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Short-Term Rental Regulations
in Austin, TX

Last verified: March 2026 · Report an update

Zoning & Conditions

STRs are categorized into three types (Type 1, 2, and 3) and are allowed as accessory uses in residential zones with a valid license. Operators must designate a local contact available 24/7 to respond within two hours, adhere to specific occupancy limits, and ensure all hotel occupancy taxes are paid.

How to Obtain a Permit

1. Register for a tax payment account via Austin Finance Online to pay Hotel Occupancy Taxes. 2. Submit an online application through the City portal with required documents (ID, proof of tenancy/ownership, and agent authorization if applicable). 3. Pay the licensing and notification fees ($836.30 total for new licenses); licenses are valid for two years.

Regulatory Updates — Austin

Proposed and recent legislation

Under ReviewMarch 2024

Type 2 License Cap Dispute — Court Challenge

Austin's attempt to cap Type 2 (non-owner-occupied) STR licenses at roughly 3% of single-family homes faced legal challenges from property owners. The city and property rights groups reached a partial settlement, but enforcement remains contested.

FailedJune 2023

Texas SB 2 — Preemption Bill Failed

Senate Bill 2 in the 2023 Texas legislative session would have preempted local STR ordinances statewide. The bill passed the Senate but failed to advance in the House. A revised version is expected in the 2025 session.

PassedAugust 2024

Updated STR Code Requirements — Life Safety

Austin updated its STR licensing requirements to include mandatory fire extinguishers, carbon monoxide detectors, and posted emergency contact information visible to guests. These apply to all three license types.

Official source

Official Resources

Official Austin STR regulation source

Local Resources & Advocacy

Short-Term Rental Association of Austin (STRAAN)Local

Austin's primary STR advocacy organization, representing hundreds of local hosts and property managers. Engages with City Council on licensing policy and actively monitors proposed regulations.

Texas Vacation Rental AllianceStatewide

Statewide coalition of Texas STR operators and management companies advocating for property owner rights and state preemption legislation.

Vacation Rental Management Association (VRMA)National

National trade association with Texas chapter members actively monitoring Austin and statewide legislative activity.

Frequently Asked Questions

Are short-term rentals allowed in Austin, TX?
STRs are categorized into three types (Type 1, 2, and 3) and are allowed as accessory uses in residential zones with a valid license. Operators must designate a local contact available 24/7 to respond within two hours, adhere to specific occupancy limits, and ensure all hotel occupancy taxes are paid.
Is a permit required to operate a short-term rental in Austin?
Yes, a permit is required to operate a short-term rental in Austin. 1. Register for a tax payment account via Austin Finance Online to pay Hotel Occupancy Taxes. 2. Submit an online application through the City portal with required documents (ID, proof of tenancy/ownership, and agent authorization if applicable). 3. Pay the licensing and notification fees ($836.30 total for new licenses); licenses are valid for two years.
How do I get a short-term rental permit in Austin?
1. Register for a tax payment account via Austin Finance Online to pay Hotel Occupancy Taxes. 2. Submit an online application through the City portal with required documents (ID, proof of tenancy/ownership, and agent authorization if applicable). 3. Pay the licensing and notification fees ($836.30 total for new licenses); licenses are valid for two years.
What are Austin's three STR license types?
Austin issues three types of STR licenses: Type 1 is for owner-occupied properties where the host lives on-site full-time; Type 2 is for non-owner-occupied residential properties (e.g., investment condos or houses); and Type 3 is for bed-and-breakfast establishments. Type 1 licenses are generally easier to obtain and face less political opposition. Type 2 licenses are subject to caps in single-family zones.
Can I rent my Austin property on Airbnb without a license?
No. Austin requires all short-term rental properties to obtain a city STR license before listing on any platform. Operating without a license can result in fines of up to $2,000 per violation per day. Austin has increased enforcement coordination with major platforms to identify unlicensed listings.
How does the Texas state legislature affect Austin's STR rules?
Texas does not currently have a state preemption law that would override Austin's local STR regulations. However, the legislature has introduced preemption bills in recent sessions. If a Texas STR preemption law passes, it could significantly loosen Austin's ability to restrict non-owner-occupied STRs. The issue remains active in state politics.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction