PX Academy

Austin Short-Term Rental (STR) Regulations – Cheat Sheet

Written by Omer Soliman | Aug 30, 2025 5:17:24 PM

Types of STRs in Austin

Type 1 (Owner-Occupied)

  • Must be owner-occupied or tied to owner’s primary residence.
  • Can rent whole unit OR a partial unit (bedroom + shared bath) IF owner is present.
  • Only 1 party at a time if partial unit is rented.
  • Allowed in most residential areas.

 

Type 2 (Non-Owner Occupied Single-Family)

  • Entire home rental, NOT owner-occupied.
  • Cannot be in multifamily properties.
  • Subject to 3% cap per census tract.
  • Must have been licensed before Nov 23, 2015 (no new licenses after).
  • Distance rule: not within 1,000 ft of another Type 2 unless grandfathered.

 

Type 3 (Multifamily: Apartments/Condos)

  • Entire unit rental in multifamily buildings.

Density caps:

  • Non-commercial zones: max 3% of units per property/building.
  • Commercial zones: max 25% of units per property/building.

 

 

License Requirements (§25-2-791)

  • Annual license required (non-transferable).
  • Must show insurance, proof of hotel occupancy taxes (If renewing), local contact info, and no violations.
  • Expires after 1 year, renewable if compliant.
  • No new Type 2 licenses issued after Nov 2015.

 

Occupancy & Noise (§25-2-794–795)

  • Max occupancy: 2 adults per bedroom + 2 extra, capped at 10 adults OR 6 unrelated adults.
  • Outside assemblies > 6 adults not allowed (7am–10pm).
  • No parties/events 10pm–7am.
  • Noise limits:
  • Day (10am–10pm): 75 dB max at property line.
  • Night (10pm–10am): no sound beyond property line.

 

Notification & Neighbors (§25-2-792, §25-2-796)

  • Renters must get an info packet (rules, trash, parking, noise, etc.).
  • Local contact required (must respond to emergencies within 2 hours).
  • Neighbors within 100 ft must be notified.

 

Enforcement & Penalties (§25-2-797–799)

  • Repeat violations (2+ in 12 months) → license denied for 1 year.
  • Non-compliance fees if caught operating unlicensed.
  • Advertising without license = violation.
  • City inspectors can issue citations based on visual inspection of too many guests.