City Watch
Short-term rental rules in Austin, TX
How Austin regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Citywide license required
- STR accessory use in all residential zones; Type 2 allowed post-Zaatari
- Per-operator cap of 2 units per single-family site, plus 1,000 ft separation for additional STR
- Multifamily cap: greater of 1 unit or 10% of units
- Mixed-use cap: greater of 1 unit or 25% of units
- Marketplace license display from Jul 1, 2026
Based on: Austin City Code Ch.4-23 (STRs), amended by 2025 STR reform (licensing eff 2025-10-01, marketplace 2026-07-01)
Summary of the rule
No ban on non-owner-occupied (Type 2) STRs in residential zones; struck by Zaatari v. Austin (2019), not reinstated; 2025 reform made STR an accessory use in all residential zones
View the ordinance source ↗✓ Verified
Active litigation / open question
Zaatari v. City of Austin, 615 S.W.3d 172 (Tex.App.-Austin 2019, pet. denied): Third Court of Appeals struck Austin's Ord.20160223-014 banning/phasing out Type-2 (non-owner-occupied) STRs in residential zones + its assembly/occupancy limits as unconstitutional. Voided the supply-restrictive regime; subsequent 2023/2025 reforms replaced it with licensing rather than reinstating a residential-zone ban. Source ↗
Reported as fact only, reflecting the code as currently in effect — not legal advice, and not a prediction of the outcome. Verify current status before relying on it.
Last reviewed Sep 8, 2026 · Sources · Report an error
Pending legislation
Monitoring Austin · system last checked Nov 9, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.