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Short-term rentals (STRs), referred to locally as "short-term vacation rentals," are legal in Austin County, Texas, but they are subject to strict regulations set by the City of Austin. Operators must obtain an annual operating license and adhere to various zoning restrictions, which favor owner-occupied properties. The city categorizes STRs into three types: Type 1 (owner-occupied), Type 2 (whole home but non-owner occupied), and Type 3 (part of multifamily buildings), each with specific rules governing their operation. The STR market in the area is predominantly oriented toward tourism, especially with events such as South by Southwest (SXSW) and the Austin City Limits (ACL) festival driving demand, although business travelers also contribute to occupancy rates year-round. The city enforces a hotel occupancy tax of 11% on all short-term rentals to further regulate the market. The Development Services Department is the main government authority managing STR regulations. For further details, please refer to the official websites: Code Compliance Guide to Short-Term Rentals and Austin Short Term Rental Regulation.
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