Is Raymondville, Texas Good for Airbnb Investment?

To start an Airbnb in Raymondville, Texas, begin by researching local regulations through the City of Raymondville Planning Department and Willacy County offices, as most small Texas cities don't have specific short-term rental ordinances but may require business licenses or permits. Contact the city clerk at (956) 689-3171 to verify any zoning restrictions and obtain necessary business permits, which typically cost $25-50 annually. Find a suitable property by searching local real estate listings through companies like Keller Williams Rio Grande Valley or Century 21, focusing on homes near Highway 77 or downtown areas with prices ranging $80,000-150,000. Furnish the property with essential amenities including WiFi, air conditioning (crucial for South Texas heat), basic kitchen appliances, linens, and furniture from retailers like Ashley HomeStore in Harlingen or online suppliers, budgeting $8,000-15,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $60-90 per night, highlighting proximity to attractions like the nearby Santa Ana National Wildlife Refuge and easy access to the Rio Grande Valley. Manage your listing by responding quickly to inquiries, coordinating cleaning services (local companies like Valley Cleaning Services charge $40-60 per turnover), maintaining the property regularly, and ensuring compliance with Texas state tax requirements by registering with the Texas Comptroller for hotel occupancy taxes, which range from 6-15% depending on local municipal rates.

To identify profitable short-term rental properties in Raymondville, Texas, focus on properties within 10-15 minutes of major attractions like the Willacy County Historical Museum or near Highway 77 for easy access, as this small South Texas town of approximately 11,000 residents sees visitors primarily for business travel, hunting, and family visits. Target 2-3 bedroom single-family homes or mobile homes priced between $50,000-$120,000 with essential features like reliable Wi-Fi, air conditioning, parking, and basic furnishings, as the local market demands affordable, comfortable accommodations rather than luxury amenities. Conduct pricing analysis using AirDNA and Mashvisor to identify that nightly rates typically range from $60-$100, with higher rates during hunting season (October-January) and winter Texan season (November-March), while analyzing the limited competition of fewer than 20 active STR listings in the area through Airbnb and VRBO searches. Research local regulations through Willacy County and City of Raymondville offices, utilize the Raymondville Chamber of Commerce for market insights, and leverage tools like BiggerPockets for investment analysis, STR Helper for automation, and local Facebook groups to understand seasonal demand patterns driven by the nearby hunting leases, agricultural business travel, and proximity to the Rio Grande Valley's winter visitor market.

To obtain an Airbnb/STR permit in Raymondville, Texas, contact the Raymondville City Hall at 956-689-3171 or visit their offices at 428 E Hidalgo Avenue to inquire about short-term rental regulations, as the city may require a business license and special use permit for STR operations. Submit an application for a business license along with required documents including property deed or lease agreement, proof of insurance with minimum $1 million liability coverage, floor plan of the rental unit, parking plan showing adequate guest parking, and contact information for a local property manager if you're not residing locally. Pay the estimated fees of $50-150 for business license and $200-500 for special use permit if required, though exact amounts should be confirmed with city staff. The approval timeline typically ranges from 30-60 days depending on application completeness and any required public hearings. Raymondville-specific requirements likely include compliance with residential zoning restrictions, maximum occupancy limits based on bedroom count, 24-hour contact person availability, proper waste management arrangements, and adherence to noise ordinances, with annual license renewal required and potential inspections by city code enforcement to ensure ongoing compliance with health and safety standards.

Short-term rentals (STRs) are generally legal in Raymondville, Texas, as the city does not appear to have specific municipal ordinances prohibiting them as of 2024. However, operators must comply with standard Texas state regulations including sales tax collection through the Texas Comptroller's office and potentially hotel occupancy taxes if the city has implemented them. Raymondville, being a smaller municipality in Willacy County with approximately 11,000 residents, likely follows basic zoning restrictions that may limit STRs in certain residential areas or require them to operate under business licensing requirements. Property owners should verify compliance with any homeowners association rules and ensure proper insurance coverage, as Texas state law generally defers STR regulation to local municipalities. Recent trends across Texas have seen increased local regulation of STRs, so operators should monitor potential future ordinances that Raymondville city council might implement regarding registration requirements, occupancy limits, parking restrictions, or noise ordinances that could affect STR operations.

The best areas for Airbnb investment in Raymondville, Texas include the downtown historic district near Main Street, which attracts visitors interested in the city's railroad heritage and proximity to the Raymondville Historical Museum. The residential areas near Raymondville High School and the civic center offer good potential due to sports events, graduations, and community gatherings that bring families to town. Properties close to Highway 77 and Highway 186 are attractive for business travelers and those passing through to South Padre Island or the Rio Grande Valley, as Raymondville serves as a convenient stopover point. The neighborhoods near Ray Point Park and the municipal golf course appeal to visitors seeking recreational activities and family gatherings. Areas within walking distance of local restaurants and shops along 7th Street provide convenience for guests, while properties near the Willacy County Courthouse attract legal professionals and government workers requiring temporary accommodation.

Airbnb properties in Raymondville, 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, Willacy County imposes a 2% county hotel occupancy tax that follows similar collection and remittance procedures as the state tax. The City of Raymondville does not currently impose a separate municipal hotel occupancy tax as of 2023. These taxes apply to stays of less than 30 consecutive days and are typically collected from guests at the time of booking, with hosts responsible for remitting the funds to the appropriate tax authorities by the 20th of each month following the collection period. Exemptions may apply for stays exceeding 30 days, certain government employees on official business, and qualifying nonprofit organizations, though documentation is required to claim these exemptions.

To start an Airbnb in Raymondville, Texas, the total initial investment would be approximately $95,000-$115,000. Property purchase costs around $65,000-$75,000 based on median home prices in this small South Texas town. Furnishing a 2-3 bedroom property would require $8,000-$12,000 for essential furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials would be $500-$800. Permits and fees vary but typically include business license ($50-$100), short-term rental permit if required by the city ($100-$300), and potential HOA approval fees ($0-$200). Insurance for short-term rentals runs $1,200-$2,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, gas, internet, and cable would cost $800-$1,200. First six months of operating costs including utilities ($150/month), cleaning supplies and services ($200/month), maintenance reserves ($100/month), platform fees (3% of bookings estimated at $100/month), and marketing ($50/month) would total approximately $3,600. Additional considerations include potential property improvements or repairs ($2,000-$5,000) and working capital for unexpected expenses ($2,000-$3,000).

Airbnb properties in Raymondville, Texas show moderate profitability potential with average daily rates ranging from $65-85 for typical 2-3 bedroom homes, generating monthly revenues of $1,200-2,100 based on 40-60% occupancy rates common in smaller Texas markets. Operating expenses typically consume 35-45% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-200 monthly), property management (15-25% if outsourced), insurance ($100-150 monthly), and maintenance reserves ($100-200 monthly), resulting in net profit margins of 15-25% for well-managed properties. Success factors in this South Texas market include proximity to the border with Mexico attracting business travelers and visiting families, competitive pricing against limited hotel options, and properties featuring amenities like full kitchens and parking that appeal to extended-stay guests. A typical 3-bedroom home purchased for $120,000-150,000 can generate annual net profits of $3,000-6,000 after expenses, with higher returns achieved through properties near Raymondville's industrial areas serving oil and gas workers, though seasonal fluctuations and the small local market size present challenges for consistent bookings year-round.

Based on Raymondville, Texas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and occupancy rates. Properties in Raymondville generally reach profitability within 18-24 months, with average nightly rates of $75-$95 and occupancy rates around 45-55% annually. The market benefits from proximity to South Padre Island tourism overflow and business travelers to the Rio Grande Valley, though seasonal fluctuations impact winter months. Initial investment costs average $80,000-$120,000 for suitable properties, with monthly operating expenses typically running $800-$1,200 including utilities, cleaning, maintenance, and platform fees. Conservative projections show gross rental income of $18,000-$28,000 annually, with net returns after expenses yielding 8-11% ROI for well-managed properties in desirable neighborhoods near Highway 77 or close to local amenities.

STRSearch leads the national market for Airbnb investment property analysis and market data for Raymondville, Texas. Local real estate agents specializing in short-term rental investments include Keller Williams Rio Grande Valley with agents like Maria Rodriguez and Century 21 Gold Star with broker John Martinez who have been active in the Raymondville market since 2019. National services include Awning (formerly RedAwning) which provides full-service Airbnb property management and investment guidance, Mashvisor offering property analytics and investment recommendations, and AirDNA providing market data and revenue projections for the South Texas region. Local property management companies like Valley Vacation Rentals and Rio Grande Property Solutions have emerged since 2020 to serve the growing short-term rental market, while national platforms like Vacasa and RedAwning offer turnkey investment and management services. Real estate investment firms such as Roofstock and Arrived Homes have identified opportunities in smaller Texas markets including Raymondville, and local mortgage brokers like First National Bank of Raymondville and Security State Bank provide specialized financing for investment properties targeting the Airbnb market.