There’s a major shift happening in Houston and short-term rental hosts are at the center of it.

After years of operating in a legal grey area, the City of Houston has finally introduced official rules for short-term rentals, also known as DTRs (Dwelling for Transient Rental). unlike most major U.S. cities, Houston had no specific STR laws. Its famously flexible zoning rules gave property owners near-complete freedom, even as STR-related complaints mounted, the absence of clear regulation meant hosts operated with little oversight but that’s now changing with the unanimous adoption of Ordinance No. 2025, which takes effect on January 1, 2026.

The dedicated ordinance will manage the booming STR market, affecting thousands of Airbnb and Vrbo hosts. , In this post, we’ll break down the background on how the law came to be, what every host in Houston needs to know, what it requires, and how it will be enforced.

Why the City Decided to Regulate STRs

The pressure had been building for years in some of Houston’s most popular neighborhoods—Montrose, Midtown, the Heights, and parts of Third Ward.

Residents were fed up with party houses, noise at all hours, overflowing trash, and in some cases, even gun violence linked to short-term rentals. What started as a trickle of complaints turned into a steady wave that city officials could no longer ignore.

In March 2024, Councilmembers Sallie Alcorn and Amy Peck formally called for a study on STR registration. That kicked off nearly a year of public hearings, community feedback, and heated debates involving homeowners, Airbnb and Vrbo hosts, hotel industry reps, and platform officials.

Despite deep concerns over enforcement and fairness, the final version of the ordinance passed unanimously in April 2025, a rare show of unity on a deeply divisive issue.

Houston’s online short-term rental registration portal is expected to open on or around August 1, 2025. Hosts will have several months to register and prepare, as the new law officially takes effect on January 1, 2026, which also serves as the compliance deadline.

What the Law Requires: Registration, Rules, and Fees

If you rent out a property for fewer than 30 days in Houston, it’s officially classified as a Short-Term Rental (STR) under the new ordinance.

Here are the key requirements:

Registration is Mandatory

• All STRs must be registered with the City of Houston’s Administration and Regulatory Affairs Department, the city agency responsible for managing business licenses, permits, and regulatory compliance, including the new short-term rental registration process. You can visit their official page here: houstontx.gov/ara for more details.
• Each unit must have its own Certificate of Registration
• The application must be submitted online through Host Compliance by Granicus
• In-person help will be available at the Houston Permitting Center

Required information includes:

• Property address and platform listings
• Names and contacts for owner and operator
• 24/7 emergency contact (must respond within 1 hour)
• Proof of ownership or permission to operate
• Confirmation of Hotel Occupancy Tax (HOT) compliance
• Completion of human trafficking awareness training

Fees

• $275 per unit (non-refundable, annual)
• $33.10 City administrative fee (subject to CPI adjustment)

Operational Rules Hosts Must Follow

No Party Houses

STRs cannot be advertised as event spaces (e.g., for weddings or banquets). Personal gatherings like family reunions are okay, host are not just allowed to market their accommodation as a venue.

Display of Registration

Hosts must post the Certificate of Registration inside the STR, along with an emergency contact info.

Minimum Stay

Rentals of less than one night are prohibited.

General Safety Compliance

Although the new ordinance doesn’t introduce specific fire codes just for short-term rentals, all hosts are still required to follow Houston’s existing safety and property regulations. These include:

• Houston Fire Code: Your rental must have proper smoke detectors, fire extinguishers, safe exits, and meet all general fire safety standards.
• Noise Ordinance (Chapter 30): Hosts must ensure that guests do not disturb neighbors with excessive noise, especially during nighttime quiet hours.
• Solid Waste Regulations (Chapter 39): Trash must be disposed of properly and on schedule. Overflowing bins or improper waste handling can result in fines.
• Building and Neighborhood Codes: This includes maintaining the property in a safe and livable condition, complying with occupancy limits, and preventing any hazards that could impact the surrounding community.

In short, even without STR-specific rules in these areas, your property must meet all the same safety and community standards as any other legally operating rental in Houston.

Parking

There’s no minimum parking requirement, but hosts must disclose how many off-street spots are available in their listings.

Occupancy

This is a gray area. The law says listings must show a "maximum occupancy limit" but Houston hasn’t defined what that limit is. Hosts may need to consult building or fire codes to determine what’s reasonable.

Enforcement

The ordinance provides a range of enforcement tools to identify and penalize operators who fail to comply.

24/7 Complaint Hotline

Houston will use Host Compliance to manage a 24-hour complaint system. Issues like:

• Noise → sent to HPD
• Trash → sent to Solid Waste
• Fire code → sent to HFD

Fines

• $100 to $500 per violation
• Each day of non-compliance = a separate offense

Revocation of Certificate

Your STR registration can be revoked if:

• You provide false information
• Fail to pay HOT
• Have 2+ nuisance abatements
• Have serious guest-related criminal activity (e.g., firearms, trafficking)

If 3+ certificates tied to the same host/operator are revoked within 24 months, the city may revoke all of their STR licenses.

Platform Accountability

Airbnb, Vrbo, and others must remove listings flagged by the city for:

• Missing or expired registration numbers
• Revoked certificates

Platforms have 10 business days to comply after being notified.

No Cap on Ownership or Unit Numbers For Now

Unlike some cities, Houston does not limit:

• The total number of STRs in the city
• The number of STRs one person can operate

But if you operate multiple properties, be warned: if you rack up too many violations, your entire portfolio can be revoked.

What’s Not in the Law

Some previously proposed restrictions were removed before final adoption:

• No $1 million insurance requirement
• No cap on STRs in multifamily buildings
• No universal occupancy limits

This suggests a moderate, first-step approach, focused more on accountability than restricting STR supply.

Community Concerns and the Road Ahead

Councilmembers and residents alike raised serious concerns about enforcement capacity. There’s skepticism that HPD and ARA have the resources to consistently respond to complaints, especially after years of inaction under previous codes.

The ordinance includes a built-in appeals process, and officials say the law is a “first stab” that can be updated as needed.

Meanwhile, platforms like Vrbo praised the law as a model of balance. Host reactions were mixed, as some feared administrative burden, others welcomed the effort to rein in bad actors.

What Hosts Should Do Now

This is a turning point for STR operators in Houston. Whether you’re a casual Airbnb host or a professional manager with dozens of units, here’s what you should be doing:

Checklist for Hosts

• Set up your Host Compliance account
• Start gathering documents for registration (proof of ownership, tax ID, etc.)
• Complete the trafficking awareness training
• Update your listings to include registration and parking info
• Review local codes on noise, waste, and fire safety
• Ensure you’re remitting Hotel Occupancy Tax (HOT)

The registration portal opens around August 1, 2025, and full compliance is required by January 1, 2026. Don’t wait until the last minute, especially if you manage multiple properties.

Need help registering, updating your listings, or filing taxes?

Lodge Compliance offers hands-on support to help Houston STR hosts stay compliant and stay profitable.

Get started now to get your property ready before the January 1 deadline.

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