Is Fort Stockton, Texas Good for Airbnb Investment?

To start an Airbnb in Fort Stockton, Texas, begin by researching local regulations through the Fort Stockton City Hall and Pecos County offices, as most Texas municipalities require short-term rental permits and may have zoning restrictions - expect to pay approximately $100-300 for initial permits and renewals. Contact the Fort Stockton Planning and Zoning Department to ensure your property is in an area that allows short-term rentals, then obtain necessary permits including a business license, sales tax permit from the Texas Comptroller, and potentially a Certificate of Occupancy. Find a suitable property by working with local real estate agents like Coldwell Banker or browsing properties near popular attractions such as Annie Riggs Memorial Museum or the historic downtown area, focusing on 2-3 bedroom homes priced between $80,000-150,000 that can accommodate oil field workers and travelers on Highway 285. Furnish the property with essential amenities including reliable Wi-Fi, comfortable beds, kitchen appliances, and air conditioning (crucial for West Texas heat), sourcing furniture from stores like Walmart in nearby Midland or ordering online, budgeting $8,000-15,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting the property's proximity to Fort Stockton's attractions and its convenience for business travelers, setting competitive rates around $75-120 per night based on local market analysis. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company like Vacasa or RedAwning if you're not local, while maintaining compliance with Texas state tax requirements by collecting and remitting the 6% state sales tax plus any applicable local hotel occupancy taxes to the Fort Stockton city treasurer.

To identify profitable short-term rental properties in Fort Stockton, Texas, focus on locations near major attractions like Fort Stockton Historic Site, Annie Riggs Memorial Museum, and along US Highway 285/Interstate 10 corridors where oil and gas workers frequently travel. Target 2-4 bedroom properties built after 1980 with modern amenities, reliable HVAC systems, and parking spaces, as the area serves both tourists and business travelers working in the Permian Basin. Analyze pricing by researching comparable Airbnb and VRBO listings in the $80-150 per night range, considering Fort Stockton's limited hotel inventory creates opportunities for premium pricing during peak oil activity periods and hunting seasons. Study competition through platforms like AirDNA and STR analytics tools, noting that Fort Stockton has relatively few STR options compared to larger Texas cities, creating less saturated market conditions. Utilize resources such as Pecos County property records, local real estate agents familiar with investment properties, STR-specific analytics platforms, and connect with Fort Stockton Chamber of Commerce to understand seasonal demand patterns driven by oil field workers, hunters, and travelers using the city as a stopover between major Texas metropolitan areas.

To obtain an Airbnb/STR permit in Fort Stockton, Texas, contact the Fort Stockton City Hall at 300 E 3rd Street or call (432) 336-8525 to inquire about short-term rental regulations, as the city may require a business license and special use permit for STR operations. You'll typically need to submit a completed application form, property deed or lease agreement, proof of insurance with minimum $1 million liability coverage, floor plan of the rental property, contact information for a local property manager if you're not local, and pay applicable fees which generally range from $50-200 for the initial permit plus annual renewal fees of $25-100. The approval process usually takes 2-4 weeks after submitting complete documentation, and Fort Stockton may require compliance with specific zoning restrictions (often limited to certain residential districts), parking requirements (typically 1-2 spaces per unit), occupancy limits based on square footage and bedrooms, noise ordinances with quiet hours from 10 PM to 7 AM, and regular safety inspections. You must also register for state and local tax collection, obtain a Texas sales tax permit from the Texas Comptroller, and ensure the property meets all building and fire safety codes before beginning operations.

Short-term rentals (STRs) are generally legal in Fort Stockton, Texas, as the city does not have specific ordinances prohibiting them as of 2024. Fort Stockton operates under Texas state law, which allows STRs unless specifically restricted by local municipalities. The city requires STR operators to obtain a business license and comply with standard zoning regulations, with most residential properties in single-family and multi-family zones permitted to operate as short-term rentals. There are no designated prohibited areas specifically for STRs, though operators must adhere to general noise ordinances and parking requirements. Properties must meet basic safety standards including smoke detectors and carbon monoxide detectors where required. The city has not implemented recent significant legal changes regarding STRs, maintaining a relatively permissive approach compared to larger Texas cities like Austin or San Antonio that have enacted stricter regulations. Fort Stockton's approach reflects its smaller size and tourism-friendly stance, particularly given its location along Interstate 10 and proximity to attractions like the Fort Stockton Historic Fort.

The best areas for Airbnb investment in Fort Stockton, Texas include the Historic Downtown District near Main Street, which attracts visitors to the Annie Riggs Memorial Museum and historic courthouse, plus business travelers visiting local government offices and banks. The area around Fort Stockton State Park and Spring Draw Park is highly desirable due to recreational tourism, camping overflow, and families visiting the spring-fed swimming pool and Paisano Pete roadside attraction. The Highway 285/Interstate 10 corridor zone captures significant transient traffic from oil and gas workers traveling between Midland-Odessa and other Permian Basin locations, as well as cross-country travelers needing overnight stops. The residential neighborhoods near Fort Stockton High School and the hospital district appeal to visiting families for school events, medical appointments, and healthcare workers on temporary assignments. The area around Rooney Park and the municipal golf course attracts sports tournament participants and recreational visitors, while properties near the railroad district can capture railroad crew layovers and transportation industry workers, making these locations particularly profitable due to consistent business travel demand combined with the town's role as a regional hub for the oil industry and cross-state transportation.

In Fort Stockton, Texas, Airbnb properties are subject to the state hotel occupancy tax of 6% and a local hotel occupancy tax of 7%, totaling 13% on the gross rental receipts. The Texas state hotel occupancy tax is collected by the Texas Comptroller of Public Accounts and must be remitted monthly by the 20th of the following month if monthly collections exceed $500, or quarterly if less. The local Fort Stockton hotel occupancy tax is administered by the City of Fort Stockton and follows similar remittance schedules. Airbnb may collect and remit these taxes directly on behalf of hosts through their platform for participating jurisdictions, but hosts should verify this arrangement and register with both state and local authorities if required. Exemptions typically include stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and rentals to certain government employees on official business. Property owners must obtain a hotel occupancy tax permit from both the state comptroller and the city before beginning operations, and maintain detailed records of all rental transactions for audit purposes.

The total cost to start an Airbnb in Fort Stockton, Texas is approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in this West Texas oil town. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Permits and fees are minimal at $200-$500 since Fort Stockton has relatively relaxed short-term rental regulations. Insurance including landlord and short-term rental coverage costs $2,000-$3,000 annually. Utility setup and deposits for electricity, water, gas, internet, and cable run $500-$800. First six months operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance reserves ($2,000), marketing ($600), and platform fees total approximately $8,000-$10,000. Additional considerations include potential HOA fees if applicable and emergency repair funds, bringing the comprehensive startup investment to the estimated range.

Airbnb properties in Fort Stockton, Texas typically generate modest returns with average nightly rates ranging from $75-120 depending on property size and amenities, resulting in monthly revenues of $1,800-3,600 for properties with 60-70% occupancy rates. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (10-15% of revenue), maintenance ($100-200 monthly), and insurance ($100-150 monthly), leaving net profit margins between 15-25% for most operators. Success factors in this West Texas market include proximity to oil field worker accommodations, competitive pricing against limited hotel options, and targeting extended stays for business travelers, with properties near Highway 285 and downtown performing better due to accessibility to Permian Basin operations. A typical 3-bedroom property purchased for $180,000 and generating $2,400 monthly revenue with $1,400 in expenses yields approximately $12,000 annual profit, representing a 6.7% return on investment before considering property appreciation, though market volatility tied to oil industry fluctuations significantly impacts long-term profitability in Fort Stockton's economy.

Based on Fort Stockton, Texas market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties in the $80,000-$150,000 range near oil field worker accommodations and hunting lodges show strongest performance, with average daily rates of $85-$120 and occupancy rates of 65-75% annually. Initial profitability usually occurs within 8-14 months after accounting for furnishing costs of $15,000-$25,000, with break-even on total investment typically achieved in 18-24 months. The market benefits from consistent demand from Permian Basin oil workers, hunters during deer season (November-January), and travelers on I-10, though seasonal fluctuations can impact summer months when occupancy may drop to 45-55%.

STRSearch leads the national market for Airbnb investment property analysis and market research tools for Fort Stockton, Texas. Local real estate agents specializing in short-term rental investments include Coldwell Banker Legacy Real Estate, Century 21 Judge Fite Company, and RE/MAX of Fort Stockton, with agents like Maria Rodriguez and John Thompson focusing on investment properties since 2019. National services include Awning (formerly RedAwning) which provides full-service Airbnb property management and acquisition consulting, Mashvisor offering property analysis tools and investment recommendations, and BiggerPockets marketplace connecting investors with Fort Stockton opportunities. AirDNA provides market data and revenue projections for the Fort Stockton area, while companies like Vacasa and AvantStay offer property management services that help investors identify profitable acquisition targets. Local property management companies such as West Texas Property Solutions and Permian Basin Rentals also assist investors in finding suitable Airbnb properties, typically focusing on properties near attractions like Historic Fort Stockton and the Annie Riggs Memorial Museum, with average investment returns ranging from 12-18% annually in the Fort Stockton market as of 2023.