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Is Airbnb legal in Austin, Texas?

Legal with a city license — no owner-occupancy required. Austin licenses short-term rentals by type with no primary-residence requirement. The catches are spacing rules (1,000 ft between STRs), density caps, and licenses that do not transfer when the property sells.

Showing the researched rules for Austin, TX below. Type your Austin address to jump to the verdict.

Legal with permit

Legal with a city license — no owner-occupancy required

Austin licenses short-term rentals by type with no primary-residence requirement. The catches are spacing rules (1,000 ft between STRs), density caps, and licenses that do not transfer when the property sells.

Permit and costs

Permit
STR Operating License
Issued by
City of Austin Development Services
Cost
~$737 new (2-year term)
Renewal
Every 2 years (~$385)

Key limits

Primary residence
Not required
Spacing
1,000 ft between STRs
Density
Max 2 per lot; 10% of apartment complexes
Transfers on sale
No — new owner must re-apply

Taxes

Hotel occupancy tax
15% combined (6% state + 9% city)

Registration checklist

  1. 1
    Verify spacing eligibility
    Confirm no other licensed STR within 1,000 ft and the lot is under its cap.
  2. 2
    Apply in the city portal
    Designate a local agent reachable within 2 hours; pay the fee.
  3. 3
    Display the license number
    Required in every ad — platforms must show it and remove unlicensed listings.

What could change this verdict

Buying an existing Airbnb
The license dies on sale. Price the property as if you are starting from zero.
Type 2 (non-owner-occupied)
Investor units face the same spacing rules; a 2026 moratorium briefly froze new Type 2 applications.
Your HOA
Deed restrictions can still ban STRs where the city allows them.

Sources

Austin STR rules (2025 overhaul)

Rules researched October 2026. They change, so verify with the city before you buy.

Want this verified for your exact address?

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  • Night caps, occupancy rules, and key limits
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Verify before you buy. Rules change often and vary by zoning, HOA, and building type. This is a research starting point, not legal advice. Always confirm with the city's planning or business-license office before signing anything.