Austin vs Houston
Texas Legal but Limited | Texas Legal with Permit
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Austin, Texas | Houston, Texas |
|---|---|---|
| Legality Status | Legal but Limited | Legal with Permit |
| Permit Fee | $450/year (Type 2); $50/year (Type 1 homestead) | $90 registration fee |
| Tax Rate | 15% Hotel Occupancy Tax (9% city + 6% state) | 13% Hotel Occupancy Tax (7% city + 6% state) |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | No — host must remit | Yes |
| Max Fine Example | $500–$2,000/violation; license revocation possible | $500/day for non-compliance |
| Verdict | Houston has more favorable STR regulations overall. | |
Austin, Texas
Status Legal but Limited
Permit Fee $450/year (Type 2); $50/year (Type 1 homestead)
Tax Rate 15% Hotel Occupancy Tax (9% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $500–$2,000/violation; license revocation possible
Houston, Texas
Status Legal with Permit
Permit Fee $90 registration fee
Tax Rate 13% Hotel Occupancy Tax (7% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500/day for non-compliance
Houston has more favorable STR regulations overall.
Austin Overview
Type 1 (owner-occupied) is allowed citywide. Type 2 (non-owner-occupied) licenses are no longer issued in residential areas — existing Type 2 licenses expire April 2027.
Full Austin guide →Houston Overview
Houston has no zoning code, so STRs are broadly permitted. Hosts must register, collect HOT, and meet fire-safety and parking standards. Deed-restricted communities may impose additional restrictions.
Full Houston guide →Frequently Asked Questions
Is it easier to Airbnb in Austin or Houston?
Austin is classified as "Legal but Limited" while Houston is "Legal with Permit." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $90 registration fee in Houston.
Which city has higher STR taxes — Austin or Houston?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Houston charges 13% Hotel Occupancy Tax (7% city + 6% state). Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Austin: $500–$2,000/violation; license revocation possible. Houston: $500/day for non-compliance.