Guide · Texas
The most Airbnb-friendly cities in Texas.
Texas cities mostly license short-term rentals rather than ban them. 3 of the 5 Texas markets we rank allow investor-owned rentals with a registration, San Antonio caps them by block, and Dallas's 2023 ban on rentals in single-family neighborhoods was blocked in court before it could take effect.
The ranking
5 Texas markets, most to least open
Ranked by how open each place is to investor-owned, whole-home rentals, then by how much local registration it takes. This compares rules only, not returns, prices or demand.
| Market | Rules |
|---|---|
| 1. Houston | Allowed citywide with an annual registration Registration: $275 a year per property. Combined tax: 17% |
| 2. Galveston | Allowed with an annual city license Registration: $250 a year per unit ($500 late fee after Dec. 31). Combined tax: 15% |
| 3. Austin | Allowed in all zones, two per site Registration: $836.30 new, $385.30 renewal; licenses last two years. Combined tax: 17% |
| 4. San Antonio | Investor permits capped at 12.5% of a block face Registration: $1,000 (non-owner-occupied) or $450 (owner-occupied) per three-year permit, plus 8%. Combined tax: 16.75% |
| 5. Dallas | Single-family ban adopted but blocked by a court Registration: None enforced; hotel tax registration is free. Combined tax: 15% |
Market by market
What each place allows
1. Houston, TX
| Short answer | Allowed citywide with an annual registration Houston's first short-term rental rules took effect January 1, 2026: an annual certificate of registration, a 24-hour emergency contact who can respond within an hour, annual human trafficking awareness training and the registration number on every listing. There's no owner-occupancy rule or cap. From January 1, 2027 the city will start asking platforms to remove unregistered listings. |
|---|---|
| Registration | $275 a year per property |
| Combined tax | 17% |
| Full rules | Short-term rental rules in Houston Verified October 2, 2026 |
2. Galveston, TX
| Short answer | Allowed with an annual city license The City of Galveston licenses short-term rentals each calendar year with a 24/7 local contact who can respond within an hour and an information sheet in the unit. Three violations in 12 months can cost the license. Deed restrictions matter here, and the rules stop at city limits (Jamaica Beach and Crystal Beach are separate). |
|---|---|
| Registration | $250 a year per unit ($500 late fee after Dec. 31) |
| Combined tax | 15% |
| Full rules | Short-term rental rules in Galveston Verified September 27, 2026 |
3. Austin, TX
| Short answer | Allowed in all zones, two per site Austin licenses short-term rentals in every zoning district whether or not you live there, but one person can run only two STRs on a site of three or fewer units, and other sites must be at least 1,000 feet away. Since July 2026, platforms must show license numbers and remove unlicensed listings. |
|---|---|
| Registration | $836.30 new, $385.30 renewal; licenses last two years |
| Combined tax | 17% |
| Full rules | Short-term rental rules in Austin Verified September 26, 2026 |
4. San Antonio, TX
| Short answer | Investor permits capped at 12.5% of a block face San Antonio permits owner-occupied (Type 1) and non-owner-occupied (Type 2) rentals outside the C-3, L, I-1 and I-2 zones, but Type 2 permits are capped at 12.5% of homes on each block face, so a popular street can be full. Permits are revoked after three citations in three years. |
|---|---|
| Registration | $1,000 (non-owner-occupied) or $450 (owner-occupied) per three-year permit, plus 8% |
| Combined tax | 16.75% |
| Full rules | Short-term rental rules in San Antonio Verified September 27, 2026 |
5. Dallas, TX
| Short answer | Single-family ban adopted but blocked by a court Dallas voted in 2023 to ban short-term rentals in single-family districts and to require registration elsewhere, but a court injunction has blocked both since December 2023. An appeals court upheld the injunction in July 2025 and the city's appeal is at the Texas Supreme Court. Rentals operate today, but a ruling for the city would make most single-family rentals illegal. |
|---|---|
| Registration | None enforced; hotel tax registration is free |
| Combined tax | 15% |
| Full rules | Short-term rental rules in Dallas Verified October 2, 2026 |
State law
The Texas rules behind the ranking
| Who sets the rules | Each city; Texas has no statewide short-term rental license Cities decide permits, caps and operating rules. A 2025 bill that would have limited how cities regulate rental platforms (HB 2767) died in the House. |
|---|---|
| Courts | Property-rights challenges can stop city bans Dallas's single-family ban has been blocked by a temporary injunction since December 2023; the Fifth Court of Appeals upheld it in July 2025, finding the owners showed a probable right to relief, and the city has asked the Texas Supreme Court to step in. See the Dallas page for the timeline. |
| Hotel occupancy tax | 6% state plus city and county taxes Texas charges 6% on stays of 29 days or less; cities add their own hotel occupancy tax, so combined rates in these markets run from 15% (Dallas, Galveston) to 17% (Austin, Houston). |
| Which government | City rules stop at city limits Suburbs, unincorporated county areas and nearby beach towns have their own rules, and deed restrictions or HOA covenants can ban rentals even where the city allows them. See also Nashville vs Austin. |
Newsletter
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The ranking compares local rules for investor-owned, whole-home rentals in the jurisdiction each market page covers. It isn't investment advice and doesn't weigh prices, occupancy or returns. General information only, not legal or tax advice; HOA and condo rules can be stricter. Airbnb is a trademark of Airbnb, Inc.; Rental Rule Book is independent and not affiliated with any booking platform. See also all guides.