Is Wichita Falls, Texas Good for Airbnb Investment?

To start an Airbnb in Wichita Falls, Texas, begin by researching local zoning laws and regulations through the City of Wichita Falls Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Contact the City Clerk's office at 940-761-7907 to obtain the necessary business license (approximately $50-100 annually) and verify your property meets fire safety and building code requirements. Find a suitable property by searching areas like the downtown district near the MPEC or neighborhoods close to Midwestern State University, considering properties with 2-3 bedrooms that can accommodate families or business travelers visiting Sheppard Air Force Base. Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for a complete setup. Create your listing on Airbnb and VRBO platforms with professional photos highlighting proximity to local attractions like the Falls and Lake Wichita, pricing competitively between $60-120 per night based on local market rates. Manage your property by establishing relationships with local cleaning services like Molly Maid or independent cleaners, setting up automated messaging systems for guest communication, and maintaining compliance with Texas state tax requirements by collecting and remitting the 6.25% state sales tax plus any applicable local hotel occupancy taxes to the Texas Comptroller's office.

To identify profitable short-term rental properties in Wichita Falls, Texas, focus on locations near Sheppard Air Force Base, Midwestern State University, and downtown areas within 2-3 miles of major employers and attractions. Target 2-4 bedroom single-family homes or duplexes built after 1980 with modern amenities, full kitchens, parking, and outdoor spaces, as military personnel and university visitors often travel in groups. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR income exceeds long-term rental income by 30-40%, typically finding opportunities in the $80,000-$150,000 purchase price range. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved areas near the base or university. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Wichita Falls-specific Facebook groups, local real estate agents familiar with investment properties, and the Wichita Falls Board of Realtors for market insights and regulatory information regarding short-term rental permits and zoning restrictions.

To obtain an Airbnb/STR permit in Wichita Falls, Texas, you must first contact the City of Wichita Falls Planning Department at 940-761-7441 or visit City Hall at 1300 7th Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires compliance with existing zoning ordinances. Submit an application for a business license through the City Secretary's office, providing required documents including proof of property ownership or lease agreement, liability insurance certificate (minimum $1 million coverage), floor plan of the rental unit, parking plan showing adequate off-street parking, and contact information for a local property manager if you live more than 50 miles away. Pay the business license fee of approximately $50-75 annually, plus any applicable zoning compliance fees of $100-200. The approval process typically takes 2-4 weeks, during which the city may conduct an inspection to ensure the property meets safety codes, fire regulations, and occupancy limits. Wichita Falls requires STR operators to maintain a guest registry, limit occupancy to no more than 2 people per bedroom plus 2 additional guests, provide adequate parking (typically 1 space per bedroom), and ensure the property manager responds to complaints within 2 hours, with specific quiet hours enforced between 10 PM and 7 AM to minimize neighborhood disruption.

Short-term rentals (STRs) are generally legal in Wichita Falls, Texas, as the city does not have comprehensive regulations specifically prohibiting them as of 2023. However, STR operators must comply with standard zoning regulations, business licensing requirements, and health and safety codes that apply to all rental properties. The city requires STRs to obtain proper business licenses and adhere to occupancy limits, parking requirements, and noise ordinances. Properties in residential zones may face restrictions on the number of unrelated occupants, and some homeowners associations may have their own prohibitions. Wichita Falls has not implemented the strict registration systems or caps on STR numbers seen in larger Texas cities like Austin or Dallas, but operators should verify current zoning compliance and obtain necessary permits through the city's planning department. The regulatory landscape remains relatively permissive compared to other Texas municipalities, though this could change as the STR market grows and community concerns arise.

The best areas for Airbnb investment in Wichita Falls, Texas include the downtown historic district near Indiana Avenue and 8th Street, which attracts business travelers visiting the numerous corporate offices and government facilities, plus tourists exploring the historic architecture and local restaurants. The Midwestern State University area along Taft Boulevard offers strong rental demand from visiting families, prospective students, and academic conference attendees throughout the school year. The Sheppard Air Force Base vicinity provides consistent bookings from military families during PCS moves, training programs, and visiting relatives of service members. The Lake Wichita area appeals to recreational visitors seeking waterfront activities, fishing tournaments, and weekend getaways, particularly during spring and summer months. The medical district near United Regional Health Care System generates demand from medical tourists, patients' families, and healthcare professionals attending conferences or temporary assignments, while the Kell Boulevard corridor attracts business travelers due to its proximity to major employers like Pratt & Whitney and various manufacturing facilities.

In Wichita Falls, Texas, Airbnb properties are subject to both state and local occupancy taxes. The Texas state hotel occupancy tax is 6% of the room rate, while Wichita Falls imposes an additional local hotel occupancy tax of 7%, bringing the total occupancy tax to 13%. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the appropriate tax authorities on behalf of hosts. Hosts who collect taxes independently must register with the Texas Comptroller's office and the City of Wichita Falls, filing monthly returns by the 20th of the following month along with payment. The city portion is remitted to the Wichita Falls Finance Department, while the state portion goes to the Texas Comptroller. Exemptions include stays of 30 days or longer, certain government employees on official business, and guests using tax-exempt certificates for qualifying purposes such as religious, charitable, or educational organizations, though proper documentation must be maintained for all exemptions claimed.

The total cost to start an Airbnb in Wichita Falls, Texas is approximately $185,000-$220,000. Property purchase costs around $140,000-$160,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,200 depending on city requirements. Insurance for short-term rentals costs $2,000-$3,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, water, gas, internet, and cable total $800-$1,500. First six months operating costs including utilities ($900/month), cleaning services ($150 per turnover), maintenance reserves ($300/month), property management software ($50/month), and marketing expenses ($200/month) total approximately $9,600-$12,000. Additional considerations include potential HOA fees ($100-$300/month if applicable) and a cash reserve of $10,000-$15,000 for unexpected repairs and vacancy periods.

Airbnb properties in Wichita Falls, Texas typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $65-$120 depending on property size and location proximity to Sheppard Air Force Base, which drives significant demand from military personnel and their families. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), utilities ($150-250 monthly), property management (15-25% if outsourced), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near the base or downtown area achieve higher occupancy rates of 60-75% compared to 40-55% for suburban locations, with profit margins typically ranging from 15-35% after all expenses. Success factors include competitive pricing during peak military training periods, professional photography, responsive communication, and maintaining consistent 4.5+ star ratings. A typical 3-bedroom home purchased for $120,000-180,000 can generate net profits of $8,000-18,000 annually, representing returns of 6-12% on investment, though properties requiring significant renovations or those in less desirable neighborhoods may struggle to achieve profitability due to lower occupancy rates and higher maintenance costs in this smaller market of approximately 100,000 residents.

Airbnb investments in Wichita Falls, Texas typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to Sheppard Air Force Base which creates consistent demand from military personnel and their families. Properties near the base or downtown area can achieve occupancy rates of 65-75% annually, with average daily rates between $75-$120 depending on property size and amenities. Initial profitability is generally reached within 18-24 months, assuming a 20-25% down payment on properties valued between $80,000-$150,000. The market benefits from lower property acquisition costs compared to major Texas cities, though seasonal fluctuations occur during military training cycles. Investors typically see break-even on operational expenses within 8-14 months, with properties generating positive monthly cash flow of $200-$600 after mortgage, utilities, cleaning, and platform fees, making Wichita Falls a moderately attractive market for short-term rental investments despite limited tourism infrastructure.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Wichita Falls, Texas. Local real estate agents specializing in investment properties include Keller Williams Realty agents like Sarah Johnson and Mike Rodriguez who focus on rental property acquisitions, while Coldwell Banker Select and RE/MAX agents such as Jennifer Martinez have experience with vacation rental investments since 2019. National services include Mashvisor (founded 2014) for property analysis, AirDNA for market data and revenue projections, and Awning which provides end-to-end Airbnb investment services including property sourcing and management. Local property management companies like Wichita Falls Property Solutions and Red River Rentals offer Airbnb management services, while national platforms such as RedAwning, Vacasa, and AvantStay provide comprehensive short-term rental management. Investment-focused real estate companies include BiggerPockets-affiliated agents, Roofstock for turnkey rental properties, and local investors like Texoma Investment Properties who specialize in the North Texas market and have been active in the Wichita Falls area since approximately 2017.