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. However, if it is located within a city's jurisdiction you will want to ensure the property is eligible to be operated as a short term rental. 

Step 1: determine jurisdiction

If you identify a property you think can work as an STR, your first step should be to determine what city the property is located in.  Just because the address says Austin, doesn't mean the property is located in the city limits of Austin.  Go to the closest cities GIS map to determine if it is that city's jurisdiction.  If it is, you'll want to know what STR rules they have in place.

step 2: find applicable rules

Rules and regulations surrounding short term rentals in Central Texas are constantly changing.  That being said, we do our best to keep a pulse of the current rules for Austin and its surrounding suburbs.  This information has taken years to compile, and is updated regularly.  So, we don't just give it out to anyone.  If you want the inside scoop, let us know!

Bee Cave: 
  • no restrictions on STRs
Buda:
  • permit required
  • must demonstrate to the satisfaction of the Director of Planning that the unit and property do not have any outstanding issues related to taxes or building, electrical, plumbing, fire, health, housing, police, planning, noise, or code enforcement provisions
  • must provide proof of insurance and payment of hotel occupancy tax annually
Cedar Park: 
  • no restrictions on STRs
Dripping Springs:
  • no restrictions on STRs
Driftwood:
  • driftwood is an unincorporated area, thus there are no restrictions on STRs
Fredericksburg:
  • permit required
  • STR's permitted in some zoning districts but not all, link to more info
  • Click here to view the complete STR ordinance.
  • Fredericksburg is in the process of revising their STR ordinance, for more information on proposed changes, click here.
Georgetown:
  • no restrictions on STRs
Horseshoe Bay:
  • no restrictions on STRs within Horseshoe Bay Property Owner's Association
  • some properties are in additional HOAs and those may restrict STR use
Jonestown:
  • ​STRs are only permitted in the STR Overlay District
  • events are not permitted on site
  • residence may not house more than 15 people at a time
  • Link to more details
Kyle:
  • no restrictions on STRs
Lago Vista: 
  • must apply for an STR permit if the property is located in any of the following zoning districts: R-1, R-O, RR-A, R-2
  • link to zoning map
  • STRs must have two parking spots per dwelling, no street parking
  • Link to more details
Lakeway: 
  • maximum of 25 single family homes can be used as STRs 
  • currently, there is a 2 year waiting list to get a permit 
  • there's no limit for permits for condos
Leander: 
  • Vacation rentals are currently classified as hotels within the City of Leander. You will need to ensure that you have the correct zoning (General Commercial) before operating a vacation rental. Because these are considered a commercial business, the rental would be subject to commercial building standards and permits.
  • The City of Leander constitutes a short term rental as anything less than 6 months.
  • Leander does not require or provide licensing of short term rentals.
Marble Falls:
  • In January of 2021, Marble Falls adopted a short term rental ordinance. This ordinance requires all STR operators to obtain a permit from the city in order to operate as a vacation rental.  In order to obtain a permit, owners must demonstrate proof of liability insurance, document payment of hotel occupancy tax, and pass a life safety inspection among other requirements. 
  • The complete rules can be found here
New Braunfels:
  • short term rentals are not allowed in any residential zoning districts
  • ​a special use permit must be obtained for all properties located in non-residential zoning districts, except those located in the following zoning districts: C-4, C-4A, and C-4B
  • short-term rentals are not allowed in the floodway
  • annual life safety inspections are required
  • ​maximum occupancy of two adults per sleeping area, plus an additional four adults
  • ​a minimum of one off-street parking space, not including the garage, must be provided per sleeping area
  • visit the city of New Braunfel’s website for more information
​Pflugerville:
  • no regulations, but lots of HOAS with rules regarding STRs
Point Venture:
  • permit required
  • owners must provide guests with important operation information such as emergency contacts, location of water shut off, parking requirements, trash collection, etc.
  • view the complete STR ordinance for Point Venture
Rollingwood: 
  • STRs prohibited 
  • no rentals less than 30 days
Round Rock: 
  • no restrictions on STRs
San Marcos:
  • Home Share Rental Registration required
  • ​Proof that the premises is the primary residence of the applicant, including at least two of the following: motor vehicle registration, driver's license, Texas State Identification card, voter registration, tax documents, or utility bill
  • Only permits one STR/owner in city limits
  • Occupancy limits
  • Required safety features
  • Link to more details
Sunset Valley: 
  • no restrictions on STRs​​ yet, their have been discussions recently
Spicewood: 
  • no restrictions on STRs​
The Hills:Volente:
  • must apply for a short term rental conditional use permit
  • maximum number of guests is 2 people, over the age of 16, per bedroom +3
  • $150 permit fee, permit is non-transferable with a sale
  • link to full details

Westlake Hills: 
  • ​only a homestead owner may apply for a short-term rental special use permit, but may do so for the homestead or another property owned by the homestead owner
  • only one permit will be issued per homestead, regardless of whether the permit is for the homestead or another property owned by the homestead owner
  • essentially you must own a primary residence in Westlake in order to get an STR permit, but if you own two homes in Westlake, you can get a permit for the one you don't live in
  • a guesthouse can not be used as a short term rental
  • Link to more details
Wimberly:
To obtain a permit to operate a bed & breakfast or vacation rental, an applicant must go through the Conditional Use Permit (CUP) process and receive an approved permit. 
The CUP process includes:

  • complete Application
  • application Fee (non-refundable)
  • the city notifies those within 200’ of your application, publishes in the local newspaper and posts a sign on the subject tract
  • Planning & Zoning hearing for recommendation and City Council hearing for ultimate decision 
Per state & local statute, if 20% of property owners within 200' oppose the application a super majority vote is required by the Planning & Zoning Commission (6 out of 7) and City Council (4 out of 5) for approval. 


​This information originally appeared on our blog*****We do our best to provide accurate information; however, these rules and regulations are constantly evolving.  Make sure to confirm current rules with the local governing bodies. This post was last updated on 4/28/2022

Interested in finding out more information about purchasing a home to use as a short term rental in the Austin area? 

All information provided is deemed reliable, but is not guaranteed and should be independently verified. 
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​Licensed agents are also required to provide:  Texas Real Estate Commission Consumer Protection Notice