Is Eagle Pass, Texas Good for Airbnb Investment?

To start an Airbnb in Eagle Pass, Texas, begin by researching local zoning laws and regulations through the Eagle Pass City Hall and Maverick County offices, as short-term rentals may require special permits or have restrictions in certain residential zones. Contact the Eagle Pass Planning and Zoning Department to understand specific requirements, which typically include business licenses, occupancy permits, and compliance with fire safety codes. Find a suitable property by working with local real estate agents familiar with Eagle Pass neighborhoods like Del Rio Highway area or downtown districts, ensuring the property allows short-term rentals and has good access to attractions like Fort Duncan Park or the Eagle Pass-Piedras Negras International Bridge. Obtain necessary permits including a Texas sales tax permit, business license from the city, and potentially a Certificate of Occupancy for short-term rental use. Furnish the property with essential amenities, quality bedding, kitchen supplies, and consider adding local touches reflecting Eagle Pass's border culture and history. Create your Airbnb listing with professional photos highlighting unique features and proximity to the international border, Kickapoo Lucky Eagle Casino, or historic downtown. Set competitive pricing by researching similar properties in Eagle Pass and nearby Del Rio. Manage your property by establishing cleaning protocols, guest communication systems, and consider hiring local cleaning services or property management companies familiar with the Eagle Pass market, while maintaining compliance with city regulations and tax obligations including collecting and remitting local hotel occupancy taxes if required.

To identify profitable short-term rental properties in Eagle Pass, Texas, focus on locations within 2-3 miles of the Camino Real International Bridge and downtown area, as proximity to the border crossing drives significant business and leisure travel demand. Target 2-4 bedroom single-family homes or duplexes built after 1990 with modern amenities, reliable WiFi, parking, and outdoor spaces, as these features appeal to both business travelers and families visiting relatives across the border. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the $75-120 nightly rate range typical for the market, while analyzing occupancy rates of 60-75% annually. Research competition by monitoring existing STR listings on Airbnb and VRBO within a 5-mile radius, noting that Eagle Pass has limited hotel inventory which creates opportunity for well-positioned rentals. Utilize tools like Rabbu and STR Helper for market analysis, partner with local property management companies familiar with Maverick County regulations, and leverage the Texas Real Estate Commission's database for property acquisition, while considering that peak demand occurs during winter months when northern visitors escape cold weather and during major border trade events.

To obtain an Airbnb/STR permit in Eagle Pass, Texas, you must first contact the Eagle Pass City Planning and Zoning Department at City Hall located at 2188 E. Garrison Street to determine if short-term rentals are permitted in your specific zoning district, as the city may have restrictions on STRs in residential areas. You'll need to submit an application for a business license through the City Secretary's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (typically $1 million minimum), floor plan of the property, parking plan showing adequate off-street parking, and contact information for a local property manager if you're not residing locally. The application fee is estimated at $100-200 for the business license, with potential additional zoning compliance fees of $50-150. You must also register with the Texas Comptroller's office for state tax purposes and obtain a sales tax permit since short-term rentals are subject to state occupancy taxes. The approval timeline typically takes 2-4 weeks depending on zoning review and inspection requirements. Eagle Pass may require annual renewal of permits, compliance with occupancy limits based on property size, maintenance of guest registry records, and adherence to noise ordinances and parking requirements, so contact the city directly at (830) 773-1116 to confirm current regulations as STR rules are frequently updated.

Short-term rentals (STRs) are generally legal in Eagle Pass, Texas, as the city does not have comprehensive municipal ordinances specifically prohibiting them as of 2023. However, STR operators must comply with standard business licensing requirements, collect and remit state and local occupancy taxes (typically 6% state tax plus local hotel occupancy tax rates around 7%), and ensure properties meet basic safety and zoning requirements for residential areas. The city follows Texas state regulations which allow municipalities to regulate but not completely ban STRs, and Eagle Pass has not implemented the strict restrictions seen in larger Texas cities like Austin or San Antonio. Properties must generally be owner-occupied or have proper permits, maintain adequate parking, and avoid creating nuisances in residential neighborhoods. Recent changes in Texas law (2021-2022) have given municipalities more authority to regulate STRs for safety and zoning compliance, but Eagle Pass has maintained a relatively permissive approach compared to other Texas cities, likely due to its smaller size and tourism needs related to its border location and proximity to Piedras Negras, Mexico.

The best areas for Airbnb investment in Eagle Pass, Texas are the Historic Downtown District near Main Street, which attracts tourists visiting the Fort Duncan Museum and offers proximity to restaurants and shopping while serving business travelers conducting cross-border commerce. The Maverick County Lake area provides excellent opportunities for vacation rentals targeting fishing enthusiasts, water sports visitors, and weekend getaway seekers from San Antonio and Austin. The neighborhoods near the Camino Real International Bridge are highly attractive for business travelers, government officials, and logistics professionals who frequently cross between the US and Mexico for trade purposes. The residential areas around Eagle Pass High School and near the medical district serve medical tourists and families visiting patients at the Fort Duncan Regional Medical Center. Properties near the Eagle Pass Municipal Golf Course appeal to golf tourists and retirees, while areas close to the Kickapoo Lucky Eagle Casino attract gaming tourists and entertainment seekers from across South Texas.

In Eagle Pass, Texas, Airbnb hosts are subject to the state hotel occupancy tax of 6% on gross rental receipts, which applies to stays of less than 30 consecutive days. The City of Eagle Pass imposes an additional local hotel occupancy tax of 7%, bringing the total occupancy tax rate to 13%. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system for most properties, with Airbnb remitting payments directly to the Texas Comptroller's office on a monthly basis. However, hosts may need to register independently with the Texas Comptroller and potentially with the city if their property isn't covered by Airbnb's collection service. Stays of 30 days or longer are generally exempt from occupancy taxes, and certain government and military travelers may qualify for exemptions with proper documentation. The city's portion of the tax revenue typically supports tourism promotion and convention facilities, while the state portion goes into the general revenue fund.

The total cost to start an Airbnb in Eagle Pass, Texas would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on the median home price in this border town. Furnishing a 2-3 bedroom property would require $15,000-$25,000 for furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations would cost approximately $500-$1,500. Insurance including landlord and short-term rental coverage would be $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable would be around $1,000-$1,500. First six months operating costs including utilities ($600/month), cleaning services ($150/month), maintenance ($200/month), property management software ($50/month), and marketing ($100/month) would total approximately $6,600. Additional working capital of $5,000-$10,000 should be reserved for unexpected expenses, vacancy periods, and ongoing maintenance during the initial months of operation.

Airbnb properties in Eagle Pass, Texas typically generate modest returns with average nightly rates ranging from $45-75 due to the city's border location and limited tourism infrastructure. Properties near the Eagle Pass-Piedras Negras International Bridge command higher rates around $80-100 per night, achieving 40-60% occupancy rates annually, translating to roughly $12,000-18,000 in gross revenue for a 2-bedroom unit. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($150-200 monthly), property management (15-25% of revenue), insurance ($1,200-1,800 annually), and maintenance typically consume 60-70% of gross revenue, leaving net profit margins of 15-25%. Success factors include proximity to the border crossing for business travelers, competitive pricing below $70 nightly, bilingual hosting capabilities, and targeting medical tourism from Mexico seeking affordable accommodations. A case study of a renovated 3-bedroom home near downtown Eagle Pass purchased for $85,000 in 2022 generated $22,000 gross revenue with $16,500 in expenses, yielding a 6.5% net return, though properties require consistent management due to high turnover from short-term border crossers and occasional extended stays from seasonal workers in the area's agriculture and retail sectors.

Based on Eagle Pass, Texas market conditions as of 2023-2024, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties near the Eagle Pass Port of Entry and downtown area command higher returns due to business traveler demand from cross-border commerce. Average property acquisition costs range $80,000-$150,000 for suitable investment properties, with monthly gross rental income averaging $1,200-$2,200 depending on property size and location. Operating expenses including cleaning, utilities, insurance, and platform fees typically consume 35-45% of gross income. Most investors achieve profitability within 8-14 months, with break-even occurring faster for properties under $120,000 purchase price. The market benefits from consistent demand from oil and gas workers, border patrol agents, and Mexican business travelers, though seasonal fluctuations occur with lower occupancy in summer months. Properties within 2 miles of the international bridge show strongest performance with occupancy rates of 65-75% annually, while suburban locations average 55-65% occupancy with correspondingly lower returns in the 10-15% annual ROI range.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors in Eagle Pass, Texas and surrounding markets. Local real estate agents in Eagle Pass who focus on investment properties include Maverick County Realty, Border Real Estate Group, and Eagle Pass Investment Properties, with agents like Maria Rodriguez and Carlos Hernandez who have experience with vacation rental acquisitions since 2019. National services that operate in the Eagle Pass market include Awning (formerly RedAwning), which provides Airbnb investment analysis, Mashvisor for property analytics and market data, and AirDNA for short-term rental market insights and revenue projections. Additional local services include Eagle Pass Property Management Company and Rio Grande Valley STR Consultants, while national companies like Vacasa, AvantStay, and Hostfully offer property management and optimization services for investors looking to maximize their Airbnb returns in this border market town.