LicensedRental

Gillespie County, Texas

Fredericksburg, TX vacation rental requirements

Fredericksburg is one of the biggest rental markets in Texas, and one of the strictest. A city permit is required, with an inspection every year, and new whole-home rentals aren’t allowed in most residential zones. Each home needs a posted evacuation plan, smoke and CO alarms, and an extinguisher on every floor. Stays owe 6% state plus 7% city hotel tax, which you file yourself.

Checked against official sources November 8, 2026

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Market
About 2,200 Airbnb listings
Ranked ninth in Texas; about $42,000 average yearly revenue (AirROI).Source
City permit
Required, renewed yearly with an inspection
Where new rentals can go
Commercial zones by right
No new unoccupied rentals in R1 or R2 without a special exception; none at all in R3.Source
Guests
Up to 12
One parking space per bedroom, off the street.Source
Drawings
Posted evacuation plan
Checked at every yearly inspection.Source
Hotel taxes
6% state + 7% city
Airbnb doesn’t collect the city tax.Source

Rentals permitted before April 1, 2022 can continue as nonconforming permits, but must meet the newer safety, contact, and tax rules at renewal.

Outside city limits (the ETJ) no permit is needed.

Your licensing checklist

In order: the state, the county, then the town.

State of Texas

  1. Know who pays the hotel tax

    Airbnb collects and pays the 6% state hotel tax on its bookings. If guests pay you directly or through a site that doesn’t collect, register with the Comptroller and file the state tax yourself.Source

    Texas hotel occupancy tax →

  2. Register for local hotel tax

    Your city (and in some places your county) charges its own hotel tax, filed with that city or county, not the state. Airbnb pays it only in the places on its list; everywhere else you register and file it yourself, even for Airbnb bookings.Source

  3. Check your city’s rules

    Many Texas cities require a short-term rental permit or registration, and some require an inspection, a local contact, or posted rules. Outside city limits there’s usually no permit, but deed restrictions and HOA rules often limit rentals. Pick your area for the local rules.Source

Gillespie County, Texas

  1. Then your city

    Texas counties can’t zone, so rental rules come from the city your home is in. Outside city limits there’s usually no permit, but deed restrictions and HOA rules may limit rentals. Pick your city.Source

  2. Hotel taxes on each stay

    Stays of 29 nights or less owe the 6% state hotel tax, which Airbnb collects on its bookings. If guests pay you directly, file it with the Texas Comptroller. Outside Fredericksburg, ask the city whether its hotel tax reaches your address.Source

City of Fredericksburg

  1. Check your zoning

    Look up your lot on the city’s STR map. Commercial zones (C1, C1.5, C2, CBD) allow rentals by right. In R1 and R2 no new unoccupied rentals are allowed except by a Zoning Board of Adjustment special exception for “stranded” lots surrounded by rentals or commercial zoning; R3 allows none. A room or guest house in your own homesteaded home can qualify as a B&B or accessory rental.Source

    Fredericksburg short-term rentals →

  2. Get the house ready for inspection

    Every permit passes an inspection before it’s issued and every year at renewal. Fix every checklist item first: alarms, extinguishers, bedroom egress, house numbers, pool and fire pit rules, the posted evacuation plan, and posted host rules.Source

  3. Apply online

    Apply, renew, or transfer through the city’s STR hub. Name a 24-hour contact; an unresponsive contact is a major violation. A permit can transfer to a buyer within 90 days of a sale.Source

  4. Hotel taxes on each stay

    Stays of 29 nights or less owe the 6% state hotel tax, which Airbnb collects on its bookings. If guests pay you directly, file it with the Texas Comptroller. Fredericksburg’s 7% hotel tax isn’t on Airbnb’s collection list, so register with the city and file it yourself, Airbnb bookings included. Not paying it suspends the permit for 90 days.Source

Fees

Permit fees aren’t on the city fee schedule; ask the city

Re-inspection after a failed inspectionFrom the inspection checklist$75
Appeal to City Council$300

In effect since October 1, 2024. Source

Inspection checklist

What the inspector looks for, from City of Fredericksburg’s published checklist.

  • Smoke alarmsOn every level, in every bedroom, and in the hall outside bedrooms.Source
  • Carbon monoxide alarmsOn each floor if there’s gas, propane, or an attached garage.Source
  • Fire extinguishersOne 5 lb 2A:10B:C on each floor, professionally inspected every year.Source
  • Evacuation planPosted in a prominent place inside.Source
  • Bedroom egressEvery bedroom has an opening straight to the outdoors.Source
  • Pools, hot tubs, and fire pitsFenced with self-closing gates, door alarms, locking covers, and 10 to 15 foot setbacks.Source
  • House numbersAt least 4 inches tall, facing the street.Source

House rules for guests

Posted host rules
Inside and in every ad or contract
Occupancy, parking spots, quiet hours, trash, Dark Sky notice, 24-hour contact, 911 and non-emergency numbers.Source
Quiet hours
10 p.m. to 7 a.m.
Source
Signs
None in residential zones
Source
Lighting
Shielded, pointed down
Source

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.