Short-term rental rules · Austin, Texas
Short-term rentals in Austin, explained properly.
Short-term rentals are allowed across Austin with a City operator license, whether or not you live in the home. Since October 2025 one person can run up to two STRs on a site, and more only on sites at least 1,000 feet apart; since July 2026 platforms must show license numbers and remove unlicensed listings.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| STRs permitted? | Yes, with a City license, in all zoning districts [1] [2] |
| License required? | Yes, an operator license before advertising [3] [2] |
| Primary residence required? | No. Owners, or tenants with the owner's written authorization, can hold a license [3] [2] |
| How many per operator? | Up to 2 STRs on a site with 3 or fewer units; other sites must be at least 1,000 ft away [3] [2] |
| Maximum occupancy | No City guest cap: the STR chapter sets none, and the old STR and dwelling occupancy limits in the zoning code were repealed [3] [4] [5] |
| Minimum / maximum stay | No minimum; a stay under 30 consecutive days is a short-term rental [3] [6] |
| License fee | $736.60 new ($642 license + $94.60 notification); $369.60 renewal ($275 + $94.60) [2] |
| Occupancy tax | 17%: 6% Texas + 9% City + 2% City venue tax. Platforms collect the City tax on their bookings [7] [8] |
| Key restrictions | License number in every ad; local contact who responds within 2 hours; amplified sound limits; guest information packet [3] [2] |
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Detailed rules
The full picture, section by section
Eligibility and density
| Who can hold a license | Owners, tenants with owner authorization, or an agent with a notarized authorization [3] [1] [2] There is no owner-occupancy requirement. A tenant applying must show they pay the utilities and have the owner's written authorization. An agent can apply for an owner using the City's notarized agent authorization form. On sites with 3 or fewer units, STRs are limited to individuals: the unit must be owned by individuals, a trust whose trustees and beneficiaries are all individuals, or an LLC whose members are all individuals. Homes owned by a corporation, or by an LLC with a company as a member, don't qualify. |
|---|---|
| Small sites (3 or fewer units) | Up to 2 STRs per site [3] The limit applies per site rather than per unit, so a house with an ADU can have both units licensed. |
| Operating on more than one site | Sites must be at least 1,000 feet apart; ownership through an LLC or trust doesn't avoid the rule [3] Applies to: Operators with STRs on more than one site |
| Larger buildings (4+ units) | Greater of 1 unit or 10% of the units you own or lease there; 25% if the site also has commercial use [3] [2] |
| Where the rules apply | Austin's full- and limited-purpose jurisdictions; the ETJ doesn't need a City license [2] Properties in the limited-purpose jurisdiction need a license but don't pay the City hotel tax. Check a property's status on the City's jurisdictions map before buying. |
Licensing
| What the application needs | Application, fee, and (for tenants or agents) proof of authorization; insurance and a Certificate of Occupancy are no longer required [2] [3] |
|---|---|
| License term and renewal | Valid 2 years; renew up to 60 days before expiry [3] [2] |
| Processing time | New: 6–8 weeks (single-family), 8–10 weeks (multifamily). Renewal: 4–6 / 6–8 weeks [2] |
| License number in listings | Required in every advertisement [3] |
Operating rules
| Local contact | Required if you live outside the Austin metro; must respond within 2 hours and be on site within 2 hours if the City asks [3] [2] |
|---|---|
| Noise and amplified sound | Max 75 dB at the property line 10 a.m.–10 p.m.; no amplified sound audible beyond it 10 p.m.–10 a.m. [3] |
| Guest information packet | The City's information packet and a list of fire extinguisher locations must be available to every guest [3] [2] |
| Guest limits | No guest cap in City code [3] [9] [4] [5] Chapter 4-23 sets no guest cap. The former STR occupancy limits (City Code § 25-2-795: 10 adults, 6 unrelated adults, 2 adults per bedroom plus 2 overnight) sat in the zoning code's STR subpart, which was repealed effective August 4, 2025, and the general dwelling-unit occupancy limit (§ 25-2-511) was repealed effective February 5, 2024. Building and fire safety codes, HOA or deed restrictions and platform listing limits can still cap guests; we have not checked those. If you rent only part of a unit, each guest must get exclusive use of a bedroom and shared use of a full bathroom. |
Platform rules (since July 1, 2026)
| License number on the platform | Platforms must require a license number in every listing [3] |
|---|---|
| Unlicensed listings | Platforms must remove them within 10 days of a City delist notice [3] [2] |
| Booking fees on unlicensed rentals | Platforms can't take a booking fee for an unlicensed STR [3] |
Taxes
| City hotel occupancy tax | 11% (9% + 2% venue project tax) [7] |
|---|---|
| Texas hotel occupancy tax | 6% [8] |
| Filing | Quarterly City returns, due the last day of the month after each quarter, including zero reports [7] [2] Platforms that take payment collect the City tax on those bookings, but the operator still files. Direct bookings are the operator's responsibility for both City and state tax. |
Penalties
| Fines | Up to $500 per offense; each day is a separate offense [3] |
|---|---|
| License denial | The City may deny a license after 2 disturbances or 2 legal violations at the property [3] |
| License revocation | For safety threats, nuisance findings, a missed 2-hour response, or ignoring a compliance plan [3] After a revocation the property can't be relicensed for 6 months (12 months if it was declared a nuisance), unless the new applicant isn't associated with the prior owner or lessee. An operator whose STR was declared a nuisance can't get any new license for 12 months. |
Changes
Recent and pending changes
We checked the City's STR program and license pages, Ordinance No. 20250911-012, Ordinance Nos. 20250227-039 and 20231207-001 (zoning-code occupancy limits repealed), the City Manager's April 30, 2026 update to Council, City and Texas hotel tax pages, and the September 10 and September 24, 2026 Council agendas (no STR items; the October 8 agenda was not yet posted). On October 5, 2026 the City's STR page showed lower license fees ($736.60 new, $369.60 renewal), which we have updated; the fee schedule PDF itself has not been opened. The 2025 Texas legislative session did not enact a law preempting city STR rules.
Platforms must require license numbers in listings, remove unlicensed listings within 10 days of a City notice, and not take fees for unlicensed bookings.
The City began using the nuisance and mitigation tools created by the 2025 ordinance.
Council replaced City Code Chapter 4-23 (Ordinance No. 20250911-012, passed September 11, 2025): up to two STRs per site, 1,000-ft spacing between an operator's sites, 10%/25% caps in larger buildings, 2-year licenses, no insurance or Certificate of Occupancy requirement, and tenants allowed to apply.
Platforms that take payment for Austin STRs collect and remit the City's hotel occupancy tax.
Council made STRs an accessory use to residential property in every zoning district and moved STR rules from the zoning code (Title 25) to Title 4. The zoning code's STR subpart, including its guest occupancy limits, was repealed effective August 4, 2025.
Sources
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.