Austin, TX Airbnb & Short-Term Rental Regulations 2026
Everything you need to know about operating a legal short-term rental in Austin, Texas. Complete guide to licensing, taxes, zoning, and compliance requirements updated for 2026.
Austin has established a comprehensive regulatory framework for short-term rentals that balances the interests of property owners, guests, and residential neighborhoods. Understanding these regulations is essential for anyone looking to operate an Airbnb or vacation rental in the Texas capital.
Regulation Overview
Austin's short-term rental ordinance, codified in Austin City Code Chapter 25-2, Subchapter F, defines and regulates properties rented for periods of less than 30 consecutive days. The city has been regulating STRs since 2012, with significant updates in 2016, 2022, and most recently in 2025.
Key Regulatory Bodies
- City of Austin Development Services Department: Handles STR licensing, inspections, and compliance
- Austin Code Department: Enforces violations and issues citations
- Travis County Tax Office: Administers county hotel occupancy tax
- Texas Comptroller of Public Accounts: Oversees state hotel occupancy tax
License Requirements
All short-term rental operators in Austin must obtain an STR license before advertising or renting their property. The license must be renewed annually and displayed prominently in all advertising, including Airbnb and VRBO listings.
Application Requirements
Available online through the Austin Build + Connect portal
Deed or title documentation showing current ownership
Designated local responsible party available 24/7 within 30 minutes of property
Floor plan showing sleeping areas, exits, and parking
Registration with Texas Comptroller and City of Austin for HOT collection
$285 for Type 1 (owner-occupied) or $535 for Type 2 (non-owner-occupied) annually
Type 1 vs Type 2 Licenses
Austin distinguishes between owner-occupied and non-owner-occupied short-term rentals with two distinct license types. Understanding the difference is crucial for compliance and investment planning.
| Feature | Type 1 (Owner-Occupied) | Type 2 (Non-Owner-Occupied) |
|---|---|---|
| Owner Residency | Must live on property 51%+ of year | No residency requirement |
| Annual License Fee | $285 | $535 |
| Zoning Restrictions | Allowed in all residential zones | Restricted in SF-1, SF-2, SF-3 zones |
| Density Limits | None | 3% cap per census tract |
| Property Types | Primary residence only | Any eligible property |
| Guest Limits | 2 per bedroom + 2 (max 10) | 2 per bedroom + 2 (max 10) |
| Inspection Required | Yes, upon application | Yes, upon application and renewal |
Type 1 License Details
Type 1 licenses are designed for Austin homeowners who want to rent out their primary residence or a portion of it (such as a guest house or spare room) while they continue to live on the property. To qualify:
- Property must be your legal homestead
- You must reside on-site at least 51% of the calendar year
- Proof of homestead exemption may be required
- Can rent entire property when traveling or rent portions while present
Type 2 License Details
Type 2 licenses are for investment properties where the owner does not reside. These licenses face more restrictions:
- Subject to density limits (3% cap per census tract)
- Prohibited in single-family residential zones (SF-1, SF-2, SF-3) unless grandfathered
- Additional neighborhood notification requirements
- Stricter enforcement and inspection schedules
Zoning Restrictions
Austin's zoning code significantly impacts where short-term rentals can operate. Understanding your property's zoning designation is essential before applying for an STR license.
Zoning Categories and STR Eligibility
| Zone Category | Type 1 Allowed | Type 2 Allowed |
|---|---|---|
| SF-1 (Single Family - Large Lot) | Yes | No (new licenses prohibited) |
| SF-2 (Single Family - Standard) | Yes | No (new licenses prohibited) |
| SF-3 (Single Family - Small Lot) | Yes | No (new licenses prohibited) |
| SF-4A, SF-4B (Small Lot Single Family) | Yes | Yes (subject to density cap) |
| SF-5, SF-6 (Urban Family Residence) | Yes | Yes (subject to density cap) |
| MF (Multi-Family) | Yes | Yes (subject to density cap) |
| Commercial/Mixed Use | Yes | Yes |
The 3% Density Cap
For Type 2 licenses, Austin enforces a 3% density cap per census tract. This means no more than 3% of residential addresses in any census tract can hold active Type 2 STR licenses. Many popular neighborhoods are already at or near capacity, including:
- East Austin (East 6th Street corridor)
- South Congress (SoCo) area
- Downtown and surrounding neighborhoods
- Rainey Street district
- Zilker neighborhood
Hotel Occupancy Taxes (HOT)
Austin STR operators are responsible for collecting and remitting multiple layers of hotel occupancy tax. Understanding your tax obligations is critical for profitability and compliance.
| Tax Type | Rate | Collected By | Remittance |
|---|---|---|---|
| City of Austin HOT | 6% | Host or Platform | Monthly to City |
| Texas State HOT | 6% | Host or Platform | Quarterly to Comptroller |
| Travis County Venue Tax | 2% | Host or Platform | Monthly to County |
| Total | 14% | - | - |
Platform Tax Collection
As of 2026, Airbnb, VRBO, and most major booking platforms have agreements with Austin to automatically collect and remit the 6% City HOT and 6% State HOT on behalf of hosts. However, hosts remain responsible for:
- Registering with the Texas Comptroller (even if platform collects)
- Filing zero-dollar returns if all taxes collected by platforms
- Collecting taxes on direct bookings outside of platforms
- Remitting Travis County venue tax (not always collected by platforms)
Hosting Limits & Rules
Austin imposes several operational requirements on STR hosts to protect neighborhood quality of life and guest safety.
Occupancy Limits
- Guest Maximum: 2 adults per bedroom plus 2 additional guests, with an absolute maximum of 10 overnight guests regardless of property size
- Event Prohibition: Parties, gatherings, and events with non-overnight guests are prohibited
- Parking: Must provide adequate off-street parking for guests; street parking restrictions may apply
Safety Requirements
Working smoke detectors on every level and in each sleeping area
Required in properties with gas appliances or attached garages
At least one ABC-rated fire extinguisher readily accessible
Posted emergency contact numbers, exit routes, and local contact information
Properties with pools must comply with barrier and safety requirements
Quiet Hours and Nuisance Rules
Austin's noise ordinance applies to all STR properties:
- Quiet Hours: 10:30 PM to 7:00 AM Sunday-Thursday; 11:00 PM to 7:00 AM Friday-Saturday
- Outdoor Amplified Sound: Prohibited after 10:00 PM in residential areas
- Guest Behavior: Hosts are responsible for guest compliance with noise ordinances
- Repeated Violations: May result in license suspension or revocation
Noise Monitoring Requirements
In response to neighborhood concerns, Austin has implemented noise monitoring recommendations that are becoming increasingly common requirements for STR operators.
Current Requirements (2026)
- Recommended for All: Noise monitoring devices are strongly recommended for all STR properties
- Required After Complaints: Properties with verified noise complaints may be required to install monitoring as a condition of license renewal
- Type 2 Best Practice: Many Type 2 operators are required by their license conditions to have monitoring in place
- HOA Requirements: Many Austin HOAs independently require noise monitoring for any STR unit
Approved Monitoring Solutions
The City of Austin recognizes several privacy-compliant noise monitoring devices that measure decibel levels without recording audio:
- NoiseAware
- Minut
- Roomonitor
- Alert Labs
Penalties & Enforcement
Austin actively enforces its STR regulations through a combination of complaint-based investigation and proactive monitoring of booking platforms.
Violation Penalties
| Violation Type | First Offense | Repeat Offense |
|---|---|---|
| Operating without license | $500 - $1,000/day | $2,000/day + court action |
| Advertising without license number | $200 - $500 | $500 - $1,000 |
| Exceeding occupancy limits | $300 - $500 | License suspension |
| Noise violations | $100 - $300 | $500 + license review |
| Safety requirement violations | $200 - $500 | License suspension |
| Tax non-compliance | Back taxes + 10% penalty | Criminal charges possible |
Enforcement Methods
- Neighbor Complaints: Austin Code responds to complaints within 48 hours
- Platform Monitoring: City uses software to identify unlicensed listings on Airbnb, VRBO, and other platforms
- Tax Audits: Cross-referencing booking data with tax filings to identify under-reporting
- Inspections: Unannounced inspections for licensed properties with complaints
2026 Regulatory Updates
Austin's STR regulations continue to evolve. Here are the key changes and developments for 2026:
New Requirements for 2026
- Enhanced Local Contact Requirements: Local responsible party must now be available within 30 minutes (reduced from 60 minutes) and respond to complaints within 1 hour
- Insurance Documentation: Hosts must now provide proof of at least $500,000 in liability coverage upon license renewal
- Digital License Display: QR codes linking to license verification now required on all online listings
- Parking Documentation: Type 2 licenses must document guest parking accommodations
Pending Legislation
The Austin City Council is currently considering several additional measures that may take effect later in 2026:
- Mandatory noise monitoring for all Type 2 licenses (expected Q3 2026)
- Increased license fees to fund enhanced enforcement
- Additional restrictions in newly designated historic districts
- Platform accountability measures requiring direct license verification
State-Level Developments
The Texas Legislature has considered bills that could preempt some local STR regulations. As of January 2026, no preemption has passed, but hosts should monitor state legislative sessions for potential changes to local authority over STR regulation.
Frequently Asked Questions
Yes, Austin requires all short-term rental operators to obtain an STR license from the City of Austin Development Services Department. There are two types: Type 1 for owner-occupied properties and Type 2 for non-owner-occupied properties. Operating without a valid license can result in fines of up to $2,000 per day.
Type 1 STR licenses are for owner-occupied properties where the owner lives on-site at least 51% of the time. Type 2 licenses are for non-owner-occupied investment properties. Type 2 licenses have stricter regulations including density limits, prohibition in certain residential zones, and higher annual fees ($535 vs $285).
Austin STR operators must collect and remit a 6% Hotel Occupancy Tax (HOT) to the City of Austin, plus a 6% Texas State Hotel Occupancy Tax, and a 2% Travis County venue tax where applicable. The total tax burden is approximately 14%. Airbnb and VRBO automatically collect and remit most of these taxes on behalf of hosts.
As of 2026, Austin strongly recommends noise monitoring devices for all STR properties, particularly Type 2 licenses. While not universally mandated, many neighborhoods and HOAs require them. Hosts with verified noise complaints may be required to install monitoring as a condition of license renewal.
Operating an unlicensed STR in Austin can result in civil penalties of $500 to $2,000 per day of violation. Repeat offenders may face license denial, court action, and potential criminal misdemeanor charges. The City actively uses technology to identify unlicensed properties on booking platforms.
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