Short-Term Rental Regulations Across the Texas Hill Country

If you are thinking about buying a Hill Country property to use as an Airbnb or Vrbo, or if you already own a home here and are considering renting it out short-term, you need to understand something important: the rules change dramatically depending on which side of a city limit you stand on. Texas does not have a single statewide short-term-rental operating license. Cities frequently regulate short-term rentals through zoning, permitting, registration, occupancy, parking, and safety requirements. Counties have more limited regulatory authority, although county development, floodplain, fire-code, on-site sewage facility, subdivision, and hotel-occupancy-tax requirements may apply where authorized. Special-purpose districts and enforceable private deed restrictions may impose additional obligations. In the Hill Country, those rules range from registering and complying to jurisdictions still developing their approach. This guide covers selected jurisdictions in and near Hill Country Homesteads Group's service area: Boerne, Fair Oaks Ranch, the City and County of Bandera, unincorporated Kendall County, Comal County and New Braunfels, and San Antonio/Bexar County. It is not a comprehensive survey of every Texas Hill Country municipality.

Jurisdiction warning: The requirements for an STR cannot be determined reliably from its mailing address or county name alone. Verify whether the property is inside municipal limits or an extraterritorial jurisdiction (ETJ), its zoning district, its county, any applicable special-purpose district, and all recorded deed restrictions or association rules.

What Texas Law Says (The State-Level Framework)

Texas state hotel occupancy tax generally applies when all or part of a residential property is furnished for less than 30 consecutive days at a charge of $15 or more per day. The state rate is 6 percent. A guest who gives the operator written notice of an intention to occupy the property for at least 30 consecutive days, and who actually occupies it for at least the next 30 consecutive days, may be treated as exempt beginning on the notice date. If the guest does not provide advance written notice, the first 30 days are generally taxable and the exemption begins afterward. If the anticipated 30-day stay is interrupted or not completed, the operator may remain liable for the tax; an operator may therefore collect the tax and later issue a refund or credit after the requirement is satisfied. Local operating definitions and tax definitions are not always identical. A municipal ordinance may classify a rental of 30 days or fewer as an STR even though a qualifying 30-consecutive-day occupancy may be exempt from hotel occupancy tax. Evaluate the local permit rules and the tax rules separately.

A short-term-rental platform collects and remits the state tax only when it has agreed with the property owner to assume that responsibility. If an owner rents exclusively through a collecting platform, the owner is not required to collect and remit state hotel occupancy tax on those platform bookings. The owner remains responsible for state tax on direct bookings and bookings made through any platform that does not collect the tax on the owner's behalf.

Download and retain platform transaction histories regularly rather than assuming they will remain available indefinitely. The Texas Comptroller instructs owners facing an audit of bookings handled by a collecting platform to obtain the account's transaction history from that platform. Platform remittance does not eliminate the owner's need to document the booking, taxable receipts, tax collected, and tax authority paid.

The Texas Comptroller does not issue a printed permit for hotel occupancy tax. A business that must report state hotel occupancy tax submits Form AP-102, the Hotel Occupancy Tax Questionnaire. Owners should separately determine whether they must register, file returns, or pay tax to a city, county, or special-purpose district. A platform's collection of state tax does not establish that the platform collects every applicable local tax.

When the owner is responsible for reporting state hotel occupancy tax, the Comptroller assigns a monthly or quarterly filing frequency. The return and payment are generally due on the twentieth day of the month following the reporting period. A return may still be required when no tax is due.

The taxable amount can include more than the advertised nightly rate. Charges directly connected with the occupancy of the property such as certain cleaning, pet, extra-person, or similar required charges may be included in the taxable room receipts. Operators should determine the taxable base for each state and local return rather than applying the percentage only to the base nightly rate.

The combined rate varies substantially by address. A property may be subject only to the 6 percent state tax or may also be subject to municipal, county, venue, or special-district charges. Verify each taxing jurisdiction separately.

Important: Airbnb currently states that it collects the 6 percent Texas state hotel occupancy tax on qualifying Texas reservations. Owners using Airbnb, Vrbo, another platform, or direct booking should confirm the taxes that the specific platform collects for the property's exact address.

Boerne: A Detailed STR Ordinance

Boerne has a detailed STR ordinance compared with the other jurisdictions examined in this article. The city council unanimously approved the updated ordinance in August 2023 (Ordinance No. 2023-09), and it applies to any STR within city limits and the extra-territorial jurisdiction (ETJ). Read the Boerne STR ordinance.

Visit the City of Boerne STR page for current forms and information.

What You Need to Operate

Permit Registration: $200 fee for all STRs in city limits and ETJ. Register with the Boerne Finance Department for city hotel occupancy tax before the STR permit application is approved. The permit expires two years after its effective date. The City currently lists a $200 renewal fee in addition to any applicable inspection expense. The ordinance allows the renewal application to be submitted beginning 30 days before expiration and requires renewal no later than 30 days after expiration. Delinquent city taxes, fees, or utility charges can prevent registration or renewal. Safety Inspection: Inside the Boerne city limits, the applicant must complete a safety inspection through either a city inspector or a qualifying licensed inspector using the city's STR inspection checklist. The ordinance exempts properties in Boerne's extraterritorial jurisdiction from the inspection requirement. The city inspection fee is $100; an outside inspector may charge a different amount. Insurance: Minimum $500,000 liability coverage per occurrence and $1 million aggregate. Local Contact: Must have a designated local contact person available 24/7. Occupancy Limit: Two people per bedroom plus two additional people. Parking: Boerne requires at least one parking space per rented bedroom. Adjacent on-street parking may count toward the requirement if each counted space abuts the property, is at least 25 feet long, and leaves adequate clearance for a mailbox and trash receptacle. All parking must otherwise comply with the city's stopping, standing, and parking rules. Events: STR occupants are not allowed to host events. Advertising: Every advertisement must include the property's city permit number, occupancy limit, and parking standards. Required Guest Information: The operator must provide the required guest information online and post it visibly inside the rental. The information includes owner/operator and 24-hour representative contact details, parking and noise restrictions, trash and water information, floodplain disclosure when applicable, emergency information, and a floor-plan sketch showing sleeping areas, maximum occupancy, evacuation routes, fire extinguishers, and authorized parking.

Location and Zoning Rules

• Residential zones: STRs are permitted but cannot operate within 200 feet of another STR on the same block face (property line to property line measurement)
• One STR per lot: In a residential zoning district, only one short-term rental may operate on a lot, property, or parcel.
• Historic Overlay District, Downtown Overlay District, and River Road Overlay District (commercial zones): No separation requirements
• Commercial zones outside overlay districts: STRs are NOT permitted
• HOA restrictions: The city is not responsible for enforcing HOA rules. Review the governing documents separately

Special exceptions: A property owner may apply to the Boerne Zoning Board of Adjustment for a special exception from the minimum separation distance or one-per-lot limitation. A special exception is also available from the standard occupancy limit. Approval is discretionary and should not be represented as guaranteed.

What This Means for Investors

The 200-foot separation rule in residential zones is the most significant constraint. If you are buying in a residential neighborhood, verify that no other STR operates within 200 feet on the same block face, measured from property line to property line. Do not describe this as a restriction applying to the entire block or to a property across the street. Obtain confirmation from the city because permit status can change. Commercially zoned properties in the Historic Overlay District, Downtown Overlay District, and River Road Overlay District are not subject to the 200-foot separation requirement. Residentially zoned properties within the overlay districts remain subject to the residential separation rule. For more on living and investing in Boerne, see our Boerne community page.

Buying a Property With an Existing Boerne STR Permit

A Boerne STR permit does not automatically transfer with the real estate. Under the ordinance, a new owner or operator may reserve the existing permit position by completing the required application process within 90 days after the ownership change. The transferee must submit the application, complete any required inspection, and pay the applicable fees. The permit cannot be moved to another property.

Before the ownership change and permit reservation, the current owner must provide the buyer with a Certificate of Paid Hotel Taxes obtained from the city finance department. Make permit eligibility, the certificate, and the buyer's ability to complete the new application part of the transaction's due diligence. Do not value the property as a permitted STR merely because the seller currently holds a permit.

Boerne's ordinance also treats an STR that was lawfully in existence, based on preexisting permits and current hotel occupancy tax remittance when the 2023 ordinance took effect, as a legal nonconforming use. The ordinance states that renewal or an ownership-change transaction involving such an existing operation is not subject to the newer minimum-separation distance. This protection is fact-specific. A buyer should obtain written confirmation from the city that the property qualifies and that the right-of-reservation process will preserve its position before assigning value to that status.

Fair Oaks Ranch: Current Zoning Framework

Fair Oaks Ranch does not currently identify "short-term rental" as a standalone land-use category in its Unified Development Code. The code does expressly regulate bed-and-breakfast establishments of five or fewer guest rooms.

The City of Fair Oaks Ranch also stated in a July 2026 City Manager's update that it does not have a short-term-rental ordinance. That statement does not necessarily mean that an unlisted, non-owner-occupied whole-home lodging use is permitted. The UDC assigns classification of unlisted uses to the City Manager or designee. This is why a written use or zoning determination for the exact property and proposed operating model is more reliable than a verbal answer or an assumption based solely on the absence of a dedicated STR ordinance.

A bed-and-breakfast use is treated as a conditional use in the city's residential zoning districts. When located in a residential district, the operator must be a full-time resident of the dwelling. The code also imposes guest-register, signage, and parking requirements.

Because the current code does not expressly classify a non-owner-occupied, whole-home short-term rental, an investor should not assume that such a use is allowed without verification. Before buying, advertising, or operating, obtain a written zoning determination from Fair Oaks Ranch for the exact property and proposed rental model. Also review all recorded deed restrictions and homeowners-association rules.

Source: Unified Development Code, amended through Ordinance 2025-21, fairoaksranchtx.org. Relevant material: Table 4.2 and the bed-and-breakfast standards in Section 4.10.

Bandera: Current Regulatory Framework

The City of Bandera does not appear to have a standalone citywide STR-permit chapter governing every type of whole-home rental. The city code is not silent about short-term rentals, however. Section 14.13.002(c) expressly addresses accessory dwelling units or "bunkhouses." It states that the property owner must reside on the property for a bunkhouse to be used as a short-term rental. The accompanying development table specifically states that a P3 bunkhouse may be used as an STR when the owner lives on-site. City of Bandera Code, Section 14.13.002.

The general text of Section 14.13.002 refers to bunkhouses in P2 through P4, while the table's STR footnote specifically identifies P3. The code also does not clearly resolve every proposed principal-dwelling or non-owner-occupied whole-home STR arrangement. Because of those limitations and the text/table distinction, obtain a written determination from the city for the property's place type, the structure to be rented, the owner-occupancy arrangement, and any certificate-of-occupancy or business-permit requirements before advertising or operating.

The City of Bandera imposes a 3 percent municipal hotel occupancy tax. City reports and payments are due by the last day of the month following each calendar quarter, and the city code also requires the operator to provide a copy of the report filed with the Texas Comptroller. Bandera County's separate 6 percent return must be addressed independently.

Unincorporated Bandera County

The official Bandera County materials reviewed for this guide do not identify a separate countywide STR permit or general STR zoning program for properties in unincorporated Bandera County. That does not eliminate other requirements involving floodplain development, on-site sewage facilities, fire safety, access, construction, mass gatherings, or recorded private restrictions. Confirm the requirements for the specific property with the appropriate county offices.

Bandera County imposes a 6 percent county hotel occupancy tax on covered lodging. The county's current report states that a report must be filed for every assigned reporting period even when the operator had no taxable receipts or no tax is due. Reports are due by the last day of the month following the applicable reporting period. A separate county report is required for each rental property. Bandera County Hotel Occupancy Tax Report.

An operator inside the City of Bandera may have three separate hotel-tax obligations: 6 percent to the State of Texas, 3 percent to the City of Bandera, and 6 percent to Bandera County. City and county returns are separate. Confirm platform collection arrangements because a platform's collection of state tax does not establish that it collects either local tax.

Unincorporated Kendall County, Texas

The official Kendall County, Texas materials reviewed for this guide do not identify a countywide STR permit, annual STR registration, or general county zoning program for properties in unincorporated Kendall County. The absence of a specialized STR program should not be interpreted as automatic approval of every property or rental arrangement.

Properties in unincorporated Kendall County may still be subject to generally applicable county development, subdivision, floodplain, fire-code, building, change-of-occupancy, and on-site sewage facility requirements. The exact requirements depend on the property and proposed use. Recorded subdivision restrictions or other private covenants may independently prohibit or restrict short-term rentals.

Kendall County Commissioners Court has considered imposing a county hotel occupancy tax on lodging in unincorporated areas. As of August 9, 2026, no enacted county hotel-occupancy-tax order was located in the official county materials reviewed for this guide. Because the proposal has been discussed more than once, operators and buyers should confirm its current status with Kendall County before relying on a 6 percent state-only rate.

Comal County and New Braunfels

The applicable rules depend first on whether the property is inside New Braunfels or another municipality, in unincorporated Comal County, and inside or outside the Water Oriented Recreation District of Comal County.

A Comal County address may also be located in another municipality, including Bulverde, Garden Ridge, or Spring Branch. This article does not attempt to summarize every municipal code in Comal County. If the property is inside another municipality or its ETJ, obtain that city's written determination before relying on the unincorporated-county discussion.

Unincorporated Comal County

No blanket countywide STR zoning or STR-permit program was verified for unincorporated Comal County. County development, floodplain, fire-code, building, subdivision, and on-site sewage facility requirements may nevertheless apply. Private deed restrictions and homeowners-association rules must be reviewed separately.

City of New Braunfels

Inside the New Braunfels city limits, short-term rentals are not allowed in residential zoning districts. A special use permit is required in nonresidential zoning districts other than C-4, C-4A, and C-4B. STRs are prohibited in the floodway, which is not the same as prohibiting every property located in a floodplain. Operators must obtain a city STR permit, pay city hotel occupancy tax monthly, and complete annual life-safety inspections. This summary is not a substitute for New Braunfels Code Section 144-5.17. City of New Braunfels STR page.

The city's current application materials list a $206 charge for the initial permit and fire inspection. For subsequent annual renewal, the city currently instructs permit holders to pay a $128 renewal fee before scheduling the required life-safety inspection. Because these fees can change, confirm them on the city's STR page before applying or preparing an investment estimate.

The city imposes a 7 percent hotel occupancy tax. Monthly filings and payments are due on the twentieth day of the following month, and a return is required even when no revenue was collected. Beginning February 1, 2026, New Braunfels transitioned its hotel-occupancy-tax processing to RentalScape.

The Residential Restriction Was Upheld in 2026

On June 18, 2026, the U.S. Court of Appeals for the Fifth Circuit issued its opinion in Marfil v. City of New Braunfels, No. 25-50025. The court concluded that Texas law did not give the plaintiffs a constitutionally protected property interest in a right to lease their homes on a short-term basis and that the city's ordinance survived rational-basis review.

For a buyer, the practical conclusion is straightforward: do not purchase a residentially zoned New Braunfels property on the assumption that the residential STR restriction is likely to disappear through this litigation. The decision does not eliminate the need to confirm the property's zoning, any lawful nonconforming status, and current permit history.

Read the full Fifth Circuit opinion in Marfil v. City of New Braunfels (PDF).

Water Oriented Recreation District of Comal County

Covered lodging inside the Water Oriented Recreation District of Comal County (WORD) is subject to a separate 3 percent WORD lodging tax, which WORD describes as a user fee, for stays shorter than 30 days. WORD is a special district, so this charge should not be described as a general Comal County hotel occupancy tax. According to WORD, properties inside the New Braunfels city limits are outside the WORD district.

A tourism business operating inside WORD, including a short-term lodging business, must obtain a WORD tax permit. WORD currently states that a first-time permit application is free. Returns are filed quarterly and are due April 20, July 20, October 20, and January 20 for the preceding calendar quarters.

WORD currently has collection agreements with Airbnb and the HomeAway family of platforms, including Vrbo. Even when one of those platforms collects and remits the WORD tax, the permit holder must submit the required platform account summary or third-party-platform report. The owner must collect and remit the WORD tax on direct bookings and bookings made through platforms that do not collect it. WORD payment resources.

San Antonio and Bexar County

Short-term rentals inside San Antonio must obtain a city STR permit. The city currently distinguishes between Type 1 properties that are the primary residence of the owner or operator, and Type 2 properties, which are not owner- or operator-occupied. San Antonio defines an STR stay as less than 30 consecutive days but not less than 12 hours. The current renewal fees are the same as the application fees: $300 for Type 1 and $450 for Type 2. Permits are valid for three years and are not transferable. Density limits can require a Board of Adjustment special exception. San Antonio STR permits. San Antonio STR tax information.

San Antonio imposes a 9 percent city hotel occupancy tax and currently collects an additional 1.75 percent for Bexar County. Together with the 6 percent state tax, the currently stated combined rate is 16.75 percent.

Airbnb and Vrbo currently remit the 9 percent city tax on qualifying platform bookings, but they do not remit the Bexar County portion. Operators must continue filing monthly city and county reports through the city's current Neumo portal and must pay the county tax and any city tax not collected by those platforms. A zero return is required when applicable.

Bexar County's current 1.75 percent venue hotel occupancy tax also matters for covered lodging outside the San Antonio city limits. The City of San Antonio administers Bexar County HOT reporting through Neumo and states that businesses inside and outside the city limits must report monthly. A covered rental in unincorporated Bexar County would therefore generally begin with a 7.75 percent combined state-and-county rate, 6 percent state plus 1.75 percent county, before considering any municipality or other applicable jurisdiction. Confirm the property's address and account requirements directly with Neumo and the applicable local governments.

STR Due-Diligence Checklist Before You Buy

Before treating a property as a viable short-term rental, obtain and preserve documentation addressing each of the following:

1. Confirm the parcel's city-limit, ETJ, county, and special-district boundaries using the legal parcel or geographic information system records, not merely the postal address.
2. Obtain the current zoning classification and a written determination that the proposed STR model is allowed.
3. Determine whether a permit is available, whether separation or density limits have already been reached, and whether any special exception is required.
4. Verify whether an existing permit survives a sale, must be reserved, or requires a completely new application.
5. Obtain the seller's permit records, inspection reports, complaint history, tax-account status, and any required certificate showing that hotel occupancy taxes are paid.
6. Review the title commitment and obtain every recorded declaration, amendment, supplemental declaration, rule, and deed restriction affecting rentals.
7. Confirm all state, city, county, venue, and special-district tax registrations, rates, filing frequencies, and platform collection agreements.
8. Create a record-retention system for booking confirmations, guest invoices, gross and taxable receipts, platform transaction histories, direct-booking payments, exemption documentation, filed returns, proof of payment, and correspondence with each tax authority. Texas hotel-tax records, including exemption records, should generally be retained for at least four years; retain them longer if a local authority or professional adviser requires it.
9. Confirm that the septic system, water supply, fire protection, parking, and legal sleeping areas can support the intended occupancy.
10. Obtain written confirmation from the property and liability insurer that the proposed rental activity is covered. A standard homeowner policy should not be assumed to cover commercial short-term-rental use.
11. Make the purchase contract and financial projections contingent on satisfactory verification of the matters that could prevent legal operation.

A listing described as "Airbnb-ready" or "currently used as a vacation rental" is not proof that the property is legally permitted, that its permit will survive the sale, or that its reported income can continue.

The Tax Breakdown: What You Actually Owe

Understanding your total tax burden is essential to building a viable STR business model. Here is how the combined rates stack up across the Hill Country.

Fair Oaks Ranch note: Fair Oaks Ranch spans portions of Bexar, Kendall, and Comal counties. Taxing jurisdictions may therefore depend on the property's exact address. Do not assign a fixed local hotel-occupancy-tax rate without written confirmation from the applicable city, county, and special district.

Bandera tax note: The City of Bandera imposes a 3 percent municipal hotel occupancy tax and requires quarterly reporting. Bandera County's current hotel occupancy tax report calculates county tax at 6 percent and states that operators of covered lodging properties in Bandera County must file. Bandera County's tax is authorized to apply within municipalities that impose a city hotel tax. Accordingly, a covered rental inside the City of Bandera is subject to the 6 percent state tax, 3 percent city tax, and 6 percent county tax, for a combined stated rate of 15 percent. A covered rental elsewhere in Bandera County is generally subject to the 6 percent state tax and 6 percent county tax, for a combined stated rate of 12 percent.

Important: Airbnb currently states that it collects the 6 percent Texas state hotel occupancy tax on qualifying Texas reservations. Owners using Airbnb, Vrbo, another platform, or direct booking should confirm the taxes that the specific platform collects for the property's exact address. Local HOT collection varies by platform and jurisdiction. Check whether your platform collects local taxes or whether you need to file separately.

Private Deed Restrictions and HOA Rules: The Hidden Dealbreaker

Even if the city or county permits STRs, your HOA may not. This is one of the most common mistakes investors make. Many Hill Country HOAs have covenants that restrict or prohibit short-term rentals. Some HOAs limit rental frequency (minimum 30-day rentals only). Some HOAs require owner approval before renting. The city of Boerne explicitly states it is not responsible for enforcing HOA restrictions. Always review the CC&Rs (Covenants, Conditions, and Restrictions) before purchasing an investment property.

Do not assume that every covenant limiting property to "residential use" automatically prohibits short-term rentals. In Tarr v. Timberwood Park Owners Association, the Supreme Court of Texas held that the particular residential-purpose and single-family covenants before it did not prohibit short-term rentals because they contained no leasing or minimum-duration restriction. A different declaration may expressly prohibit transient use, establish a minimum lease term, limit rental frequency, or authorize later-adopted association rules. The exact recorded language, amendments, and properly adopted rules therefore control. Have a qualified Texas real-estate attorney or title professional evaluate any uncertain provision. Tarr v. Timberwood Park Owners Association, Inc., No. 16-1005, Supreme Court of Texas, May 25, 2018.

Operating without required governmental permits or registrations, and applicable private deed restrictions or association requirements, carries real financial risk. Noncompliance can produce different consequences depending on the jurisdiction and the type of violation. Municipal penalties may include per-day fines, permit denial or revocation, while unpaid hotel occupancy taxes can produce penalties, interest, and collection action. An association or another owner may separately seek enforcement of applicable recorded restrictions. Review the actual governmental penalty provisions and private governing documents rather than assuming that the same remedy applies everywhere.

Factor permit and compliance costs into your investment model up front rather than treating them as an afterthought.

Frequently Asked Questions

Do I need a license to operate an Airbnb in Boerne?

Yes. Boerne requires a $200 STR permit for a qualifying property within the city limits or Boerne's ETJ. The permit is valid for two years and must be renewed. Proof of liability insurance providing at least $500,000 per occurrence and $1 million aggregate coverage is required, along with a designated 24-hour representative. A safety inspection is required for properties inside the Boerne city limits. The owner may use a city inspector, currently at a $100 city inspection fee, or a qualifying outside licensed inspector using the city's checklist. Properties in Boerne's ETJ are expressly exempt from the inspection requirement. Confirm that the property remains inside Boerne's current city or ETJ boundary before applying.

Can I operate an STR in a residential neighborhood in Boerne?

Yes, but with restrictions. In residential zones, your STR cannot be within 200 feet of another STR on the same block face. In the Historic Overlay District, Downtown Overlay District, and River Road Overlay District (commercial zones), there is no separation requirement. STRs are not permitted in commercial zones outside the overlay districts.

What about Fair Oaks Ranch?

Fair Oaks Ranch does not currently classify "short-term rental" as a standalone land use in its UDC. Its residential bed-and-breakfast rules require the operator to be a full-time resident. Do not assume a non-owner-occupied whole-home rental is allowed. Obtain a written zoning determination for the exact property and review all recorded restrictions.

Do Airbnb or Vrbo collect all of my hotel occupancy taxes?

Not necessarily. A platform may collect the 6 percent Texas state tax and selected local taxes for which it has a collection agreement, but that does not mean it collects every city, county, venue, or special-district charge. Owners remain responsible for direct bookings and bookings through non-collecting platforms.

In San Antonio, Airbnb and HomeAway/Vrbo collect the 9 percent city tax, but they do not collect the 1.75 percent Bexar County tax. The owner must file the monthly return, report all covered receipts, and pay county tax on all covered bookings.

In New Braunfels, operators file city returns monthly through RentalScape, including zero returns when required. In WORD, covered permit holders report quarterly and must submit the required platform account summary even when Airbnb or Vrbo collected the WORD charge.

Can I rent my home short-term in unincorporated Kendall County?

No specialized county STR permit or registration program was verified for unincorporated Kendall County, Texas. Generally applicable county development, floodplain, fire-code, building, occupancy, septic, and subdivision requirements may still apply. Private deed restrictions may also control. The county HOT proposal should not be described as enacted without an official Commissioners Court order.

What if my HOA prohibits STRs?

A city or county's allowance of an STR does not override enforceable private deed restrictions. Operating may violate recorded covenants or association rules even when governmental regulations otherwise allow the use. Potential remedies can include an injunction, damages, fines, or attorney's fees, depending on the governing documents and Texas law. Review the current recorded dedicatory instruments, amendments, and association rules with a qualified Texas real-estate attorney or title professional.

Is Bandera good for STR investment?

Bandera should not be described categorically as more accommodating. The city code reviewed does not create a standalone STR permit category, but absence of an STR-specific ordinance does not establish that every property or rental model is permitted. Obtain written confirmation of zoning, occupancy, and permit requirements from the city. City and county hotel-occupancy-tax filings are separate.

Related Reading

These resources provide additional context for investors considering Hill Country properties:

• Boerne TX Property Taxes: What Homeowners Need to Know. Understanding the full tax picture is essential before investing in STR properties.
• How to Protest Your Property Tax Appraisal in Bexar, Kendall, Comal, and Bandera Counties. If you are investing in STR properties across multiple counties, understanding the tax protest process in each is important.
• Cost of Living in Boerne TX: What to Expect. Housing costs, insurance, utilities, and other operating expenses that factor into your STR pro forma.
• Moving to Boerne from California: A Complete Relocation Guide. For out-of-state buyers considering Boerne as both a home and an investment.
• The 12-Month California to Hill Country Relocation Timeline. A planning resource for buyers moving to the Hill Country from out of state.
• Boerne Community Page. Schools, amenities, and local context for STR investors considering Boerne.
• Fair Oaks Ranch Community Page. Understanding the master-planned community context and HOA landscape.
• Cordillera Ranch Community Page. Luxury estate and investment property context for the exclusive gated community.

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Important: This article provides general informational guidance and is not legal, tax, zoning, title, or investment advice. Ordinances, tax rates, platform agreements, district boundaries, and private restrictions can change. Confirm the requirements for the exact property with the applicable government agencies and qualified professional advisers.

Sources

1. Texas Comptroller of Public Accounts, Hotel Occupancy Tax. comptroller.texas.gov/taxes/hotel/
2. Texas Comptroller of Public Accounts, Hotel Occupancy Tax FAQs. comptroller.texas.gov/taxes/hotel/faq.php
3. Texas Comptroller, Form AP-102, Hotel Occupancy Tax Questionnaire. comptroller.texas.gov/forms/ap-102.pdf
4. Texas Comptroller, Form 12-100, Hotel Occupancy Tax Report. comptroller.texas.gov/forms/12-100.pdf
5. Texas Tax Code, Chapter 156, Hotel Occupancy Tax. statutes.capitol.texas.gov/Docs/TX/htm/TX.156.htm
6. Texas Tax Code, Chapter 352, County Hotel Occupancy Taxes. statutes.capitol.texas.gov/Docs/TX/htm/TX.352.htm
7. Airbnb, Occupancy Tax Collection and Remittance in Texas. airbnb.com/help/article/2331
8. City of Boerne, Short-Term Rentals. ci.boerne.tx.us/2444/Short-Term-Rentals
9. City of Boerne, Ordinance No. 2023-09. ci.boerne.tx.us/DocumentCenter/View/23223/Short-Term-Rental-Ordinance-2023-09
10. City of Boerne, Hotel Occupancy Tax. ci.boerne.tx.us/645/Hotel-Occupancy-Tax
11. City of Fair Oaks Ranch, Unified Development Code, amended through Ordinance 2025-21. fairoaksranchtx.org/DocumentCenter/View/6679
12. City of Fair Oaks Ranch, City Manager's Weekly Memo. fairoaksranchtx.org/620/Managers-Weekly-Memo
13. City of Bandera Code, Article 11.04, Hotel Occupancy Tax. ecode360.com
14. City of Bandera Code, Section 14.13.002, Lot Standards and Bunkhouse STR Provision. ecode360.com/45435374
15. City of Bandera, Forms. banderatx.gov/forms
16. Bandera County, Hotel Occupancy Tax Report. banderacounty.gov/page/open/1817/0/Hotel%20Occupancy%20Tax%20Report
17. Bandera County, Resolution 08-31-98, Hotel Occupancy Tax. banderacounty.gov/page/open/1817/0/Resolution%2008-31-98%20Hotel%20Occupancy%20Tax
18. Bandera County, STR Non-Operation Affidavit. banderacounty.gov/page/open/1817/0/Affidavit
19. Kendall County, Forms and Permits. kendallcountytx.gov/252/Forms-Permits
20. Kendall County, Commissioners Court Agenda Center. kendallcountytx.gov/AgendaCenter
21. City of New Braunfels, Short-Term Rentals. newbraunfels.gov/3448/Short-Term-Rentals
22. City of New Braunfels, Taxes. newbraunfels.gov/2470/Taxes
23. Marfil v. City of New Braunfels, No. 25-50025, Fifth Circuit, June 18, 2026. ca5.uscourts.gov/opinions/pub/25/25-50025-CV0.pdf
24. WORD of Comal County, Types of WORD Taxes. wordcc.com/types-of-word-taxes/
25. WORD of Comal County, Payment Resources and Platform Agreements. wordcc.com/payment-resources/
26. City of San Antonio, Hotel Occupancy Tax. sa.gov/Directory/Departments/Finance/Taxes-Fees/HOT
27. City of San Antonio, Short-Term Rentals and Hotel Occupancy Tax. sa.gov/Directory/Departments/Finance/Taxes-Fees/HOT/STR
28. City of San Antonio, STR Permits. sa.gov/Directory/Departments/DSD/STR/Permits
29. WORD of Comal County, Business Owner FAQs. wordcc.com/faqs-business-owners/
30. City of Boerne, Official Interactive Zoning Map. boerne.maps.arcgis.com
31. Texas Comptroller, Hotel Occupancy Tax Exemptions and Recordkeeping. comptroller.texas.gov/taxes/publications/96-224.php
32. Tarr v. Timberwood Park Owners Association, Inc., No. 16-1005, Supreme Court of Texas, May 25, 2018. law.justia.com/cases/texas/supreme-court/2018/16-1005.html

Last verified: August 9, 2026