Is Plainview, Texas Good for Airbnb Investment?

To start an Airbnb in Plainview, Texas, begin by researching local regulations through the City of Plainview Planning Department and Hale County offices, as Texas generally allows short-term rentals but municipalities may have specific zoning restrictions or require business licenses. Contact Plainview City Hall at 901 Broadway to inquire about any required permits, business licenses, or occupancy certificates, and check if your property's zoning allows short-term rentals. Find a suitable property by searching residential areas near Wayland Baptist University or downtown Plainview, considering properties with 2-3 bedrooms that can accommodate families or business travelers, with purchase prices typically ranging $80,000-$150,000 in the area. Furnish the property with essential amenities including comfortable beds, linens, towels, kitchen appliances, Wi-Fi, and local touches like Texas-themed decor, budgeting approximately $8,000-$15,000 for complete furnishing. Create your Airbnb listing with professional photos highlighting the property's proximity to Wayland Baptist University, local attractions like the Llano Estacado Museum, and emphasize the quiet, small-town atmosphere with competitive pricing around $60-$90 per night. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and ensuring compliance with Texas state tax requirements by collecting and remitting the 6% state occupancy tax plus any applicable local hotel taxes to the Texas Comptroller's office.

To identify profitable short-term rental properties in Plainview, Texas, focus on locations near West Texas A&M University campus areas, downtown historic districts, and properties with easy access to Highway 27 for business travelers visiting local agriculture and energy companies. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, dedicated parking, and outdoor spaces that appeal to both business travelers and families visiting the university. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the limited STR inventory, typically ranging $80-150 per night, while researching competition through Airbnb and VRBO searches revealing approximately 15-25 active listings in the market. Analyze occupancy rates of existing properties near Plainview Country Club, Llano Estacado Museum area, and properties serving the agricultural conference market, as major employers like Cargill and local farming operations drive consistent business travel demand. Utilize tools like Rabbu, STR Helper, and local MLS data through Plainview Association of Realtors, while monitoring seasonal patterns tied to university events, harvest seasons, and regional agricultural conferences that can significantly impact demand and pricing strategies in this emerging STR market.

To obtain an Airbnb/STR permit in Plainview, Texas, contact the Plainview City Planning and Zoning Department at City Hall located at 901 Broadway Street or call (806) 296-1148 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan showing the property layout, provide proof of liability insurance (typically $1 million minimum), pass a fire safety inspection, and include contact information for a local property manager if you're not residing within 50 miles of Plainview. The application fee is approximately $150-200 with an additional $75-100 annual renewal fee, and fire inspection fees around $50-75. The timeline typically takes 30-45 days from submission to approval, depending on inspection scheduling and any required corrections. Plainview requires STR properties to maintain occupancy limits based on bedroom count (typically 2 guests per bedroom plus 2 additional), provide adequate parking (minimum 2 spaces), maintain quiet hours from 10 PM to 7 AM, and display the permit number in all advertising. Properties must also comply with residential zoning requirements and may face additional restrictions in certain historic or residential districts.

Short-term rentals (STRs) are generally legal in Plainview, Texas, as the city does not have specific ordinances prohibiting them as of 2024. However, STR operators must comply with standard zoning regulations, which typically allow short-term rentals in residential areas with proper permitting and adherence to occupancy limits, noise ordinances, and parking requirements. The city requires STR properties to maintain residential character and may restrict commercial-style operations in purely residential zones. Property owners should obtain necessary business licenses and ensure compliance with state tax collection requirements for transient occupancy. While there haven't been major recent legal changes specifically targeting STRs in Plainview, operators should verify current zoning compliance and may face restrictions in certain residential districts if neighbor complaints arise regarding noise, traffic, or parking issues. The regulatory environment remains relatively permissive compared to larger Texas cities, but standard municipal codes regarding noise, occupancy, and business operations still apply to all short-term rental activities.

The most promising Airbnb investment areas in Plainview, Texas include the Historic Downtown District near Broadway and Main Street, which attracts visitors to local events, antique shopping, and the Llano Estacado Museum, plus offers proximity to restaurants and cultural activities. The area around Wayland Baptist University on West 7th Street presents strong potential due to consistent demand from visiting families, prospective students, alumni events, and academic conferences throughout the year. The neighborhoods near Plainview Country Club and the medical district around Covenant Health Plainview are attractive for business travelers, medical professionals, and patients' families seeking comfortable accommodations. The residential areas close to Running Water Draw Regional Park appeal to outdoor enthusiasts and families visiting for youth sports tournaments and recreational activities. Additionally, properties near the agricultural business corridor along Interstate 27 can capture demand from agribusiness professionals, equipment dealers, and seasonal agricultural workers, as Plainview serves as a regional hub for cotton farming and cattle ranching operations in the Texas Panhandle.

In Plainview, Texas, Airbnb properties are subject to the state hotel occupancy tax of 6% and a local hotel occupancy tax of 7%, totaling 13% on gross rental receipts for stays less than 30 consecutive days. The Texas Comptroller's office collects the state portion, while the City of Plainview collects the local portion, both typically remitted monthly by the 20th of the following month after collection. Airbnb automatically collects and remits these taxes on behalf of hosts in most Texas jurisdictions including Plainview as of 2019, though hosts should verify their specific situation and register with both the state (Texas Comptroller) and city if collecting taxes independently. Stays of 30 days or longer are generally exempt from hotel occupancy taxes, and certain government and non-profit travelers may qualify for exemptions with proper documentation. Property taxes on the rental property are separate and paid directly to Hale County, while hosts must also report rental income on federal and state income tax returns.

To start an Airbnb in Plainview, Texas, the total initial costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$140,000 based on median home prices in Plainview as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-$3,000. Permits and fees vary but generally include business license ($100-$300), short-term rental permit if required ($200-$500), and potential HOA approval fees. Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable services typically cost $500-$800 initially, with monthly utilities averaging $200-$300. First six months of operating costs including utilities ($1,200-$1,800), cleaning services ($1,800-$3,000), maintenance reserves ($1,000-$2,000), platform fees, and marketing expenses total approximately $6,000-$10,000, bringing the complete startup investment to the estimated range.

Airbnb properties in Plainview, Texas typically generate modest returns due to the city's smaller market size and limited tourism infrastructure. Average nightly rates range from $65-95 for entire homes, with occupancy rates around 45-55% annually, resulting in gross revenues of $10,000-18,000 per year for typical 2-3 bedroom properties. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($150-200 monthly), property management (15-25% of revenue), insurance ($800-1,200 annually), and maintenance typically consume 40-50% of gross revenue. Net profit margins generally fall between 15-25%, with successful properties earning $2,000-4,500 annually after expenses. Success factors include proximity to South Plains College, competitive pricing below $85/night, professional photography, and targeting business travelers or families visiting the area. Properties near the downtown area or with unique amenities like pools or large yards tend to outperform standard listings. The market faces challenges from limited demand drivers compared to major Texas cities, though lower property acquisition costs (median home prices around $85,000-120,000) can improve overall ROI for investors purchasing specifically for short-term rental purposes.

Airbnb investments in Plainview, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily due to the city's proximity to Wayland Baptist University and regional medical facilities driving consistent demand. Properties near the university campus or downtown area can achieve occupancy rates of 65-75% annually, with average daily rates of $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors seeing break-even on cash invested by month 20-28. The market benefits from limited hotel inventory and steady demand from university visitors, medical professionals, and business travelers, though seasonal fluctuations occur during summer months when university activity decreases. Properties requiring minimal renovation typically perform better, with total returns including appreciation averaging 10-14% annually over a 3-5 year holding period.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Plainview, Texas. Local real estate agents specializing in investment properties include Coldwell Banker First Equity Realty and RE/MAX Preferred Properties, both with agents experienced in vacation rental investments since 2018. Keller Williams Realty has developed an investor-focused division that assists with Airbnb property acquisitions throughout the Texas Panhandle region. National services like Awning, RedAwning, and Vacasa offer end-to-end investment property management and acquisition consulting for the Plainview market. AirDNA and Mashvisor provide market analytics and property performance forecasting specifically for short-term rentals in smaller Texas markets. Local property management companies such as Panhandle Property Solutions and High Plains Rentals have expanded into Airbnb management services since 2020, often helping investors identify suitable properties during the acquisition process. BiggerPockets marketplace and Roofstock occasionally feature Plainview investment properties, while LoopNet and Crexi list commercial and multi-family properties suitable for short-term rental conversion in the area.