Thinking about buying a Short Term Rental in the Austin Area? Here's Your Complete Breakdown on the Rules and Regulations for Operating a Vacation Rental in Central Texas

If you're looking for a great opportunity to invest in the Austin market, owning a short term rental may be the answer for you. You can expect to make around three times what you could with a long term rental by renting your home out as a vacation rental.  However,  in order to take advantage of investing in a STR, you need a thorough understanding of the rules and regulations regarding short term rentals (STRs).  They vary immensely throughout central Texas, and the success or legality of your investment property rests on understanding these various rules. 

No matter where you are looking to purchase, it's important to understand that STRs are generally classified as rentals less than 30 days.  If you are planning to rent your home out monthly or for even longer durations there are far less rules.  If you are planning to use your property as a vacation rental where guests stay for a few days or weeks, this post is for you!

Texas leaves short term rental oversight to the local government.  Thus, STR rules, regulations or ordinances are predominantly created by local municipalities.  If a property is located in an unincorporated area or an extraterritorial jurisdiction, it's highly unlikely that there will be municipal regulations since there is no city that has the authority to regulate the area.

Within the city limits of Austin, the regulations regarding short term rentals are pretty strict.  They have a comprehensive permitting process and caps on the number of short term rentals allowed.  In fact, in the City of Austin, it's almost impossible to get a permit to operate a short term rental for a single family home if it's not your primary residence.

However, a plethora of nearby Austin suburbs have no STR rules at all, and there are unincorporated areas that aren't subject to any municipal oversight!  Dive into the list below to know what the regulations are like throughout central Texas.

Central Texas · Austin Metro
Short-Term Rental Rules & Regulations
A city-by-city reference for buying, selling, and operating vacation rentals across Austin and the surrounding hill country.

Start Here -- confirm which jurisdiction an address falls under using our STR Jurisdiction Map.

Austin
The City of Austin breaks short-term rentals into three types. Permits do not transfer with a sale and must be renewed every two years. Proof of insurance and a certificate of occupancy are no longer required under the most recent regulation changes. An STR permit will not be issued if there are any other expired or open building permits on the property — search permit history using the City of Austin’s Public Permit Search Site (Property/Project Name/Type/Date Range tab, wide date range). See also the City of Austin STR regulations page.

Type 1 — Owner-OccupiedIssued for single-family homes where the owner holds a homestead exemption. Used to rent the entire home occasionally, or to rent part of the home — a room or guest house — while living there.

Type 2 — Non-Owner-OccupiedFor full-time investor single-family homes. A federal court ruling reversed the city’s previous limitations on Type 2 permits.

•  On a site with 1–3 units, an individual is eligible for up to 2 STR permits.
• The same individual may not operate STRs on multiple sites within 1,000 feet of one another.

Type 3 — MultifamilyFor condos or properties with 4+ units. Permit density is dictated by zoning — check whether a property is residentially or commercially zoned via the City of Austin Property Profile Tool.

• 4+ units, no commercial use: the greater of 1 unit or 10% of owned/leased units may operate as STRs.
• At least 1 commercial use on-site: the greater of 1 unit or 25% of owned/leased units may operate as STRs.

Quick Tips: 

​To search permit history, open the City of Austin’s Public Permit Search Site, click on the “Property/Project Name/Type/Date Range” tab at the top, enter the site address, then select a wide date range to view the entire permit history.

To confirm whether a property is residentially or commercially zoned, use the City of Austin Property Profile Tool.

Surrounding Cities
Bastrop

•  Permit required.
•  Must provide evacuation routes, bed/bath count, listing link, and a 24/7 local emergency contact.
•  $25 annual registration fee.

Bee Cave

•  No restrictions on STRs.

Boerne

•  Permit required for properties in the city limits and Boerne ETJ.
•  Full ordinance

Buda

•  Permit required.
•  Must demonstrate to the Director of Planning that the unit has no outstanding tax, building, electrical, plumbing, fire, health, housing, police, planning, noise, or code issues.
•  Proof of insurance and annual hotel occupancy tax payment required.
•  Full details (page 51 of Buda’s Unified Development Code)

Cedar Park

•  No restrictions on STRs currently.

Changing soon: Council approved a registration ordinance April 23, 2026, effective October 1, 2026 — annual registration, $100/property. Not enforced yet.

Dripping Springs

•  No restrictions on STRs.

Driftwood

•  Unincorporated area — no restrictions on STRs.

Fredericksburg

•  Permit required; allowed in some zoning districts, based on owner-occupied, non-owner-occupied, or accessory-building type — see the zoning map.
•  Permits issued before April 1, 2022 are “Legal Non-Conforming” and may continue under  Sections 5.401 & 6.110.
•  Permits are generally transferable; new owner must submit a transfer application.
•  As of Jan. 1, 2026, the city requires mandatory annual renewal inspections for all active STR permits (previously inspections were only triggered by new permits, ownership transfers, complaints, or modifications). See fbgtx.org/845/Short-Term-Rentals.
•  Updated complete STR ordinance

Georgetown

• Registration + permit required, $100 nonrefundable fee (was waived through Jan. 1, 2025 — now in effect).
• 7% local Hotel Occupancy Tax, remitted monthly.
•  24-hour local contact required.
•  Neighbor notification within 200 ft.
•  Permit posted at entrance, expires annually, $50 renewal fee.
•  More details

Horseshoe Bay

•  Annual STR permit required, $600 registration fee, non-transferable.
•  Operator or designated agent must respond to complaints within 1 hour.
•  Unregistered properties subject to fines up to $200/day.
•  Some properties fall under additional HOAs that may further restrict STR use.
•  More details

Johnson City

•  Permits required for properties in the city limits or ETJ.

Jonestown

•  STRs permitted only in the STR Overlay District.
•  Events not permitted on site.
•  Residence may not house more than 15 people at a time.
•  2-night minimum stay; no parties or weddings.
•  More details

Kyle

•  No restrictions on STRs.

Lago Vista

•  Permit required in zoning districts R-1, R-O, RR-A, R-2.
•  Two parking spots required per dwelling; no street parking.
•  More details

Lakeway

•  Maximum of 25 single-family homes may be used as STRs; currently a 2-year waiting list.
•  No limit on permits for condos.
•  STR map

Leander

• Vacation rentals are currently classified as hotels — General Commercial zoning is required.
•  As a commercial business, rentals are subject to commercial building standards and permits.
• A short-term rental is defined as anything less than 6 months.
• Generally unfriendly toward STRs; no official rules currently, though a 2023 workshop discussed creating them — see the workshop slides.

Lockhart

• Registration required for properties in a residential zoning district.
• No more than 2 adults per bedroom.
• Full ordinance

Marble Falls

• Permit required (adopted January 2021).
• Requires proof of liability insurance, hotel occupancy tax payment, and a life-safety inspection, among other requirements.
•  Complete rules

New Braunfels

• Not allowed in any residential zoning district.
• Special use permit required in non-residential districts, except C-4, C-4A, C-4B.
• Not allowed in the floodway; annual life-safety inspections required.
• Max occupancy: 2 adults per sleeping area plus 2 additional occupants.
• One off-street parking space required per sleeping area (garage not included).
• Complete ordinance

Watch this one: the residential-zoning STR ban is under active federal appeal — Texas Public Policy Foundation filed with the Fifth Circuit in April 2026, arguing it's unconstitutional under the same precedent that struck down Austin's old ordinance. Discovery reportedly showed zero nuisance citations issued against STRs. No ruling yet.

Pflugerville

•  No city regulations, but many HOAs restrict STR use.

Point Venture

• Permitted in most sections; not allowed in Section 3-1.
• owners must provide emergency contacts, water shut-off location, parking rules, and trash collection info
• Complete STR ordinance for Point Venture

Rollingwood

• STRs prohibited.

Round Rock

• No restrictions on STRs.

San Marcos

• Short Term Rental Permit required.
•  Two permit types based on the property’s zoning context, not owner-occupancy:
  
  Type 1 — property sits in an area that’s majority single-family residential (measured within a 660-ft radius / ⅛ sq. mi. around the property). Neighbor notification required: the city notifies all residential parcels within 400 ft when the permit is approved. 
  Type 2 — property sits in an area that’s majority non-residential use. No notification requirement, no cap on bedrooms rented.
• No proof-of-primary-residence requirement — that was removed; owner-occupancy is no longer a condition of eligibility.
• Only one STR permit per registrant/owner citywide — can’t hold or apply for a second while another is active or suspended (extends to affiliated officers/members if the owner is a business entity).
• More details

Sunrise Beach

• Not permitted.

Sunset Valley

• Permit required; $200 fee, 2-year registration term.
• No limitations based on owner-occupancy.
• Full Sunset Valley STR requirements

Spicewood

• No restrictions on STRs.

The Hills

• No restrictions on STRs.
•  Extensive HOA rules must be followed — more details.

Volente

• Short-term rental conditional use permit required.
• Maximum 2 guests over age 16 per bedroom, plus 3.
• $150 permit fee; permit is non-transferable with a sale.
• Village of Volente short-term rental ordinance

Westlake Hills

• Applies to properties zoned R-1, R-2, R-3.
• Only a homestead owner may apply, for their homestead or another owned property.
• Only one permit issued per homestead, regardless of which property it covers.
• A guesthouse cannot be used as a short-term rental.
• 2-consecutive-night minimum stay.
• More details & Westlake Hills STR map

Wimberley
Currently under a moratorium on new STR CUP applications — enacted November 2025, extended through at least July 2026. No new STR permits are being accepted or processed right now; Council is actively rewriting the ordinance.

• Bed & breakfast / vacation rental permits require the Conditional Use Permit (CUP) process: application, non-refundable fee, notice to neighbors within 200 ft, newspaper publication, and a posted sign.
• Requires a Planning & Zoning hearing recommendation, then a City Council hearing for final decision.
• If 20% of owners within 200 ft oppose, a supermajority Council vote (4 of 5) is required for approval.
• Conditional Use Permit (CUP) process

​We do our best to provide accurate information; however, these rules and regulations are constantly evolving. Confirm current rules with the local governing bodies. Last updated 7/10/2026.

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