Houston Short-Term Rental
Investment Opportunities

• All STR operators within Houston city limits must obtain a Certificate of Registration from the Administration & Regulatory Affairs Department.
• Annual registration fee: $275 per property (non-refundable).
• Registration is handled online through the Host Compliance by Granicus portal — applications cannot be saved mid-process and must be completed within one hour.
• A separate certificate is required for each STR property, including individual units in multi-family buildings.
• Certificates are valid for one year from issuance. Renewal applications can be submitted up to 90 days before expiration.
• All certificates issued on or before December 31, 2026 will have an expiration date of December 31, 2027.
• The approved certificate must be posted at a conspicuous location inside the property.
• Registration number must be displayed on all listing platforms — starting January 1, 2027, the city will notify platforms to remove listings without a valid certificate.

Source: City of Houston Ordinance No. 2025 / houstontx.gov/ara/str

• Property and owner information, including proof of ownership or a signed authorization from the property owner.
• 24/7 emergency contact who can respond within one hour of being notified of an issue at the property.
• A list of all online platforms/listing links used for the STR.
• Proof of Hotel Occupancy Tax (HOT) registration or payment (Airbnb-only listings are exempt from providing proof as Airbnb remits directly).
• Declaration that STR use does not violate any HOA rules, deed restrictions, condo agreements, or lease terms applicable to the property.
• Completion of approved human trafficking awareness training (annual requirement) — certificate must be retained for city inspection.
• Any changes to listing details must be reported within 15 days.

Source: City of Houston ARA Department / houstonstr.org

• Houston is the largest U.S. city without traditional zoning ordinances.
• Short-term rentals are permitted in all residential, commercial, and mixed-use areas.
• There is no limit on the total number of STRs allowed to operate in the city, and no limit on how many a single entity may own.
• However, deed restrictions in specific neighborhoods or HOA communities may impose their own rules — operators must declare compliance at registration.
• Some master-planned communities (e.g., The Woodlands, Sugar Land) have HOA restrictions on short-term rentals — always check deed restrictions before purchasing.

• Texas State Hotel Occupancy Tax: 6% of rental revenue.
• City of Houston Hotel Occupancy Tax: 7% of rental revenue (paid through Houston First Corporation at houstonfirst.com).
• Harris County venue tax may apply in certain areas.
• Total tax burden: typically 13% of gross rental income.
• Airbnb collects and remits state and local HOT automatically — Airbnb-only hosts do not need to provide separate proof of HOT registration.
• Hosts using other platforms (Vrbo, direct booking, etc.) must register with Houston First Corporation and file/remit HOT separately.
• Proof of HOT registration or payment is required as part of the STR Certificate of Registration application.

Source: Texas Comptroller / Houston First Corporation

• Minimum individual stay of one night — no same-day-only rentals.
• STRs cannot be advertised or operated as event spaces.
• Operators must comply with the city's noise and sound regulations — unreasonable noise between 10 PM and 7 AM is prohibited.
• Building and neighborhood protection requirements, waste/litter standards, and fire code provisions apply.
• Repeated noise violations or guest criminal activity (disorderly conduct, reckless firearm discharge) can lead to certificate revocation.

• Operating an STR without a valid Certificate of Registration is unlawful under the ordinance.
• If an operator receives citations for 3 or more of their properties in a 2-year period, the city can revoke certificates for all properties that operator manages.
• If 25% or more of an owner/operator's STR certificates are revoked in a single multi-family building, the city can revoke the remaining certificates in that building.
• The city has discretion on whether to revoke after citations — extenuating circumstances may be considered.
• Starting January 1, 2027, the city will notify booking platforms to remove listings that lack a valid registration number.
• Penalties are cumulative — certificate revocation does not prevent other fines or legal remedies.

Source: City of Houston Ordinance No. 2025, Article XXIII

• Houston's lack of zoning makes deed restrictions and HOA rules a key regulatory layer for many neighborhoods.
• The new ordinance requires operators to declare at registration that STR use does not violate any HOA rules, deed restrictions, condo agreements, or lease terms.
• Some HOAs explicitly prohibit rentals shorter than 30 days; others may allow STRs with board approval.
• Always review CC&Rs (Covenants, Conditions & Restrictions) before purchasing an investment property.
• Texas Property Code gives HOAs enforcement power over deed restrictions, including fines and legal action.

• Properties must comply with City of Houston building codes and fire safety standards.
• Smoke detectors and carbon monoxide detectors are required in all sleeping areas.
• Pool safety barriers are required per Texas Health & Safety Code.
• Standard homeowner's insurance typically excludes commercial rental activity — dedicated STR insurance is strongly recommended.
• Umbrella liability coverage of $1M–$2M is recommended for STR operators.