Is Eagle Pass, Texas Good for Airbnb Investment?

To start an Airbnb in Eagle Pass, Texas, begin by researching local regulations through the Eagle Pass City Hall and Maverick County offices, as the city typically requires short-term rental permits and business licenses, with properties needing to comply with zoning ordinances that generally allow STRs in residential areas with proper registration. Obtain necessary permits including a city business license ($50-100 annually), short-term rental permit ($100-200), and ensure compliance with Texas state tax requirements by registering with the Texas Comptroller for hotel occupancy taxes (6% state plus 7% local). Find a suitable property by focusing on areas near the Camino Real International Bridge, downtown historic district, or residential neighborhoods within 2-3 miles of the border crossing, with average property prices ranging $80,000-150,000 for 2-3 bedroom homes. Furnish the property with essential amenities including reliable WiFi, air conditioning (crucial for South Texas heat), basic kitchen appliances, comfortable bedding for 4-6 guests, and security features like keyless entry and exterior cameras, budgeting $8,000-15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-120 per night depending on size and location, highlighting proximity to Mexico border crossing, Fort Duncan Museum, and Shelby Park. Manage the property by establishing relationships with local cleaning services ($40-60 per turnover), maintenance contractors, and consider hiring a local property management company (10-20% of revenue) if you're not local, while maintaining 24/7 guest communication and ensuring compliance with the 14% total occupancy tax remittance to city and state authorities monthly.

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 US-Mexico 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 Wi-Fi, parking, and outdoor spaces, as these appeal to cross-border business travelers and families visiting relatives. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the $80-150 nightly rate range typical for the market, while analyzing occupancy rates of 60-75% annually. Research competition by examining existing Airbnb and VRBO listings within a 5-mile radius, noting that Eagle Pass has limited hotel inventory which creates opportunity for STRs. Utilize tools like Rabbu, BiggerPockets market analysis, and local MLS data through Eagle Pass Board of Realtors, while monitoring border traffic patterns through CBP data and connecting with local property management companies like South Texas Property Solutions. Consider properties near Maverick County Hospital, Fort Duncan Regional Medical Center, and the Eagle Pass Golf Course, as these generate consistent demand from traveling medical professionals and visitors, with acquisition targets in the $100,000-200,000 range offering potential 12-18% annual returns.

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 a completed short-term rental permit application along with required documents including proof of property ownership or lease agreement, a detailed floor plan, proof of liability insurance (typically $1 million minimum), a site plan showing parking availability, and contact information for a local property manager if you're not residing locally. The application fee is estimated at $150-300 with an annual renewal fee of approximately $100-200. You must also obtain a Texas sales tax permit from the Texas Comptroller's office and register to collect and remit hotel occupancy taxes to both the state and city. Additional requirements likely include compliance with fire safety codes, maximum occupancy limits based on square footage and bedrooms, adequate parking spaces (typically 1-2 per unit), and maintaining a complaint log with 24-hour contact availability for neighbors. The approval process typically takes 30-60 days depending on completeness of application and any required inspections. Once approved, you must display your permit number in all online listings and maintain compliance with ongoing reporting requirements including quarterly tax filings and annual permit renewals.

Short-term rentals (STRs) are generally legal in Eagle Pass, Texas, as the city has not implemented a comprehensive ban on such accommodations. However, STR operators must comply with standard business licensing requirements and zoning regulations that may restrict operations in certain residential areas. The city requires STR properties to obtain proper business permits and adhere to occupancy limits, noise ordinances, and parking requirements. Properties in single-family residential zones may face more stringent restrictions compared to those in commercial or mixed-use areas. As of 2023-2024, Eagle Pass has not enacted the strict STR regulations seen in larger Texas cities like Austin or San Antonio, but operators should verify current zoning compliance and obtain necessary city permits before beginning operations. The regulatory landscape remains relatively permissive compared to other Texas municipalities, though this could change as the city continues to evaluate the impact of short-term rentals on local housing and neighborhoods.

The most promising Airbnb investment areas in Eagle Pass, Texas include the Historic Downtown District near Main Street, which attracts tourists visiting the Fort Duncan Museum and offers proximity to the Rio Grande for border tourism and day trips to Mexico. The area around Maverick County Lake provides excellent opportunities for fishing and recreational tourism, particularly during peak seasons from March through October. Properties near the Eagle Pass-Piedras Negras International Bridge capture significant business traveler demand from cross-border commerce, maquiladora industry workers, and government officials conducting border-related business. The residential neighborhoods around Rosita Valley and Del Rio Boulevard offer family-friendly accommodations for longer stays related to military personnel visiting nearby Laughlin Air Force Base (approximately 45 minutes away) and oil industry workers in the Eagle Ford Shale region. Additionally, areas near Eagle Pass High School and the civic center benefit from sports tournaments, graduation events, and family visits, while properties within walking distance of popular Mexican restaurants and shopping areas along Garrison Street attract cultural tourists exploring the authentic border experience.

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. Additionally, Eagle Pass imposes a local hotel occupancy tax of 7%, bringing the total occupancy tax rate to 13%. These taxes are typically collected from guests at the time of booking through Airbnb's automatic tax collection service, which remits payments directly to the Texas Comptroller's office for the state portion and to the City of Eagle Pass for the local portion on a monthly basis. Hosts who collect taxes independently must register with both the Texas Comptroller and the city, file monthly returns, and remit payments by the 20th of the following month. Exemptions generally include stays of 30 days or longer, rentals to permanent residents, and accommodations provided to certain government employees on official business, though hosts must maintain proper documentation to claim these exemptions.

The total cost to start an Airbnb in Eagle Pass, Texas is approximately $185,000-$220,000. Property purchase costs around $120,000-$150,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations cost approximately $500-$1,500. Insurance for short-term rentals runs $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, gas, internet, and cable total $1,000-$2,000. First six months of operating costs including utilities ($600/month), cleaning services ($150/month), property management software ($50/month), maintenance reserves ($200/month), and marketing ($100/month) total approximately $6,600. Additional working capital of $5,000-$10,000 is recommended for unexpected expenses and initial vacancy periods before bookings stabilize.

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 premium rates of $80-120 per night, benefiting from cross-border business travelers and government officials. A typical 2-bedroom property averaging $60 per night with 65% occupancy generates approximately $14,235 annually, while expenses including mortgage ($800/month), utilities ($150/month), cleaning ($25 per stay), property management (15-20%), and maintenance ($100/month) total around $13,500-15,000 annually. Profit margins generally range from 8-15% for well-managed properties, with successful hosts like those operating near downtown Eagle Pass reporting 18-22% margins by targeting longer-stay border patrol agents and oil industry workers. Properties within walking distance of Kickapoo Lucky Eagle Casino Hotel have shown stronger performance with 75-80% occupancy rates, while rural properties struggle with 40-50% occupancy. Success factors include bilingual hosting capabilities, proximity to the bridge or casino, competitive pricing against local hotels like Hampton Inn & Suites Eagle Pass, and catering to the steady flow of business travelers and government contractors working in the area's immigration and customs facilities.

Based on Eagle Pass, Texas market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties near the international border and downtown area command higher occupancy rates of 65-75% annually, with average daily rates between $85-120 depending on property size and amenities. Initial profitability usually occurs within 8-14 months after launch, factoring in startup costs, furnishing, and marketing expenses. The cross-border business travel market and proximity to Piedras Negras creates consistent demand, particularly during weekdays when business travelers seek alternatives to limited hotel options. Properties requiring minimal renovation typically achieve break-even faster, while those needing significant updates may extend profitability timelines to 16-20 months. Market volatility related to border policies and seasonal fluctuations can impact returns by 2-4 percentage points annually.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties across markets including Eagle Pass, Texas. Local real estate agents in the Eagle Pass area who work with Airbnb investors include Keller Williams Del Rio, RE/MAX Eagle Pass, and Century 21 Border Realty, with agents like Maria Rodriguez and Carlos Hernandez focusing on investment properties. National services that help investors find profitable Airbnb properties include Mashvisor, which provides rental analytics and property recommendations, AirDNA for market data and revenue projections, and Awning for turnkey Airbnb investment properties. BiggerPockets connects investors with local professionals, while Roofstock and Arrived Homes offer online real estate investment platforms. Local property management companies like Eagle Pass Property Solutions and Border City Rentals assist with Airbnb management, and investment consultants such as Texas STR Advisors provide market analysis and acquisition services for the Eagle Pass market, which benefits from its proximity to the Mexican border and steady tourism traffic.