Commerce, Texas Short Term Rental Regulations Guide for Airbnb hosts

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

Short-term rentals are allowed in Commerce, Texas. There is no evidence of city-specific restrictions in the provided sources, and Texas state law does not prohibit short-term rentals. However, operators must comply with applicable state regulations, hotel occupancy tax requirements, and any future city ordinances that may be enacted.

What do Airbnb hosts actually earn in Commerce?

Commerce hosts earn a median $22,344/year with $120 ADR and 52% occupancy.

Top performers pull in $29,418+ per year.

See the full Commerce market breakdown

How to Start a Short-Term Rental Business in Commerce, TX

Initial Setup Process

Verify Property Zoning: Ensure your property is zoned appropriately for short-term rental use
Check Deed Restrictions: Review any homeowners association bylaws or deed restrictions that may prohibit short-term rentals
Obtain Required Insurance: Secure adequate liability and property insurance coverage
Set Up Business Registration: Register your business with appropriate state and local authorities
Establish Tax Collection System: Implement a system to collect and remit hotel occupancy taxes

Key Operational Considerations

Platform Registration: List your property on short-term rental platforms (Airbnb, VRBO, etc.)
Local Contact: Designate a local contact person available 24/7 for guest emergencies
Guest Communication: Develop clear communication protocols and house rules
Maintenance Schedule: Establish regular cleaning and maintenance routines

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

Business Registration

Texas Secretary of State business registration (if operating as a business entity)
Federal EIN (Employer Identification Number) for tax purposes
State sales tax permit if collecting and remitting taxes

Insurance Requirements

General liability insurance (minimum $1 million recommended)
Property insurance coverage
Consider umbrella policy for additional protection

Hotel Occupancy Tax Registration

Texas Hotel Tax Permit for collecting state hotel occupancy tax
Local hotel tax permits if applicable

Property Standards

Safety Equipment Requirements

Working smoke detectors in all bedrooms and common areas
Carbon monoxide detectors where required
Fire extinguisher readily accessible
Emergency contact information posted

Minimum Housing Standards

Functional plumbing and electrical systems
Adequate heating and cooling
Safe and sanitary conditions
Compliance with local building codes

Specific Regulations for Short-Term Rentals

Texas State-Level Regulations

Permit and Licensing Authority

Cities can require permits/licenses for short-term rentals but fees must be reasonable and offset regulatory costs
Permit requirements must apply uniformly and cannot discriminate against out-of-state owners

Prohibited Restrictions

Primary Residence Requirement: Cannot require STR to be owner's primary residence (violates Commerce Clause)
Discriminatory Licensing: Cannot treat residents and non-residents differently
Total Ban: Complete bans are likely impermissible under current legal precedent

Tax Obligations

State Hotel Occupancy Tax: 6% on all short-term rentals under 30 consecutive days
Local Hotel Taxes: Additional local taxes may apply
Tax Collection: Must collect taxes from guests and remit to appropriate authorities
Platform Collection: Airbnb automatically collects state portion; other platforms require self-collection

Constitutional Considerations

Assembly Rights: Restrictions on guest numbers based on relationships may violate right to assemble
Regulatory Takings: Excessive regulations could constitute regulatory taking requiring compensation
Vested Rights: Existing STR operators have vested rights to continue operations

Zoning and Land Use

Zoning Authority

Cities have broad zoning authority under Texas Local Government Code Chapter 211
Zoning regulations can be applied retroactively if they don't interfere with vested rights
Recent legislation (SB 929, 2023) provides protections for nonconforming uses

Deed Restrictions and HOA Rules

Deed restrictions banning STRs are generally enforceable
HOA bylaws can be amended to prohibit STRs if proper procedures followed
Recent Texas Supreme Court ruling supports residential use of properties for STR purposes

Contact Information for Local Authority

City of Commerce - Municipal Offices

Phone: (903) 886-3225
Address: 1119 Alamo St, Commerce, TX 75428
Website: www.commercetx.us

Hunt County - County Administration

Phone: (903) 454-3545
Address: 2525 Wolfe City Dr, Greenville, TX 75401
Website: www.huntcounty.net

Texas Secretary of State

Business Registration: (512) 463-5555
Website: www.sos.state.tx.us

Texas Comptroller of Public Accounts

Tax Questions: (800) 252-5555
Website: www.comptroller.texas.gov

Links to Source Pages

Important Disclaimer: This guide provides general information based on available sources as of the date provided. Laws and regulations can change, and specific circumstances may require different approaches. Always consult with local legal counsel and current authorities for the most up-to-date requirements and guidance.

Next step

Found a property in Commerce?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Commerce

Commerce sits in Hunt County in northeast Texas, a small college town of roughly 8,500 to 9,500 residents that revolves around the presence of Texas A&M University-Commerce. The university gives the community a youthful, energetic feel layered onto the quieter pace of an East Texas town, and the surrounding pastures, woodlands, and reservoirs make the city a natural stop for travelers exploring the region. Commerce lies about 65 miles northeast of Dallas, putting it within easy striking distance of the Metroplex while feeling a world apart from the urban density, and it serves as a convenient gateway to the lakes and parks of northeast Texas.

Texas A&M University–Commerce is the town's anchor institution and a frequent draw in its own right. The campus brings a steady calendar of college sports at Memorial Stadium, performing arts events, and academic gatherings, and visitors often find themselves drawn to the tree-lined grounds, the Sam Rayburn Student Center, and the university's public lecture series and small museum collections. The school is the reason many families first find their way to Commerce, and the Lion football and basketball seasons bring an influx of parents, alumni, and prospective students throughout the school year.

Just east of town, Cooper Lake State Park offers more than 19,000 acres of water and shoreline spread across two units, with the Doctors Creek Unit sitting roughly 30 miles from Commerce. The park is popular for fishing, swimming, boating, and miles of multi-use trails, and its cabins and campsites draw visitors year-round. To the southwest, Lake Tawakoni anchors another large slice of public outdoor space, with the surrounding Lake Tawakoni State Park about 20 miles from Commerce offering additional camping, equestrian trails, and quiet shoreline access for guests who want a slower day on the water.

In nearby Greenville, about 30 miles to the west, the Audie Murphy American Cotton Museum tells the dual story of the region's agricultural heritage and one of America's most decorated World War II heroes, who grew up in the area. Downtown Greenville's historic square, with its restored early-twentieth-century storefronts, adds another layer of small-town Texas character within an easy day trip from Commerce.

For short-term rental investors, Commerce offers an appealing mix of repeat demand drivers and broader regional appeal. The university generates a reliable rhythm of parents, visiting alumni, and prospective-student families, while the nearby lakes, state parks, and proximity to both Dallas and Greenville position the town as a practical, affordable base for guests who want to experience northeast Texas without the crowds or prices of larger destinations.

Commerce, Texas

Generally Investor Friendly

STR Regulations for Commerce, Texas