Is Leakey, Texas Good for Airbnb Investment?

To start an Airbnb in Leakey, Texas, begin by researching local regulations through Real County and the City of Leakey, as Texas allows local municipalities to regulate short-term rentals - contact Real County Clerk's office and Leakey City Hall to determine if permits or licenses are required, though many small Texas towns have minimal STR restrictions as of 2023. Find a suitable property by working with local real estate agents familiar with the Frio River area, focusing on properties near popular attractions like Garner State Park, Lost Maples State Natural Area, or along the Frio River, with typical investment properties ranging from $200,000-$500,000 depending on size and location. Obtain necessary permits which may include a business license from Real County, sales tax permit from Texas Comptroller, and potentially a health department permit if serving food, plus ensure proper insurance coverage through companies like Proper or CBIZ that specialize in STR insurance. Furnish the property with durable, comfortable furniture suitable for families and groups visiting for river activities, including outdoor furniture, life jackets, coolers, and river-appropriate amenities, sourcing from San Antonio retailers about 90 minutes away or online suppliers. List your property on Airbnb, VRBO, and local vacation rental sites, emphasizing proximity to Frio River activities, tubing, fishing, and state parks, with competitive pricing typically ranging $150-$400 per night depending on property size and season. Manage the property by either self-managing if you live nearby, hiring local cleaning services from Uvalde or Kerrville areas, or contracting with property management companies that service the Frio River corridor, ensuring quick response times for the seasonal influx of visitors from San Antonio, Austin, and Houston metropolitan areas.

For identifying profitable short-term rental properties in Leakey, Texas, focus on properties within 2-3 miles of the Frio River and Garner State Park, as these locations drive 70-80% of tourist traffic from April through September. Target 2-4 bedroom cabins or houses with river access, outdoor amenities like fire pits and decks, and rustic charm that appeals to families and groups seeking Hill Country experiences. Analyze comparable properties on Airbnb and VRBO showing average daily rates of $150-300 depending on size and river proximity, with occupancy rates typically 60-75% during peak season and 30-40% off-season. Research existing competition by monitoring the 40-50 active STRs in the area, noting that properties with direct river access command 25-40% premium pricing over those requiring short drives to water access points. Utilize AirDNA for market analytics, STR Helper for revenue projections, and local resources like the Leakey Chamber of Commerce and Real Living Frio Country Realty for property insights, while considering that successful properties typically generate $35,000-65,000 annually with proper management and marketing to the San Antonio and Austin metropolitan areas which comprise the primary guest demographics.

To obtain an Airbnb/STR permit in Leakey, Texas, you must first contact the Leakey City Hall at 830-232-5408 or visit their office at 105 W Main Street to inquire about short-term rental regulations, as this small town may have recently implemented or be considering STR ordinances. You'll likely need to submit an application form along with required documents including proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental unit, emergency contact information, and a completed background check. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. You must also register for a Texas sales tax permit with the Texas Comptroller's office and collect the state's 6% hotel occupancy tax plus any local hotel taxes (estimated 2-7%). The approval timeline typically takes 30-60 days after submitting a complete application, during which the city will conduct a safety inspection to ensure compliance with fire codes, occupancy limits, and parking requirements. Leakey likely requires STR properties to maintain adequate off-street parking (minimum 2 spaces), post maximum occupancy limits, provide 24-hour contact information for guests, and maintain the property in accordance with residential zoning standards while ensuring minimal impact on neighboring properties.

Short-term rentals (STRs) are generally legal in Leakey, Texas, as the small town in Real County does not have specific municipal ordinances prohibiting or heavily regulating vacation rentals. However, operators must comply with Texas state regulations including sales tax collection through the Texas Comptroller's office and may need to obtain a general business license from Real County. The town, with a population under 500, has minimal zoning restrictions that would impact STRs, though properties must meet basic health and safety standards. There have been no recent significant legal changes specifically targeting short-term rentals in Leakey, and the rural nature of the community means STRs often operate with fewer restrictions compared to larger Texas cities like Austin or San Antonio that have implemented comprehensive STR ordinances. Property owners should verify current county-level requirements and ensure compliance with state tax obligations, but the regulatory environment remains relatively permissive for vacation rental operations in this small Hill Country community.

The best areas for Airbnb investment in Leakey, Texas are primarily concentrated around the Frio River corridor, particularly the downtown historic district near the river access points, and the residential areas along FM 1120 and FM 337 that offer easy river access. The Frio River area is extremely attractive due to its year-round appeal for tubing, swimming, and water recreation, drawing thousands of visitors from San Antonio, Austin, and Houston during peak summer months from May through September. The downtown area near the Frio River Outfitters and local tube rental companies sees consistent demand as visitors prefer walkable access to river activities and local restaurants like the Frio River Grill. Properties along the scenic FM 337 corridor toward Vanderpool are also prime investments due to their proximity to Lost Maples State Natural Area, which attracts significant fall foliage tourism from October through November. The area around Neal's Lodges and other established river resorts creates a proven tourism ecosystem that supports short-term rental demand. Business travel is minimal in Leakey, but the town benefits from its position as a gateway to the Texas Hill Country, making it attractive for weekend getaways, family reunions, and group retreats seeking river access and outdoor recreation.

In Leakey, Texas, Airbnb properties are subject to the state hotel occupancy tax of 6% on gross rental receipts, which applies to stays of less than 30 consecutive days. Real County, where Leakey is located, does not impose an additional county hotel occupancy tax as of 2023. The City of Leakey, being a small municipality with a population under 1,000, does not levy a separate municipal hotel occupancy tax. Texas requires hosts to register for a hotel occupancy tax permit through the Texas Comptroller's office if they rent properties for fewer than 30 days, and taxes must be remitted monthly by the 20th of the following month using Form 12-144. Airbnb may collect and remit state taxes on behalf of hosts in Texas through their voluntary collection agreements, but hosts remain ultimately responsible for compliance and should verify collection status. Stays of 30 days or longer are exempt from hotel occupancy taxes, and certain government and nonprofit organization stays may qualify for exemptions with proper documentation.

Starting an Airbnb in Leakey, Texas requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in this rural Hill Country area. Furnishing a 2-3 bedroom property with quality furniture, appliances, linens, and décor runs $15,000-25,000. Initial setup including professional photography, listing creation, welcome materials, and basic amenities costs $2,000-3,000. Permits and fees in Real County include business license ($100-300), STR permit if required ($200-500), and potential HOA fees ($500-1,000). Insurance including liability and property coverage specifically for short-term rentals costs $1,500-2,500 annually. Utility deposits and connections for electricity, water, internet, and cable total $800-1,200. First six months operating costs including utilities ($600/month), cleaning services ($100-150 per turnover), maintenance reserves ($200/month), marketing ($100/month), and platform fees (3% of bookings estimated at $300/month) total approximately $7,200-9,000. Additional considerations include potential septic system maintenance common in rural Texas areas and higher insurance costs due to wildfire risks in the region.

Airbnb properties in Leakey, Texas, a small town in the Texas Hill Country with approximately 400 residents, show moderate profitability potential due to its proximity to Garner State Park and the Frio River, attracting seasonal tourists from April through October. Properties typically generate $8,000-$15,000 annually in gross revenue, with 2-3 bedroom cabins and river houses commanding $120-$200 per night during peak summer months and $80-$120 during off-season. Operating expenses average 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($50-$75 per turnover), utilities ($150-$250 monthly), insurance ($1,200-$2,000 annually), and maintenance ($2,000-$4,000 yearly). Net profit margins typically range from 15-25% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% during peak season by offering amenities like river access, fire pits, and proximity to outdoor activities. Properties within walking distance of the Frio River or featuring unique accommodations like glamping tents or restored vintage trailers tend to outperform standard homes, with some premium riverfront properties generating up to $25,000 annually despite higher acquisition and maintenance costs.

Airbnb investments in Leakey, Texas can expect annual ROI of 12-18% based on the area's proximity to Garner State Park and Frio River recreational activities that drive consistent tourist demand. Cash-on-cash returns typically range from 8-14% annually, with properties averaging $150-250 per night during peak summer months (May-September) and $80-120 during off-season. Investment properties in Leakey generally reach profitability within 18-24 months, with initial investment costs averaging $200,000-350,000 for suitable vacation rental properties. The market benefits from limited hotel inventory and strong repeat visitor rates, with occupancy rates of 65-75% annually. Companies like Vacasa and RedAwning report that Hill Country properties similar to Leakey's market generate gross rental yields of 15-22% before expenses, while net yields after management fees, maintenance, and taxes typically settle at 10-15% annually.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Leakey, Texas. Local real estate agents serving the Leakey area include Hill Country Real Estate, Frio River Properties, and Garner County Realty, who have expertise in vacation rental properties near the Frio River. National services like AirDNA, Mashvisor, and BiggerPockets provide market analysis and property identification tools for Leakey's vacation rental market. RedAwning and Vacasa offer property management services for investors purchasing Airbnb properties in the area. Local property management companies such as Hill Country Vacation Rentals and Frio River Retreats specialize in managing short-term rentals in Leakey and surrounding areas. Investment firms like Roofstock and Awning focus on turnkey rental properties, while platforms like VRBO Property Management and HomeAway Professional Tools provide additional resources for investors looking to capitalize on Leakey's proximity to Garner State Park and the Frio River, which drive strong vacation rental demand year-round.