Short-Term Rentals in McKinney, TX

McKinney maintains 65 local ordinances across all categories, and 6 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where McKinney falls on the strict-to-permissive spectrum compared to other cities.

Night Caps

McKinney does not impose an annual night-cap on STR rentals; stays over 30 days are simply exempt from hotel occupancy tax and fall outside the STR framework.

Key details: Annual Cap: None. 30+ Day Stays: Tenancy, HOT exempt. State Law: TX Property Code Ch. 92. Future: Subject to change.

The rules around night caps in McKinney lean permissive, but that does not mean anything goes.

Insurance Requirements

McKinney STR operators should maintain commercial short-term rental liability insurance of at least 1 million dollars; platform host protection programs supplement but do not replace this coverage.

Key details: Minimum: 1 million liability. HO-3: Excludes STR. Platform: Secondary coverage. Proof: At registration renewal.

Failure to maintain insurance can invalidate STR registration and expose operator to personal liability in tort claims. HOA covenants may independently require insurance.

McKinney is more permissive than most cities when it comes to insurance requirements. That said, there are still limits.

Occupancy Limits

McKinney STR occupancy is capped based on bedrooms, typically two adults per bedroom plus two additional, with daytime event caps to prevent party-house use in residential neighborhoods.

Key details: Overnight: 2 per bedroom + 2. Daytime: 1.5x overnight. Event Cap: 20 persons. Events: Special permit required.

Overcrowding citation up to $500 per offense. Unpermitted events: up to $2,000 per TX Local Government Code §54.001 health and safety provisions. Event violations count as STR strikes.

If you are coming from a city with tighter rules, you will find McKinney gives residents more flexibility on occupancy limits.

Short-Term Rental Permits

McKinney requires short-term rental operators to register with the city, maintain a local contact, and collect hotel occupancy tax; STRs are allowed in most residential zones subject to occupancy and parking rules.

Key details: Registration: Annual city registration. Local Contact: 24/7 within 60 min. Listing: Permit number required. Zoning: Most residential districts. HOA: May ban independently.

Operating without registration: citation up to $500 per day. Three substantiated nuisance complaints within 12 months can trigger revocation under the city STR framework.

If you are coming from a city with tighter rules, you will find McKinney gives residents more flexibility on short-term rental permits.

Noise Rules

STR guests must comply with McKinney's 10 PM to 7 AM residential quiet hours; operators are strictly liable for guest-generated noise and amplified outdoor sound is prohibited after 10 PM.

Key details: Quiet Hours: 10 PM - 7 AM. Outdoor Amplified: Prohibited after 10 PM. Operator Liability: Strict. House Rules: Must be posted. Three Strikes: Registration revocation.

First citation typically $200; subsequent citations up to $500. Two verified noise violations within 12 months trigger mandatory operator conference; three within 12 months may result in registration revocation.

McKinney is more permissive than most cities when it comes to noise rules. That said, there are still limits.

Taxes & Fees

Stays under 30 days in McKinney are taxed at a combined 13 percent: 6 percent Texas state HOT plus 7 percent City of McKinney HOT, remitted monthly; platforms like Airbnb collect state tax but operators verify city collection.

Key details: State HOT: 6 percent. City HOT: 7 percent McKinney. Combined: 13 percent. Filing: Monthly, due 15th. Exemption: 30+ day stays.

Late filing: 5 percent penalty plus interest. Willful failure to remit collected tax can be prosecuted as theft under state law.

The Bottom Line

Compared to many U.S. cities, McKinney gives residents more room on short-term rentals. 5 of the 6 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.

This guide is based on McKinney's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.