Guide · City vs city
Dallas vs Houston: short-term rental rules.
Texas's two biggest cities took opposite paths. Houston registers short-term rentals anywhere in the city for $275 a year, with no cap or owner-occupancy rule. Dallas voted in 2023 to ban them in single-family districts, but a court has blocked the ban, and whether it ever takes effect now depends on the Texas Supreme Court.
The short answer
Which city fits your plan
| Buying an investment house | Houston. Its rules are in effect and apply the same way across the city. In Dallas, a single-family STR depends on the injunction holding, and the city is still trying to overturn it. |
|---|---|
| Already operating in Dallas | Keep within the property standards, noise and nuisance rules the city does enforce, and watch the city's Texas Supreme Court petition. A ruling for the city could bring the single-family ban into force. |
| Apartment, condo or commercial property | Both can work. Even if Dallas wins, its adopted rules would still allow STRs in multifamily, mixed-use and commercial districts, with percentage caps in multi-tenant buildings. |
Side by side
The rules compared
Each answer comes from the sourced market page; follow the links for citations and detail.
| Rule | Dallas | Houston |
|---|---|---|
| Single-family investor rentals | Operating for now, because a court injunction blocks the 2023 ban. If the city wins at the Texas Supreme Court, STRs would be limited to multifamily, office, mixed-use, commercial and similar districts. | Allowed anywhere in city limits with a certificate of registration. No cap and no owner-occupancy rule. |
| Registration | The 2023 ordinance (Chapter 42B) requires registration, an inspection, a Certificate of Occupancy and a local responsible party, but it can't be enforced while the injunction stands. | $275 a year per property, required since January 1, 2026. Renewals are due 90 days before the certificate expires. |
| Rules enforced today | Only the city's existing minimum property standards, noise and private nuisance rules. | The full ordinance: posted certificate, registration number on listings, annual human trafficking awareness training, no event-space advertising. |
| Minimum stay | Two nights under the blocked ordinance | One night |
| Local contact | A local responsible party under the blocked ordinance | A 24-hour emergency contact who can respond within one hour, posted at the property |
| Listings and platforms | No listing rule is being enforced while the injunction stands | Registration number required on listings. From January 1, 2027 the city will start telling platforms to remove unregistered listings. |
| Taxes | 15% hotel occupancy tax (9% city, 6% state) | 17% hotel occupancy tax (6% state, 7% city, 2% Harris County, 2% sports authority) |
| Biggest risk | A Texas Supreme Court ruling for the city would end STR use in single-family districts | Losing the certificate after two or more nuisance or code violations in 12 months, or unpaid hotel taxes |
| Full rules and sources | Dallas rules Verified October 2, 2026 | Houston rules Verified October 2, 2026 |
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Compares local rules for short-term rentals in each city's jurisdiction; it isn't investment advice and doesn't weigh prices, occupancy or returns. General information only, not legal or tax advice. HOA rules and deed restrictions can be stricter. See also cities that banned or restricted Airbnb.