Little Elm, TX Short-Term Rentals: Occupancy Limits (2026)

Under Little Elm's STR ordinance (Ordinance 1673), occupancy is strictly limited. No more than two adult guests per bedroom are allowed, plus no more than two additional adults, with an absolute cap of ten persons (adults and children combined) at any time. For example, a three-bedroom rental could host six adults in bedrooms plus two additional adults, totaling eight adults maximum, but the ten-person cap including children still applies. This occupancy standard is more restrictive than many DFW-area communities and reflects Little Elm's focus on preserving residential neighborhood character in its growing master-planned developments. Hosts must maintain records of guest counts for each rental period. Each day that occupancy exceeds the limit constitutes a separate offense. The progressive enforcement system applies: a written warning for the first violation, a 6-month reapplication ban for the second, a 1-year ban for the third, and a permanent ban for the fourth violation. The occupancy limit is independent of the International Building Code or fire code occupancy calculations for the structure.