Carrollton, Texas Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Carrollton, TX?

Yes, short-term rentals are allowed in Carrollton, Texas, but with significant restrictions and requirements. The City of Carrollton adopted Ordinance 1466 on December 6, 2022, establishing a regulatory framework for both Short-Term Rentals (STRs) and Bed & Breakfast (B&B) operations. However, there is currently a one-year interim prohibition on approving new STR and B&B applications effective May 6, 2025.

Key restrictions include:

NEW STRs/B&Bs established after February 7, 2023, must obtain a Special Use Permit (SUP)
All STRs/B&Bs require an annual Lodging License regardless of establishment date
Properties must be located in areas where STRs/B&Bs are permitted under zoning regulations
Existing properties operating legally before February 7, 2023 may qualify for temporary permits under Chapter 100

What do Airbnb hosts actually earn in Carrollton?

Carrollton hosts earn a median $40,096/year with $207 ADR and 71% occupancy.

Top performers pull in $55,741+ per year.

See the full Carrollton market breakdown

How to Start a Short-Term Rental Business in Carrollton

Step 1: Determine Property Eligibility

Before proceeding, verify that:

Your property is located in a zoning district that permits STRs/B&Bs with a Special Use Permit
You can document legal operation if the property was established before February 7, 2023
You understand the distinction between STR and B&B classifications

Step 2: Obtain Required Permits and Licenses

For New Properties (Post-February 7, 2023):

Special Use Permit (SUP) - Contact Planning Department at (972) 466-3040
Lodging License - Apply annually through Environmental Services
Hotel Occupancy Tax Registration - Required for tax collection and remittance

For Existing Properties (Pre-February 7, 2023):

Documentation review required to verify legal operation status
Lodging License application still required
Hotel Occupancy Tax registration still required

Step 3: Secure Required Insurance

Obtain liability insurance providing coverage up to $1,000,000 per occurrence. A certificate of insurance must be filed with Environmental Services.

Step 4: Set Up Tax Collection and Remittance Systems

Collect 7% Hotel Occupancy Tax from guests
Remit taxes quarterly to the City (due by the last day of the month following each quarter)
Register for Texas Taxpayer Number through Texas Comptroller's office

Required Documents, Permits, Licenses, and Guidelines

Permits and Licenses

Special Use Permit (SUP)
- Required for all new STRs/B&Bs after February 7, 2023
- Issued through Planning Department
- Must be obtained before lodging license application
Lodging License
- Required annually for ALL STRs/B&Bs
- Issued to specific owner and location
- Each location must be licensed individually
- New license required if ownership changes
- Application fee payable online (no checks accepted)
Hotel Occupancy Tax Registration
- Texas Taxpayer Number required for tax reporting
- Contact Texas Comptroller's office to obtain
- Hotel Occupancy Tax help line: 800-252-1385

Insurance Requirements

Host protection or liability insurance: Minimum $1,000,000 per occurrence
Certificate of insurance must be filed with Environmental Services
Notice of cancellation must be provided within 30 days

Compliance Requirements

Adherence to Chapter 97 of Carrollton Code of Ordinances
Compliance with Special Use Permit stipulations
Adherence to Comprehensive Zoning Ordinance requirements
Compliance with Chapter 96 occupancy load regulations

Specific Regulations for Short-Term Rentals

Definitions and Classifications

Short-Term Rental (STR):

Residential premise used for lodging accommodations
Stays less than 30 days
NOT permanently occupied by property owners listed on county appraisal records

Bed & Breakfast (B&B):

Residential premise used for lodging accommodations
Stays less than 30 days
IS permanently occupied by property owners listed on county appraisal records

Occupancy and Safety Regulations

Occupancy Limits: Determined by Chapter 96, Section 96.06 based on:
- Finished area of the home
- Square footage of bedrooms
- Number of unrelated individuals
Safety Compliance: Must meet all applicable building and safety codes
Insurance: $1 million minimum liability coverage required

Tax Obligations

Hotel Occupancy Tax: 7% of gross income
Payment Schedule: Quarterly remittance due by last day of month following each quarter
State Requirements: Texas state hotel occupancy tax obligations apply
Registration: Must use Texas Taxpayer Number for reporting

Current Restrictions (Effective May 6, 2025)

One-year interim prohibition on approving new STR/B&B applications
New Special Use Permits for STR/B&B uses are suspended during this period
Only certain existing properties may qualify for temporary permits under Chapter 100

Zoning and Location Requirements

STRs/B&Bs must be located in zoning districts where permitted with Special Use Permit
Refer to Comprehensive Zoning Ordinance Article V for permitted locations
Article XXI provides Special Use Permit standards and requirements

Contact Information for Local Authorities

Environmental Services (Lodging Licenses and STR Oversight)

Address: 1945 E Jackson Road, Carrollton TX 75006
Phone: (972) 466-3060
Email: envservices@cityofcarrollton.com
Hours: Monday-Thursday: 7:30 AM – 5:30 PM; Friday: 7:30 AM – 11:30 AM

Responsibilities:

Lodging License applications and renewals
STR/B&B compliance monitoring
Insurance certificate filing
General STR inquiries and requirements

Planning Department (Special Use Permits)

Phone: (972) 466-3040
Website: Planning & Zoning Department

Responsibilities:

Special Use Permit applications
Zoning compliance verification
SUP process guidance and requirements

Texas Comptroller's Office (Hotel Occupancy Tax)

Phone: 800-252-1385 (toll-free)
Website: Hotel Occupancy Tax Information

Responsibilities:

Texas Taxpayer Number registration
State hotel occupancy tax guidance
Tax collection and remittance requirements

Code Enforcement (Violations and Complaints)

Phone: (972) 466-3060
Online Complaint Portal: STR/B&B Complaints

Links to Source Pages

Official City Resources

State Resources

Service Portals

Important Note: Given the current interim prohibition on new STR applications (effective May 6, 2025), prospective operators should contact Environmental Services at (972) 466-3060 to understand eligibility requirements for temporary permits under Chapter 100 and to monitor when the prohibition period ends. This regulatory landscape requires careful compliance management and ongoing attention to city ordinance updates.

Next step

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Ask the AI Advisor about Carrollton

Carrollton is a sizeable suburban city in North Texas, situated primarily within Dallas County with smaller portions spilling into Denton and Collin counties. With a population of roughly 135,000 residents, it ranks among the larger suburbs of the Dallas–Fort Worth metroplex and has built a reputation as a family-friendly community with a notably diverse cultural fabric. The city is best known for its central position within the metroplex, its well-regarded public schools, and its vibrant dining scene, particularly the Korean, Vietnamese, and other Asian offerings that have grown around the Carrollton area. It sits about 20 miles north of downtown Dallas, placing visitors within easy reach of the broader DFW region's attractions while enjoying a quieter, more residential setting of its own.

Historic Downtown Carrollton, often called the Carrollton Square, is the city's traditional heart and a focal point for visitors who want a sense of the community's local character. The district blends early-twentieth-century architecture with locally owned restaurants, boutique shops, and the public square that hosts the city's farmers market and seasonal events. It lies within the city itself, just a few minutes from most residential neighborhoods and the main hotel corridors. More information is available on the City of Carrollton website.

The Carrollton Greenbelt and the city's network of hike-and-bike trails give visitors and locals alike a chance to enjoy the North Texas landscape without leaving town. The greenbelt system links several parks together, threading through wooded areas and along creek corridors, and provides miles of paved and natural-surface paths suitable for walking, jogging, and cycling. Outdoor recreation here is a meaningful draw for travelers who want a break from urban sightseeing.

Just a short drive south, roughly 20 to 25 minutes away, the Dallas Arboretum and Botanical Garden offers 66 acres of meticulously maintained gardens on the eastern shore of White Rock Lake, making it one of the most visited horticultural attractions in the Southwest. It is a natural pairing for a Carrollton stay, especially in spring and during the autumn pumpkin and chrysanthemum displays.

The broader DFW metroplex is also within easy reach, with downtown Dallas roughly 20 miles to the south and the DFW International Airport area accessible in about 25 to 35 minutes depending on traffic. Sports venues, museums, and shopping destinations throughout the region are practical day trips from a Carrollton base.

Taken together, Carrollton offers short-term rental investors a compelling combination of suburban livability, cultural diversity, and proximity to one of the fastest-growing metropolitan areas in the country. Its central DFW location, walkable downtown, and access to both local parks and major regional attractions give it year-round appeal for leisure travelers, corporate visitors, and families visiting the metroplex.