Skip to main content
CityRuleLookup
Key FactsOrdinance TextFull BreakdownViolationsFAQSourcesMore in Austin

Austin, TX Short-Term Rentals: Primary-Residence-Only Rule (2026)

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

Key Facts

Primary residence required?
No; own or lease qualifies
Governing code
City Code Chapter 4-23
Operator license
Required per unit, two years
Max fine
$500 per day
Old Type 1/2/3 repealed
October 1, 2025

Summary

Austin repealed its owner-occupancy classification on October 1, 2025. Non-owner-occupied and leased short-term rentals are allowed citywide under City Code Chapter 4-23; every unit still needs an operator's license, but there is no primary-residence requirement.

An operator must own or lease the housing unit that will be operated as a short-term rental. On a site with three or fewer housing units, an individual can operate up to two short-term rentals. Except as provided in Subsection (D), an individual may operate short-term rentals on more than one site if the sites are located at least 1,000 feet apart.

View official code

Full Breakdown

Under City Code Section 4-23-31, an operator "must own or lease the housing unit," so tenants and absentee investors can run short-term rentals with no primary-residence or owner-occupancy gate. On a site with three or fewer units an individual can operate up to two STRs, and separate sites must sit at least 1,000 feet apart. This replaced the old Type 1/Type 2/Type 3 framework (former Chapter 25-2-788), which the Council repealed effective October 1, 2025. The Development Services Department issues the operator's license required by Section 4-23-32; each unit needs its own license, valid two years and non-transferable.

Violations & Fines

Operating without a valid operator's license is a separate offense for each day it continues, punishable by a fine up to $500 under Section 4-23-51; the director may also order platforms to delist the listing within 10 days.

Frequently Asked Questions

Do I have to live in an Austin short-term rental to rent it out?
No. Section 4-23-31 only requires you to own or lease the housing unit, so absentee owners and tenants with owner authorization can operate short-term rentals.
Are there still caps on non-owner-occupied STRs?
The old Type 2 density caps are gone. On a site with three or fewer units you can run up to two STRs, and separate sites must be at least 1,000 feet apart.
What does a short-term rental license cost in Austin?
A new operator's license is $836.30 and renewal is $385.30, each valid two years. Development Services issues them; licenses are non-transferable and do not convey with a property sale.

Sources & Official References

Other rules in Austin

Noise Ordinances: Quiet HoursSome RestrictionsShort-Term Rental PermitsHeavy RestrictionsParking Rules: RV & Boat ParkingSome RestrictionsOccupancy LimitsSignificant RestrictionsRepeat Violator StrikesSignificant RestrictionsHost Platform LiabilitySignificant RestrictionsNight CapsSome RestrictionsNoise RulesHeavy RestrictionsInsurance RequirementsFew RestrictionsTaxes & FeesSignificant RestrictionsShort-Term Rental Parking RulesLight RestrictionsNoise Ordinances: Vehicle NoiseSome RestrictionsParking Rules: EV ChargingSome RestrictionsParking Rules: Driveway RulesSome RestrictionsFence Regulations: Neighbor Fence RulesSome Restrictions

All Austin rules

Texas rules heatmap·Compare Austin to another location·View the Texas short-term rentals overview

Get notified when Primary-Residence-Only Rule in Austin, TX changes

We'll email you the moment we detect a change in the code. No spam, unsubscribe anytime.

We'll never sell or share your email. One-click unsubscribe in every email.

See something wrong?

Help us keep this page accurate. If you notice an error or outdated information, let us know.