Is Midland, Texas Good for Airbnb Investment?

To start an Airbnb in Midland, Texas, begin by researching local regulations as Midland requires short-term rental permits and compliance with zoning ordinances, particularly in residential areas where STRs may be restricted or require special use permits from the City Planning Department. Contact Midland's Code Enforcement Division at (432) 685-7200 to understand specific requirements, obtain a business license from the City Secretary's office, and ensure compliance with fire safety codes and occupancy limits. Find a suitable property by focusing on areas near downtown Midland, the Permian Basin oil industry centers, or near the Midland International Air and Space Port, with properties typically ranging from $150,000-$400,000 depending on location and size. Furnish the property with durable, mid-range furniture suitable for business travelers and oil industry workers, including reliable Wi-Fi, comfortable bedding, and basic kitchen amenities, budgeting approximately $15,000-$25,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $80-$150 per night depending on property size and location, highlighting proximity to oil industry sites and business districts. Manage the property by establishing relationships with local cleaning services like Midland-based companies such as Spotless Cleaning Solutions, implement keyless entry systems, maintain responsive communication with guests who are often business travelers with specific needs, and consider hiring local property management companies like West Texas Property Management if managing multiple properties or living out of state.

To identify profitable STR properties in Midland, Texas, focus on locations within 10-15 minutes of downtown business district, near major employers like Chevron, ConocoPhillips, and Pioneer Natural Resources, or close to Midland International Air & Space Port since oil industry professionals frequently need temporary housing. Target 2-4 bedroom properties built after 1990 with modern amenities, dedicated workspace areas, reliable internet, and parking since business travelers dominate this market. Analyze pricing using AirDNA and STR data platforms, noting that Midland typically commands $80-150 per night depending on oil market cycles, with occupancy rates around 60-75% annually. Research competition by monitoring existing listings within 5-mile radius, identifying gaps in amenities or locations underserved by current hosts. Utilize tools like Mashvisor for market analysis, track Permian Basin oil activity through industry reports since drilling activity directly correlates with demand, monitor corporate housing companies like Oakwood and BridgeStreet for pricing benchmarks, and leverage local Facebook groups and Midland Chamber of Commerce resources to understand seasonal demand patterns driven by oil field operations and corporate relocations.

To obtain an Airbnb/STR permit in Midland, Texas, you must first contact the City of Midland Planning and Development Services Department at 300 N. Loraine Street or call (432) 685-7148 to begin the application process. Required documents typically include a completed short-term rental permit application, proof of property ownership or lease agreement with landlord consent, a site plan showing the property layout, proof of liability insurance (minimum $1 million coverage), contact information for a local responsible party available 24/7, and a floor plan indicating maximum occupancy. The application fee is approximately $150-200 with an annual renewal fee of around $100. You must also obtain a Certificate of Occupancy if the property will be used differently than its original zoning designation, which may require additional inspections by the Building Safety Division. The timeline for approval is typically 30-45 days from submission of a complete application, though this may extend if inspections reveal code violations that need correction. Midland requires STR properties to maintain off-street parking for each bedroom, limit occupancy to 2 people per bedroom plus 2 additional guests, and ensure the property meets all fire safety codes including smoke detectors in each bedroom and common area. Properties must also comply with noise ordinances and cannot be located within 300 feet of another permitted short-term rental in residential areas.

Short-term rentals (STRs) are generally legal in Midland, Texas, as the city has not implemented a comprehensive ban on these properties. However, STR operators must comply with standard zoning regulations and obtain proper business licenses, with most residential areas allowing STRs under existing single-family zoning provisions. The city requires STR operators to register their properties and collect applicable hotel occupancy taxes, typically around 7% for the city portion plus additional county and state taxes. Midland has implemented basic safety and operational requirements including smoke detectors, carbon monoxide detectors, and maintaining properties in compliance with city codes. There are no specific prohibited areas city-wide, though individual homeowners associations may have their own restrictions. Recent regulatory discussions have focused on noise complaints and parking issues in residential neighborhoods, but no major legal changes have been enacted as of 2023-2024, with the city taking a relatively permissive approach compared to other Texas municipalities while monitoring the situation for potential future regulations.

The best areas for Airbnb investment in Midland, Texas include the Downtown District, which attracts business travelers working in the oil and gas industry headquarters and benefits from proximity to corporate offices, restaurants, and the Wagner Noël Performing Arts Center. The Museum District near the Petroleum Museum and Midland County Historical Museum draws tourists and families visiting cultural attractions. Areas near Midland International Air and Space Port capture business travelers and aviation enthusiasts, especially given the airport's growing commercial and cargo operations. The Grassland Estates and Greathouse neighborhoods appeal to longer-term corporate housing needs for oil executives and consultants on extended assignments. Properties near the Scharbauer Sports Complex attract families attending youth tournaments and sporting events throughout the year. The areas around Loop 250 and Wadley Avenue offer convenient access to major employers like Chevron, ConocoPhillips, and Pioneer Natural Resources, making them ideal for corporate travelers who prefer short-term rentals over hotels for extended stays in this major Permian Basin hub.

In Midland, Texas, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to appropriate authorities. The Texas state hotel occupancy tax is 6% of the room rate, while the City of Midland imposes an additional local hotel occupancy tax of 7%, bringing the total occupancy tax to 13% on short-term rental stays. These taxes apply to rentals of less than 30 consecutive days and are calculated on the total room charge before other taxes. Airbnb typically collects and remits these taxes automatically for hosts in Midland through their platform, with the state portion going to the Texas Comptroller of Public Accounts and the local portion to the City of Midland's Finance Department. Hosts who collect taxes manually must register with both the state and city, file monthly returns by the 20th of the following month, and remit payments accordingly. Exemptions may apply for stays exceeding 30 days, certain government employees on official business, and qualifying nonprofit organizations, though documentation is required. The city may also require short-term rental permits or licenses, and hosts should verify current registration requirements with Midland's Planning Department as regulations have evolved since 2019-2020 when many Texas cities began implementing specific short-term rental ordinances.

The total cost to start an Airbnb in Midland, Texas is approximately $285,000-$350,000. Property purchase costs around $220,000-$280,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including short-term rental licenses, business registration, and city compliance costs approximately $500-$1,500 annually. Insurance for short-term rentals runs $2,000-$3,500 per year through companies like Proper Insurance or CBIZ. Utilities including electricity, water, gas, internet, and cable average $300-$500 monthly or $1,800-$3,000 for six months. First six months operating costs including cleaning services, supplies, maintenance, property management software like Airbnb or VRBO fees, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees of $100-$300 monthly and emergency repair funds of $2,000-$5,000.

Airbnb properties in Midland, Texas show strong profitability potential due to the city's robust oil and gas industry, with average daily rates ranging from $85-150 depending on property type and location. A typical 3-bedroom home near downtown Midland can generate $2,500-4,000 monthly revenue, while expenses including mortgage, utilities, cleaning, maintenance, and Airbnb fees typically run $1,800-2,800 monthly, resulting in profit margins of 15-35%. Properties near major employers like Chevron, ExxonMobil, and Pioneer Natural Resources command premium rates, with some hosts reporting annual returns of 12-18% on investment. Success factors include proximity to business districts, oil field locations, and the Midland International Air and Space Port, as the city's transient workforce of oil executives, engineers, and contractors creates consistent demand. A case study from 2022-2023 showed a renovated 4-bedroom property purchased for $280,000 generated $52,000 annual revenue with $38,000 in total expenses, yielding $14,000 net profit and 5% cash-on-cash return, while occupancy rates typically range 65-80% due to steady business travel demand despite oil price volatility.

Airbnb investments in Midland, Texas typically generate annual ROI of 12-18% due to strong oil industry demand and limited hotel inventory, with cash-on-cash returns ranging from 8-14% depending on property type and financing structure. Properties in desirable neighborhoods near downtown or close to major employers like Chevron, ConocoPhillips, and Pioneer Natural Resources can achieve profitability within 8-14 months, while average properties may take 12-18 months to reach positive cash flow. The market benefits from consistent business traveler demand with average daily rates of $120-180, occupancy rates of 65-75%, and properties typically requiring initial investments of $150,000-300,000 for suitable 2-3 bedroom homes that can generate $2,500-4,500 monthly gross revenue, making Midland one of Texas's stronger secondary markets for short-term rental investments despite oil price volatility affecting long-term sustainability.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations in Midland, Texas. Local real estate agents like Keller Williams Realty and Coldwell Banker Legacy have agents experienced in investment properties and short-term rental markets in the Permian Basin area. National services include AirDNA for market data analysis, Mashvisor for investment property analytics, and BiggerPockets for connecting with local investors and agents. Regional companies such as West Texas Investment Properties and Permian Basin Realty Group focus on investment opportunities in the oil-rich Midland market. Additional services include RedAwning for vacation rental management consultation, Awning for short-term rental investment guidance, and local property management companies like Midland Property Solutions and Basin Property Management that can assist with Airbnb operations post-purchase.