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Texas does not have a statewide short-term rental license — but that doesn't mean STRs in Texas are unregulated. Each city sets its own rules, and 2026 has brought significant new ordinances in Houston and evolving requirements in Austin. Whether you're already operating an STR or evaluating a Texas investment, here's what you need to know right now.
RedAwning manages short-term rental properties across Texas and monitors regulatory changes in every major market. This guide reflects laws and regulations current as of April 2026.
At the state level, Texas defines a short-term rental as any residential dwelling rented for fewer than 30 consecutive days. The state does not issue a universal STR permit, does not impose a cap on STR licenses, and does not restrict where STRs can operate — these decisions are left entirely to local governments.
Texas state law requires STR operators to collect and remit the Texas Hotel Occupancy Tax (HOT) at a rate of 6% on the rental price. Local governments add their own HOT on top of the state rate, with city and county rates ranging from 1% to 9%. Platforms like Airbnb and VRBO typically collect and remit these taxes on behalf of hosts in Texas, but operators should verify collection status in their specific city.
Houston implemented its first citywide short-term rental ordinance under Ord. 2025-322, effective January 1, 2026. Under the new Houston ordinance, all short-term rental operators must register with the City of Houston and obtain a valid City Certificate Number, carry a minimum of $1 million in liability insurance per occurrence, display the City-issued STR certificate number on all
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