Fredericksburg Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental Permit (B&B / Accessory)

This permit type does not require primary residence.

Short-Term Rental Permit (Unoccupied)

This permit type does not require primary residence.

Application Process

Per Section 20.222 of the Zoning Ordinance, STRs within City Limits require a Short-Term Rental Permit (ETJ exempt). Applications for new permits, renewals, and ownership transfers are submitted online through a unified portal. Inspections are required prior to issuance of a new permit, on transfer, on complaints, on structural modifications, and upon annual renewal. The current STR Ordinance (2023-18) became effective January 1, 2024.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 13% of gross rental income.

Collection: All lodging providers in Fredericksburg and its ETJ, including hotels, motels, and short-term rentals, must collect and remit Hotel Occupancy Taxes. City HOT (7%) is filed quarterly with the City; state HOT (6%) is remitted to the Texas Comptroller monthly or quarterly.

Filing: Quarterly (City of Fredericksburg HOT; periods Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec)

Rental Limits

Fredericksburg does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 days.

Zoning & Restrictions

STRs are permitted within City Limits with a Short-Term Rental Permit; properties in the extra-territorial jurisdiction (ETJ) are not required to obtain a permit. Properties zoned C1, C1.5, C2, and CBD allow most STR uses by right, except STR-Condo, which requires Conditional Use Permit approval.

Insurance & Safety

Insurance

Fredericksburg does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Inspections are required prior to issuance of a new Short-Term Rental permit, when a permit is transferred to another owner, upon complaints regarding violations, when additions or modifications are performed to the structure, and upon renewal annually.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Fredericksburg:

1. Determine your permit type. Fredericksburg has 2 permit types. Identify which applies to your property (Short-Term Rental Permit (B&B / Accessory), Short-Term Rental Permit (Unoccupied)).
2. Meet safety requirements. Inspections are required prior to issuance of a new Short-Term Rental permit, when a permit is transferred to another owner, upon complaints regarding violations, when additions or modifications are performed to the structure, and upon renewal annually.
3. Apply for your STR permit. Submit application. Contact city for fee details. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with City of Fredericksburg.
5. Collect and remit taxes. 13% on all bookings.
6. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Fredericksburg?

Yes. Fredericksburg requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types. See the permit types above to find which applies to your property.

Does Fredericksburg require a short-term rental to be your primary residence?

No. Fredericksburg allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Fredericksburg?

Fredericksburg does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Fredericksburg?

Short-term rental stays in Fredericksburg are subject to a combined 13% in lodging taxes. This combines 6% Texas State Hotel Occupancy Tax + 7% City of Fredericksburg Hotel Occupancy Tax. The host is responsible for collecting and remitting them.