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 cities require short-term rental permits and business licenses, with Lamesa likely requiring a Certificate of Occupancy and compliance with residential zoning laws. Obtain necessary permits including a business license from the city clerk, sales tax permit from Texas Comptroller, and ensure your property meets fire safety and building codes through inspections. Find a suitable property by researching Lamesa's residential areas near downtown or Highway 87 corridor, considering properties with 2-3 bedrooms that can accommodate oil field workers and travelers, with average home prices around $80,000-$120,000 making investment feasible. Furnish the property with essential amenities including reliable Wi-Fi, comfortable beds, kitchen appliances, and air conditioning crucial for West Texas heat, budgeting approximately $8,000-$12,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting the property's proximity to local attractions like Dal Paso Museum and emphasizing its convenience for business travelers in the oil industry. Manage the property by establishing cleaning protocols between guests, setting competitive rates around $75-$95 per night based on local market conditions, responding promptly to guest inquiries, and maintaining the property regularly while building relationships with local cleaning services and maintenance contractors in the Lamesa area.

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 attractions like Forrest Park or Dal Paso Museum, as these areas offer better accessibility for travelers passing through or visiting for business at local oil and agriculture operations. Target 2-4 bedroom single-family homes or ranch-style properties built after 1980 with updated kitchens, reliable HVAC systems, and outdoor spaces that appeal to workers in the Permian Basin oil industry who often need temporary housing for 1-4 week stays. Analyze pricing by researching comparable properties on Airbnb and VRBO in Lamesa and surrounding areas like Seminole or Big Spring, aiming for nightly rates between $80-150 depending on property size and amenities, while calculating potential monthly revenue against mortgage, utilities, cleaning, and maintenance costs. Research competition by monitoring existing STR listings within a 10-mile radius, noting occupancy patterns, guest reviews, and pricing strategies, particularly focusing on properties that cater to oil field workers, traveling nurses, or visitors to nearby attractions. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, Mashvisor for investment property analysis, and local resources such as the Lamesa Chamber of Commerce for economic data, while consulting with local real estate agents familiar with the area's rental market dynamics and zoning regulations that may affect short-term rental operations.

To obtain an Airbnb/STR permit in Lamesa, Texas, contact the Lamesa City Hall at 601 S 1st Street or call (806) 872-2124 to inquire about short-term rental regulations, as the city may require a business license and zoning compliance verification. Required documents typically include a completed business license application, property deed or lease agreement, certificate of occupancy, liability insurance documentation (minimum $1 million coverage), and a site plan showing parking availability. Application fees generally range from $50-150 for the initial business license plus any zoning permits, with annual renewal fees of approximately $25-75. The approval timeline is estimated at 2-4 weeks depending on zoning review and inspection requirements. Specific Lamesa requirements likely include compliance with residential zoning restrictions, adequate off-street parking (minimum 2 spaces), occupancy limits based on bedroom count, 24-hour contact information for guests, and adherence to noise ordinances. Properties must pass safety inspections covering smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency exit accessibility, while operators must collect and remit local hotel occupancy taxes quarterly to the City of Lamesa.

Short-term rentals (STRs) are generally legal in Lamesa, Texas, as the city does not appear to have enacted specific prohibitive ordinances against vacation rentals as of 2024. However, STR operators must comply with standard business licensing requirements, collect and remit state and local occupancy taxes (typically 6% state tax plus any applicable local hotel occupancy tax), and ensure properties meet basic safety and zoning requirements for residential use. The city may require STRs to operate under existing business permit structures and comply with noise ordinances and parking regulations that affect residential neighborhoods. Unlike larger Texas cities such as Austin or Dallas that have implemented comprehensive STR regulations with registration requirements and operational restrictions, smaller municipalities like Lamesa typically rely on existing zoning laws and nuisance ordinances to govern short-term rental activities. Property owners should verify current local requirements with Lamesa's city planning department and ensure compliance with homeowners association rules if applicable, as regulations can change and enforcement may vary at the local level.

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 capture business travelers in the oil and gas industry, particularly those working with companies like XTO Energy and other petroleum operations that have maintained presence since the 2010s. The residential neighborhoods around 19th Street and Avenue G provide good investment potential due to proximity to Lamesa High School events, medical facilities, and the courthouse, attracting visitors for sports tournaments, medical appointments, and legal proceedings. The area near US Highway 87 and 180 intersection offers convenience for travelers passing through to larger cities like Lubbock or Midland, making it attractive for overnight stays and extended business trips related to West Texas energy sector activities.

In Lamesa, Texas, Airbnb hosts are subject to state hotel occupancy tax of 6% on gross rental receipts, which is collected by the Texas Comptroller's office and must be remitted monthly if collections exceed $500 or quarterly if less. Dawson County imposes an additional 2% county hotel occupancy tax that must be collected from guests and remitted to the county tax assessor-collector's office on a monthly basis by the 20th of the following month. The City of Lamesa levies a 7% city hotel occupancy tax on short-term rentals under 30 days, bringing the total occupancy tax rate to approximately 15%, with city taxes remitted monthly to the Lamesa city secretary's office along with required occupancy reports. Hosts must register with each taxing entity, obtain tax permits, and maintain detailed records of all rental transactions, with exemptions typically limited to stays exceeding 30 consecutive days or rentals to permanent residents, though religious, charitable, and certain government-related stays may qualify for exemptions under specific circumstances as defined by Texas Tax Code Chapter 156.

The total cost to start an Airbnb in Lamesa, Texas is approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in the area. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, living room furniture, kitchen essentials, linens, and decor. 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 $500-$1,200. 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-$1,500. First six months operating costs including utilities ($600/month), cleaning services ($100 per turnover), maintenance ($200/month), property management software ($50/month), and marketing ($100/month) total approximately $6,300. Additional working capital for unexpected repairs, vacancy periods, and initial marketing should be budgeted at $5,000-$10,000.

Airbnb properties in Lamesa, Texas show moderate profitability potential with average daily rates ranging from $75-120 depending on property size and amenities, generating monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% for utilities, and 15-20% for property management if outsourced, resulting in net profit margins of 35-45% for debt-free properties. Success factors in this West Texas market include proximity to oil field operations which drive consistent business traveler demand, competitive pricing against limited hotel options, and properties that cater to extended stays for energy sector workers. A typical 3-bedroom home purchased for $120,000 and generating $2,400 monthly revenue with $1,400 in total expenses yields approximately $1,000 monthly profit or 10% annual return on investment. Properties near downtown Lamesa or with amenities like full kitchens and laundry facilities perform 20-25% better than basic accommodations, while seasonal fluctuations are minimal due to steady industrial demand rather than tourism-dependent bookings.

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 Lamesa generally reach profitability within 18-24 months, with average daily rates of $75-95 and occupancy rates around 65-75% due to consistent business travel from companies like Chevron and ConocoPhillips operating in the Permian Basin. The market benefits from minimal competition and steady demand, though investors should expect seasonal fluctuations tied to oil industry activity, with stronger performance during peak drilling periods typically occurring from 2019-2023 when oil prices remained favorable.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Lamesa, Texas. Local real estate agents like Lamesa Realty Group and West Texas Property Partners have experience with investment properties in the area, while national services such as Mashvisor, AirDNA, and BiggerPockets provide market analysis tools for Airbnb investments. RedAwning and Vacasa offer property management services for short-term rentals in smaller Texas markets like Lamesa. Real estate investment companies like HomeVestors and local firms such as Dawson County Investment Properties can assist with finding suitable properties. Additionally, platforms like Roofstock and BiggerPockets Marketplace connect investors with turnkey rental properties, while local property management companies like High Plains Property Management can help optimize Airbnb operations in the Lamesa market.