Midland, Texas Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Midland, TX?

Yes, short-term rentals are explicitly allowed in Midland, Texas. The city has established a regulatory framework that permits STR operations while ensuring compliance with hotel occupancy tax collection. Midland's approach is straightforward—operators must collect and remit a 7% hotel occupancy tax on all gross rental proceeds, with the revenue supporting community projects and quality of life programs.

The city defines a short-term rental as "the rental of all or part of a residential property to a person who is not a permanent resident," where a permanent resident is someone who has the right to use or possess a room for at least 30 consecutive days. This regulatory framework went into effect on February 1, 2022, and is administered by the city's Finance Department.

What do Airbnb hosts actually earn in Midland?

Midland hosts earn a median $31,172/year with $142 ADR and 78% occupancy.

Top performers pull in $41,293+ per year.

See the full Midland market breakdown

How to Start a Short-Term Rental Business in Midland

Starting an STR business in Midland follows a clear, streamlined process:

Step 1: Property Preparation and Compliance

Ensure your property meets all zoning requirements and housing codes
Verify compliance with any applicable HOA or condominium association rules
Obtain appropriate insurance coverage for short-term rental operations
Install required safety equipment (smoke detectors, carbon monoxide detectors, fire extinguisher)

Step 2: Registration and Tax Setup

Register through Granicus' Host Compliance portal before accepting guests
Set up your account for online tax payment processing
First-time users must complete registration before making payments through the portal

Step 3: Tax Collection and Remittance

Collect 7% hotel occupancy tax from guests on the gross rental price
Remit collected taxes quarterly to the City of Midland
Use the Host Compliance portal for payment processing

Step 4: Ongoing Operations

Maintain accurate records of all rental transactions
Display any required permit numbers on advertisements
Comply with noise ordinances and nuisance regulations
Respond promptly to guest inquiries and issues

Required Documents, Permits, Licenses, and Guidelines

Primary Requirements

Hotel/Motel Room Occupancy Tax Form - Required for tax remittance
Host Compliance Portal Registration - Mandatory for all STR operators
Business Registration - Set up through the city's online portal

Tax Collection Requirements

Tax Rate: 7% of gross rental proceeds
Filing Frequency: Quarterly
Due Dates: Based on quarterly tax calendar
Method: Online payment through Host Compliance portal

Definition Criteria

Short-term rental: Residential property rented for 30 consecutive days or less
Permanent resident: Someone with rental rights for 30+ consecutive days
Hotel occupancy tax applies when 80% of gross rental receipts come from transactions of 30 days or less

Safety and Insurance Requirements

Maintain appropriate liability insurance
Install smoke detectors in sleeping areas and on each floor
Provide carbon monoxide detectors where required
Keep fire extinguishers on-site and accessible
Ensure property meets all local housing and safety codes

Specific Regulations: City, County, and State Level

City of Midland Regulations

Tax Obligations

Hotel Occupancy Tax Rate: 7% of gross rental proceeds
Collection Requirement: Must collect tax from guests at point of sale
Remittance: Quarterly payments to City of Midland Finance Department
Penalty for Non-Compliance: Up to $500 fine per violation

Definition and Scope

STR defined as rental of residential property to non-permanent residents
Includes all extensions and renewals to the same person or affiliated persons
Applies to entire residential properties or portions thereof
Excludes oilfield portable units as defined by state law

Administrative Framework

Finance Department administers the STR program
Granicus' Host Compliance manages registration and tax collection
Online portal for account setup and payments
First-time users must register before using payment system

County Level Regulations

Note: No specific Midland County regulations were identified in the provided sources. STR operators should verify county-level requirements independently.

State of Texas Regulations

Hotel Occupancy Tax Framework

Texas Government Code Section 156.001 defines "hotel" to include short-term rentals
State law provides foundation for local hotel occupancy tax collection
Oilfield portable units excluded from hotel definition (Texas Government Code Section 152.001)

Municipal Authority

Cities authorized to collect hotel occupancy tax on STRs
Local ordinances must align with state definitions
Maximum penalty provisions align with general penalty guidelines

Contact Information for Local Authority

City of Midland Finance Department

Primary Contact

Address: 300 N Loraine, Midland, TX 79701
Phone: (432) 685-7100
Website: www.midlandtexas.gov

Short-Term Rental Program Support

Host Compliance Portal: Available through city website
Registration Support: Available via phone during business hours
Tax Questions: Finance Department handles all occupancy tax inquiries

Additional Resources

City Directory: Available at midlandtexas.gov/directory.aspx
Report Issues: Report an Issue portal for compliance concerns
Emergency Services: Available through city emergency management

Links to Source Pages

Key Takeaways for STR Investors

Midland welcomes STR investments with a business-friendly regulatory environment
Simple tax structure - just 7% quarterly hotel occupancy tax collection and remittance
Streamlined compliance through online portal system
No complex permitting - focus on tax compliance and basic safety requirements
Strong market fundamentals driven by oil industry and growing tourism sector

The regulatory framework is designed to be accessible while ensuring community benefit through tax revenue collection. Success depends on consistent compliance with tax obligations and maintaining positive community relationships through responsible hosting practices.

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Ask the AI Advisor about Midland

Midland, Texas sits in the heart of West Texas, serving as the seat of Midland County. With a population of approximately 140,000, it forms a sprawling twin-city metro area with neighboring Odessa, about 20 miles to the west. The city carries the unofficial title of "Wall Street of the Permian Basin" thanks to its concentration of oil and gas companies, and it has a distinctly business-leaning, work-driven character that swells during energy booms. Midland sits roughly 320 miles west of Fort Worth along Interstate 20, placing it nearly halfway between the Dallas–Fort Worth metroplex and El Paso, and it functions as a service hub for the surrounding oilfields and ranch country.

The Permian Basin Petroleum Museum is one of the city's anchor institutions, chronicling the geology, technology, and personalities behind West Texas's oil boom. Just off Interstate 20, the museum draws both industry professionals and travelers passing through the region, and the surrounding Bush family legacy, since Midland is the childhood home of former U.S. President George W. Bush, adds another layer of local history to explore.

About 35 miles west of town, Monahans Sandhills State Park offers a striking contrast to the surrounding oil patch: roughly 4,000 acres of shifting white sand dunes where visitors can sled, hike, or picnic among the dunes. It is an easy day trip and adds a memorable outdoor element to a Midland stay.

Closer to home, the I-20 Wildlife Preserve is a constructed wetland along the highway corridor that offers walking trails and bird-watching opportunities in an otherwise arid landscape, and the Museum of the Southwest combines art, history, and a children's museum in one downtown campus. For a half-day drive, Big Spring State Park lies roughly 45 minutes to the east, with mesa-top views and hiking trails over the surrounding plains, while the limestone canyons of Guadalupe Mountains National Park sit a few hours to the west for travelers seeking a longer excursion.

Midland's combination of steady business travel, energy-industry demand, and proximity to both natural wonders and neighboring Odessa makes it a practical base for short-term rentals. Visitors coming for work, family visits, or West Texas exploration find a city with genuine Lone Star character and a surprisingly varied list of nearby escapes.

Midland, Texas

Very Investor Friendly

STR Regulations for Midland, Texas