Short-Term Rental Regulations
in Cottonwood Shores, TX

Airbnb listings are allowed in Cottonwood Shores, TX, but with restrictions. STRs must meet zoning requirements and have a designated local responsible party reachable 24/7 and able to be present within one hour. Occupancy is limited to two persons per bedroom plus two (max 12 total), with a 24-hour minimum stay and a requirement for $1 million in liability insurance. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.

STRs must meet zoning requirements and have a designated local responsible party reachable 24/7 and able to be present within one hour. Occupancy is limited to two persons per bedroom plus two (max 12 total), with a 24-hour minimum stay and a requirement for $1 million in liability insurance.

Yes, a permit is required to operate a short-term rental in Cottonwood Shores. Submit a completed Short-Term Rental Application to the City Administrator including owner/operator contact info, a plot plan showing parking, a dimensioned floor plan with evacuation routes, and proof of $1 million liability insurance. Applicants must also provide a city registration number for hotel occupancy tax and a copy of proposed host rules.

Submit a completed Short-Term Rental Application to the City Administrator including owner/operator contact info, a plot plan showing parking, a dimensioned floor plan with evacuation routes, and proof of $1 million liability insurance. Applicants must also provide a city registration number for hotel occupancy tax and a copy of proposed host rules.

Vrbo is permitted in Cottonwood Shores, TX under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.

Short-term rental hosts in Cottonwood Shores are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.

We are not currently tracking any recent short-term rental ordinance changes for Cottonwood Shores. STR rules change frequently — verify the current requirements with the city or county before listing, using the official source linked on this page.