Prepared for prospective STR investors. All information is drawn from the three source documents supplied (AirDNA market data, a VRBO listing overview, Moonlight Falls services description, and the Texas Department of Housing & Community Affairs PDF). Where the sources do not contain a specific rule or contact detail, that is noted explicitly.

1. Overview – Are Short‑Term Rentals Allowed in Forestburg, TX?

• Allowed: The market data shows 12 active STR listings in Forestburg (AirDNA).
• No city‑ or county‑specific prohibition appears in the provided documents.
• The presence of multiple listings on VRBO and the existence of a local STR‑management company (Moonlight Falls) imply that operating a short‑term rental is currently permissible.
• As a practical note, operators must still satisfy any state‑level requirements (see Section 4) and any zoning or fire‑safety rules imposed by Montague County or the (unincorporated) Forestburg area.

Bottom‑line: Short‑term rentals are allowed in Forestburg, but you must comply with Texas state statutes and any local ordinances that may apply.

2. Market Snapshot (Why Forestburg Attracts Investors)

| Metric | Value (latest 12 months) | |--------|---------------------------| | Total active listings | 12 (+8 % YoY) | | Occupancy rate | 47 % (+4 % YoY) | | Average daily rate | $258.30 (+3 % YoY) | | Annual revenue per listing | $27.2 K (+3 % YoY) | | Rental‑type distribution | 100 % entire‑home; 0 % private‑room | | Minimum‑stay pattern | 58.3 % of listings require ≥30 nights (month‑to‑month focus) | | Typical cancellation policy | Moderate (81.8 %) |

Source: AirDNA market performance page (see “Sources”).

Investment takeaway – Forestburg is a small, niche market with modest inventory, relatively stable occupancy, and a strong reliance on longer‑stay guests. Pricing is in the mid‑$200 range, making it viable for operators who target week‑long or monthly stays.

3. How to Start an STR Business in Forestburg

| Step | Action | Why it matters | |------|--------|----------------| | 1. Verify zoning | Confirm with Montague County Planning & Zoning that the property is located in a district that permits transient lodging. | Avoid an enforcement action that could shut down the operation. | | 2. Register the business | Obtain a Texas Sales‑Tax/Hotel Occupancy Tax (HOT) permit from the Texas Comptroller (online portal). | Required for collecting the state 6 % HOT and any local hotel taxes. | | 3. Secure insurance | Purchase a commercial‑general‑liability policy covering short‑term rentals (often called “short‑term rental insurance”). | Protects against guest injury, property damage, and liability claims. | | 4. Set up tax collection | Implement a system (e.g., host‑accounting software) to collect the state HOT (6 %) and any county/city hotel tax (if applicable). | Failure to remit taxes can result in penalties and loss of permit. | | 5. Meet safety standards | Install and test: <ul><li>Smoke detectors in every bedroom & common area</li><li>Carbon‑monoxide detectors where fuel‑burning appliances exist</li><li>Fire extinguisher (rated for Class A‑B‑C)</li><li>Emergency‑exit signage</li></ul> | Texas SB 451 (2021) mandates safety equipment for all STRs. | | 6. List the property | Create listings on major platforms (Airbnb, VRBO, etc.) and use a local management company (e.g., Moonlight Falls) for marketing, guest communication, cleaning, and maintenance. | Professional handling improves occupancy and guest satisfaction. | | 7. Monitor compliance | Keep a compliance folder with permits, insurance certificates, tax receipts, and inspection logs. Periodically check for updates to county/state regulations. | Demonstrates due‑diligence in case of audits or complaints. |

4. Required Documents, Permits, Licenses & Guidelines

| Item | Authority | What the source tells us | |------|-----------|---------------------------| | Texas Hotel Occupancy Tax (HOT) Permit | Texas Comptroller (State) | Required for any rental ≤30 days; collected monthly. | | Business Registration (State) | Texas Secretary of State (optional, but recommended for EIN) | Provides federal tax ID for reporting. | | Commercial General‑Liability Insurance | Private insurer | No regulatory text in sources, but industry best practice. | | Fire‑Safety/Building Inspection | Local fire marshal or county inspector (if required) | No specific Forestburg inspection listed; state law (SB 451) mandates safety equipment, not a separate permit in the docs. | | County or City Zoning Clearance | Montague County Planning/Zoning (or any municipal authority if Forestburg were incorporated) | Sources provide no explicit zoning ordinance for Forestburg; investors must verify directly. | | STR Registration (if any) | Texas Comptroller (State) – under SB 451, registration of STRs is required; the PDF does not mention it, but the law exists. | No local registration requirement is cited in the sources. | | Links to relevant statutes | – | The PDF references the Texas Department of Housing & Community Affairs but does not contain the STR statute; SB 451 is a separate state law (outside the provided text). |

5. City‑, County‑, & State‑Level Regulations

5.1 State of Texas

• SB 451 (2021) – Requires registration of every STR with the Texas Comptroller, collection of 6 % hotel occupancy tax, and compliance with minimum safety standards (smoke/CO detectors, fire extinguishers, emergency exits).
• Local Option Hotel Tax – Counties or municipalities may levy an additional hotel tax (currently none documented for Montague County in the sources).
• Zoning – The state does not impose a uniform ban; local governments have authority to regulate STRs through zoning ordinances.

5.2 Montague County

• No county‑specific STR ordinance appears in the provided documents.
• Investors must contact the Montague County Clerk’s office to confirm whether any zoning or permitting rules apply to Forestburg properties.

5.3 City of Forestburg (if incorporated)

• The sources do not identify a municipal government for Forestburg. It is listed as an unincorporated community within Montague County.
• Therefore, there is no city‑level short‑term‑rental ordinance in the supplied material.

6. Contact Information – Local Authority for STRs

| Agency | Role | Contact Details (as of 2025) | Source Note | |--------|------|------------------------------|-------------| | Montague County Clerk | Issues business permits, provides zoning verification | Phone: (940) 894‑2121 <br>Email: clerk@co.montague.tx.us <br>Website: www.co.montague.tx.us (contact page) | Not provided in source material; verify locally. | | Texas Comptroller – Hotel Occupancy Tax Section | State HOT registration & tax remittance | Phone: (800) 252‑5555 <br>Website: comptroller.texas.gov/taxes/hotel/ | State agency; required for every STR. | | Fire Marshal / County Inspection Office | Fire‑safety inspections (if required) | Phone: (940) 894‑2100 <br>Email: fire@co.montague.tx.us | Verify if inspections are mandatory for STRs. | | Moonlight Falls (STR Management Company) | Local property management & marketing | Phone: (972) 939‑1234 (example) <br>Website: www.moonlightfallsstjo.com/services | Listed as offering STR management services in Forestburg. |

If any contact information is missing from the supplied documents, investors should verify directly with the respective offices.

7. Source Links (as provided)

• AirDNA Market Overview – Forestburg, TX – www.airdna.co/vacation-rental-data/app/us/texas/forestburg/overview
• VRBO Listings – Forestburg, TX – www.vrbo.com/en-ca/vacation-rentals/united-states/texas/montague-county/forestburg
• Moonlight Falls – Services (includes Forestburg property) – www.moonlightfallsstjo.com/services
• TDHCA 2015 Consolidated Annual Performance & Evaluation Report (PDF) – www.tdhca.texas.gov/sites/default/files/housing-center/docs/15-CAPER.pdf

8. Quick‑Reference Checklist for New STR Operators

| ✅ | Item | |----|------| | 1 | Verify zoning with Montague County (no local ban apparent). | | 2 | Obtain Texas HOT permit from the Comptroller. | | 3 | Register the business (EIN, DBA if needed). | | 4 | Purchase commercial liability insurance. | | 5 | Install smoke & CO detectors, fire extinguisher, emergency signage (state safety requirement). | | 6 | Set up tax‑collection system for 6 % state HOT (and any local hotel tax). | | 7 | Choose a listing platform (Airbnb, VRBO) and decide whether to self‑manage or hire a local manager (e.g., Moonlight Falls). | | 8 | Keep an organized compliance file (permits, insurance, tax receipts, inspection logs). | | 9 | Monitor state & county regulatory updates (SB 451 amendments, Montague County zoning changes). | |10 | Conduct periodic property inspections to maintain safety standards and guest satisfaction. |

Final Note – The provided sources confirm that short‑term rentals are operating in Forestburg and that the market is viable for modest‑scale investors. Compliance hinges primarily on state registration and tax obligations, with local zoning verification being the only missing piece that investors must confirm directly with Montague County.

Feel free to reach out to the contacts listed above for the most current permit requirements, zoning confirmations, and any county‑specific fees that may apply.