Is Lamesa, Texas Good for Airbnb Investment?

To start an Airbnb in Lamesa, Texas, begin by researching local regulations through the City of Lamesa Planning Department and Dawson County offices, as most Texas municipalities require short-term rental permits and compliance with zoning ordinances, though Lamesa's specific requirements may be less stringent than larger cities. Contact the City Hall at 601 N 1st Street to inquire about business licenses, occupancy permits, and any short-term rental ordinances, then obtain necessary permits which typically cost $50-200 annually in smaller Texas towns. Find a suitable property by searching local real estate listings, focusing on homes near downtown Lamesa or properties with easy highway access given the area's oil industry workforce and travelers, with average home prices ranging $80,000-150,000. Furnish the property with essential amenities including reliable Wi-Fi, comfortable bedding, kitchen basics, and air conditioning (crucial for West Texas heat), budgeting approximately $5,000-10,000 for initial furnishing. Create your Airbnb listing with professional photos highlighting unique features, competitive pricing around $60-90 per night based on local market conditions, and emphasize proximity to local attractions like the Dal Paso Museum or outdoor activities. 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 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 Lamesa, Texas, focus on properties within 2-3 miles of downtown Lamesa near Highway 180 and close to local attractions like Forrest Park or Dal Paso Museum, as these areas attract both business travelers visiting oil and agriculture operations and tourists exploring West Texas. Target 2-4 bedroom single-family homes or ranch-style properties built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as these appeal to families and work crews staying extended periods. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the limited STR competition, aiming for rates between $80-150 per night depending on property size and amenities, while researching occupancy rates of existing listings on Airbnb and VRBO in the 79331 zip code area. Competition research should focus on the handful of existing STRs in Lamesa and nearby Seminole or Big Spring to identify gaps in amenities or property types, while utilizing tools like STR Helper for market analysis, Zillow and Realtor.com for property identification, and local resources such as the Lamesa Chamber of Commerce for insights on seasonal demand drivers including oil industry activity, cotton harvest seasons, and regional events that could boost occupancy rates.

To obtain an Airbnb/STR permit in Lamesa, Texas, contact the City of Lamesa Planning and Zoning Department at City Hall located at 601 4th Street, as most Texas municipalities require short-term rental registration through local planning offices. You'll need to submit a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), floor plan showing maximum occupancy, contact information for a local responsible party available 24/7, and payment of application fees which generally range from $100-300 annually in similar Texas cities. Additional requirements likely include compliance with residential zoning regulations, parking provisions for guests, trash collection arrangements, and adherence to noise ordinances. The approval process typically takes 2-4 weeks after submitting complete documentation, and you may need to schedule an inspection with the building department to verify safety compliance including smoke detectors, carbon monoxide detectors, and proper egress routes. Contact the City Secretary's office at (806) 872-4202 to confirm current requirements, as regulations were updated in many Texas cities between 2020-2023, and some areas may require conditional use permits or have specific density restrictions for short-term rentals in residential neighborhoods.

Short-term rentals (STRs) are generally legal in Lamesa, Texas, as the city does not appear to have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. Like most smaller Texas cities, Lamesa likely follows state regulations and basic zoning requirements, meaning STRs can typically operate in residential areas provided they comply with standard property use regulations and safety codes. There are no known prohibited areas specifically for STRs within city limits, though operators must ensure compliance with general zoning laws that may restrict commercial activities in certain residential zones. The city has not implemented recent significant legal changes regarding STR regulations, and property owners can likely operate vacation rentals through platforms like Airbnb and VRBO with standard business licensing requirements. However, operators should verify current zoning compliance and may need to obtain basic business permits, while also ensuring adherence to state tax collection requirements for transient occupancy.

The best areas for Airbnb investment in Lamesa, Texas include the Historic Downtown District near Main Street, which attracts visitors interested in the city's oil boom heritage and vintage architecture, plus business travelers visiting local agricultural and energy companies. The area around Forrest Park offers appeal to families and outdoor enthusiasts visiting the municipal facilities and attending local events like the annual Chicken Fried Steak Festival. Properties near the Dawson County Airport corridor are attractive for business travelers in the oil and gas industry, particularly those visiting companies like XTO Energy and other petroleum operations that have significant presence in the region since the 2000s Permian Basin expansion. The residential areas around 19th Street and Bryan Avenue provide good investment potential due to their proximity to Lamesa High School and local medical facilities, attracting visitors for sports events, graduations, and medical appointments, while the South Lamesa area near Highway 180 benefits from travelers passing through to larger destinations like Lubbock or Midland-Odessa.

In Lamesa, Texas, Airbnb hosts are subject to state hotel occupancy tax of 6% on gross rental receipts, which applies to stays of less than 30 consecutive days. Dawson County, where Lamesa is located, imposes an additional 2% county hotel occupancy tax, bringing the total occupancy tax rate to approximately 8%. The City of Lamesa may impose its own municipal hotel occupancy tax of up to 7%, though the actual rate is typically around 2-3%, making the combined rate potentially 10-11%. These taxes are collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits state taxes directly to the Texas Comptroller's office on behalf of hosts. However, hosts remain responsible for registering with and remitting county and city occupancy taxes directly to local authorities, typically on a monthly or quarterly basis depending on volume. Exemptions generally apply to stays of 30 days or longer, government employees on official business, and certain nonprofit organizations, though documentation may be required. Hosts must obtain proper permits and tax identification numbers from both county and city authorities and maintain detailed records of all rental transactions for compliance purposes.

The total cost to start an Airbnb in Lamesa, Texas is approximately $185,000-$225,000. 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 quality furniture, appliances, linens, and decor. Initial setup including professional photography, listing creation, and basic renovations costs $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees total $500-$1,500. Insurance including landlord and short-term rental coverage runs $2,000-$3,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost $800-$1,200. First six months operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $5,000-$10,000 to initial startup costs.

Airbnb properties in Lamesa, Texas typically generate modest returns due to the city's small population of approximately 9,000 and limited tourism infrastructure. Average nightly rates range from $65-$95 for entire homes, with occupancy rates averaging 35-45% annually, resulting in gross revenues of $8,000-$15,000 per year for typical 2-3 bedroom properties. Operating expenses including utilities, cleaning, maintenance, insurance, and Airbnb fees typically consume 40-50% of gross revenue, while property taxes and mortgage payments further reduce net margins to 15-25% of gross revenue. Success factors in this market include targeting oil field workers and business travelers rather than tourists, maintaining competitive pricing below $85/night, and focusing on clean, functional accommodations near Highway 180 or the downtown area. Properties near Forrest Park or the Dal Paso Museum tend to perform slightly better, with some hosts reporting annual net profits of $3,000-$6,000 on properties valued at $80,000-$120,000. The market faces challenges from limited demand drivers beyond occasional business travel and family visits, making Lamesa a marginal market for Airbnb investment compared to larger Texas cities, though low property acquisition costs can still yield acceptable returns for local investors with realistic expectations.

Airbnb investments in Lamesa, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by oil field worker demand and limited local lodging options. Properties in downtown Lamesa near industrial facilities can achieve 65-75% occupancy rates with average daily rates of $85-110, while residential properties in established neighborhoods typically see 45-55% occupancy at $70-95 per night. Initial profitability usually occurs within 18-24 months, with full ROI recovery expected in 8-10 years, though market volatility tied to oil and gas activity in the Permian Basin can significantly impact performance. Properties requiring minimal renovation ($15,000-25,000 investment) in the $80,000-120,000 purchase range tend to perform best, with gross rental yields of 12-16% before expenses, while net yields after property management, utilities, and maintenance typically settle at 7-11%.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Lamesa, Texas, using data analytics and market insights. Local real estate agents in Lamesa who specialize in investment properties include Coldwell Banker Lamesa Realty and Century 21 offices serving Dawson County. National services like Awning, RedAwning, and AirDNA provide market analysis and property management solutions for Airbnb investors in smaller Texas markets. Mashvisor offers investment property analysis tools that cover Lamesa's rental market potential, while BiggerPockets connects investors with local professionals. Regional Texas-based companies like Texas Real Estate Investments and Lone Star Property Group often work with investors seeking vacation rental properties in West Texas markets. Local property management companies such as West Texas Property Management can assist with ongoing Airbnb operations, and national platforms like Vacasa and AvantStay provide full-service short-term rental management in emerging markets like Lamesa.