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

Yes, Short-Term Rentals (STRs) are explicitly allowed in Fredericksburg, Texas, but are subject to specific zoning regulations, permitting requirements, and operational rules established by the city. The regulations have been significantly updated, with the latest ordinance taking effect on January 1, 2024. While new STRs are restricted in certain zoning districts, properties with permits issued before April 1, 2022 ("non-conforming" or "grandfathered" units) can continue to operate under specific historical rules.

How to Start a Short-Term Rental Business in Fredericksburg

1. Verify Zoning Eligibility: First and foremost, confirm your property is in a zoning district that allows the specific type of STR you intend to operate. Use the city's interactive zoning map: Fredericksburg Zoning Map. Commercial districts (C1, C1.5, C2, CBD) generally allow most STR types by right (except STR-Condos, which require a Conditional Use Permit - CUP). Residential districts have stricter rules (e.g., no new STRs allowed in R3, restrictions in R1/R2).
2. Determine STR Type: Fredericksburg defines several distinct types of STRs, each with different rules:
   • Accessory: A legal Accessory Dwelling Unit (ADU) on the same property as the owner's primary residence (homestead exemption required).
   • B&B: Rooms within the owner's primary residence (homestead exemption required).
   • Facility: Multiple dwelling units (up to 8) on a single property, located in a commercial district.
   • Unoccupied: Any dwelling not owner-occupied (single-family, townhome, duplex, etc.).
   • Condominium: Located within a recorded condo regime (New permits for this type are no longer allowed as of 2024).
   • Non-Conforming: Permits issued before April 1, 2022 (see regulations section).
3. Apply for Permit: Register and apply for your STR Permit online through the city's designated portal: Fredericksburg STR Permit Portal. The same portal is used for new applications, renewals, and transfers of ownership. Be prepared to pay application fees.
4. Schedule and Pass Inspection: An inspection is mandatory for new permits, permit transfers, major modifications, renewal, and in response to violations. Use the official inspection checklist to prepare: STR Inspection Checklist.
5. Comply with Ongoing Requirements: After permitting and inspections, you must comply with all operational rules, including occupancy limits, parking, trash, noise, water conservation, and Hotel Occupancy Tax (HOT) remittance.

Required Documents, Permits, Licenses, and Guidelines

• Primary Permit: Short-Term Rental Permit (STR Permit) - Mandatory for operation within city limits. Apply via the online portal. Validity: 1 year, must be renewed annually. Includes required 24/7 local contact information.
• Inspection: Mandatory initial and annual inspections. Inspections also required after modifications, transfers, or violations. See the inspection checklist.
• Zoning Compliance: Must comply with zoning district rules for the specific STR type.
• Hotel Occupancy Tax (HOT) Registration/Remittance:
  • City HOT: 7% of the room rate. File and pay quarterly via the same online portal.
  • State HOT: 6% of the room rate. Register with the State of Texas and remit per their schedule (see State Regulations section).
• Safety & Operational Guidelines: Compliance with city ordinances covering:
  • Occupancy: Limits vary by permit year (see regulations).
  • Parking: Specific requirements based on STR type (see regulations).
  • Trash/Solid Waste: Minimum capacity requirements based on occupancy.
  • Noise: Quiet hours (10 pm - 7 am), maximum 55 dB, signage requirements.
  • Outdoor Lighting: Compliance with Dark Sky guidelines.
  • Water Conservation: Adherence to current drought stage restrictions.
  • Advertising: Listings must include the permit number and comply with all rules.
• Commercial Property (C1/C1.5/C2/CBD): For STR Facility, development must comply with multifamily regulations of the base zoning district.
• Conditional Use Permit (CUP): Required for STR Condominium (if seeking a new permit pre-2024 ban, or for expansion/exception requests in commercial zones). Applications reviewed by staff per City Code Sec. 5.460.

Specific Regulations: Fredericksburg City, Gillespie County (ETJ), and Texas State

Fredericksburg City (Strictest Rules)

• Allowed STR Types: Accessory, B&B, Facility, Unoccupied (subject to zoning). No new STR Condominium permits as of 2024.
• Zoning Restrictions: New STRs are prohibited in R3 zoning. R1 and R2 zoning have limitations:
  • R1/R2: Allowed types include Accessory and B&B. New Unoccupied and Facility STRs are not allowed in these districts. Exception: Unoccupied STRs in R1/R2 may be eligible for a Special Exception from the Zoning Board of Adjustments (ZBA) if they meet "stranded property" criteria (two property lines shared with properties/zones allowing STR-Unoccupied or C2/CBD/Public Facility (excl. schools), and 50% of properties within 200ft also have permits or compatible zoning).
• Maximum Occupancy: 12 guests total (all ages). Calculated as 2 guests per bedroom + 2 additional guests (e.g., 3BR = 8 guests). (Note: This is a 2024 rule. "Non-conforming" properties follow different rules, see below.)
• Parking Requirements:
  • Unoccupied STR: 1 off-street space per bedroom. Tandem parking allowed. On-street parking permitted but does not count towards minimums.
  • Accessory/B&B STR: 2 spaces for the primary structure + 1 space per bedroom (for the STR portion).
  • Facility STR: 60% of the permitted occupancy.
• Inspections: Required annually for renewal, plus new permits, transfers, modifications, and violations.
• Enforcement & Violations: City Manager can suspend/revoke permits for certain violations. Tracking of Minor (e.g., watering, trash, advertising, lighting) and Major (e.g., health/safety, occupancy, noise, non-remittance of HOT, advertising violations, operating without a permit, unresponsive contact) violations. 3 Minor = 1 Major. 3 Major violations within 12 months requires City Council review and permit suspension up to 90 days. Failure to remit HOT results in mandatory 90-day suspension.
• Transfer of Ownership: Permits can be transferred to a new owner within 90 days of property sale.
• Non-Conforming ("Grandfathered") Units: Properties with valid permits issued before April 1, 2022 can continue operating under their original rules (primarily occupancy and parking from the 2018 ordinance). However, they must comply with updated regulations for: life safety, 24-hour contact, signage, food service, host rules, conduct on premises, duration of rental, HOT remittance, application information, and advertising. Non-conforming permits can be transferred.

Gillespie County / Extra-Territorial Jurisdiction (ETJ)

• No City Permit Required: STRs located within the Fredericksburg ETJ (outside the city limits but within the county) are not required to obtain a city STR permit. They must still comply with state regulations and Gillespie County rules, if any apply.

Texas State Level

• State Hotel Occupancy Tax (HOT): A 6% tax is imposed on the cost of room accommodations. STR operators must register with the Texas Comptroller to collect and remit this tax. The registration process and filing schedule are handled directly with the state.
• Statewide STR Legislation: Texas does not have a comprehensive statewide law regulating local STRs. Regulation is left to individual cities and counties. However, some state laws regarding property rights, health and safety, and anti-discrimination apply.

Contact Information for Local Authority

• Primary Contact - City of Fredericksburg Development Services Department:
  • Address: City Hall, 126 W. Main Street, Fredericksburg, TX 78624-3708
  • Phone: (830) 997-7521
  • Website: STR Hub Page
  • Email: Use the Contact/Request Tracker Form on the City Website (linked on STR Hub) for inquiries.
• Gillespie County (for ETJ properties or county issues): Contact Gillespie County Appraisal District for homestead exemptions or county offices for other matters (specific STR contacts not detailed in sources).
• Industry Resources:
  • Fredericksburg TX STR Alliance: fbgtxstra.com (A local advocacy group providing resources, updates, and community for STR operators).

Source Links

• City of Fredericksburg STR Hub Page (Main page with links to ordinances, maps, portal, etc.)
• City STR Permit FAQ (Definitions, eligibility, permit process)
• City STR Ordinance 2023-18 (Effective Jan 1, 2024) (Official ordinance text)
• City STR Ordinance Summary (2024) (Summary of ordinance changes)
• City STR Permit Renewal Guide (Step-by-step renewal instructions)
• City STR Inspection Checklist (Checklist for inspections)
• City STR Permit & HOT Online Portal (Portal for permits, renewals, transfers, HOT filing)
• City Zoning Map Tool (Verify zoning eligibility)
• City STR Map (Locations Database) (View permitted STR locations)
• City Hotel Occupancy Tax Information (Info on 7% local HOT)
• Fredericksburg TX STR Alliance - STR Ordinances Page (Detailed breakdown of 2024, 2022, and 2018 ordinances, key "Hot Topics")
• Airbnb Help Center - Fredericksburg, TX Rules (Summarized host info on zoning, parking, fees, taxes)
• Rent Responsibly - Fredericksburg Info (Statewide overview with links to city and state info)

Disclaimer: This guide is compiled from the provided sources. Always refer to the official city ordinances and websites for the most current and legally binding requirements. Consult with a local attorney or tax professional for specific legal or tax advice.