Cedar Park flatly prohibits renting, subletting, or separately selling an ADU. Under Article 11.04 Division 2, the ADU and principal dwelling must remain under common ownership and may only be occupied by the property owner's immediate family or authorized employees on the premises.
Article 11.04 Division 2 of the Cedar Park Code states that an accessory dwelling unit 'may not be rented, sublet, or sold separately from sale of the entire property, including the principal dwelling unit.' The ADU is treated as an incidental residential use of the principal dwelling and is restricted in occupancy to the same person(s) or members of the immediate family of the principal dwelling's occupants, or to authorized employees working on the premises. This effectively bars use of an ADU as a short-term rental (Airbnb/Vrbo), a long-term rental, or a stand-alone for-sale unit. Combined with Cedar Park's separate short-term rental regulations, this rule means an ADU cannot be operated as any form of rental property. Note: state-level preemption proposals (e.g., 89th Legislature SB 673) would, if enacted, restrict cities' ability to ban ADU rentals — but as of 2025 these have not passed and Cedar Park's prohibition remains in force.
Renting or subletting an ADU is a zoning violation under Article 11.02. Penalties include Class C misdemeanor fines up to $2,000 per day per Texas LGC §54.001, revocation of the conditional use permit, and an injunction requiring the rental to cease. Repeated violations can result in cumulative daily fines.
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