South Padre Island Short-Term Rental Regulations

Last verified: 2026-07-02
TL;DR
South Padre Island requires Short Term Rental License ($125.00) with no primary-residence requirement. Combined tax rate is 17%. No annual day limit, but each stay must be less than 30 consecutive days.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Short Term Rental License ($125.00)
Primary Residence Not required
Annual Day Limit No limit — less than 30 consecutive days
Tax Rate 17%
Max Penalty $500 per offense per day; up to $2,000 per day for fire safety, zoning, public health, and sanitation offenses
Insurance Not required

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Permit & Licensing

Short Term Rental License

FeeAmount
Initial cost$125.00
Renewal$125.00 / 1 year

This permit type does not require primary residence.

Application Process

Apply for a STR License with the Finance Department (4601 Padre Blvd), submitting a license form with owner/operator contact, 24-hour local contact, property address, bedroom count and occupancy limits, and Cameron County Appraisal District property ID; list the license number in all advertisements

Tax Obligations

TaxRateAuthority
City Hotel Occupancy Tax 8.5% City of South Padre Island
City Venue Tax 2% City of South Padre Island
County Venue Tax 0.5% Cameron County
State Hotel Occupancy Tax 6% Texas Comptroller

Combined rate: 17% of gross rental income.

Collection: Self-remit; City HOT (10.5%) via Deckard Technologies, Cameron County venue tax (0.5%) via Localgov, State HOT (6%) remitted separately to the Texas State Comptroller

Filing: Monthly, before the 15th of each month; a monthly Hotel Occupancy Tax Collection Report must be filed even if the unit was not rented

Rental Limits

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

Zoning & Restrictions

Permitted in residential dwellings regardless of original construction or zoning

Insurance & Safety

Insurance

South Padre Island 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

Penalties for Non-Compliance

In lieu of a citation, the city may issue a notice of violation as a warning to any occupant, owner, or operator for any violation of this article or any other city code

Platform Requirements

The license number must appear on any advertisement of the property available for short term rental

Compliance Checklist

Follow these steps to legally operate a short-term rental in South Padre Island:

  1. Meet safety requirements. Functioning smoke detector in each room or space advertised for sleeping. Provide a brochure or posted information sheet with minimum standards of conduct (noise ordinance, parking, no littering). Post a yard sign (min 18x24 inches, 64-point font) visible from right-of-way with license number and owner/operator and 24-hour local contact info.
  2. Apply for Short Term Rental License. Submit application + $125.00 fee.
  3. Register for tax accounts. Set up lodging tax accounts with City of South Padre Island (Hotel Occupancy Tax reported and paid through Deckard Technologies).
  4. Display your permit number. Include your permit/license number in all listings and advertisements.
  5. Collect and remit taxes. 17% on all bookings.
  6. Renew annually. $125.00 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in South Padre Island?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in South Padre Island requires a Short Term Rental License.
How much does a short-term rental permit cost in South Padre Island?
A Short Term Rental License in South Padre Island costs $125.00 per year.
Does South Padre Island require a short-term rental to be your primary residence?
No. South Padre Island 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 South Padre Island?
South Padre Island 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 South Padre Island?
Short-term rental stays in South Padre Island are subject to a combined 17% in lodging taxes. This combines 8.5% City Hotel Occupancy Tax + 2% City Venue Tax + 0.5% County Venue Tax + 6% State Hotel Occupancy Tax. The host is responsible for collecting and remitting them.
What happens if you run a short-term rental without a permit in South Padre Island?
In lieu of a citation, the city may issue a notice of violation as a warning to any occupant, owner, or operator for any violation of this article or any other city code.

Official Sources

  1. Hotel Occupancy Tax / City of South Padre Island, TX
  2. Article VII. Short Term Rentals - Code of Ordinances, South Padre Island, TX
  3. Hotel Occupancy Tax - Texas Comptroller