Is Ozona, Texas Good for Airbnb Investment?

To start an Airbnb in Ozona, Texas, begin by researching local regulations through Crockett County and the City of Ozona, as this small West Texas town (population ~3,000) likely has minimal short-term rental restrictions but may require basic business licenses or permits from the city clerk's office. Contact Ozona City Hall at 325-392-2827 to verify zoning compliance and any required permits, which typically cost $50-200 annually in small Texas municipalities. Find property by searching local real estate listings, considering homes near Interstate 10 for traveler convenience, or partner with existing homeowners willing to rent their properties. Purchase furnishings focusing on Western/ranch themes appropriate for the area, budgeting $8,000-15,000 for a 2-3 bedroom home including beds, linens, kitchen essentials, WiFi setup, and basic amenities. Create your Airbnb listing emphasizing proximity to Fort Lancaster Historic Site, hunting opportunities, and convenient I-10 location for road travelers, pricing competitively at $75-125/night based on limited local competition. Manage the property by establishing relationships with local cleaning services (likely 1-2 available in town), maintenance contractors, and consider using automated check-in systems due to the remote location, while maintaining responsive communication with guests who are primarily hunters, history enthusiasts, and interstate travelers.

To identify profitable short-term rental properties in Ozona, Texas, focus on properties within walking distance of the town square and historic district, as well as near Highway 163 for easy access, since Ozona serves as a key stop for travelers between San Antonio and West Texas oil fields. Target 2-3 bedroom homes or ranch-style properties with outdoor spaces, parking, and reliable internet, as the area attracts hunters, oil workers, and road trip travelers who value comfort and functionality. Analyze pricing by researching comparable properties on Airbnb and VRBO within a 50-mile radius including Sonora and Junction, aiming for nightly rates between $80-150 depending on property size and amenities, while considering seasonal demand spikes during hunting seasons (October-January) and oil industry activity. Competition research should focus on the limited existing STR inventory in Crockett County, examining occupancy rates and guest reviews of properties in nearby towns like Sonora and Rocksprings to identify service gaps. Utilize tools like AirDNA for market analysis, STR Helper for performance tracking, and local resources including the Ozona Chamber of Commerce for tourism trends, Crockett County Appraisal District for property values, and networking with local real estate agents familiar with ranch properties and commercial real estate serving the Permian Basin workforce.

To obtain an Airbnb/STR permit in Ozona, Texas, contact the Crockett County Clerk's office at 903 Avenue D or call (325) 392-2022, as Ozona operates under county jurisdiction rather than city regulations. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy ($500,000 minimum coverage), fire safety inspection certificate from the local fire marshal, and a site plan showing parking areas and emergency exits. The application fee is estimated at $150-250 with an annual renewal fee of $100-150, plus inspection fees of approximately $75-100. Submit your complete application to the County Clerk's office and schedule required inspections with the fire marshal and building department within 10 business days. The approval timeline ranges from 30-45 days depending on inspection scheduling and any required corrections. Specific Ozona requirements include maintaining adequate off-street parking (minimum 2 spaces), posting emergency contact information visible to guests, ensuring compliance with septic system capacity limits due to rural infrastructure, maintaining noise levels consistent with residential zoning, and providing guests with local emergency services contact information including the Crockett County Sheriff's Department. Properties must also meet Texas Health Department standards for water quality testing if using well water, and owners must register with the Texas Comptroller for hotel occupancy tax collection at 6% plus any applicable county tax.

Short-term rentals (STRs) are generally legal in Ozona, Texas, as the city does not appear to have specific municipal ordinances prohibiting them as of 2024. Ozona, located in Crockett County, operates under Texas state law which allows STRs unless specifically restricted by local municipalities. The city has not implemented comprehensive STR regulations like larger Texas cities such as Austin or San Antonio, meaning property owners can typically operate vacation rentals without special permits or licenses. However, STR operators must still comply with standard property regulations, health and safety codes, and collect applicable state and local taxes including hotel occupancy taxes. There are no known prohibited residential areas for STRs within Ozona's city limits, though operators should verify current zoning compliance. 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 while allowing municipalities to set their own rules regarding registration, taxation, and operational standards.

The best areas for Airbnb investment in Ozona, Texas are downtown Ozona near the town square and courthouse, which attracts visitors for business at the county seat and those exploring the historic district, and properties along or near Interstate 10, particularly on the east and west sides of town, which capture travelers needing overnight stops on this major cross-country highway route. The area near Ozona Lake and recreational facilities draws hunters, fishermen, and outdoor enthusiasts, especially during hunting seasons from October through January when demand peaks significantly. Properties within walking distance of local restaurants like Cafe Next Door and near the Crockett County Museum benefit from cultural tourism and visitors researching local history and genealogy. The residential areas along Avenue H and nearby streets offer quiet, family-friendly accommodations that appeal to extended-stay business travelers working in the oil and gas industry, which has periodic activity in Crockett County, as well as families visiting relatives or attending local events like the annual Ozona Rodeo in June.

In Ozona, Texas, Airbnb hosts are subject to state hotel occupancy tax of 6% on gross rental receipts, which applies to stays of less than 30 consecutive days. Crockett County, where Ozona is located, imposes an additional 7% county hotel occupancy tax, bringing the total occupancy tax rate to 13%. The City of Ozona does not currently impose a separate municipal hotel occupancy tax. These taxes are collected from guests at the time of booking through Airbnb's automated tax collection system for most reservations, with Airbnb remitting payments directly to the Texas Comptroller's office monthly. However, hosts remain responsible for ensuring compliance and may need to register with the Texas Comptroller if Airbnb is not collecting taxes for their specific listing or if they use other booking platforms. Stays of 30 days or longer are generally exempt from occupancy taxes, and certain government and non-profit travelers may qualify for exemptions with proper documentation. Hosts should file quarterly reports even when Airbnb collects taxes to maintain compliance records.

To start an Airbnb in Ozona, Texas, expect total costs around $185,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 for a median 3-bedroom home in this rural West Texas town. Furnishing costs typically range $15,000-$25,000 including beds, linens, kitchen appliances, living room furniture, and décor to create an attractive rental space. Initial setup costs add $2,000-$3,500 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees in Sutton County are minimal at $200-$500 for business registration and any required local permits. Insurance premiums for short-term rental coverage cost $1,200-$2,000 annually, with the first year paid upfront. Utility deposits and connections total $300-$600 for electricity, water, gas, internet, and cable services. First six months of operating costs including utilities ($150/month), cleaning supplies ($100/month), maintenance reserves ($200/month), platform fees (3% of bookings estimated at $300/month), and marketing expenses add approximately $4,500-$6,000 to launch costs.

Airbnb properties in Ozona, Texas show moderate profitability potential with average daily rates ranging from $75-120 for typical 2-3 bedroom properties, generating monthly revenues of $1,800-3,200 depending on occupancy rates that typically hover around 45-65% in this rural West Texas town of approximately 3,000 residents. Operating expenses including cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-200 monthly), and maintenance ($200-400 monthly) typically consume 60-70% of gross revenue, leaving net profit margins of 30-40% for well-managed properties. Success factors in Ozona include proximity to hunting ranches and oil field worker accommodations, with properties near Highway 163 and close to local amenities like the Crockett County Museum performing better than remote locations. A typical 3-bedroom ranch-style home purchased for $120,000-180,000 can generate annual net profits of $8,000-15,000, though seasonal fluctuations tied to hunting seasons (October-January) and oil industry activity significantly impact performance, with some operators like local property management company West Texas Stays reporting higher success rates through strategic pricing and targeting corporate travelers working in the Permian Basin.

Based on Ozona, Texas market conditions, Airbnb investments in this small West Texas town of approximately 3,000 residents can expect annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%. Properties typically achieve profitability within 18-24 months, with average nightly rates of $75-120 depending on property size and amenities. The market benefits from oil industry workers, hunters during deer season (November-January), and travelers on Interstate 10, though occupancy rates average 45-60% annually due to the rural location. Initial investment costs are relatively low with median home prices around $85,000-150,000, but investors should factor in higher marketing costs and potential vacancy periods. Properties near the town center or with hunting access tend to perform better, with some achieving up to 15% ROI in peak years when oil activity increases. The timeframe to break-even on initial investment typically ranges from 7-10 years, making this market suitable for investors seeking steady returns rather than rapid appreciation.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Ozona, Texas. Local real estate agents specializing in investment properties include Crockett County Realty and West Texas Property Group, while regional firms like San Angelo-based Lone Star Investment Properties extend services to the Ozona area. National services such as Mashvisor, AirDNA, and RedAwning offer market analytics and property identification tools for the West Texas market. Vacasa and AvantStay provide property management services for investors, while companies like BiggerPockets connects investors with local professionals. Local property management firms including Hill Country STR Management and Texas Vacation Rentals specialize in short-term rental operations in rural Texas markets. Investment-focused real estate platforms like Roofstock and Fundrise have expanded into secondary Texas markets, while local mortgage brokers such as First National Bank of Ozona assist with investment property financing for short-term rental acquisitions in the area.