Is San Ygnacio, Texas Good for Airbnb Investment?

To start an Airbnb in San Ygnacio, Texas, begin by researching local regulations through Zapata County and the City of San Ygnacio, as this small border town may have specific zoning requirements and occupancy tax obligations that differ from larger Texas cities. Contact the Zapata County Clerk's office to obtain necessary permits, which typically 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 San Ygnacio's market, focusing on homes near the Rio Grande or historic downtown area that appeal to visitors interested in border culture and history. Furnish the property with essential amenities including reliable Wi-Fi, air conditioning (crucial for South Texas heat), comfortable bedding, and basic kitchen supplies, while incorporating local Mexican-American cultural elements to enhance the guest experience. List your property on Airbnb, Vrbo, and Booking.com with high-quality photos highlighting unique features like river views or proximity to the historic San Ygnacio Historic District, and set competitive pricing considering the limited tourism infrastructure in this rural area. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and potentially hiring a bilingual co-host given the area's predominantly Spanish-speaking population, while ensuring compliance with Texas state tax collection requirements and any applicable Zapata County lodging taxes.

For identifying profitable STR properties in San Ygnacio, Texas, focus on location criteria near the Rio Grande riverfront and historic downtown areas, as proximity to the border crossing and scenic river views drive tourist demand. Target properties with 2-3 bedrooms, outdoor spaces, and authentic Southwestern architectural features that appeal to cultural tourists and business travelers crossing into Mexico. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar border town markets like Laredo (30 miles north), aiming for $80-120 nightly rates based on 2023 market data. Research competition by analyzing the limited existing STR inventory (estimated 15-25 active listings) on Airbnb and VRBO, focusing on properties near historic sites like the Treviño-Uribe Rancho and Fort McIntosh. Utilize tools like Rabbu and AllTheRooms for hyperlocal market analysis, while leveraging Webb County tourism data and consulting with local real estate agents familiar with the San Ygnacio Historic Village to identify undervalued properties with STR potential, particularly those that can capitalize on the town's designation as a National Historic Landmark and its appeal to heritage tourists exploring the Texas-Mexico border region.

To obtain an Airbnb/STR permit in San Ygnacio, Texas, contact the Zapata County Clerk's office at (956) 765-9915 or visit their office at 200 E 7th Ave, Zapata, TX 78076, as San Ygnacio is an unincorporated community within Zapata County jurisdiction. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a site plan showing parking and occupancy layout, obtain a certificate of occupancy from the county building department, provide proof of liability insurance with minimum $1 million coverage, and include contact information for a local property manager if you're not residing within 50 miles. Required documents include a valid Texas driver's license or ID, property tax records, fire safety inspection certificate, and septic system inspection if not connected to municipal sewer. The application fee is approximately $150-200 with an annual renewal fee of $75-100, and processing typically takes 4-6 weeks once all documentation is submitted. San Ygnacio-specific requirements include maintaining adequate off-street parking for guests, ensuring compliance with rural road access standards, and adhering to noise ordinances due to the small community setting. Schedule a pre-application meeting with county planning staff to review zoning compliance and any additional rural property considerations before submitting your complete application package.

Short-term rentals (STRs) are generally legal in San Ygnacio, Texas, as this small border town in Zapata County does not appear to have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. The town, with a population of approximately 667 residents, operates under basic zoning regulations that typically allow residential properties to be used for short-term rental purposes, though operators must comply with standard Texas state requirements including sales tax collection and remittance to the Texas Comptroller. Given San Ygnacio's location along the Rio Grande and its historical significance, there are no known prohibited areas specifically for STRs within the town limits, though properties must meet basic safety and occupancy standards. The town has not implemented recent legal changes regarding STR regulations, likely due to its small size and limited tourism infrastructure, meaning operators primarily need to focus on state-level compliance rather than complex local restrictions that are more common in larger Texas cities like Austin or San Antonio.

San Ygnacio, Texas offers limited but focused Airbnb investment opportunities primarily in the historic downtown area near the San Ygnacio Historic District, which attracts visitors interested in the town's 18th-century Spanish colonial architecture and proximity to the Rio Grande. The area around Fort McIntosh and the old trading post sites draws history enthusiasts and cultural tourists exploring the region's frontier heritage. Properties near the riverfront and Falcon International Reservoir area appeal to fishing and outdoor recreation visitors, particularly during peak seasons from October through April. The downtown core near Highway 83 provides convenient access for business travelers and government workers visiting the nearby border facilities and Zapata County offices. Investment potential is enhanced by the town's location as a gateway to Mexico, attracting cross-border visitors and those exploring the Rio Grande Valley's birding trail, though the market remains niche with seasonal fluctuations tied to winter Texan tourism and weekend recreational fishing trips.

San Ygnacio, Texas, located in Zapata County, imposes a 7% hotel occupancy tax on short-term rental accommodations including Airbnb properties, which is collected by the city and must be remitted monthly by hosts to the San Ygnacio City Hall by the 20th of each month following the collection period. Additionally, hosts must collect and remit the standard Texas state hotel occupancy tax of 6%, bringing the total occupancy tax burden to 13% on gross rental receipts. Zapata County may also impose a county hotel occupancy tax of up to 2%, though this varies by specific location within the county. The taxes apply to rentals of 30 consecutive days or less, with exemptions typically available for stays exceeding 30 days, rentals to permanent residents, and accommodations provided to certain government employees on official business. Hosts are required to register with the city, obtain a short-term rental permit, and maintain detailed records of all rental transactions and tax collections for audit purposes, with penalties and interest applied to late or non-payment of required taxes.

The total cost to start an Airbnb in San Ygnacio, Texas would be approximately $85,000-$95,000. Property purchase represents the largest expense at around $65,000 based on the median home price in this small border town. Furnishing costs would run $8,000-$12,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations would add $2,000-$3,000. Permits and fees are minimal in this rural area, estimated at $200-$500 for business registration and any local requirements. Insurance specifically for short-term rentals would cost approximately $1,200-$1,800 annually, so $600-$900 for six months. Utilities including electricity, water, internet, and cable would run about $150-$200 monthly, totaling $900-$1,200 for six months. First six months operating costs including cleaning supplies, maintenance, marketing, platform fees to Airbnb/VRBO, and miscellaneous expenses would add another $2,000-$3,000. The remote location near the Mexican border may limit guest volume but also reduces competition and property costs significantly compared to major Texas markets.

Airbnb properties in San Ygnacio, Texas show moderate profitability potential with average nightly rates ranging from $75-120 for typical 2-3 bedroom homes, generating approximately $18,000-28,000 in annual revenue at 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($30-50 per turnover), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance reserves (5-8% of revenue). Properties near the Rio Grande or with unique historical features command premium rates of $130-180 nightly, achieving profit margins of 25-35% after expenses. Success factors include proximity to the border crossing for business travelers, authentic Tex-Mex cultural experiences, and outdoor recreation access, with properties featuring modern amenities in historic settings performing best. The limited local hotel inventory creates opportunity, though seasonal fluctuations tied to border commerce and winter Texan migration patterns significantly impact year-round performance, with properties typically seeing 40% higher occupancy November through March compared to summer months.

Based on San Ygnacio, Texas market conditions, Airbnb investments in this small border town typically generate annual ROI of 8-12% due to limited tourism infrastructure and remote location approximately 45 miles from Laredo. Cash-on-cash returns generally range from 6-10% annually, with properties averaging $80-120 per night during peak hunting seasons and border-related business travel. Initial profitability typically occurs within 18-24 months, though seasonal fluctuations significantly impact performance with stronger returns during October-February hunting season and weaker summer months. Property acquisition costs remain relatively low at $60,000-150,000 for suitable rental properties, but occupancy rates average only 35-45% annually due to the town's population of under 700 residents and limited tourist attractions beyond hunting and fishing activities along the Rio Grande.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties across markets including San Ygnacio, Texas. Local real estate agents in the Laredo-Webb County area such as Keller Williams Laredo and RE/MAX Laredo often work with investors seeking Airbnb properties near the Rio Grande border region. National services like Awning, RedAwning, and Vacasa provide market analysis and property management for short-term rentals in South Texas markets. BiggerPockets marketplace and Roofstock occasionally feature investment properties in smaller Texas border towns. Local property management companies such as South Texas Property Solutions and Border Real Estate Group have experience with vacation rental properties in Webb County. AirDNA and Mashvisor offer market data and analytics for the San Ygnacio area to help investors evaluate potential returns. Century 21 offices in Laredo frequently assist investors looking at properties in surrounding communities including San Ygnacio for short-term rental conversion.