Is Morton, Texas Good for Airbnb Investment?

To start an Airbnb in Morton, Texas, begin by researching local zoning laws and regulations through the Cochran County courthouse and Morton city hall, as small Texas towns typically require short-term rentals to comply with residential zoning ordinances and may need special use permits or business licenses. Contact the Morton city clerk's office to obtain necessary permits, which likely include a business license, sales tax permit from the Texas Comptroller, and potentially a short-term rental permit if required by local ordinance. Find a suitable property by working with local real estate agents familiar with Morton's market, focusing on homes near Highway 114 or close to local attractions like the Morton Museum, ensuring the property meets safety codes and has adequate parking. Furnish the space with essential amenities including comfortable bedding, kitchen supplies, Wi-Fi, and air conditioning (crucial for Texas heat), while incorporating local touches that reflect Morton's agricultural heritage. List your property on Airbnb and other platforms like VRBO, highlighting proximity to Levelland (30 miles) and Lubbock (60 miles), emphasizing the quiet small-town experience and easy access to West Texas attractions. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and possibly partnering with Morton businesses for guest recommendations, while maintaining competitive pricing typically 20-30% below Lubbock rates to attract travelers seeking affordable accommodations in the South Plains region.

To identify profitable short-term rental properties in Morton, Texas, focus on properties within 2-3 miles of the town center and major highways like US-114, as this small Cochran County community of approximately 2,000 residents primarily attracts business travelers, agricultural workers, and visitors to nearby cotton farming operations. Target 2-3 bedroom single-family homes or duplexes built after 1980 with reliable HVAC systems, updated kitchens, and strong WiFi capability, as these features appeal to work-related stays averaging $75-120 per night. Analyze comparable properties using AirDNA and Mashvisor to assess occupancy rates around 40-60% annually, while researching the limited competition through Airbnb and VRBO searches within a 15-mile radius including nearby Levelland and Littlefield markets. Utilize the Cochran County Appraisal District website for property values, partner with local real estate agents familiar with agricultural community dynamics, and monitor seasonal demand patterns tied to cotton harvest seasons (September-November) and oil field activity in the broader South Plains region, ensuring your investment targets properties under $150,000 that can generate 12-18% annual returns through strategic pricing and occupancy optimization.

To obtain an Airbnb/STR permit in Morton, Texas, you must first contact the Morton City Hall at 806-266-5775 or visit their office at 198 Main Street to inquire about short-term rental regulations, as this small town may not have established formal STR permitting processes yet. If permits are required, you'll likely need to submit a completed application form, provide proof of property ownership or lease agreement, submit a site plan or property survey, obtain liability insurance documentation showing minimum $1 million coverage, and pay application fees estimated between $100-300. Required documents typically include a valid Texas driver's license, property tax records, fire safety inspection certificate, and neighbor notification forms. The approval timeline is estimated at 30-60 days depending on completeness of application and any required inspections. Morton-specific requirements may include compliance with residential zoning restrictions, maximum occupancy limits based on property size, designated parking spaces for guests, and adherence to noise ordinances particularly given the town's small residential character. You must also register for Texas state and local tax collection, obtain a sales tax permit from the Texas Comptroller's office, and ensure compliance with any homeowners association rules if applicable.

Short-term rentals (STRs) in Morton, Texas are generally legal as the city does not have specific ordinances prohibiting them, operating under Texas state law which allows property owners to rent their properties for short periods. Morton, a small city in Cochran County with approximately 2,000 residents, has not implemented comprehensive STR regulations like larger Texas cities such as Austin or Dallas. Property owners must still comply with basic zoning requirements, with residential properties in single-family zones typically permitted for STR use, though commercial zoning may have different considerations. There are no specific prohibited areas designated by the city, and STR operators should ensure compliance with standard business licensing requirements, tax obligations including state and local hotel occupancy taxes, and basic safety standards. No significant recent legal changes have been enacted specifically targeting STRs in Morton as of 2024, though property owners should verify current zoning compliance and any potential homeowners association restrictions that might apply to their specific properties.

The best areas for Airbnb investment in Morton, Texas include the historic downtown district near Main Street, which attracts visitors interested in small-town charm and local events like the annual Morton County Fair and agricultural festivals. The residential neighborhoods surrounding Morton High School and near the city park offer family-friendly accommodations for sports tournaments and school events. Properties near Highway 214 and the intersection with Farm Road 1780 provide convenient access for business travelers visiting local agricultural operations, cotton gins, and farming equipment dealers that drive commercial activity in this rural community. The area near Morton Memorial Cemetery and the older established neighborhoods appeal to genealogy tourists and visitors attending family reunions, while properties on the outskirts of town cater to hunters and outdoor enthusiasts drawn to the South Plains region's wildlife and open spaces during hunting seasons.

In Morton, 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. Morton does not impose a separate city hotel occupancy tax as many Texas municipalities do, so hosts only need to comply with the state requirement. The tax applies to stays of less than 30 consecutive days and covers the total amount paid for lodging excluding applicable sales tax. Hosts must register with the Texas Comptroller, collect the tax from guests, and file returns using Form 12-144 along with payment by the 20th of the month following the reporting period. Exemptions include stays of 30 days or longer, certain government employees on official business, and qualifying nonprofit organizations, though documentation must be maintained. Airbnb may collect and remit these taxes on behalf of hosts in Texas through their platform, but hosts remain ultimately responsible for compliance and should verify that taxes are being properly handled.

To start an Airbnb in Morton, Texas, the total estimated costs would be approximately $185,000-$220,000. Property purchase costs around $120,000-$140,000 based on median home prices in small Texas towns. Furnishing a 2-3 bedroom property would require $15,000-$25,000 for quality furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permits, and inspection fees would total $500-$1,500 depending on local regulations. Insurance for short-term rental coverage would cost $2,000-$3,000 annually. Utility setup and deposits for electricity, water, gas, internet, and cable would be $500-$800. First six months of operating costs including utilities ($600/month), cleaning services ($150/month), maintenance and supplies ($200/month), platform fees ($300/month), and marketing would total approximately $7,500. Additional considerations include property taxes, HOA fees if applicable, and a reserve fund for unexpected repairs, bringing the comprehensive startup investment to the estimated range.

Airbnb properties in Morton, Texas, a small agricultural town in Cochran County with approximately 2,000 residents, face significant profitability challenges due to limited tourism demand and low nightly rates typically ranging from $40-80. Properties in Morton generally generate annual revenues of $3,000-8,000 with occupancy rates around 15-25%, while expenses including mortgage payments, utilities, cleaning, maintenance, and Airbnb fees often total $4,000-7,000 annually, resulting in profit margins of -10% to 15% for most operators. Success factors in this market include targeting agricultural workers, oil field personnel, and hunters during specific seasons, with properties near the town center or with unique amenities like large parking areas for work trucks performing slightly better. A typical 3-bedroom home purchased for $60,000 in 2022 might generate $5,500 in annual revenue but face $5,200 in expenses, yielding only $300 in profit, making Morton's Airbnb market generally unprofitable compared to larger Texas cities like Austin or Dallas where similar properties can achieve 60-80% occupancy rates and $15,000-40,000 annual revenues.

Airbnb investments in Morton, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative given Morton's small rural market of approximately 2,000 residents and limited tourism infrastructure. Properties in the $80,000-$120,000 range can expect gross rental yields of 10-15% annually, but after accounting for vacancy rates of 40-50% due to limited demand, maintenance costs, and property management fees, net returns settle in the 8-12% range. Investors should anticipate 18-24 months to reach profitability, with break-even typically occurring after the second year of operation. The market benefits from proximity to Lubbock (45 miles) and serves hunters, agricultural workers, and occasional business travelers, but seasonal fluctuations significantly impact occupancy rates. Cash-on-cash returns of 6-10% assume 25-30% down payments on investment properties, with higher returns possible for all-cash purchases or properties requiring renovation that can be acquired below market value.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Morton, Texas and surrounding areas. Local real estate agents in the Lubbock County region who work with Airbnb investors include Coldwell Banker and Century 21 offices, with agents like those at RE/MAX Lubbock and Keller Williams Realty having experience in investment properties since around 2018. National services that help investors find profitable Airbnb properties include Mashvisor (launched 2014), AirDNA (founded 2015), and Rabbu which provide market analysis and property recommendations. BiggerPockets, established in 2004, offers networking and resources for real estate investors including short-term rental strategies. Local property management companies like West Texas Property Management and regional firms such as RedAwning (operating since 2009) and Vacasa (founded 2009) provide services to help investors manage their Airbnb properties in smaller Texas markets. Real estate investment companies like Roofstock and Fundrise have expanded into short-term rental markets since 2020, while local mortgage brokers and real estate attorneys in Lubbock can assist with financing and legal aspects of Airbnb property acquisitions in Morton and the surrounding South Plains region.