Amarillo, Texas
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Amarillo, TX
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STR Regulations for Amarillo, Texas
Overview: Are Short-Term Rentals Allowed in Amarillo, TX?
Yes, short-term rentals are explicitly allowed in Amarillo, Texas. As of 2019, short-term rentals and bed and breakfasts can be classified as hotels within Amarillo under Texas state law, provided they comply with all applicable regulations, tax obligations, and zoning requirements.
What do Airbnb hosts actually earn in Amarillo?
Amarillo hosts earn a median $27,718/year with $127 ADR and 75% occupancy.
Top performers pull in $37,131+ per year.
See the full Amarillo market breakdownHow to Start a Short-Term Rental Business in Amarillo
Step 1: Understand Zoning Requirements
Before purchasing or listing a property, verify that short-term rentals are permitted in the desired zoning district. According to the Amarillo Zoning Ordinance:
Primary Zoning Considerations:
- Bed and Breakfast Inns are specifically defined and permitted in certain districts as a residential use
- Hotels or Motels require a minimum of 6 individual guest rooms and are permitted in commercial and industrial districts
- Short-term rentals must comply with all zoning regulations for the district in which they're located
Step 2: Tax Registration and Compliance
All short-term rentals must register with the City of Amarillo's Finance Department and collect applicable hotel occupancy taxes.
Tax Obligations:
- State Hotel Occupancy Tax: 6%
- City Hotel Occupancy Tax: 7%
- Venue District Tax: 2%
- Total Hotel Occupancy Tax Rate: 15% of the room rate
Step 3: Ongoing Compliance
- Monitor occupancy thresholds (stays exceeding 30 days are exempt from HOT tax)
- Maintain records for tax reporting
- Stay updated on any changes to municipal regulations
Required Documents, Permits, Licenses, and Guidelines
Municipal Registration
- Hotel Occupancy Tax Registration with City of Amarillo Finance Department
- Contact the Finance Department for specific registration forms and requirements
Compliance Documentation
- Business Registration (if operating as a business entity)
- Property Tax Records demonstrating legal ownership
- Proof of Insurance adequate for short-term rental operations
- Tax Collection Records showing remittance of all applicable hotel occupancy taxes
Operational Guidelines
- Length of Stay Records: Implement systems to track guest stays over 30 days (exempt from HOT tax)
- Tax Remittance Procedures: Establish monthly or quarterly tax payment schedules
- Communication Protocol: Provide contact information to guests and neighbors
Specific Regulations: City, County, and State Level
City of Amarillo Regulations
Tax Collection Requirements:
- All short-term rentals must collect and remit hotel occupancy taxes
- Registration with Finance Department is mandatory
- The city utilizes third-party vendors to reach out to short-term rental operators
Zoning Compliance:
- Short-term rentals must operate in accordance with zoning district regulations
- Bed and breakfast operations must comply with the specific definition and requirements
- Hotels and motels require commercial zoning approval
County Level
No specific Potter County short-term rental regulations were identified in the provided content.
State of Texas Regulations
Tax Obligations:
- 6% state hotel occupancy tax applies to all short-term rentals
- Stays exceeding 30 days are exempt from hotel occupancy tax
Legislative Context: The 85th and 86th Texas Legislatures addressed short-term rentals with bills preempting cities from regulating certain aspects of these rentals. Cities must navigate state preemption while addressing local concerns.
Contact Information for Local Authority
City of Amarillo
Finance Department - Hotel Occupancy Tax Division
- Phone: (806) 378-3000
- Address: City Hall, 1000 E. 3rd St., Amarillo, TX 79101
- Email: Contact through main Finance Department phone line
- Website: www.amarillo.gov/
Planning and Development Services
- Andrew Freeman, Director (referenced in news article)
- Phone: (806) 378-3000
- Email: planning@amarillo.gov
City Attorney's Office
- Leslie Spear-Schmidt, Senior Assistant City Attorney
- Phone: (806) 378-3000
- Email: leslie.schmidt@amarillo.gov
Source Links
- City of Amarillo to outline tax responsibilities for short term rentals
- Texas City Attorneys Association Presentation on STRs (2019)
- Amarillo Zoning Ordinance
Important Note: This guide is based on available information from 2019-2024. Always verify current regulations with the City of Amarillo before making business decisions, as regulations and tax obligations may change. Consider consulting with local legal counsel familiar with Amarillo's municipal code for comprehensive compliance advice.
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Overview of Amarillo
Amarillo sits in the northern Panhandle of Texas, serving as the county seat of Potter County and spilling across the line into Randall County. The city is home to roughly 200,000 residents, making it the largest metropolitan hub for hundreds of miles in any direction. With its wide skies, big skies country feel, cattle-feedlot aroma, and classic Americana roadside energy, Amarillo carries the laid-back character of a working ranch town that also happens to be a crossroads of major interstates. It is best known as a gateway to Palo Duro Canyon and as a quintessential stop along historic Route 66, and it lies about 260 miles east of Albuquerque to the west and roughly 360 miles northwest of the Dallas–Fort Worth metroplex, putting it within a half-day's drive of several major regional centers.
One of the marquee draws just outside the city is Palo Duro Canyon State Park, often called the Grand Canyon of Texas. Located about 12 miles south of downtown Amarillo, roughly a 25-minute drive, the park plunges more than 800 feet into vivid red, orange, and gold rock layers and offers hiking, biking, horseback riding, and a seasonal outdoor musical drama. Its scale, color, and proximity make it the single most popular day trip for visitors staying in the area.
Just west of the city along Interstate 40, Cadillac Ranch is one of the most photographed roadside art installations in the United States. A row of ten Cadillas buried nose-down in the dirt has been a stop on Route 66 since 1974, and visitors are encouraged to leave their own mark with spray paint, creating an ever-evolving public canvas. The site is a free, open-field attraction and a quick detour off the highway that captures the playful, eclectic spirit travelers associate with the Panhandle.
In the heart of Amarillo, the American Quarter Horse Hall of Fame & Museum celebrates the deep bond between the city and the quarter horse, a connection that gave Amarillo its nickname of "Quarter Horse Capital of the World." The museum traces the breed's history and the region's ranching heritage through interactive exhibits and a striking hall honoring both horses and the people who shaped the industry. It is a comfortable indoor stop that pairs well with a morning of sightseeing before heading out to the canyon.
About 40 miles north of the city, Lake Meredith National Recreation Area provides a contrasting landscape of blue water set against the surrounding high plains. The lake offers boating, fishing, swimming, and shoreline camping, and it sits within easy striking distance for a long day or an overnight detour from an Amarillo-based stay.
Amarillo's appeal for short-term rental owners rests on a combination of location, scale, and steady visitor flow. It is a natural overnight stop on cross-country Route 66 and I-40 road trips, a base camp for Palo Duro Canyon visitors, and a regional hub for rodeos, horse events, and agricultural trade. With major attractions spread in every direction and a relatively limited hotel inventory outside the chain-brand mainstays, well-placed rentals near the highway, the canyon access road, or the city's cultural venues have a clear lane to capture both passing travelers and destination visitors alike.
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