Austin Area STR Rules & Regulations

Austin:

The City of Austin breaks down short term rentals into three types, permits do NOT transfer with a sale, and permits must be renewed every two years. Previous requirements for a certificate of occupancy and proof of insurance have been removed with most recent regulations.

● STR Type 1 permits can be issued for single family homes where the owner has a homestead exemption on the subject property. These permits are used when you live in the home, and want to rent out the entire home from time to time, OR if you only want to rent out part of the home ie. a room or guest house on the property. 

● STR Type 2 permits are for non-owner occupant, full-time investor single-family homes. A federal court ruling reversed the previous limitations of the City of Austin's ordinance which essentially prohibited Type 2 permits. As of August of 2023, the City of Austin is issuing Type 2 investor permits! 
● On a site with 1-3 units, an individual is eligible for up to 2 STR permits.
● The same individual may not operate multiple STRS on multiple sites within 1,000 feet of one another.  For example if you own a property on 123 Main St. and have a short-term rental permit for 123 Main St. and also own the adjacent property 121 Main St. You may not operate both properties as STRS.

● STR Type 3 permits are for multifamily properties i.e. condos or any property with 4 or more units. On a site with 4+ units, permit density is dictated by zoning.  You can learn if a property is residentially zoned or commercially zoned by visiting the City of Austin Property Profile Tool.

• On a site with four or more housing units but no commercial uses, the greater of one unit or 10 percent of the housing units the person owns or leases can be operated as short-term rentals.

•  If the site has at least one commercial use, the greater of one unit or 25 percent of the housing units the person owns or leases can be operated as short-term rentals. 

Link to more info on COA regulations 

Bee Cave: 

● no restrictions on STRs 

Boerne: 

● Permit required for properties in the city limits and Boerne ETJ 
● Link to full ordinance 

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
● Full details on page 51 of Buda’s Unified Development Code 

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 allowed in some zoning districts but not all, short term rental use is based on property zoning and type of STR i.e owner occupied, non-owner occupied, accessory building, etc. link to zoning map 
● Properties that received a STR Permit prior to April 1, 2022 are considered “Legal Non-Conforming” uses and allowed to operate conditioned upon conformity with Section 5.401 and Section 6.110, Continuance of a Nonconforming Use 
● Generally, permits may be transfered to new owners, a new owner must submit a transfer of permit application 
● Click here to view the UPDATED complete STR ordinance 

Georgetown: 

● no restrictions on STRs 

Horseshoe Bay: 

● No regulations yet, but a short term rental ordinance was discussed at the council meeting in November 2022 
● no restrictions on STRs within Horseshoe Bay Property Owners’ Association
● some properties are in additional HOAs and those may restrict STR use 

Johnson City: 

● permits required for properties located in the city limits or ETJ 
● Link to complete ordinance 

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 
● Link to STR map 

Leander: 

● According to city officials, 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 is generally unfriendly towards STRs. 

Lockhart: 

● STR registration required for all properties located in a residential zoning district
● No more than 2 adults per bedroom permitted 
● Link to full Lockhart STR ordinance 

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 two occupants 
● a minimum of one off-street parking space, not including the garage, must be provided per sleeping area 
● Link to complete ordinance 

Pflugerville: 

● no regulations, but lots of HOAS with rules regarding STRs

Point Venture: 

● STRS permitted in most sections except they're not allowed in Section 3-1
● permit is 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 

Sunrise Beach: 

● not permitted 

Sunset Valley: 

● permit required 
● no limitations based on owner-occupancy 
● Link to full Sunset Valley Short Term Rental Requirements 

Spicewood: 

● no restrictions on STRs 

The Hills: 

● no restrictions on STRs 
● There are extensive HOA rules you must follow. Link to more details. 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 
● Village of Volente short term rental ordinance

Westlake Hills: 

● The following criteria pertains to properties zoned R-1, R-2, and R-3
● 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 and link to Westlake Hills STR map 

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 of the City Council (4 out of 5) is required for CUP approval. 

*****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 10/24/2025