Houston Med Center Short Term Rentals

[Jill Griffith]

I'm in SC and travel to the Houston med center one week a month for work.  I'm considering purchasing a condo in the med center and airbnb'ing it for the other 3 weeks of the month.

Anyone with experience in this space?  What's the best way to confirm which units are allowed to operate as an airbnb, as well as projected taxes?  I've heard Houston property taxes are extremely high.

Need to run the numbers and determine if this is cash-flow feasible.

[Don Konipol]

@Jill Griffith

Since Texas does not have a state income tax, property taxes are used to finance schools, hospitals, county governments, water, and flood control. The actual tax rate will vary by county and school district. The property area you’re interested in is in Harris County and the Houston Independent School District. While there are partial property tax exemptions for homesteader property, you won’t qualify for that. Your tax rate will be approximately 3% of the property’s assessed valued. Property in Texas is assessed at 100% of market value. If the assessment is below market value due to constraints of increasing the assessment above a certain percentage each year, or due to certain age, disability, or veteran exemptions, then it will be raised to market value following a sale of the property. So you can count on about 3% of whatever amount you paid.

Unfortunately, due to hurricane possibilities, property insurance in the Houston area is very costly. The amount will be determined on the property’s exact location.

Go to Harris County Appraisal District website for value, sale history, lot and structure size, tax entity information for every property in Harris County. Search by owner, property street address, legal description, or account number.

For actual tax information, go to the Harris County Tax Collector website, and the Houston Independent School District website.

Not all property within the Houston City limits is in the Houston Independent School District. When venturing further from downtown, the school districts change .