Is Roma, Texas Good for Airbnb Investment?

To start an Airbnb in Roma, Texas, begin by researching local zoning laws and regulations through Starr County and the City of Roma, as short-term rentals may require special permits or compliance with specific ordinances that vary by residential zone. Contact the Roma City Hall at (956) 849-1111 to inquire about business licenses, occupancy permits, and any short-term rental restrictions, then obtain necessary permits including a general business license, sales tax permit from the Texas Comptroller, and potentially a Certificate of Occupancy if required. Find a suitable property by searching MLS listings, contacting local real estate agents like those at Starr County Realty, or exploring neighborhoods near the Roma-Ciudad Miguel Alemán International Bridge for tourist appeal, ensuring the property meets safety codes and has adequate parking. Furnish the space with essential amenities including comfortable beds, linens, towels, kitchen supplies, WiFi, air conditioning (crucial for South Texas heat), and safety equipment like smoke detectors and fire extinguishers, purchasing items from nearby stores in McAllen or ordering online. Create your Airbnb listing with high-quality photos, competitive pricing research based on similar properties in the Rio Grande Valley area, and detailed descriptions highlighting proximity to the Mexican border, local attractions, and amenities. Manage your property by establishing cleaning protocols between guests, responding promptly to inquiries and bookings, 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 sales tax plus any applicable local hotel occupancy taxes that Roma may impose.

To identify profitable short-term rental properties in Roma, Texas, focus on properties within 2-3 miles of the Rio Grande River and international border crossing points, as these areas attract business travelers and tourists visiting Mexico. Target 2-4 bedroom single-family homes or duplexes built after 1990 with modern amenities, reliable internet, air conditioning, and parking, as Roma's climate demands comfort features year-round. Analyze pricing by researching comparable Airbnb and VRBO listings within a 10-mile radius, noting that average daily rates typically range $60-120 depending on property size and amenities, with occupancy rates around 45-65% annually due to consistent cross-border business travel. Competition research should include monitoring existing STR listings on major platforms, identifying gaps in amenities or locations, and noting that Roma's limited hotel options create opportunities for well-positioned rentals. Utilize tools like AirDNA for market analysis, STR Helper for revenue projections, and local resources including the Roma Economic Development Corporation for area insights, while monitoring Border Patrol and customs activity patterns that drive consistent demand from government contractors and business travelers throughout the year.

To obtain an Airbnb/STR permit in Roma, Texas, contact the Roma City Hall at 101 N Portscheller Avenue or call (956) 849-1114 to inquire about short-term rental regulations and permit requirements. You will likely need to submit a completed STR permit application, proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (typically $1 million minimum), fire safety inspection certificate, and a site plan showing parking availability and property layout. The application fee is estimated at $150-300 with annual renewal fees of approximately $100-200. Required documents should include your Texas driver's license or ID, property tax records, and contact information for a local property manager if you live outside Roma. The approval process typically takes 30-45 days after submitting a complete application, during which time the city may conduct property inspections to ensure compliance with zoning laws, fire codes, and occupancy limits. Roma likely requires STR properties to maintain adequate parking (minimum 2 spaces), comply with noise ordinances, post maximum occupancy limits, and provide 24-hour contact information for guests, with properties potentially limited to residential zoning districts and subject to a maximum occupancy of 2 people per bedroom plus 2 additional guests.

Short-term rentals (STRs) are generally legal in Roma, 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. Roma, being a small border city in Starr County with approximately 10,000 residents, has not enacted the restrictive zoning or permitting requirements seen in larger Texas cities like Austin or San Antonio. Property owners should ensure compliance with basic safety standards, noise ordinances, and any homeowner association restrictions that may apply. The city's proximity to the Mexican border and its role as a port of entry may subject some properties to additional federal oversight considerations, but no specific STR bans or major restrictions have been documented in Roma's municipal code, making it relatively permissive compared to other Texas municipalities that have implemented caps, registration requirements, or zoning restrictions on short-term rental operations.

The best Airbnb investment areas in Roma, Texas include the historic downtown district near the Roma Historic District and Plaza de Roma, which attracts cultural tourists interested in the town's 19th-century architecture and Mexican-American heritage. The areas near Roma Bluffs and the Rio Grande riverfront offer scenic views and appeal to nature tourists and bird watchers visiting the nearby Roma Bluffs World Birding Center. Properties close to the Roma-Ciudad Miguel Alemán International Bridge benefit from cross-border business travelers and visitors conducting trade between the US and Mexico. The residential areas along Highway 83 (Military Highway) provide convenient access for travelers passing through the Rio Grande Valley and those visiting nearby Starr County attractions. Additionally, neighborhoods within walking distance of local festivals and events, particularly during Dia de los Muertos celebrations and other cultural festivities, can command premium rates during peak seasons when visitors come to experience authentic border culture and cuisine.

In Roma, Texas, Airbnb properties are subject to the state hotel occupancy tax of 6% and a local hotel occupancy tax imposed by the City of Roma at an estimated rate of 7%, totaling approximately 13% in combined lodging taxes on gross rental receipts. The Texas state hotel occupancy tax is collected by hosts and remitted monthly to the Texas Comptroller's office if monthly collections exceed $500, or quarterly if less, with returns due by the 20th of the following month or quarter. The local Roma hotel occupancy tax is collected by hosts and remitted to the City of Roma on a monthly basis, typically due by the 15th of the following month, though hosts should verify specific due dates and procedures with the city's tax office. Airbnb may collect and remit these taxes automatically in some jurisdictions through voluntary collection agreements, but hosts remain ultimately responsible for compliance. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient lodging, and certain government and nonprofit organization bookings may qualify for exemptions with proper documentation. Hosts must register with both state and local tax authorities, maintain detailed records of all rental income and tax collections, and file returns even in months with no activity, with penalties and interest applying to late payments or non-compliance.

To start an Airbnb in Roma, Texas, the total estimated costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$150,000 based on median home prices in this small border town. Furnishing costs would range $15,000-$25,000 for a complete setup including beds, linens, kitchen appliances, furniture, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, occupancy permits, and potential HOA approvals would cost $500-$1,500. Insurance including landlord and short-term rental coverage would be $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, gas, internet, and cable would require $500-$1,000. First six months operating costs including utilities ($600/month), cleaning services ($100/booking estimated at 8 bookings monthly), maintenance and supplies ($200/month), platform fees (3% of estimated $1,200 monthly revenue), and marketing would total approximately $8,000-$12,000, bringing the complete startup investment to around $185,000-$220,000 depending on property size and quality level chosen.

Airbnb properties in Roma, Texas, a small border city with approximately 10,000 residents, face unique profitability challenges due to limited tourism infrastructure and lower average daily rates compared to major Texas markets. Properties in Roma typically generate $40-60 per night with occupancy rates around 45-55%, resulting in monthly revenues of $600-1,000 for active listings. Operating expenses including cleaning fees ($25-35 per turnover), utilities ($80-120 monthly), property management (15-25% of revenue), insurance ($150-200 monthly), and maintenance costs typically consume 60-70% of gross revenue. Profit margins generally range from 15-25% before mortgage payments, with successful properties being those targeting business travelers, border workers, and visitors to nearby Falcon State Park. Properties within 10 minutes of the Roma-Ciudad Miguel Alemán International Bridge perform better due to cross-border business traffic, while homes offering amenities like reliable Wi-Fi, air conditioning, and secure parking command premium rates. The market benefits from limited hotel options in the area, but faces challenges from seasonal demand fluctuations and economic dependency on border trade activities, making location selection and competitive pricing critical success factors for achieving sustainable profitability in this emerging South Texas market.

Airbnb investments in Roma, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, though these figures are conservative given the small border town's limited tourism infrastructure and population of approximately 11,000 residents. Properties in Roma generally achieve profitability within 18-24 months, with average nightly rates of $75-120 for modest 2-3 bedroom homes, occupancy rates around 45-60% annually due to business travelers, border commerce visitors, and occasional eco-tourists exploring the Rio Grande Valley. The market benefits from proximity to the Mexican border and Falcon Lake recreational activities, but faces challenges from limited marketing reach and seasonal demand fluctuations, making it more suitable for investors seeking steady but modest returns rather than high-growth vacation rental markets.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Roma, Texas, providing market analytics and investment insights. Local real estate agents in Roma who specialize in investment properties include agents from Keller Williams Rio Grande Valley, RE/MAX Elite, and Century 21 Border Realty, with many having experience in vacation rental investments since 2018-2020. National services like Mashvisor, AirDNA, and BiggerPockets offer market analysis tools for Roma's emerging Airbnb market. Regional companies such as South Texas Investment Properties and Rio Grande Valley Real Estate Investors have been helping clients identify profitable rental opportunities in border towns like Roma since 2019. Additional services include Awning Property Management for short-term rental management, RedAwning for property optimization, and local property management companies like Border Property Solutions that have expanded into Airbnb management services around 2021, capitalizing on increased tourism to the Roma area and its proximity to the Mexican border.