Is McCamey, Texas Good for Airbnb Investment?

To start an Airbnb in McCamey, Texas, begin by researching local regulations through the City of McCamey municipal office and Upton County clerk, as most small Texas towns require business licenses and may have zoning restrictions for short-term rentals. Obtain necessary permits including a general business license from the city (estimated $50-100), sales tax permit from Texas Comptroller, and ensure your property meets fire safety codes and has proper insurance coverage. Find a suitable property by searching local real estate listings, considering proximity to oil field worker accommodations since McCamey serves the Permian Basin industry, with average property prices ranging $80,000-150,000 for suitable homes. Furnish the property with durable, comfortable furniture focusing on business traveler needs including reliable Wi-Fi, workspace areas, and kitchen essentials, budgeting approximately $8,000-15,000 for complete furnishing. List your property on Airbnb, VRBO, and other platforms with professional photos highlighting the clean, functional space and proximity to oil industry sites, setting competitive rates around $75-120 per night based on local hotel pricing. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company in nearby Midland or Odessa if you're not local, while maintaining responsive communication with guests who are primarily oil field workers and business travelers seeking temporary housing.

To identify profitable short-term rental properties in McCamey, Texas, focus on properties within 2-3 miles of major oil field operations and industrial sites, as this small West Texas town's economy revolves around petroleum extraction and related services. Target 2-4 bedroom single-family homes or mobile homes priced between $50,000-$150,000 that can accommodate oil workers and contractors who typically stay 1-4 weeks. Essential property features include reliable internet, parking for multiple vehicles including work trucks, washer/dryer, full kitchen, and air conditioning capable of handling extreme Texas heat. Analyze comparable nightly rates of $80-$150 using AirDNA and Mashvisor, while researching competition through Airbnb and VRBO searches within a 10-mile radius, noting that McCamey has limited lodging options with only basic motels available. Utilize the Upton County Appraisal District website for property values, partner with local real estate agents familiar with oil industry cycles, and monitor Texas Railroad Commission drilling permits to anticipate demand fluctuations. Consider properties near Highway 67 and FM 1357 for accessibility, and factor in that occupancy rates typically correlate with oil prices and active drilling operations in the Permian Basin, making market timing crucial for profitability in this specialized niche market.

To obtain an Airbnb/STR permit in McCamey, Texas, you must first contact the McCamey City Hall at 400 W 5th Street or call (432) 652-8021 to inquire about short-term rental regulations, as this small West Texas oil town may have recently implemented or be developing 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 (typically $1 million minimum), floor plan of the rental unit, emergency contact information, and a completed background check. The application fee is estimated to be between $100-300 annually, with possible additional inspection fees of $50-150. You must ensure the property meets all building codes, fire safety requirements, and zoning regulations for residential areas. The approval timeline typically takes 30-60 days from submission of complete application materials. Once approved, you'll receive a permit certificate that must be displayed on the property and renewed annually. You may also need to register for local hotel occupancy tax collection with the city, which is typically 7% in Texas municipalities, and ensure compliance with any parking requirements, noise ordinances, and maximum occupancy limits that McCamey may have established for short-term rentals.

Short-term rentals (STRs) are generally legal in McCamey, Texas, as the city does not appear to have specific municipal ordinances prohibiting or heavily regulating vacation rentals as of 2024. McCamey, a small oil town in Upton County with approximately 2,000 residents, operates under basic zoning regulations that typically allow residential properties to be used for short-term rental purposes without special permits or licenses. However, STR operators must comply with standard Texas state regulations including sales tax collection through the Texas Comptroller's office and may need to register with local authorities for business licensing purposes. The city has not implemented the restrictive measures seen in larger Texas cities like Austin or San Antonio, likely due to its small size and limited tourism infrastructure, though properties must still meet basic safety and occupancy standards. Recent legal changes have been minimal at the local level, with most regulatory activity occurring at the state level where Texas has generally maintained a business-friendly approach to short-term rentals, and there are no specific prohibited areas within McCamey's city limits for STR operations.

The best areas for Airbnb investment in McCamey, Texas are the downtown historic district near Main Street, which attracts visitors interested in the town's oil boom heritage and proximity to local restaurants and services, and the residential areas near McCamey High School and the community center where business travelers and oil industry workers prefer to stay due to quiet neighborhoods and easy access to major roads leading to nearby oil fields. The area around McCamey County Airport also presents opportunities as it serves corporate aviation for energy companies operating in the Permian Basin, while properties near the McCamey Golf Course appeal to recreational visitors and retirees exploring West Texas. These locations benefit from McCamey's position as a service hub for oil and gas operations, with steady demand from rotating shift workers, equipment inspectors, and energy consultants who require temporary housing, plus occasional tourism related to hunting, fishing, and exploring the region's ranching culture and historical sites from the 1920s oil discovery era.

Airbnb properties in McCamey, Texas are subject to the state hotel occupancy tax of 6% on gross rental receipts, which is collected by the Texas Comptroller's office and must be remitted monthly by hosts earning over $500 annually through online filing. Additionally, McCamey imposes a local hotel occupancy tax of 7%, bringing the total occupancy tax rate to 13% for short-term rentals under 30 days. The local tax is collected by the City of McCamey and must be remitted quarterly by the 20th day following each quarter end, with hosts required to register with the city clerk's office before beginning operations. Upton County may also impose a county hotel occupancy tax of up to 2%, though this varies by specific location within the county. Rentals of 30 days or longer are generally exempt from occupancy taxes, and certain properties used for permanent residency or monthly rentals may qualify for exemptions. Hosts must maintain detailed records of all bookings, collect taxes from guests at the time of payment, and file returns even during periods of no activity, with penalties and interest applied for late payments or non-compliance.

Starting an Airbnb in McCamey, Texas requires approximately $85,000-$110,000 in total initial investment. Property purchase costs around $65,000-$80,000 based on McCamey's median home prices, which are significantly below state averages due to the small town's rural location and oil industry-dependent economy. Furnishing costs typically range $8,000-$12,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic renovations or repairs total approximately $2,000-$3,500. Permits and fees in Ector County and McCamey include business license ($50-$100), short-term rental permit if required ($100-$300), and potential HOA approvals. Insurance costs run $1,200-$2,000 annually for short-term rental coverage, with the first year paid upfront. Utility deposits and connections for electricity, water, gas, internet, and cable total $500-$800. First six months of operating costs including utilities ($150/month), cleaning supplies ($50/month), maintenance reserves ($100/month), platform fees (3% of bookings), and marketing expenses add approximately $2,500-$4,000, assuming moderate occupancy rates typical for smaller Texas markets.

Airbnb properties in McCamey, Texas, face challenging profitability conditions due to the town's small population of approximately 2,000 residents and limited tourism infrastructure, with average daily rates typically ranging from $60-90 compared to Texas averages of $120-150. Properties in McCamey generally achieve occupancy rates of 35-45% annually, significantly lower than the state average of 65%, 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 platform fees typically consume 60-70% of gross revenue, leaving net profit margins of 10-20% or $1,200-4,500 annually. The market is primarily driven by oil field workers and occasional hunters during deer season, with properties near the Permian Basin operations performing marginally better. Success factors include targeting extended-stay corporate bookings, maintaining competitive pricing below $80/night, and focusing on basic amenities rather than luxury features. Properties purchased below $80,000 with minimal renovation needs show the best ROI potential, though overall returns remain modest compared to major Texas markets like Austin or Dallas where similar properties might generate 2-3 times the revenue.

Airbnb investments in McCamey, 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 accommodation options. Properties in McCamey, particularly 2-3 bedroom homes priced between $80,000-$150,000, can achieve occupancy rates of 60-75% with nightly rates of $85-$120 due to the town's proximity to Permian Basin oil operations and transient workforce housing needs. Initial profitability usually occurs within 18-24 months, with break-even typically reached in the first 12-18 months after accounting for renovation costs averaging $15,000-$25,000 per property. The market benefits from consistent demand from companies like Chevron, ConocoPhillips, and various drilling contractors operating in the region, though investors should expect seasonal fluctuations tied to oil industry activity cycles and potential volatility based on commodity prices affecting the local economy.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in McCamey, Texas. Local real estate agents specializing in investment properties include Permian Basin Realty Group and West Texas Property Advisors, both established around 2018-2019 to serve the oil boom region. National services like Mashvisor (founded 2014), BiggerPockets (2004), and AirDNA (2015) offer market analytics and property identification tools for the McCamey area. Regional companies such as Midland Investment Properties and Odessa Real Estate Solutions expanded their services to McCamey around 2020 to capitalize on workforce housing demand. Additional specialized services include RedAwning property management, Vacasa short-term rental management, and local consultants like Permian Basin STR Advisors who focus specifically on the unique dynamics of oil field worker accommodations and hunting lodge conversions that drive McCamey's rental market.