Houston starts enforcing short-term rental law

Officials in Houston, Texas, have begun enforcing the city’s short-term rental (STR) regulations, meaning STR operators can face fines for failing to register with the city. Illegal STRs can also be delisted from marketplaces such as Airbnb or Vrbo — although the city has asked these platforms to delay delisting nonregistered STRs until January 1, 2027.

The law defines an STR as a dwelling unit offering rentals of less than 30 consecutive days. Operators are required to pay a $275 fee every year to obtain a certificate of registration to operate or advertise an STR within city limits. Violating the ordinance can result in a fine of up to $500 per day and revocation of the registration certificate. 

STR operators must also agree to:

• Display an approved registration certificate and emergency contact information at a “conspicuous location” inside the STR’s front entrance.
• Comply with regulations on noise, safety, and waste disposal.
• Require a minimum of one night for rentals.
• Submit proof of human trafficking awareness training.

STR operators aren’t allowed to advertise properties as event spaces. 

The ordinance, passed in April 2025, was designed to address issues including disruptive parties and crime. Since the law went into effect January 1, 2026, at least seven people were shot at two separate parties at STRs and 228 formal complaints about STRs have been filed with the city.

Nearly 4,000 STRs are already registered with the city, with another 1,100 pending — meaning 83% of STRs are in compliance with registration requirements, according to the city. Demand for Houston STRs is expected to grow this summer with World Cup matches being held in the city between June 14 and July 4.

Texas STR operators are required to follow lodging tax rules. All STRs are subject to state hotel occupancy tax (HOT). Operators must register with the Texas Comptroller’s office, collect taxes, and file state occupancy tax returns. Airbnb and Vrbo are required to collect the state portion of the tax for all bookings on their sites. Operators don’t need to register with the state or file state HOT returns if an STR marketplace collects all state lodging taxes for their properties. 

Houston operators must also register for Houston HOT, collect the tax from guests, and pay it quarterly. Airbnb and Vrbo collect occupancy taxes for Houston listings. STR operators are responsible for any lodging taxes not collected on their behalf.

Avalara helps simplify tax and compliance for the hospitality industry through automation. With Avalara MyLodgeTax, STR owners and property managers can register with tax authorities, calculate lodging taxes, prepare and file returns, and remit payment. Avalara is trusted by 200,000+ direct and indirect customers in 75+ countries. 

For more on lodging taxes in Texas, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.