Short-Term Rental Rules in Houston: Registration, Taxes and Deed Restrictions

Houston has no zoning, so it does not ban short-term rentals by neighborhood the way many cities do. Since January 1, 2026, though, every short-term rental in the city must be registered, and many subdivisions restrict short stays on their own. Before you buy a house to run on Airbnb or Vrbo, check the rules for that exact address.

City registration

• Who must register. Anyone who operates or advertises a short-term rental inside the City of Houston.
• The fee. A certificate of registration costs $275 and must be renewed every year.
• Rules that come with it. Operators must follow the city’s safety and conduct rules, and the listing cannot be advertised as an event space.
• Enforcement. Violations can bring fines of up to $500 a day and the loss of the registration.

Hotel occupancy tax

Short stays in Texas owe state hotel occupancy tax, and Houston operators must also register for and pay the city’s hotel occupancy tax. Some platforms collect part of it for you, but the operator is responsible for the rest.

Deed restrictions and HOAs

Many Houston neighborhoods and nearly all master-planned communities have deed restrictions, and many of them bar rentals shorter than 30 days or limit leasing. Texas courts have enforced such restrictions when they are clear. Read the restrictions and the association rules before you make an offer.

The suburbs

Cities outside Houston, such as Sugar Land, Katy, League City and Galveston, set their own rules, from registration and permits to limits in certain zones. Check with the city where the property sits.

How we underwrite

Because deed restrictions and city rules vary so much, we generally size a DSCR rental loan on long-term market rent. A deal that only works as a short-term rental carries extra risk.

Common questions