STR Rule Watch

Short-Term Rental Laws in Fredericksburg, TX (2026)

Permit requiredAllowed with permit

Short-term rentals are legal in Fredericksburg city limits but require an annually renewed city Short-Term Rental Permit (fees tiered by bedroom count: $300 for 1 bedroom up to $1,000 for 5 bedrooms per the city's 2024 fee presentation) with a passed inspection, and hosts must remit the city's 7% hotel occupancy tax themselves because Airbnb/Vrbo do not remit it to the city. The biggest restriction is zoning: under the ordinance effective January 1, 2024, new non-owner-occupied 'Unoccupied' STRs are not allowed by right in the R-1/R-2 single-family districts (special exception from the Zoning Board of Adjustment only) and STR uses are prohibited in R-3, while commercial districts (C-1, C-1.5, C-2, CBD) allow all STR types by right. Always confirm current requirements with the city before operating.

โณ Verification in progress โ€” data compiled July 10, 2026, human review pending

Fredericksburg STR rules at a glance

Key short-term rental facts for Fredericksburg
Legal statusAllowed with permit
Permit requiredYes
Permit nameShort-Term Rental Permit
Permit fee$300
RenewalAnnual
Owner occupancy requiredNo
Primary residence onlyNo
Minimum stay1 night
Total occupancy taxes~20% of gross revenue
EnforcementDevelopment Services administers permits via the My Government Online (MGO) portal; inspections are required before a new permit is issued, on ownership transfer, on complaints, after structural modifications, and annually at renewal ('Inspections are now required annually'). Failure to pass re-inspection results in permit denial, and a property cannot be operated while in violation. Advertising an unpermitted property is itself unlawful, and listings must display the permit number. Violations are tiered: minor violations are Sec. 20-222 infractions not threatening health/safety (city examples: watering, trash, lighting); major violations include health and safety, occupancy, noise, failure to update application information, an unresponsive 24-hour contact, non-remittance of hotel occupancy tax, unlawful advertisements, and operating without a permit. Three minor violations within 12 months equal one major violation; three major violations within 12 months trigger City Council review and possible suspension. The city maintains a public STR map and an STR complaint page/code-enforcement line for neighbors.
Current rules effective2024-01-01

What will guests pay in taxes on a Fredericksburg stay?

Itemized occupancy taxes for Fredericksburg, TX โ€” enter your nightly rate to see the real cost breakdown.

Fredericksburg occupancy tax calculator

Gross rent$450.00
Texas state hotel occupancy tax (6%)ยท collection varies$27.00
City of Fredericksburg hotel occupancy tax (7%)ยท host remits$31.50
Gillespie County hotel occupancy tax (7%)ยท host remits$31.50
Total tax (20%)$90.00
Guest pays$540.00

Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.

Permits & licensing

Fredericksburg requires Short-Term Rental Permit to operate a short-term rental โ€” the fee is $300, renewed annual.

Fees are tiered by bedroom count per the City of Fredericksburg Development Services STR Owner/Operator Update (June 18, 2024, linked from the city STR hub): 1 bedroom $300, 2 bedrooms $500, 3 bedrooms $700, 4 bedrooms $900, 5 bedrooms $1,000, plus a $300 transfer fee; permit_fee_cents reflects the 1-bedroom minimum ($300). City Council adopted this new STR fee schedule in December 2023 ('New STR permit fees set for 2024', Fredericksburg Standard). CAUTION: the Airbnb Help Center and several third-party guides still list '$150/unit + $100/bedroom', but that formula traces to the pre-2024 regime (it appears verbatim in a November 2022 local realty article) and is outdated. The posted city fee schedule (effective March 25, 2026) itemizes only related charges: re-inspections $75 and 'Short Term Rental Appeal to City Council $500' โ€” the STR application fee itself is not on that PDF, so confirm the current amount with Development Services. STRs in the extraterritorial jurisdiction (ETJ) need no permit but must still remit city HOT.

Zoning & location rules

Eligibility depends on zoning and STR category (five categories: STR-Accessory/ADU, STR-B&B, STR-Facility, STR-Unoccupied, STR-Nonconforming). C-1, C-1.5, C-2 and CBD commercial districts allow all STR uses by right (STR-Condo needs a conditional use permit). Owner-occupied categories (STR-ADU and STR-B&B, which require a Gillespie CAD homestead exemption or a resident 24-hour contact) are permitted in most residential districts. New STR-Unoccupied (whole-home, non-owner-occupied) rentals are NOT permitted by right in R-1 and R-2 single-family districts โ€” only via special exception from the Zoning Board of Adjustment for 'stranded' properties meeting strict adjacency criteria (e.g., sharing 2+ lot lines with lawful STR-Unoccupied or C-2/CBD/PF-zoned property). R-3 multi-family prohibits STR uses. Permits issued before April 1, 2022 continue as legal nonconforming ('grandfathered') and are transferable on sale subject to the Sec. 20-221(3) transfer-of-ownership rules. Max occupancy is 2 persons per bedroom plus 2, capped at 12.

Taxes

TaxRateWho collects
Texas state hotel occupancy tax6% of the room cost, remitted to the Texas Comptroller. Platforms such as Airbnb/Vrbo generally collect and remit the state HOT on platform bookings ('these services may handle state remittance' per city FAQ); hosts remit directly for direct bookings.6%varies
City of Fredericksburg hotel occupancy taxFiled quarterly (due Apr 30, Jul 31, Oct 31, Jan 31). Airbnb/VRBO do NOT remit city HOT โ€” the host must register and remit directly. Applies to properties in the city limits AND the ETJ. Late payment: 4.25% interest from day one plus 15% penalty after one delinquent quarter. New online HOT portal (hot.cityoffbg.com) replaced Xpress Bill Pay July 1, 2026. Non-remittance triggers a 90-day STR permit suspension.7%host
Gillespie County hotel occupancy taxApplies only to properties outside BOTH the Fredericksburg city limits and the city's ETJ (remitted to the county treasurer); properties inside the city limits or the ETJ pay the city 7% instead, so the combined burden in town is 13% (6% state + 7% city).7%host

Enforcement & penalties

Development Services administers permits via the My Government Online (MGO) portal; inspections are required before a new permit is issued, on ownership transfer, on complaints, after structural modifications, and annually at renewal ('Inspections are now required annually'). Failure to pass re-inspection results in permit denial, and a property cannot be operated while in violation. Advertising an unpermitted property is itself unlawful, and listings must display the permit number. Violations are tiered: minor violations are Sec. 20-222 infractions not threatening health/safety (city examples: watering, trash, lighting); major violations include health and safety, occupancy, noise, failure to update application information, an unresponsive 24-hour contact, non-remittance of hotel occupancy tax, unlawful advertisements, and operating without a permit. Three minor violations within 12 months equal one major violation; three major violations within 12 months trigger City Council review and possible suspension. The city maintains a public STR map and an STR complaint page/code-enforcement line for neighbors.

Operating or advertising an STR without a permit is a zoning-ordinance violation and a misdemeanor punishable by a fine as provided in Sec. 1-6 of the municipal code, with each day a separate offense. City Council may suspend a permit for up to 90 days after repeated major violations, suspend 90 days for failure to remit hotel occupancy tax, and revoke or suspend 90-180 days for continued repeat violations. Denied/nonconforming operators must cease STR use within 60 days of notice of permit denial.

โš ๏ธ HOA/condo rules may prohibit STRs regardless of city law.

Recent rule changes in Fredericksburg

  1. July 1, 2026

    New city Hotel Occupancy Tax payment portal

    Beginning July 1, 2026, city HOT payments are no longer processed through Xpress Bill Pay; hosts must file and pay through the new City of FBGTX HOT Portal (hot.cityoffbg.com), which adds automated calculations and reminders. STR permit applications/renewals stay on the My Government Online (MGO) system.

    Official source โ†’
  2. January 1, 2026material

    Annual renewal inspections enforced for all STR permits

    Industry reporting describes a January 1, 2026 ordinance update making annual inspections mandatory at every permit renewal, with pre-April 2022 nonconforming ('grandfathered') permit holders not exempt; the city's STR page now states 'Inspections are now required annually.' Note: renewal inspections were already authorized in Ordinance 2023-18, and no separate 2025/2026 ordinance number could be confirmed from official sources.

    Official source โ†’
  3. January 1, 2024critical

    Ordinance 2023-18: comprehensive STR ordinance rewrite effective Jan 1, 2024

    Council (Nov 2023) unanimously approved a rewrite moving STR permitting to Chapter 20, Article VII and zoning rules to Zoning Ordinance Sec. 4.400: five STR categories created; R-2 treated like R-1 (no new unoccupied STRs by right, special exceptions via Zoning Board of Adjustment for 'stranded' properties); R-3 prohibits STR uses; occupancy capped at 2/bedroom+2 (max 12); minimum 1-night rental; violation tier system (3 minor = 1 major; 3 major in 12 months = council review/suspension); 90-day suspension for HOT non-remittance; permit transfer rules on sale. A new bedroom-tiered fee schedule was adopted in December 2023 ($300 for 1 bedroom up to $1,000 for 5 bedrooms, $300 transfer fee), and the MGO permitting portal went live the same day.

    Official source โ†’

Frequently asked questions

โ€บIs Airbnb legal in Fredericksburg?

Yes โ€” Airbnb and other short-term rentals are legal in Fredericksburg, TX, but you must obtain a Short-Term Rental Permit before operating. Always confirm current requirements with the city before operating.

โ€บDo I need a permit for a short-term rental in Fredericksburg?

Yes. Fredericksburg requires a Short-Term Rental Permit to operate a short-term rental, which costs $300 and must be renewed every year. Always confirm current requirements with the city before operating.

โ€บHow much does a Fredericksburg short-term rental permit cost?

The Short-Term Rental Permit costs $300 (annual renewal). Fees are tiered by bedroom count per the City of Fredericksburg Development Services STR Owner/Operator Update (June 18, 2024, linked from the city STR hub): 1 bedroom $300, 2 bedrooms $500, 3 bedrooms $700, 4 bedrooms $900, 5 bedrooms $1,000, plus a $300 transfer fee; permit_fee_cents reflects the 1-bedroom minimum ($300). City Council adopted this new STR fee schedule in December 2023 ('New STR permit fees set for 2024', Fredericksburg Standard). CAUTION: the Airbnb Help Center and several third-party guides still list '$150/unit + $100/bedroom', but that formula traces to the pre-2024 regime (it appears verbatim in a November 2022 local realty article) and is outdated. The posted city fee schedule (effective March 25, 2026) itemizes only related charges: re-inspections $75 and 'Short Term Rental Appeal to City Council $500' โ€” the STR application fee itself is not on that PDF, so confirm the current amount with Development Services. STRs in the extraterritorial jurisdiction (ETJ) need no permit but must still remit city HOT.

โ€บCan I Airbnb a non-primary residence in Fredericksburg?

Yes โ€” Fredericksburg does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.

โ€บWhat taxes do short-term rental hosts pay in Fredericksburg?

Hosts in Fredericksburg are subject to: Texas state hotel occupancy tax (6%), City of Fredericksburg hotel occupancy tax (7%), Gillespie County hotel occupancy tax (7%) โ€” roughly 20% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.

โ€บWhat happens if I operate a short-term rental illegally in Fredericksburg?

Operating or advertising an STR without a permit is a zoning-ordinance violation and a misdemeanor punishable by a fine as provided in Sec. 1-6 of the municipal code, with each day a separate offense. City Council may suspend a permit for up to 90 days after repeated major violations, suspend 90 days for failure to remit hotel occupancy tax, and revoke or suspend 90-180 days for continued repeat violations. Denied/nonconforming operators must cease STR use within 60 days of notice of permit denial. Development Services administers permits via the My Government Online (MGO) portal; inspections are required before a new permit is issued, on ownership transfer, on complaints, after structural modifications, and annually at renewal ('Inspections are now required annually'). Failure to pass re-inspection results in permit denial, and a property cannot be operated while in violation. Advertising an unpermitted property is itself unlawful, and listings must display the permit number. Violations are tiered: minor violations are Sec. 20-222 infractions not threatening health/safety (city examples: watering, trash, lighting); major violations include health and safety, occupancy, noise, failure to update application information, an unresponsive 24-hour contact, non-remittance of hotel occupancy tax, unlawful advertisements, and operating without a permit. Three minor violations within 12 months equal one major violation; three major violations within 12 months trigger City Council review and possible suspension. The city maintains a public STR map and an STR complaint page/code-enforcement line for neighbors.

Fredericksburg's STR rules changed 2 times recently.

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This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies โ€” verify current requirements with Fredericksburg and a qualified professional before operating.

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