Short-term rentals are legal in Texas in general, but cities in the metroplex regulate them through zoning and registration, and the rules have changed several times since 2023. Before you buy a house to run on Airbnb or Vrbo, check the rules for that exact address.
Dallas
- The zoning ban. In 2023 the Dallas City Council voted to bar short-term rentals in single-family zones.
- The court case. Owners sued, a Dallas County court blocked enforcement with a temporary injunction, and an appeals court largely upheld that order. The city has asked the Supreme Court of Texas to review the case, so the outcome could still change.
- Registration still applies. Operators must register with the city every year, and registration rules are separate from the zoning case.
Fort Worth
Fort Worth allows short-term rentals only in mixed-use, most form-based, commercial and industrial zoning districts, not in residential zones. Operators must register with the city and pay hotel occupancy tax. A district court upheld the city’s rules.
Arlington and the suburbs
Arlington limits short-term rentals to designated areas. Other suburbs have their own registration or zoning rules, and many homeowners associations restrict or ban short-term rentals in their deed restrictions.
How we underwrite
Because the rules are restrictive or unsettled in the largest cities, we generally size a DSCR rental loan on long-term market rent. A deal that only works as a short-term rental carries extra risk in North Texas right now.
Common questions
The city’s 2023 ban in single-family zones has been blocked in court while the case is on appeal, and operators must register. The status could change, so check before you buy.
Not in a residential zone. Fort Worth allows them only in mixed-use, commercial and similar districts.
Generally we use long-term rent in North Texas. Ask us about a specific address.