Texas (TX) Short-Term Rental Regulations
Compare STR rules across 3 Texas cities. License fees, tax rates, and operating rules. Verified May 2026.
At a Glance
Regulatory Climate and Primary Residence fields derived from city-level archetype data. Preemption status verified against state statutes (Texas: No state preemption verified via capitol.texas.gov (HB2665 study-only)).
📊 By the Numbers
- 3 cities covered in Texas
- License fee range: $248–$836
- 1 city rated high-risk for investors
- 1 city rated investor-friendly
Source: City-level data from official municipal sources, cross-verified May 2026.
Regulatory Overview
Texas has no state-level short-term rental preemption law, leaving regulation entirely to cities. The result is a patchwork: Austin operates a density-capped Type 2/3 licensing system with a 3% per-tract limit and waitlist, while Dallas and Houston have chosen light-touch registration with no primary residence requirement, no night caps, and no zoning restrictions. For investors, Texas is a tale of two markets. Choose your city carefully. Austin favors owner-occupants and existing permit holders; Dallas and Houston are among the most accessible STR markets in the country.
Regulatory Risk Ranking
From most restrictive to most investor-friendly within Texas:
- Austin — 🟡 Moderate: Austin is viable for owner-occupants and buyers of existing permitted properties. For new investors,
- Dallas — 🟢 Accessible: Dallas is a regulatory paradise for STR investors. No primary residence, no caps, no night limits —
- Houston — 🟢 Accessible: Houston is the easiest major US city to run an STR. $90/year registration with zero regulatory barri
City Comparison — 3 Cities
All Texas cities covered by RentPermitted, ranked and compared:
| City | Status | License Fee |
|---|---|---|
| Austin | Licensed & Enforced | $836.30 new license / $385.30 renewal (Type 2/3) |
| Dallas | Permitted with Registration | $248/year |
| Houston | Permitted with Registration | $275/year + $33.10 admin fee |
Frequently Asked Questions
How many cities in Texas does RentPermitted cover?
We cover 3 cities in Texas: Austin, Dallas, Houston.
Does Texas have state-wide STR laws?
Texas regulates short-term rentals primarily at the city level. There is no comprehensive state-wide STR law. Check each individual city page for specific license requirements, fees, and operating rules.
Which Texas city is best for STR investment?
Houston is generally the most accessible: Houston is the easiest major US city to run an STR. $90/year registration with zero regulatory barriers. No primary resi. Austin is the most restrictive: Austin is viable for owner-occupants and buyers of existing permitted properties. For new investors, the density cap lot. See the risk ranking above for the full breakdown.
Similar States
States with a comparable mixed regulatory profile:
Disclaimer: Data sourced from official Texas city websites and state statutes. Regulations change. Verify with local authorities before making investment decisions. Last comprehensive review: May 2026.
RentPermitted is not a government agency. We compile public information for educational purposes.