Short-term rental rules · Grapevine, Texas
Short-term rentals in Grapevine, explained properly.
The City of Grapevine, Texas prohibits single-family short-term rentals and allows multifamily short-term rentals only in the R-MF and RMF-2 zoning districts, with a conditional use permit and an annual City short-term rental permit (Appendix D, Zoning, Sec. 21, added by Ordinance 2024-007, adopted January 16, 2024). A complex must have at least 50 units, short-term rentals can take up no more than three percent of its units, and the complex cannot be within 500 feet of single-family zoning, in the Historic Grapevine Township or in a Transit District Overlay. The permit costs $500 a year and cannot be transferred. The operator must be the owner or the owner's representative, a responsible party must be able to respond within 60 minutes, and the use is capped at 180 days a year. The definition of a short-term rental and the rest of the zoning ordinance haven't been reviewed yet, and the City's hotel tax rate hasn't been reviewed yet.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Conditional: single-family short-term rentals are prohibited; multifamily short-term rentals are allowed only in the R-MF and RMF-2 districts, with a conditional use permit and a City short-term rental permit, in complexes of at least 50 units [1] ClauseConfirming |
| Is a City short-term rental permit required? | Yes: the operator must obtain a City permit to operate; the application fee is $500 a year, and multifamily rentals also need a conditional use permit [1] Clause |
| Must the owner live at the property? | No: the operator must be the owner or the owner's representative, and a responsible party must be reachable at all times and able to respond within 60 minutes [1] Clause |
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Detailed rules
The full picture, section by section
Where and how many
| Is a conditional use permit required for multifamily short-term rentals? | Yes: multifamily short-term rentals in the R-MF and RMF-2 districts are subject to the issuance of a conditional use permit [1] Clause Sec. 21.B. The conditional use permit procedure, fee and criteria are in other parts of the zoning ordinance, which haven't been reviewed yet. |
|---|---|
| Is there a minimum complex size? | Yes: short-term rentals are allowed only in multifamily complexes with at least 50 units [1] Clause Sec. 21.D.1. The application must list the total number of units and the unit numbers of the proposed short-term rentals (Sec. 21.D.6.f). |
| Is there a cap on how many units in a complex can be short-term rentals? | Yes: multifamily short-term rentals can occupy no more than three percent of the available units in the complex [1] Clause Sec. 21.D.7. Combined with the 50-unit minimum in Sec. 21.D.1, this is the cap on short-term rentals within a qualifying complex. |
| Is there a minimum distance from single-family zoning? | Yes: a multifamily short-term rental cannot be in a complex whose property line is within 500 feet of property zoned for single-family use, including R-5.0, R-7.5, R-12.5, R-TH and R-20 [1] Clause Sec. 21.D.3. The distance is measured from the complex's property line(s) to any property zoned for single-family use. |
| Are short-term rentals barred in the Historic Grapevine Township and Transit District Overlays? | Yes: short-term rentals are not allowed within the Historic Grapevine Township or within any Transit District Overlay [1] Clause Sec. 21.D.2. The boundaries of the Township and the overlays are in the zoning map and other parts of the zoning ordinance, which haven't been reviewed yet. |
| Is there an annual limit on rental days? | Yes: the operator may use the property as a short-term rental for 180 days out of the calendar year and must use or maintain it without a short-term rental for 180 days [1] Clause Sec. 21.D.9, quoted as written. The two 180-day figures are stated in the code as shown. |
| Is there a minimum rental period? | Yes: a short-term rental must be available for a minimum rental period of 24 hours [1] Clause Sec. 21.D.17. |
Permit rules
| Can a permit be transferred to a new owner? | No: short-term rental permits are non-transferable [1] Clause Sec. 21.D.5. A change of ownership must also be reported to the City in writing within seven days of the change (Sec. 21.D.6.i). |
|---|---|
| What does the permit application cost? | $500.00 a year [1] Clause Sec. 21.D.6.a requires a $500.00 application fee annually for the permit. The fee is written into the zoning section, adopted by Ordinance 2024-007 on January 16, 2024; the City's fee schedule hasn't been reviewed yet. |
| Is liability insurance required? | Yes: proof of general liability insurance of not less than $1,000,000.00 per occurrence, from a company licensed in Texas with a minimum A- rating by AM Best, throughout the term of the policy [1] Clause Sec. 21.D.6.g, part of the permit application requirements. |
| Can a permit be suspended or revoked, and can it be appealed? | Yes: the City can suspend or revoke a permit after three or more violations in a calendar year, or for a single severe violation; after revocation the operator cannot apply again for two years; appeal to the city manager's office within 30 days [1] Clause Sec. 21.D.19 to 21.D.21. Three or more violations of the ordinance or any other City ordinance at the operator or address in a calendar year can lead to suspension or revocation, as can any single severe ordinance or criminal violation, including criminal arrests, and staff may make the determination. After a revocation the operator cannot apply for any short-term rental permit for two years. A denial, suspension or revocation can be appealed to the city manager's office within 30 days of notice, and the city manager's decision to the board of zoning adjustment; the applicant cannot operate during an appeal. The City may also issue citations or sue under Chapter 54 of the Local Government Code. |
Operating rules
| Is a 24-hour responsible party required? | Yes: a responsible party must be available at all times of the day or night and able to respond to incidents within 60 minutes of being contacted [1] Clause Sec. 21.D.6.e, named in the permit application. |
|---|---|
| Is there a guest limit? | Yes: no more than two people per bedroom or 12 persons overall during a rental period; no advertising or hosting of more than 12 overnight guests [1] Clause Sec. 21.D.11 and 21.D.12. Renters must also keep a common household, and internal doors cannot have key locks that exclude renters from any room (Sec. 21.D.8). |
| What are the noise and outdoor-gathering limits? | Sound may not exceed 63 decibels at the property line or dividing line with a neighbouring unit; no outside congregation between 10:00 p.m. and 9:00 a.m. [1] Clause Sec. 21.D.13 and 21.D.14. |
| Parking rules | At least one off-street space for the greater of each bedroom or sleeping room and every two guests of advertised capacity; no on-street parking by renters or guests [1] Clause Sec. 21.D.15 and 21.D.16. The application must identify the off-street parking dedicated to the rental (Sec. 21.D.6.j). |
| Are special events prohibited? | Yes: a short-term rental cannot be used for special events such as banquets, bachelor or bachelorette parties, weddings, receptions, concerts or similar events [1] Clause Sec. 21.D.18. |
| Can bedrooms be added? | No: once a property is registered with the City as a multifamily short-term rental, it cannot add any bedrooms, directly or indirectly [1] Clause Sec. 21.D.10. |
| What must booking platforms do? | Require a City-issued permit number in each listing, with a mandatory field for it, and remove a listing within ten calendar days of City notice that it lacks a valid permit [1] Clause Sec. 21.C. The City's notice must identify the listings and give the reason; the platform removes them as soon as practicable but no later than ten calendar days from the notice. It is also unlawful to advertise a short-term rental that has no valid permit (Sec. 21.A). |
State law that also applies
| State hotel occupancy tax | 6% [2] Clause 1 Clause 2 Clause 3 Texas Tax Code § 156.052 sets the state hotel occupancy tax at 6% of the price paid for a room, and § 156.051(a) applies it to rooms or spaces costing $15 or more a day. Section 156.001(b) makes a short-term rental (renting all or part of a residential property to someone who is not a permanent resident) a "hotel" for state and local hotel occupancy taxes. Stays of at least 30 consecutive days, with no interruption of payment, are not taxed (§ 156.101). Local hotel taxes are added on top and vary by city and county. |
|---|---|
| State hotel tax registration required? | Yes — Form AP-102 to the Comptroller, unless a booking platform collects for you [3] [2] Clause 1 Clause 2 Whoever owns, operates, manages or controls a hotel must collect the state tax (Tax Code § 156.053), and the Comptroller's office treats short-term rentals the same way. The Comptroller does not issue printed hotel tax permits; a business that reports the tax sends Form AP-102 (Hotel Occupancy Tax Questionnaire) to the Comptroller. A short-term rental platform that has agreed with the owner to collect and remit state hotel tax files Form AP-102 itself, and an owner who rents only through such a platform does not collect and remit the state tax. An owner who takes bookings directly or through a platform that does not collect must collect and remit the state tax. Local hotel taxes are handled separately by the city and county. |
| State hotel tax returns | Monthly by the 20th; quarterly if you owe under $500 a month or $1,500 a quarter [2] [4] Clause 1 Clause 2 Each calendar month is a reporting period, with the return and tax due to the Comptroller by the 20th of the following month (Tax Code § 156.151(b)). A taxpayer who owes less than $500 for a month or $1,500 for a quarter files quarterly, due the 20th day after the quarter ends (§ 156.151(c)). The Comptroller allows a 1% discount when the return is filed and paid on time. |
| Local hotel taxes | Set by each city (and some counties and districts); paid to the local government [3] [4] Clause 1 Clause 2 Cities, some counties and special purpose districts may levy their own hotel taxes, generally up to 7%, and sports or community venue projects may add up to 2% (Dallas County up to 3%). Local hotel taxes apply to sleeping rooms costing $2 or more a day. The Comptroller collects only the 6% state tax; cities and counties collect their own local hotel taxes, so hosts should check with the city and county where the rental is. |
Changes
Recent and pending changes
We read Appendix D (Zoning), Sec. 21, Short-term rentals, of the City of Grapevine Code of Ordinances as published on Municode (version August 12, 2026), captured on October 19, 2026. Its history note cites Ordinance No. 2024-007, adopted January 16, 2024. We haven't reviewed the rest of the zoning ordinance (including the definition of a short-term rental in Sec. 12 and the conditional use permit rules), the City's own short-term rental pages, its hotel occupancy tax ordinance, its fee schedule or City Council agendas yet, so we will watch the Code for changes.
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.