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Eligibility & license type
Since February 2025, short-term rentals are allowed as an accessory use in every Austin zoning district — if the home holds a valid license. So the real question is not “is it zoned for it,” but “which license type do I need, and do the density limits allow it?” Answer three questions and we will point you to the right type and form.
Austin’s license and hotel tax depend on jurisdiction. If you are not sure, pick “inside Austin” — most homes with an Austin address in the full-purpose jurisdiction are.
Owner-occupied rentals are licensed as Type 1.
This sorts a non-owner-occupied rental into Type 2 or Type 3.
This tool is a plain-language guide built from the City of Austin’s own rules and license forms. It does not read a live zoning map or make a legal determination — the City of Austin decides your license type and whether a license issues. Always confirm your exact parcel and jurisdiction with the city.
Full-purpose Austin needs a license and charges the 17% hotel tax. Limited-purpose needs a license but no city tax. The ETJ needs neither — but confirm which one your parcel is in.
If it is your principal residence it is Type 1 (owner-occupied). If not, it is Type 2 or Type 3.
A standalone or small residential building is Type 2 Residential; a unit in an apartment or condo complex is Type 3; a commercial setting is Type 2 Commercial.
Even when a type fits, the city caps how many units one operator can run on a site — two on a single-family site, a percentage on larger ones.
| Where the home is | How many STR units one person may run |
|---|---|
| Single-family site | Up to two STR units on one site. More are allowed only if they sit at least 1,000 feet apart. |
| Mixed-use site (4+ homes plus a commercial use) | The greater of one unit or 25% of the units. |
| Multi-family site | The greater of one unit or 10% of the units. |
BNB ATX
A free field guide to Austin short-term rentals and real estate: the city license rules, which license type fits, the live registry of licensed rentals, and honest market tools. Built by the BNB ATX team.
© 2026 BNB ATX · Austin, Texas. Independent resource; not affiliated with the City of Austin, Airbnb, Vrbo or any platform named. Not legal or tax advice — verify current rules with the City of Austin before you act.
Austin STR rules verified against City of Austin pages on 2026-11-09. Registry data: City of Austin Open Data, “Short Term Rental Locations.”