Regulations

Fredericksburg TX Short Term Rental Rules (2026): Permits, Fees, Zoning and Taxes

Updated October 14, 2026 16 min readHumberto MarquezBy Humberto Marquez
Fredericksburg TX Short Term Rental Rules (2026): Permits, Fees, Zoning and Taxes

Fredericksburg TX short term rental rules come down to five things: you need to obtain a short term rental permit for any stay under 30 days inside the city limits, the permit fee runs $300 to $1,000 a year based on bedrooms, the home must pass a life safety inspection every year, occupancy is capped at two guests per bedroom plus two (12 people maximum), and you must collect 13% hotel occupancy tax and remit the 7% local share yourself, because Airbnb and Vrbo do not remit it to the City of Fredericksburg. Zoning decides whether a new STR is allowed at all, and in most residential areas a new unoccupied (whole home, owner not living there) STR is no longer allowed by right.

This guide walks through the current STR ordinance for short term rentals (in effect since January 1, 2024), the permit types, fees, where STRs are allowed, inspections, occupancy, parking, the 24-hour local contact rule, the city and county hotel tax stack, penalties and the most recent changes. Every rule below was read on the official source on the day this guide was updated. This is general information, not legal or tax advice. Confirm your specific property sits in the right zoning district with the city before you buy or list.

Fredericksburg short term rental rules at a glance

RuleWhat the city requires
Who needs a permitAny dwelling unit rented for transient or guest lodging for less than 30 days inside the city limits
ETJ (outside city limits)No city STR permit, but city hotel occupancy tax still applies
Permit fee (new and annual renewal)$300 efficiency or 1 bedroom, $500 for 2, $700 for 3, $900 for 4, $1,000 for 5 bedrooms
Transfer fee / re-inspection fee$300 / $75
InspectionRequired for new permits, every annual renewal, transfers, complaints and modifications
Maximum occupancy2 persons per bedroom plus 2, never more than 12 total
Parking1 on-site space per bedroom; tandem allowed; no parking on unimproved surfaces
Minimum stay1 night
Local contact24-hour contact must respond within 30 minutes
Quiet hours10:00 p.m. to 7:00 a.m. in residential zones
Hotel occupancy tax13% total: 6% state + 7% city (or 7% Gillespie County outside the city and ETJ)
Main penalty triggersCitations; 90-day suspension for unpaid HOT; council review after 3 major violations in 12 months

Where the official local rules live

The City of Fredericksburg keeps everything on its Short-Term Rentals page: the STR ordinance (effective January 1, 2024), a summary of the 2024 STR ordinance from the Director of Development Services, a searchable STR map, the renewal guide and the STR inspection checklist. Hotel tax rules are on the Hotel Occupancy Taxes page, and the county side is on Gillespie County's County Hotel Occupancy Tax Payments page. The state 6% is administered by the Texas Comptroller.

Texas has no statewide permit for short term rentals, so local rules decide what you can do. For the statewide picture, including how other cities handle permits, see our guide to Texas Airbnb laws.

What counts as a short term rental in Fredericksburg

In plain terms: if a privately owned dwelling is rented to guests for transient lodging, a few nights at a time, the STR ordinance applies.

The city code defines a short term rental (STR) as the rental for compensation of any residence or residential structure, or a portion of one, for transient or guest lodging for a period of less than 30 consecutive days. That covers a single family dwelling, townhomes, duplexes and other residential dwelling units, regardless of whether the dwelling was originally built or zoned as a residence. Hotels and motels are not STRs, and a privately owned dwelling leased for 30 days or more is a regular rental, not one of the short term rentals the ordinance covers.

The city's STR permit FAQ puts it simply: per Section 20.222 of the zoning ordinance, any structure used for transient or guest lodging rented for compensation of a dwelling unit for a period of less than 30 days within the city limits requires a short term rental permit. In practice, if a listing on Airbnb, Vrbo or any other site offers stays under 30 nights, Fredericksburg treats the property as a short term rental. The ordinance says any online or print advertisement for a stay of less than 30 days is prima facie evidence of STR use.

Short term rental permit types

Before you apply for a short term rental permit, know which type fits your home. Short term rentals in Fredericksburg are split by who lives on the property.

Fredericksburg does not have one STR permit. It has several STR uses, and the type decides where you can operate:

  • STR Accessory (STR-ADU). A legal accessory dwelling unit or guest house on a lot where the primary home is the owner's principal residence, shown by a current homestead exemption filed with the Gillespie Central Appraisal District.
  • STR B&B. Guest lodging within the rooms of the owner's principal residence. Separate permits are not required for each bedroom rented inside a B&B.
  • Unoccupied. A dwelling that is not owner occupied, such as a single family home, townhouse or duplex rented as a whole. This is the classic investor Airbnb.
  • Facility. A complex with multiple STR units on a single property. In commercial zoning it has to be developed under the multifamily rules of the base district.
  • Condominium. The 2024 ordinance ended new STR-Condo permits in residential areas; in commercial districts it needs a conditional use permit.
  • Nonconforming. A rental that obtained a permit before April 1, 2022 and continues as a "grandfathered" use.

Zoning: where short term rentals are allowed

Zoning restrictions are the first question for any buyer, and they are where Fredericksburg is stricter than most Texas cities, with the stated goal of protecting surrounding properties and neighborhoods. Verify zoning on the official map before you sign a contract, and obtain written confirmation if the listing agent is unsure. Based on the city's ordinance summary and FAQ:

  • R-1 and R-2 residential: no new STR Unoccupied permits and no new STR Facilities. Owner-occupied types such as STR Accessory and STR B&B remain the main path for residential lots.
  • R-3: no type of STR allowed.
  • Condominiums: no new STR-Condominium permits in residential zoning.
  • Commercial zoning districts, where short term rentals are easiest (C-1 Neighborhood Commercial, C-1.5, C-2 and CBD Central Business District): all STR uses are allowed by right, except STR-Condo, which requires a conditional use permit.

That is the effective cap in Fredericksburg. Fredericksburg does not publish a numeric limit on permits, but closing residential zones to new unoccupied rentals limits supply in the neighborhoods buyers want most. Existing permitted short term rentals can be searched on the city's Short-Term Rental Map.

Special exceptions

Since 2024, owners who want to obtain a special exception go to the Zoning Board of Adjustment instead of a conditional use permit at City Council and Planning and Zoning. An owner may apply for a special exception to:

  • Run an unoccupied rental in R-1 or R-2 on a "stranded" lot. The property must share two or more lot lines (or one for a corner lot) with a lawful STR Unoccupied or with land zoned CBD, C-2 or PF (excluding public school sites), and more than 50% of the properties within a 200-foot radius must be lawful STR Unoccupied uses or zoned CBD, C-2 or PF.
  • Expand the maximum occupancy or get an exception to the parking requirement.
  • Operate an STR on the first floor of new or converted construction in the historic shopping district overlay.

Grandfathered short term rentals (nonconforming permits)

Nonconforming short term rentals may continue to operate and can transfer to a new owner. At renewal they must meet the current rules for life safety, 24-hour contact, signage, food service, host rules, conduct on premises, duration of rental, hotel occupancy tax, application information and advertising. The occupancy maximum and parking rules do not apply to STRs that held a lawful permit when the ordinance took effect. If a nonconforming owner cannot or will not renew because of noncompliance, the STR use must stop within 60 days of the permit denial notice.

Nonconforming uses can also be lost through abandonment. The ordinance lets an owner pause the STR use for 90 or more days for repairs, personal use as a primary residence or long-term rental housing, but only if the owner gives notice first, files a zero-dollar hotel tax report every quarter and keeps renewing the permit.

Short term rentals located outside the city limits

Short term rentals located in the Fredericksburg extra territorial jurisdiction (the ETJ, a band of land outside the city limits) do not need an STR permit, and the city zoning ordinance does not apply there. Owners there still have to file and pay the 7% city hotel occupancy tax. Farther out, in unincorporated Gillespie County beyond the ETJ, owners file the 7% county hotel tax with the Gillespie County Treasurer instead. Check the zoning map against your street address to see which side of the line your property falls on, because it decides both your permit status and who gets your local taxes.

Fredericksburg STR permit fees

Fees are set in Section 5.450 of the fee schedule, amended by Ordinance 2023-21 (effective January 1, 2024). The application fee is based on the room count of the dwelling unit, applies to both new applications and annual renewals, and includes the first inspection.

Unit sizePermit fee (new or renewal)
Efficiency$300
1 bedroom$300
2 bedrooms$500
3 bedrooms$700
4 bedrooms$900
5 bedrooms$1,000
Permit transfer$300
Re-inspection after a failed inspection$75

You will still see older figures online, such as $150 plus $100 per bedroom. Those came from the pre-2024 rules and are out of date; the table above is the fee schedule in force since January 1, 2024.

So a typical 3-bedroom Hill Country cottage pays $700 every year just to keep the permit valid, before taxes, insurance and cleaning. For a full budget see our breakdown of the cost of running an Airbnb in Texas.

The permitting process step by step

The permitting process is the same for new applications, renewals and transfers, and an inspection is required prior to issuance.

  1. Verify zoning. Check the zoning districts map and the STR type you qualify for. Owner-occupied types need a homestead exemption (or a sworn affidavit for the local contact on some types).
  2. Contact the finance department about hotel tax. The ordinance requires owners or operators to contact the finance department before the STR permit application is submitted.
  3. Apply online. New applications, renewals and transfers use the same MGO online permitting portal link. The renewal guide asks for a photo of the front of the STR, a photo of the owner's driver's license and the active listing links for every site where the home is listed online.
  4. Pay the invoice. City staff process the application and issue an invoice; payment starts the inspection step.
  5. Schedule and pass the inspection through the MGO portal.
  6. Post the placard. Once issued, print the permit placard and place it in a prominent place inside the unit. It shows owner information, the STR name, 24/7 contact information, the expiration date, bedroom count and the permit number.

Each permit is valid for one year and must be renewed annually, before it expires. If a permit lapses, you are back to a new application, and on a grandfathered property that can be fatal. Each STR keeps a unique permit number through ownership changes. Any change to the application information (other than ownership) must be reported to the city within 10 business days.

Selling or buying a permitted STR

A permit can be transferred to a new owner. Buyers who want to operate on day one should know the rule: a transfer is required when more than 50% of the ownership changes, including a transfer of interest in an LLC or other entity that owns the STR. The ordinance summary gives the new owner 90 days from the sale to transfer. If the new owner misses that window, the permit is not transferred, which on a nonconforming or R-1 property can mean losing the right to operate. Transfers also trigger a new visit. Short term rentals sold mid-year should build that into the closing timeline.

Annual inspections and life safety rules for short term rentals

Inspections are now annual. A passing inspection is required before a new permit is issued, on every renewal, when a permit is transferred, after complaints and after additions or modifications to the structure. The inspection checklist says all items must be handled before you schedule, and a failure means a $75 re-inspection fee paid through MGO before the second visit.

The ordinance and checklist require:

  • Working smoke alarms meeting Texas Property Code 92.254 and 92.255: at least one on each floor, one in each bedroom, and one in the corridor serving multiple bedrooms.
  • At least one working carbon monoxide detector per floor if the home has natural gas, propane or an attached garage.
  • At least one 2A:10B:C fire extinguisher (a standard five-pound unit) on each floor, inspected annually and tagged by a third-party inspector.
  • Gas appliances vented outside the home.
  • Each room used for sleeping purposes with at least one means of egress opening directly to the outdoors.
  • Address numbers at least 4 inches tall, on the front of the unit facing the street.
  • Pools and spas fenced with self-closing, self-latching gates; pools set back at least 10 feet from rear and side lines, hot tubs and fire pits at least 15 feet. Doors with direct access to a pool need an audible alarm, and hot tubs need a locking cover.
  • Fire pits covered by a fine metal grate and built of non-combustible material.

Square footage and layout matter too. The definition of a bedroom matters for both your fee and your occupancy: an STR bedroom must be at least 70 square feet, have a closet directly accessible from the room and meet building and fire code. A room that fails must stay locked while guests are there and cannot be advertised as a bedroom.

Occupancy limits

The maximum occupancy for Fredericksburg short term rentals is two persons per bedroom plus two additional occupants, with a hard cap of 12 people in total. Everyone counts toward the total, down to one occupant: the city summary says all persons count, so claims you may see online that only adults or only paying guests count do not match the ordinance. Think of it as two occupants per bedroom, then two more. A 3-bedroom single family home therefore tops out at 8 guests, a 5-bedroom home at 12. You can list a lower number, and you can apply to the Zoning Board of Adjustment for a special exception to expand it. Exceeding the limit is a major violation.

Parking rules

The owner or operator must provide one on-site parking space per bedroom operating as a short term rental. Tandem parking is allowed as long as no part of a car blocks a public right-of-way. On-street parking is still allowed but does not count toward the minimum. Guests may not park on an unimproved surface such as grass, and the owner may not allow it. If you cannot meet the parking minimum, the special exception process is the only route.

The 24-hour local contact

Every short term rental must name a 24-hour contact: the local responsible party for emergencies, immediate concerns and complaints. That person must be available in person or by phone during every stay, must respond to a call within 30 minutes and must be authorized to make decisions about the property and its guests. An unresponsive 24-hour contact is a major violation. If you live outside the Hill Country, this is the rule that pushes most owners toward a local co-host or property manager.

Advertising, signs, host rules and guest conduct

Online listings

Every listing must show the city permit number, the occupancy maximum, the maximum parking capacity, the host rules and a street-view image of the front of the property. Unlawful advertising is a major violation.

Signs and food

A rental may have a nameplate sign up to two square feet attached to the structure. Only overnight guests may be served meals (except in zones allowing restaurants), limited to a continental-type breakfast.

Host rules packet

You must post a host rules packet in a conspicuous spot that lists the maximum occupancy, the location of off-street parking, quiet hours (10:00 p.m. to 7:00 a.m. in residential zones), trash and recycling pickup, Dark Sky exterior lighting rules, the 24-hour contact and operator phone numbers, evacuation procedures if relevant, emergency and non-emergency dispatch numbers, and notice that guests can be cited for breaking city ordinances.

Guest conduct

Owners must tell guests that they are responsible for the noise ordinance (including decks, porches, hot tubs and pools), the trash ordinance, outdoor fire rules and the Dark Sky outdoor lighting rules. Selling alcohol or anything else that needs a license, selling drugs and running a sexually oriented business are prohibited. The minimum stay is one night.

Hotel occupancy tax: the city and Gillespie County stack

Short term rentals in Fredericksburg pay the same hotel occupancy tax (HOT) as hotels, and these local taxes are where most owners slip. Your guest should be charged 13% in total:

LocationState HOTLocal HOTTotalLocal tax paid to
City of Fredericksburg6%7% city13%City of Fredericksburg (quarterly)
Fredericksburg ETJ6%7% city13%City of Fredericksburg (quarterly)
Rest of the county (unincorporated)6%7% county13%Gillespie County Treasurer

The county levies its 7% only outside the City of Fredericksburg and its extra territorial jurisdiction; it took effect January 1, 2007. Inside town or the ETJ, that 7% goes to Fredericksburg. The two never stack on the same stay, so the total is 13% either way. For how this compares across Texas, see our Texas short term rental taxes guide.

Airbnb and Vrbo do not remit the local tax

This is the most expensive mistake new owners make. Fredericksburg states that reservation services like Airbnb or Vrbo do not remit HOT to the City of Fredericksburg on behalf of their customers. They usually remit the 6% state HOT under their own taxpayer number, but the 7% local tax is on you. It also warns that the owner can be held liable for discrepancies in an audit, even when a platform collects some of the tax.

What is taxable

Taxable receipts include the nightly rate, cleaning fees and pet fees. The official example: $300 a night for two nights ($600) plus a $100 cleaning fee and a $50 pet fee equals $750 in taxable receipts, and $750 x 7% = $52.50 in city tax. Calculating the tax on your payout after platform fees is wrong, and the shortfall draws a 15% penalty plus interest.

Deadlines, penalties and filing

  • Local HOT is filed quarterly: due April 30, July 31, October 31 and January 31.
  • Interest of 4.25% accrues from the day after the due date, and a 15% penalty applies once the tax is delinquent for at least one quarter.
  • If you had no bookings in a quarter, file a zero-dollar remittance. This can affect the status of your STR permit.
  • Since July 1, 2026 Fredericksburg uses a new online portal for hotel occupancy tax HOT payments; Xpress Bill Pay is no longer used. ACH has no fee; card payments carry a 4% fee.
  • County HOT (outside the city and ETJ) goes to the Gillespie County Treasurer, 101 W Main St., Mail Unit #5.

Stays longer than 30 consecutive days are exempt without a certificate. Other exemptions need a signed exemption certificate from the guest.

Penalties and enforcement for short term rentals

The city can cite the owner, operator or guests immediately for breaking the STR rules. Violating this city ordinance is a misdemeanor punishable by a fine under Section 1-6 of the city code, and each day a violation continues is a separate offense. On top of fines, the ordinance has a strike system:

  • Minor violations are rule breaks that do not threaten health and safety, such as watering, trash, advertising details or lighting. Three minor citations in 12 months count as one major violation.
  • Major violations cover health and safety, occupancy, noise, failure to update application information, an unresponsive 24-hour contact, unpaid hotel occupancy tax, unlawful advertisements and operating without a permit.
  • Three major violations in 12 months send the permit to City Council, which may suspend it for up to 90 days.
  • Five or more violations of other laws at the property within 24 months also trigger council review and a possible 90-day suspension.
  • More than two council referrals in 24 months without a change of ownership: council may revoke the permit or suspend it for 90 to 180 days.
  • Unpaid hotel tax: failing to pay after a finance department delinquency notice results in a 90-day permit suspension.

A denied permit can be appealed to City Council within 20 days, and court review goes to Gillespie County.

Recent changes

  • January 1, 2024: the current STR ordinance and new fee schedule took effect, replacing the 2022 rules. It closed R-1 and R-2 to new unoccupied STRs and facilities, banned STRs in R-3, ended new STR-Condos, moved exceptions to the Zoning Board of Adjustment, set the 12-person cap and one-space-per-bedroom parking, and created the strike system.
  • Annual inspections: inspections are now required on every renewal, and an updated life safety inspection checklist that adds detailed pool door alarm and fire pit standards.
  • July 1, 2026: Fredericksburg moved HOT payments to a new online portal.

Special exceptions and appeals are decided case by case, so watch City Council and Zoning Board of Adjustment agendas if you own near a property seeking one.

Local contacts for STR owners

  • Development Services / STR Specialist: 830-997-7521, str@fbgtx.org, City Hall, 2818 E. U.S. Hwy. 290.
  • Code Enforcement (STR complaints): 830-990-8793.
  • Fredericksburg Police (emergencies and after hours): 830-997-7585.
  • City hotel tax questions: hot@fbgtx.org or 830-990-2023.
  • MGO portal support: 866-957-3764.
  • Texas Comptroller hotel tax line: 800-252-1385.

What this means for owners and buyers

Fredericksburg is one of the most regulated STR markets in Texas, but the rules are clear and stable. Buyers should confirm the zoning and the existing permit status before closing, and plan for the 90-day transfer window. Owners of short term rentals should budget for the annual permit and inspection, set up quarterly city HOT filing on day one, and line up a 24-hour contact who can actually reach the house in 30 minutes. If you are comparing local help, our list of the best Airbnb management companies in Fredericksburg covers the options.

Surge manages short term rentals for owners in Texas and Florida, full service starting at 15%, including permit renewals, tax filing, dynamic pricing and guest communication. See how we work on our Texas Airbnb management page, or book a call to talk through your property.

FAQ

Do I need a short term rental permit for an Airbnb in Fredericksburg, TX?

Yes, inside the city limits. Any dwelling rented for less than 30 days needs a city STR permit. Properties in the Fredericksburg extra territorial jurisdiction do not need a permit but must still pay city hotel occupancy tax.

How much is a Fredericksburg STR permit?

$300 for an efficiency or 1-bedroom, $500 for 2, $700 for 3, $900 for 4 and $1,000 for 5 bedrooms, charged for new permits and every annual renewal. Transfers cost $300 and a re-inspection $75.

Can I open a new whole-home Airbnb in an R-1 neighborhood?

Not by right. New STR Unoccupied permits are not issued in R-1 or R-2. The only route is a special exception for qualifying stranded lots, decided by the Zoning Board of Adjustment.

What is the hotel tax on a Fredericksburg short term rental?

13%: 6% state plus 7% city inside town and the ETJ, or 6% state plus 7% Gillespie County elsewhere in the county.

Does Airbnb collect Fredericksburg hotel tax?

Not the city portion. The city says platforms do not remit HOT to Fredericksburg. They usually remit the state 6%, so you file and pay the 7% city tax quarterly.

How many guests can stay in Fredericksburg short term rentals?

Two per bedroom plus two, with a maximum of 12 people, unless you obtain a special exception.

Can short term rentals lose their permit?

Yes. Three major violations in 12 months can lead to a suspension of up to 90 days, unpaid HOT leads to a 90-day suspension, and repeated council referrals can end in revocation.

Humberto Marquez

Written by

Humberto Marquez

Founder, Surge

Founder of Surge and licensed Texas real estate broker. Manages short-term rentals across 12 U.S. markets and invests in STRs himself. Quoted in Martha Stewart, Yahoo Finance, Realtor.com, Bob Vila.

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