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

Section 13-465 defines the license categories that determine whether owner-occupancy is required. A "bed and breakfast homestay establishment" is an owner- or designated-operator-occupied property with no more than five guest rooms, where the owner or operator must reside on the property and be present for the duration of any rental. "Short-term rental type I" carries the same residency and presence requirement: the owner or designated operator must reside in the primary structure on the property and be present for the duration of the rental, and non-conforming properties with more than one dwelling unit may only rent to one group at a time.

By contrast, "short-term rental type II" (a single-family or duplex property) and "short-term rental type III" (a multi-family property) are both defined as properties where "the owner or a designated operator does not reside on the property or is not present at the property for the duration of any short-term rental," meaning Waco expressly permits absentee-owner short-term rentals under those two license types. All four categories still require a license under section 13-466, and section 13-471(a) imposes a 500-foot separation between two licensed type I or homestay units in the R-E, R-1A, R-1B, R-1C, and R-2 zoning districts, a spacing rule that does not apply to type II or III properties.