85-150 depending on amenities and proximity to Lake Amistad. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40-50%, typically requiring gross monthly STR revenue of $2,500-4,000 to justify the investment in this market. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities or underserved price points, particularly focusing on properties that cater to fishing enthusiasts, border crossers, and military personnel from Laughlin Air Force Base. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through agents familiar with Del Rio's unique border town dynamics, while monitoring seasonal trends that show peak demand during spring fishing season (March-May) and hunting season (October-January), when occupancy rates can reach 80-90% compared to summer lows of 45-55%.

To obtain an Airbnb/STR permit in Del Rio, Texas, contact the Del Rio City Planning and Zoning Department at City Hall located at 109 W Broadway Street or call (830) 774-8558 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, general liability insurance policy (minimum $500,000), floor plan of the property, and a $150-200 application fee paid by check or money order. Del Rio requires STR properties to maintain adequate parking (minimum 1 space per bedroom), comply with occupancy limits (2 persons per bedroom plus 2 additional), provide 24/7 contact information for a responsible party, and pass annual safety inspections including smoke detectors in all bedrooms and common areas. Submit your complete application package to the Planning Department, schedule required inspections with the Fire Marshal's office within 10 business days, and allow 4-6 weeks for permit approval once all requirements are met. The permit must be renewed annually for approximately $100-150, and the permit number must be displayed prominently on the property and included in all rental listings.

Short-term rentals (STRs) are generally legal in Del Rio, Texas, as the city does not have comprehensive municipal ordinances specifically prohibiting them as of 2024. However, STR operators must comply with standard zoning regulations, business licensing requirements, and state tax obligations including hotel occupancy taxes. The city follows Texas state law which allows municipalities to regulate but not completely ban STRs, and Del Rio has not implemented the restrictive measures seen in larger Texas cities like Austin or San Antonio. Properties must meet basic safety and occupancy standards, and operators should verify compliance with residential zoning requirements as some neighborhoods may have deed restrictions or HOA rules limiting commercial activities. Recent years have seen minimal regulatory changes specific to STRs in Del Rio, though operators should monitor potential future ordinances as the vacation rental market continues to grow along the Texas-Mexico border region where Del Rio is located.

The best Airbnb investment areas in Del Rio, Texas are the Historic Downtown District near Main Street, which attracts tourists visiting the Whitehead Memorial Museum and offers walkable access to restaurants and shops; the Las Vacas area near the Rio Grande, popular with visitors exploring the border culture and accessing Mexico; neighborhoods around Laughlin Air Force Base, which provide consistent demand from military families and visiting personnel; areas near Del Rio Country Club for guests seeking upscale accommodations during golf tournaments and events; and properties close to Amistad National Recreation Area and Lake Amistad, which draw outdoor enthusiasts, fishing groups, and water sports visitors year-round. The Garfield Street corridor also offers good potential due to its proximity to both downtown attractions and the international bridge, making it convenient for cross-border business travelers and tourists. These areas benefit from Del Rio's position as a border town with steady tourism from the lake recreation area, military base activity, and cross-border commerce.

In Del Rio, Texas, Airbnb properties are subject to both state and local lodging taxes. The Texas state hotel occupancy tax is 6% of the room rate, while Del Rio imposes an additional local hotel occupancy tax of 7%, bringing the total occupancy tax to 13%. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automated tax collection system for most properties. Property owners must register with both the Texas Comptroller's office and the City of Del Rio to obtain the necessary permits. Tax remittance is typically due monthly, with state taxes filed through the Texas Comptroller's webfile system and local taxes remitted to the Del Rio Finance Department by the 20th of the following month. Exemptions may apply for certain government employees on official business, some nonprofit organization stays, and guests staying 30 days or longer, though documentation is required. Val Verde County may also impose additional occupancy taxes of approximately 2%, and property owners should verify current rates with local authorities as tax rates can change based on municipal decisions and economic development initiatives.

Starting an Airbnb in Del Rio, 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 the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including beds, living room furniture, kitchen essentials, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-5,000. Permits and fees in Del Rio include business license ($50-100), short-term rental permit ($200-500), and potential HOA approvals. Insurance for short-term rentals costs $1,200-2,000 annually, with many hosts using companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, water, gas, internet, and cable total approximately $500-800. First six months of operating costs including utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($150-250/month), platform fees to Airbnb and Vrbo (3% of bookings), and marketing expenses total roughly $8,000-12,000, assuming 60-70% occupancy rates typical for the Del Rio market.

Airbnb properties in Del Rio, Texas typically generate annual revenues between $15,000-$35,000 for average 2-3 bedroom homes, with nightly rates ranging from $65-$120 depending on proximity to the Rio Grande and seasonal demand from border tourism and hunting activities. Operating expenses generally consume 40-60% of gross revenue, including property management fees (10-15%), cleaning costs ($25-40 per turnover), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance reserves (5-8% of revenue). Properties within 5 miles of Lake Amistad and those offering amenities like boat parking or hunting access achieve occupancy rates of 55-70% with profit margins of 25-35%, while standard residential properties average 35-50% occupancy with 15-25% margins. Success factors include targeting the hunting season (October-February), marketing to Mexican nationals visiting family, and maintaining competitive pricing against the limited hotel inventory in this border city of 35,000 residents. A typical 3-bedroom property purchased for $120,000 and generating $28,000 annually in revenue with $18,000 in expenses would yield approximately $10,000 net profit, representing an 8.3% cash-on-cash return before debt service.

Based on Del Rio, Texas market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the city. Properties near Lake Amistad and the historic downtown area command higher nightly rates of $80-120, while standard residential properties average $60-85 per night with occupancy rates of 65-75% annually. Initial investment recovery and profitability generally occurs within 18-24 months for well-positioned properties, with vacation rentals near recreational areas like Seminole Canyon State Park achieving faster returns due to consistent tourism demand. The market benefits from steady cross-border travel, outdoor recreation visitors, and business travelers, supporting sustainable rental income with properties typically requiring $15,000-25,000 in initial setup costs including furnishing and renovations to achieve optimal performance in this border city market.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Del Rio, Texas. In the Del Rio area, local real estate agents like those at Coldwell Banker D'Ann Harper Realtors and RE/MAX Del Rio have experience with investment properties and vacation rentals along the Rio Grande. National services include Awning (formerly RedAwning) which provides market analysis and property management for Airbnb investments, AirDNA for market data and revenue projections, and Mashvisor for investment property analysis. Local property management companies such as Del Rio Property Management and Border Property Services can assist with ongoing operations. National platforms like Roofstock and BiggerPockets connect investors with turnkey rental properties and investment opportunities. Real estate agents specializing in investment properties include those at Keller Williams Del Rio and Century 21 Real Estate Champions who understand the local tourism market driven by Amistad National Recreation Area and the international border crossing.