Short-Term Rentals in Waco, TX: What Residents Actually Need to Know

If you live in Waco or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Waco has 7 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Primary-Residence-Only Rule

Waco does not require every short-term rental to be an owner's primary residence. The licensing code creates three rental types, and only "short-term rental type I" and "bed and breakfast homestay" licenses require the owner or a designated operator to live in the primary structure and be present for the whole rental; type II and type III properties can be non-owner-occupied investment units.

Key details: Type I / homestay: Owner/operator must live in primary structure & be present. Type II and III: Owner-occupancy is NOT required. Homestay cap: 5 guest rooms max. B&B inn cap: 15 guest rooms max. Separation rule: 500 ft between licensed Type I/homestay units in R zones.

Operating without the correct license type, or misrepresenting which type applies, exposes the licensee to revocation or suspension under section 13-472 if the licensee, designated operator, or a guest has violated any provision of the article or license condition, and to prosecution under the Code of Ordinances general penalty, section 1-14, with a fine of $1.00 to $500.00 per offense.

The rules around primary-residence-only rule in Waco lean permissive, but that does not mean anything goes.

Host Presence Rule

Every licensed bed and breakfast or short-term rental in Waco must have a "designated operator" who lives in McLennan County and stays available at all times the property is rented, even for type II and III listings where the owner does not have to live on-site. The city gives that operator's contact information to neighbors within 200 feet and requires a posted sign inside the unit with the license number and occupancy limit.

Key details: Operator residency: Must reside in McLennan County. Availability: Present in county & available at all times unit is rented. Neighbor notice: Contact info sent to owners within 200 ft. Required in-unit sign: Contact info, license #, occupancy limit. Advertising rule: License # and occupancy limit required in all listings.

Failing to maintain an available designated operator, failing to post the required sign, or advertising without the license number and occupancy limit is grounds for the director of planning services to revoke, suspend, or deny renewal of the license under section 13-472, and also exposes the licensee to prosecution under the Code of Ordinances general penalty, section 1-14, with a fine of $1.00 to $500.00 per offense. A licensee may appeal a denial, suspension, or revocation to the city council within 15 days under section 13-473, with a hearing set for the next regular meeting more than six days out.

Occupancy Limits

Waco caps overnight occupancy in every licensed bed and breakfast and short-term rental at two adults per bedroom plus two additional adults per unit, under Code of Ordinances Sec. 13-471(e). In the R-E, R-1A, R-1B and R-1C single-family districts, a homestay, Type I or Type II rental also cannot house more than four unrelated individuals at once. The city posts these limits on a required in-unit sign and in every listing.

Key details: Base limit: 2 adults per bedroom + 2 per unit. R-1 district cap: 4 unrelated occupants max. Governing section: Code Sec. 13-471(e). Enforcement: License revocation, Sec. 13-472. Disclosure required: Occupancy limit on unit sign & listings.

Operating over the licensed occupancy limit is grounds for the director of planning services to immediately revoke, suspend, or deny renewal of the bed and breakfast or short-term rental license under Section 13-472(1), and a repeat or serious violation can also trigger denial based on a threat to public health or safety under Section 13-472(3). A licensee may appeal any revocation, suspension, or denial to the city council within 15 days under Section 13-473, but the property cannot operate as a short-term rental during the appeal.

Short-Term Rental Permits

Waco requires short-term rental operators to register with the city and obtain necessary permits before operating. STRs must comply with building, fire, and zoning codes.

Key details: Registration: Required. Definition: Under 30 consecutive days. Hotel Tax: Required. Local Contact: Required.

Fines up to $500 per day of violation. City may issue cease-and-desist orders for unpermitted operations.

Noise Rules

Short-term rental guests in Waco must comply with the city's noise ordinance. Operators are responsible for ensuring guests do not disturb neighbors, particularly during nighttime hours.

Key details: Quiet Hours: 10 PM–7 AM. Operator Responsibility: Must inform guests. Complaints To: Waco PD. Permit Risk: Revocation possible.

Noise violations are Class C misdemeanors with fines up to $500. Repeated complaints may lead to STR permit revocation.

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

Taxes & Fees

Waco requires short-term rental operators to collect and remit hotel occupancy tax (HOT) on all stays under 30 days. The combined state and local rate applies to all STR bookings.

Key details: State Hotel Tax: 6%. Local HOT: Applies. Registration: City + TX Comptroller. Filing: Monthly/quarterly.

Back taxes plus penalties and interest for non-collection. Additional fines up to $500 per violation. State comptroller may also pursue enforcement.

The rules around taxes & fees in Waco lean permissive, but that does not mean anything goes.

Short-Term Rental Parking Rules

Waco requires short-term rental properties to provide adequate off-street parking for guests. Overflow parking on residential streets must comply with the city's street parking ordinances.

Key details: Off-Street Parking: Required. Street Parking: City rules apply. Guest Info: Operator must provide. Permit Zones: Guests must comply.

Parking violations subject to fines starting at $30. Repeated parking issues from an STR may affect permit status.

Waco is more permissive than most cities when it comes to short-term rental parking rules. That said, there are still limits.

The Bottom Line

Compared to many U.S. cities, Waco gives residents more room on short-term rentals. 4 of the 7 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.

Keep in mind that Waco can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.