Short-Term Rentals in Allen, TX (2026)
8 verified short-term rentals rules for Allen, Texas, sourced directly from the municipal code and official government pages.
Verified from official government sources
Permit Requirements
Allen requires STR operators to register with the city, obtain a Certificate of Occupancy compliance letter, and remit Hotel Occupancy Tax. City has considered stricter STR ordinance in 2024-2025 updates.
Short Term Rentals: Permit Requirements
Some RestrictionsTexas Tax Code Chapter 156 - State Hotel Occupancy Tax
Hotel owners, operators or managers must collect state hotel occupancy tax from their guests who rent a room or space in a hotel costing $15 or more each day. The tax applies not only to hotels and motels, but also to bed and breakfasts, condominiums, apartments and houses. Local hotel taxes apply to sleeping rooms costing $2 or more each day. With the numerous sporting and entertainment events...
Noise Rules
Allen STRs must comply with city noise ordinance quiet hours 10 PM to 7 AM. Amplified outdoor sound and pool/hot-tub use restricted overnight. Three noise violations in 12 months can revoke STR registration.
Short Term Rentals: Noise Rules
Heavy RestrictionsTex. Penal Code Sec. 42.01 (Disorderly Conduct - Unreasonable Noise)
Sec. 42.01. DISORDERLY CONDUCT. (a) A person commits an offense if he intentionally or knowingly:(1) uses abusive, indecent, profane, or vulgar language in a public place, and the language by its very utterance tends to incite an immediate breach of the peace;(2) makes an offensive gesture or display in a public place, and the gesture or display tends to incite an immediate breach of the p...
Taxes & Fees
Allen HOT is 7 percent; combined with Texas state HOT of 6 percent, total tax on nightly rate is 13 percent. Airbnb and Vrbo auto-collect state portion but hosts must verify city HOT remittance.
Short Term Rentals: Taxes Fees
Heavy RestrictionsTex. Tax Code Sec. 156.051 / 156.052 (Hotel Occupancy Tax - Tax Imposed and Rate of Tax)
Sec. 156.051. TAX IMPOSED. (a) A tax is imposed on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room or space in a hotel costing $15 or more each day.(b) The price of a room in a hotel does not include the cost of food served by the hotel and the cost of person...
Parking Rules
Allen STRs must provide off-street parking for all guest vehicles; guest parking on lawns or blocking sidewalks prohibited. Typical requirement is two off-street spaces plus one per bedroom over three.
Short Term Rentals: Parking Rules
Some RestrictionsTex. Transportation Code Sec. 545.302 (Stopping, Standing, or Parking Prohibited in Certain Places)
Sec. 545.302. STOPPING, STANDING, OR PARKING PROHIBITED IN CERTAIN PLACES. (a) An operator may not stop, stand, or park a vehicle:(1) on the roadway side of a vehicle stopped or parked at the edge or curb of a street;(2) on a sidewalk;(3) in an intersection;(4) on a crosswalk;(5) between a safety zone and the adjacent curb or within 30 feet of a place on the curb immediately opposite the ends o...
Occupancy Limits
Allen caps STR occupancy at two persons per bedroom plus two additional, not to exceed building code limits. Daytime visitor caps apply; no weddings or large events at single-family STRs.
Short Term Rentals: Occupancy Limits
Some RestrictionsTex. Property Code Sec. 92.010 (Occupancy Limits)
Sec. 92.010. OCCUPANCY LIMITS. (a) Except as provided by Subsection (b), the maximum number of adults that a landlord may allow to occupy a dwelling is three times the number of bedrooms in the dwelling.(b) A landlord may allow an occupancy rate of more than three adult tenants per bedroom:(1) to the extent that the landlord is required by a state or federal fair housing law to allow a higher o...
Insurance Requirements
Allen requires STR operators to carry short-term rental liability insurance of at least 500,000 dollars or equivalent platform-provided coverage (Airbnb AirCover, Vrbo Liability Insurance).
Short Term Rentals: Insurance Requirements
Some RestrictionsNight Caps
Allen does not currently impose a hard annual night cap on STR rental activity. Non-owner-occupied rentals may face additional scrutiny if ordinance amendments move forward in future council sessions.
Short Term Rentals: Night Caps
Few RestrictionsTex. Tax Code Sec. 156.101 (Exception - Permanent Resident: 30 Consecutive Days)
Sec. 156.101. EXCEPTION--PERMANENT RESIDENT. This chapter does not impose a tax on a person who has the right to use or possess a room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period. Acts 1981, 67th Leg., p. 1686, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1991, 72nd Leg., ch. 328, Sec. 4, eff. Aug. 26, 1991. Sec. 156.102....
Registration Rules
Allen STR registration is address-specific, non-transferable, and must be renewed annually with current insurance, inspection proof, and tax account in good standing.
Short Term Rentals: Registration Rules
Some RestrictionsLooking for Collin County county-wide rules?
County ordinances apply to unincorporated areas and may supplement Allen city rules.
Short-Term Rentals in Collin County →