Are short-term rentals allowed in Marshall, TX?

Yes. Short-term rentals are allowed in Marshall, Texas. There is no city-specific prohibition or separate permitting/registration requirement surfaced in the provided materials. Marshall actively supports tourism and tracks overnight stays at “hotels, bed and breakfasts and short-term rentals” in its Hotel Occupancy Tax (HOT) grant reporting. STRs remain subject to state-level requirements (primarily hotel occupancy tax and registration with the Texas Comptroller) and any applicable county or local hotel taxes. You should still verify any private covenants (HOA/deed restrictions) that may limit STR operations. [Source: Marshall HOT Grant Guidelines]

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

• Market research and product fit
  • Marshall’s tourism messaging consistently emphasizes attracting visitors from outside a 50-mile radius. Anchor your marketing to this audience (regional drive markets, heritage tourists, event attendees) and align your listing copy and distribution to “outside-the-50-mile” audiences to position your property for eligibility with Visit Marshall’s tourism programs and downstream referrals/partnerships. [Source: Marshall HOT Grant Guidelines]
  • Think like a destination: package experiences (historic downtown, museums, cultural arts, sporting events) and ensure your listing links to Visit Marshall’s website and social channels per city marketing guidance. [Source: Marshall HOT Grant Guidelines]
• Business set-up
  • If you will collect tax, register with the Texas Comptroller’s office for hotel occupancy tax (statewide 6%). You must collect 6% from guests and remit to the Comptroller; failure to comply triggers penalties. [Source: THLA Update 2018]
  • Confirm whether Marshall has a local HOT and the rate with the city/Visit Marshall; report and remit as required by local rules. [Source: Marshall HOT Grant Guidelines]
  • Open a dedicated business bank account and adopt an accounting workflow to track gross receipts, room nights, and tax payments monthly/quarterly.
• Property setup and compliance
  • Follow standard residential codes (smoke/CO detectors, fire extinguisher, egress signage); while the city’s STR-specific safety checklist isn’t codified in the materials, adopting a professional safety baseline reduces risk and aligns with statewide norms. [Source: THLA Update 2018]
  • Display clear house rules (occupancy, quiet hours, parking, trash) and provide 24-hour contact details for guest issues.
• Listing, pricing, and guest experience
  • Use professional photography and amenity detail; highlight proximity to Visit Marshall attractions and content.
  • Collect guest data to support potential grant or city reporting in the future (room nights attributable to your listing), and align with Visit Marshall’s digital/social links on your own promotional assets where applicable. [Source: Marshall HOT Grant Guidelines]
• Ongoing reporting and tax remittance
  • File and remit state HOT monthly or quarterly as set by the Comptroller. [Source: THLA Update 2018]
  • Remit any applicable local HOT per city guidance; if applicable, maintain a monthly log of room nights and submit the Visit Marshall post-event report format for any tourism event funding. [Source: Marshall HOT Grant Guidelines]

Required Documents, Permits, Licenses, and Guidelines

• City-specific: No separate city permit, license, or registration program for STRs is surfaced in the provided sources. [Source: Marshall HOT Grant Guidelines]
• State-level: Hotel Occupancy Tax registration with the Texas Comptroller; collect and remit the state 6% HOT. [Source: THLA Update 2018]
• County-level: No Harrison County STR-specific ordinance is included in the materials. If a local HOT applies, confirm the reporting cadence and address with the city/county tax office.
• Internal compliance package (recommended):
  • Texas Comptroller HOT registration confirmation (Certificate of Registration/Account ID)
  • Copies of guest logs with nightly occupancy (dates, guest names, room nights)
  • Monthly/quarterly tax remittance schedules and receipts
  • House rules, emergency contacts, and safety procedures
  • Insurance declarations showing appropriate liability coverage (commercial liability is strongly advised for STRs; while not codified for Marshall, this is a standard best practice across Texas jurisdictions). [Source: THLA Update 2018]

Note on local guidance: Marshall’s HOT materials emphasize applicant reporting of short-term rentals among covered lodging; this underscores that STRs are part of the city’s accommodation ecosystem and are expected to participate in tax compliance. [Source: Marshall HOT Grant Guidelines]

Specific Regulations at the City, County, and State Level

• City of Marshall (no STR-specific ordinance surfaced): No separate permitting/registration; no displayed caps or density rules in the provided materials. The city’s tourism and HOT grant guidance treats “short-term rentals” as part of lodging that must be reported when tracking stays, and it requires Visit Marshall links in funded promotional materials. [Source: Marshall HOT Grant Guidelines]
• Harrison County: No county-specific STR ordinances are included in the materials.
• State of Texas (Tx Tax Code Chapter 351): Statewide, communities like Marshall may adopt a local HOT up to 7% on top of the 6% state HOT; state law governs collection and remittance. The THLA update emphasizes the obligation to register for HOT and remit taxes to the Texas Comptroller. [Source: THLA Update 2018] [Source: Marshall HOT Grant Guidelines]
• Common Texas municipal patterns (context only): Many Texas cities regulate STRs via registration, caps, occupancy, and safety standards, with active enforcement and HOT compliance. Marshall does not appear in the provided materials as having adopted such local rules. [Source: THLA Update 2018]

Contact Information (Local Authority in Charge of STRs/Tourism/HOT)

• City of Marshall – Tourism and Main Street (for HOT/tourism funding guidance)
  • Address: 110 S. Bolivar, Suite 102, Marshall, TX 75670
  • Phone: Not provided in the source
  • Email: Not provided in the source
  • Website: visitmarshalltexas.com/ [Source: Marshall HOT Grant Guidelines]
• Texas Comptroller – Hotel Occupancy Tax
  • Phone: Not provided in the source
  • Email: Not provided in the source
  • HOT guidance portal: comptroller.texas.gov/taxes/hotel/ [Source: THLA Update 2018]

Links to Source Pages (as provided)

• Texas Hotel & Lodging Association – Short-Term Rental (STR) Update 2018: texaslodging.com/short-term-rental-str-update-2018/
• City of Marshall – Hotel Occupancy Tax Use Guideline and Funding Application: www.marshalltexas.net/DocumentCenter/View/3172/HOT-GRANT-APPLICATION
• Texas Comptroller – Hotel Occupancy Tax (state-level guidance): comptroller.texas.gov/taxes/hotel/
• Visit Marshall (tourism): visitmarshalltexas.com/

Notes for investors

• Private restrictions: Verify HOA or deed restrictions before listing; these can limit STR activity regardless of city or state law.
• Marketing alignment: Leverage the Visit Marshall brand channels in your listing and promotional materials to support the city’s tourism objectives and cross-marketing. [Source: Marshall HOT Grant Guidelines]
• Insurance: Carry commercial liability insurance appropriate for STR operations to align with Texas norms and protect against claims. [Source: THLA Update 2018]