Is Sunray, Texas Good for Airbnb Investment?

To start an Airbnb in Sunray, Texas, begin by researching local regulations through the City of Sunray municipal office and Moore County clerk, as this small town may have basic zoning restrictions and require a general business license or occupancy permit. Contact the city hall at (806) 948-4434 to verify specific short-term rental requirements, as rural Texas municipalities often have minimal regulations but may require safety inspections or tax registration. Find a suitable property by searching local real estate listings through agents familiar with Sunray's market, focusing on homes near the town center or with easy highway access since Sunray is a small agricultural community along US Highway 119. Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, shopping at nearby Amarillo retailers like Walmart, Home Depot, or local furniture stores. Create your Airbnb listing with professional photos highlighting the property's proximity to local attractions like the Moore County Historical Museum or outdoor activities, setting competitive rates based on similar properties in the Texas Panhandle region (likely $60-120 per night). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or lockbox access, and maintaining relationships with local service providers in Sunray for maintenance, cleaning, and emergency situations, while ensuring compliance with Texas state tax requirements for short-term rentals.

To identify profitable short-term rental properties in Sunray, Texas, focus on properties within 2-3 miles of the town center and major employers like feedlots and agricultural operations, as this small Panhandle community of approximately 2,000 residents primarily attracts business travelers and workers in agriculture and energy sectors. Target 2-3 bedroom single-family homes or mobile homes priced between $40,000-$80,000 with good internet connectivity, updated kitchens, and parking space, as these appeal to extended-stay guests working temporary contracts. Analyze comparable nightly rates in nearby Dumas (15 miles south) which typically range $60-$90 per night, and price competitively at $50-$75 to capture the limited but consistent demand. Research competition using AirDNA and Mashvisor to identify the 3-5 existing STR properties in the area, noting that low competition creates opportunity but also indicates limited market size. Utilize the Moore County Appraisal District website for property values, partner with local realtors familiar with investor properties, and consider the seasonal nature of agricultural work which peaks during harvest seasons from September through November, driving higher occupancy rates during these months while expecting lower demand in winter months.

To obtain an Airbnb/STR permit in Sunray, Texas, contact the Sunray City Hall at 121 Main Street or call (806) 948-4434 to inquire about short-term rental regulations and application procedures. You will likely need to submit a completed STR application form, provide proof of property ownership or lease agreement, submit a site plan or floor plan of the property, obtain a certificate of occupancy, provide proof of liability insurance (typically $1 million minimum), and pass a safety inspection covering smoke detectors, carbon monoxide detectors, and fire extinguishers. Required documents typically include a valid Texas driver's license or ID, property tax records, utility bills, and contact information for a local property manager if you live more than 60 miles away. Application fees generally range from $100-300 initially with annual renewal fees of $50-150, and you may need to pay additional inspection fees of $75-125. The approval timeline is typically 30-45 days from submission of a complete application, though initial inspections may add 1-2 weeks. Sunray-specific requirements likely include maintaining the property in residential character, providing adequate parking spaces, ensuring quiet hours compliance (typically 10 PM to 7 AM), and registering with the city's tax collection system for hotel occupancy taxes of 6-7%.

Short-term rentals (STRs) are generally legal in Sunray, Texas, as the city does not appear to have specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. Like most small Texas municipalities, Sunray likely follows state regulations and basic zoning requirements, meaning STRs can typically operate in residential areas provided they comply with standard property use guidelines and obtain any necessary business licenses. There are no known prohibited areas specifically for STRs within Sunray city limits, though operators should ensure compliance with homeowners association rules if applicable and maintain properties according to local housing codes. The city has not implemented recent legal changes specifically targeting short-term rentals, unlike larger Texas cities such as Austin or Dallas that have enacted more restrictive STR regulations. Property owners in Sunray should verify current zoning compliance and may need to register their STR business with the city and state tax authorities, but face relatively minimal regulatory barriers compared to urban areas in Texas.

The best areas for Airbnb investment in Sunray, Texas include the historic downtown district near Main Street, which attracts visitors interested in the town's agricultural heritage and small-town charm, and properties near the Sunray Municipal Airport area that cater to business travelers and agricultural industry professionals visiting local farming operations and oil field services. The residential neighborhoods around Sunray Park offer family-friendly accommodations for visitors attending local events like the annual Sunray Fun Day festival and high school football games, while properties on the outskirts of town near Highway 119 provide convenient access for travelers exploring the Texas Panhanains region and visiting nearby attractions in Dumas and Amarillo. Areas close to the Moore County fairgrounds and agricultural facilities are particularly attractive during harvest seasons and livestock events, when temporary housing demand increases significantly from seasonal workers and industry professionals.

Airbnb properties in Sunray, 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 if collections exceed $500 or quarterly if less. Additionally, Moore County (where Sunray is located) likely imposes a county hotel occupancy tax of approximately 2-3%, though the exact rate may vary and should be verified with county officials. The City of Sunray, being a small municipality with an estimated population under 2,000, may not have implemented a separate municipal hotel occupancy tax, but property owners should confirm this with city hall as many Texas cities impose rates ranging from 2-7%. 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 payments to the appropriate taxing authorities along with required monthly or quarterly returns. Exemptions generally include stays of 30 days or longer, certain government and nonprofit organization bookings, and in some cases religious or charitable organization stays, though specific exemption criteria should be verified with each taxing jurisdiction.

To start an Airbnb in Sunray, Texas, the total initial 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 Panhandle town. Furnishing costs would range $15,000-$25,000 for quality furniture, appliances, linens, and decor suitable for short-term rentals. Initial setup including professional photography, listing creation, welcome materials, and basic renovations would cost $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations would total $500-$1,500. Insurance for short-term rental coverage would cost $2,000-$3,000 annually. Utility deposits and connections for electricity, water, gas, internet, and cable would require $1,000-$2,000. First six months of operating costs including utilities ($900), cleaning supplies ($300), maintenance reserves ($1,200), marketing ($600), and property management software ($300) would total approximately $3,300. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add $5,000-$10,000 to initial capital requirements.

Airbnb properties in Sunray, Texas show moderate profitability potential with average daily rates ranging from $75-120 for typical 2-3 bedroom homes, generating monthly revenues of $1,800-3,200 based on 60-70% occupancy rates common in smaller Texas markets. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($40-60 per turnover), utilities ($150-250 monthly), property management (15-25% of revenue), insurance ($100-150 monthly), and maintenance costs ($200-400 monthly). Net profit margins generally range from 15-25% after expenses, with successful properties achieving $300-800 monthly profit depending on property size and management efficiency. Success factors in Sunray include proximity to oil and gas industry workers seeking temporary housing, competitive pricing below nearby Amarillo market rates, and targeting business travelers and contractors working in the Panhandle region. Properties within 10 miles of industrial facilities or main highways perform better, with some hosts reporting annual profits of $5,000-12,000 on properties valued at $80,000-150,000, though seasonal fluctuations tied to energy sector activity can impact consistency throughout the year.

Based on Sunray, Texas market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near local attractions like the XIT Museum or serving oil field workers can achieve higher returns of 12-15% annually. Initial profitability usually occurs within 18-24 months, with break-even on cash investment typically reached in 8-12 months due to Sunray's lower property acquisition costs averaging $80,000-$120,000 for suitable rental properties. Occupancy rates average 65-75% annually, with peak demand during summer months and hunting seasons, while average daily rates range from $75-$125 depending on property amenities and proximity to Highway 136 corridor serving the energy sector workforce.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Sunray, Texas. Local real estate agents in the area include Amarillo-based firms like Coldwell Banker First Equity Realty and RE/MAX Amarillo, which serve the Texas Panhandle region including Sunray. National services that help investors find Airbnb properties include AirDNA for market analysis, Mashvisor for investment property analytics, and BiggerPockets for networking with local investors. Regional property management companies like Vacasa and RedAwning can assist with both finding and managing short-term rental properties in smaller Texas markets. Local investors may also work with Panhandle real estate investment groups and utilize services from companies like Roofstock and HomeUnion that focus on investment properties in secondary markets across Texas.