Is Dumas, Texas Good for Airbnb Investment?

To start an Airbnb in Dumas, Texas, begin by researching local regulations through the City of Dumas Planning Department and Moore County offices, as Texas cities typically require short-term rental permits and business licenses, with Dumas likely requiring registration and potentially limiting rentals to certain zoning areas. Obtain necessary permits including a business license from the city clerk, short-term rental permit (estimated $100-300 annually), and ensure compliance with fire safety codes and occupancy limits. Find a suitable property by purchasing or leasing in residential areas that allow short-term rentals, focusing on properties near downtown Dumas or close to attractions like the Moore County Historical Museum, with typical investment ranging $80,000-150,000 for purchase. Furnish the property with essential amenities including comfortable beds, linens, kitchen appliances, WiFi, and local touches highlighting Dumas' agricultural heritage and Route 66 history. Create your Airbnb listing with professional photos, competitive pricing around $60-90 per night based on local market rates, and descriptions emphasizing proximity to Amarillo (45 minutes) and local attractions. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and considering hiring local cleaning services or property management companies if needed, while ensuring compliance with Texas state tax requirements including collecting and remitting hotel occupancy taxes to both state and local authorities.

To identify profitable short-term rental properties in Dumas, Texas, focus on properties within 2-3 miles of major employers like Cargill Meat Solutions and Moore County Hospital District, as well as near Highway 287 for traveler accessibility. Target 2-4 bedroom single-family homes or duplexes built after 1980 with updated kitchens, reliable HVAC systems, and adequate parking, as business travelers and visiting families comprise the primary market. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the limited existing STR inventory, aiming for nightly rates between $80-120 based on comparable markets like Amarillo suburbs. Research competition by monitoring Airbnb and VRBO listings within a 15-mile radius, noting that Dumas has minimal STR supply creating opportunity for first movers. Utilize tools like STR Helper for market analysis, partner with local real estate agents familiar with Moore County investment properties, and leverage the Dumas Economic Development Corporation website for insights on industrial growth and visitor patterns, while considering properties near recreational areas like Lake Meredith National Recreation Area approximately 30 minutes away to capture weekend leisure travelers.

To obtain an Airbnb/STR permit in Dumas, Texas, you must first contact the Dumas City Hall at 124 East 7th Avenue or call (806) 935-4101 to inquire about short-term rental regulations, as the city may require a business license and zoning compliance verification. Submit an application for a business license along with required documents including proof of property ownership or lease agreement, liability insurance certificate (typically $1 million minimum), floor plan of the rental property, and completed STR registration form. Pay the applicable fees which typically range from $50-200 for the business license plus any inspection fees of approximately $75-150. Schedule a safety inspection with the city's building department to ensure compliance with fire safety codes, occupancy limits, and building standards. The timeline for approval generally takes 2-4 weeks from submission of complete application materials. Dumas-specific requirements likely include adherence to residential zoning restrictions, parking availability for guests, noise ordinance compliance, and maintaining current contact information with the city for emergency purposes. Once approved, display your permit number in your Airbnb listing and renew annually by the specified deadline, typically December 31st, while maintaining all required insurance and safety standards throughout the permit period.

Short-term rentals (STRs) are generally legal in Dumas, Texas, as the city has not enacted specific ordinances 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. Properties used as STRs must typically be located in areas zoned for residential or mixed-use purposes, and operators should verify compliance with homeowners association rules if applicable. While some Texas cities like Austin and San Antonio have implemented strict STR regulations in recent years, smaller cities like Dumas tend to have more permissive approaches, though this can change as local governments respond to community concerns about housing availability and neighborhood character. Property owners should check with the City of Dumas planning department for current zoning compliance and obtain any required business permits before operating an STR, as regulations can evolve and enforcement may increase over time.

The best areas for Airbnb investment in Dumas, Texas include the downtown historic district near Main Street, which attracts visitors interested in the city's agricultural heritage and proximity to local restaurants and shops. The residential neighborhoods around Central Park and near the Dumas Community Center are ideal for families visiting for youth sports tournaments and local events. Areas close to Moore County Airport appeal to business travelers working in the region's significant agricultural and energy sectors, particularly those involved in cattle ranching and grain production. Properties near the XIT Museum and Rita Blanca Lake draw tourists interested in Texas Panhandle history and outdoor recreation including fishing and camping. The neighborhoods around Dumas High School are attractive during football season and graduation events, while areas near major employers like Cargill and other agribusiness facilities cater to corporate visitors and temporary workers in the beef processing and agricultural industries that drive the local economy.

In Dumas, Texas, Airbnb properties are subject to the state hotel occupancy tax of 6% on gross rental receipts, which applies to stays of less than 30 consecutive days. Moore County, where Dumas is located, likely imposes an additional county hotel occupancy tax of approximately 2-3%, while the City of Dumas may levy a municipal hotel occupancy tax of around 2-7% based on typical Texas municipal rates. These taxes are collected from guests at the time of booking through Airbnb's automated tax collection system for participating jurisdictions, or hosts must collect them directly and remit monthly to the appropriate taxing authorities - the Texas Comptroller for state taxes and local jurisdictions for county and city taxes. Remittance is typically due by the 20th of the month following collection, with returns filed electronically or by mail. Exemptions generally include stays of 30 days or longer, certain government and non-profit travelers, and properties renting for less than $2 per day, though hosts should verify current exemption criteria with local tax authorities as rates and collection procedures may have changed since 2024.

To start an Airbnb in Dumas, Texas, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including beds, living room furniture, kitchen essentials, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Texas generally cost $500-$1,500 depending on local regulations and business license requirements. Insurance premiums for short-term rentals run $1,200-$2,400 annually, with the first year paid upfront. Utility deposits and connections typically cost $300-$600 initially. First six months operating costs including utilities ($150-$250/month), cleaning services ($75-$125 per turnover), maintenance reserves ($200-$400/month), property management software ($30-$50/month), and marketing expenses total approximately $4,500-$8,500. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Dumas, Texas show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $1,800-2,500 monthly revenue at 60-70% occupancy rates driven by oil and gas industry workers seeking temporary housing. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-200 monthly), property management (15-25% if outsourced), insurance ($100-150 monthly), and maintenance costs ($200-400 monthly). Net profit margins generally range from 25-35% for well-managed properties, with successful hosts like those operating near downtown Dumas or close to major employers such as Cargill Meat Solutions achieving higher occupancy rates and premium pricing. Key success factors include targeting corporate travelers and extended-stay guests, maintaining consistent availability for oil field workers, offering amenities like high-speed internet and workspace areas, and pricing competitively against local hotels which average $80-100 nightly. Properties within 5 miles of industrial facilities typically outperform residential-area listings by 15-20% in both occupancy and revenue, with annual net returns of $8,000-15,000 being achievable for properties purchased in the $100,000-180,000 range common in Dumas's housing market as of 2023-2024.

Airbnb investments in Dumas, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil and gas industry workers seeking temporary housing accommodations. The market benefits from limited hotel inventory and consistent demand from Anadarko Petroleum, ConocoPhillips, and other energy companies operating in the region since 2018. Properties generally reach profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Three-bedroom homes purchased around $150,000-200,000 can generate $1,200-1,800 monthly revenue after achieving market penetration, though investors should account for higher maintenance costs due to industrial worker occupancy patterns and the cyclical nature of energy sector demand affecting long-term sustainability.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Dumas, Texas. Local real estate agents in the area who focus on investment properties include Coldwell Banker First Equity Realty and Century 21 offices serving the Texas Panhandle region. National services like Awning, RedAwning, and Mashvisor provide market analysis and property identification tools for Airbnb investments in smaller Texas markets like Dumas. BiggerPockets marketplace and Roofstock occasionally feature short-term rental opportunities in the Texas Panhandle area. Local property management companies such as Panhandle Property Management and regional firms like Vacasa and RedAwning Property Management can assist with both acquisition guidance and ongoing management of Airbnb properties in Dumas. Real estate investment groups and meetups in nearby Amarillo often have members familiar with the Dumas market, while platforms like AirDNA and AllTheRooms provide crucial market data for making informed investment decisions in this emerging short-term rental market that has seen growth since 2019 due to industrial activity and tourism related to outdoor recreation in the Texas Panhandle.