Frisco, TX Accessory Structures: ADU Rental Restrictions (2026)

Frisco's Zoning Ordinance restricts the use of accessory structures in single-family districts — they cannot operate as separate rental households. Where a Specific Use Permit (SUP) has been granted to authorize a second dwelling unit, long-term rental (30 days or more) is permitted as long as the property owner continues to occupy either the principal dwelling or the accessory unit, consistent with the SUP conditions. Short-term rentals (under 30 days) of a residential unit trigger Hotel Occupancy Tax obligations under Texas Tax Code Chapter 156 (state 6% HOT) and Chapter 351 (municipal HOT — Frisco imposes a local hotel occupancy tax). Hosts must register with the Texas Comptroller for state HOT and with the City for the local tax, collect from guests, and remit periodically. The Texas Legislature in 2023 considered SB 987 to broadly preempt local STR regulation; Governor Abbott vetoed it. The Texas Supreme Court's 2018 Tarr v. Timberwood Park decision held that STRs are 'residential' in most deed restrictions, but Texas courts continue to permit municipal regulation of STRs as a zoning matter — the state's preemption framework on STRs remains unresolved. Texas has no statewide rent control authority and explicitly preempts local rent control under Texas Local Government Code §214.902, so Frisco cannot adopt rent stabilization. The Texas Property Code Ch. 92 governs landlord-tenant relationships including security deposits, notice, and eviction.