LicensedRental

Hood County, Texas

Granbury, TX vacation rental requirements

Inside Granbury, short-term rentals are allowed only in the historic overlay districts and need a city permit and a certificate of occupancy. Homes are limited to three bedrooms and two guests per bedroom, with a parking space per bedroom. You file the city’s 7% hotel tax yourself.

Checked against official sources November 8, 2026

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Where allowed
Historic overlay districts only
Historic Preservation Overlay and Historic Compatibility Overlay.Source
City permit
STR permit + certificate of occupancy
Size
Up to 3 bedrooms in a residential STR
Two guests per bedroom. Commercial STRs and hosted B&Bs up to 7 bedrooms.Source
Parking
One space per bedroom
Hotel taxes
6% state + 7% city
You file the city tax yourself, even for Airbnb bookings.Source

Most lake homes with a Granbury address are outside city limits, where these rules don’t apply; see the Hood County page.

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

Hood County, Texas

  1. Inside or outside Granbury?

    Inside Granbury, the city’s permit and overlay-district rules apply. Outside city limits (most lake subdivisions, Pecan Plantation, DeCordova), there’s no city permit, but deed restrictions and property owners’ association rules often limit rentals.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 Granbury, we found no local hotel tax reported to the Comptroller.Source

City of Granbury

  1. Check the overlay map

    Short-term rentals are allowed only in the Historic Preservation Overlay and Historic Compatibility Overlay districts. Since January 2024, residential properties there don’t need a specific use permit.Source

    Granbury STRs and B&Bs →

  2. Get the permit and certificate of occupancy

    Apply to Community Development for the short-term rental permit and a certificate of occupancy. If you serve food, you also need a health permit.Source

  3. 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. Every short-term rental in city limits owes Granbury’s 7% hotel tax, which you register for and file with the city; Airbnb doesn’t collect it.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.