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Austin, TX Short-Term Rentals: Night Caps (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified April 2026

Key Facts

No annual night
No annual night cap in Austin
Type 1 (owner-occupied)
Type 1 (owner-occupied) allowed year-round
Type 2 generally
Type 2 generally banned in SF residential
Zaatari ruling limited
Zaatari ruling limited the phase-out
Rate
17%

Summary

Austin does not impose an annual night cap on STR rentals like San Francisco's 90-day rule or Palm Springs' 32-day limit. However, Type 2 non-owner-occupied STRs are restricted in residential zones, and all STRs face occupancy and noise limits that effectively constrain heavy event-style bookings.

City ordinance governs these matters in section 4-23-34 of the City Code . An STR licensee or guest may not: Use or allow the use of sound equipment that produces sound in excess of 75 decibels at the property line between 10 a.m. and 10 p.m. Use or allow use of sound equipment that produces sound audible beyond the property line between 10 p.m. and 10 a.m. Make or allow another to make noise or play a musical instrument audible to an adjacent business or residence between 10:30 p.m. and 7 a.m. Advertise or promote, or allow another to advertise or promote, the dwelling as a short-term rental if it is not licensed as such.

Source: Austin Development Services - Short-Term RentalsView official code

Full Breakdown

Austin's 2016 STR ordinance attempted to phase out Type 2 (non-owner-occupied) STRs from SF-zoned residential areas by 2022, but that phase-out was limited after litigation (Zaatari v. City of Austin, affirmed by the Texas Third Court of Appeals). The current regime allows Type 1 (owner-occupied, primary residence) STRs without annual night caps, meaning hosts can rent 365 days as long as the home remains their primary residence. Type 2 (non-owner-occupied) is generally prohibited in SF-1 through SF-3 zones but permitted in MF, commercial, and mixed-use zones with density caps. Type 3 (duplex/multifamily in commercial zones) has no night cap either. Unlike California destination cities, Austin has not adopted annual rental-night maximums; instead, enforcement relies on occupancy, noise, parking, and zoning. Texas Tax Code §351 imposes Hotel Occupancy Tax on every night rented (6% state + 9% Austin HOT + 2% venue = 17%), which platforms typically collect.

Frequently Asked Questions

How many days can I rent my Austin home?
If owner-occupied (Type 1), unlimited. Non-owner-occupied Type 2 is restricted by zone, not by annual days.
Do I owe HOT on one-night stays?
Yes: 17% Hotel Occupancy Tax applies to any stay under 30 consecutive days.

Sources & Official References

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