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Nacogdoches, TX

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STR Regulations for Nacogdoches, Texas

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

Yes, short-term rentals are currently allowed in Nacogdoches, Texas. As of March 2025, the city has no specific regulations governing short-term rentals, meaning property owners can operate STRs without local permits or inspections. However, this regulatory landscape is changing rapidly—the City Council is actively considering implementing a comprehensive STR ordinance that would require permits, annual inspections, and compliance with local standards.

What do Airbnb hosts actually earn in Nacogdoches?

Nacogdoches hosts earn a median $23,106/year with $139 ADR and 52% occupancy.

Top performers pull in $30,429+ per year.

See the full Nacogdoches market breakdown

How to Start a Short-Term Rental Business in Nacogdoches

Immediate Steps (Current Environment)

  1. Verify Property Zoning: Confirm that your property is in a zoning district that allows transient lodging
  2. Obtain Texas Sales Tax Permit: Required for collecting hotel occupancy tax
  3. Register for Hotel Occupancy Tax: Mandatory collection and remittance of state taxes
  4. Secure Appropriate Insurance: Standard property insurance may not cover commercial lodging operations
  5. Prepare Property: Ensure compliance with basic safety standards and property maintenance codes

Preparing for Future Regulation

Given the city's active consideration of STR regulations, prospective operators should:

  • Anticipate Permit Requirements: Plan for permit applications, fees, and renewal processes
  • Budget for Inspections: Prepare for annual safety and compliance inspections
  • Establish Local Management: Many Texas cities require local contacts for emergency response
  • Document Operations: Maintain detailed records of bookings, revenues, and tax remittances

Required Documents, Permits, Licenses, and Guidelines

Current State-Level Requirements (Mandatory)

  1. Texas Sales Tax Permit

    • Issuing Authority: Texas Comptroller of Public Accounts
    • Purpose: Required to collect and remit hotel occupancy tax
    • Application: Online through Texas Comptroller's website
    • Cost: No fee

  2. Hotel Occupancy Tax Registration

    • Tax Rate: 6% of rental fee
    • Remittance: Monthly to Texas Comptroller
    • Compliance: Mandatory for all STR operators

Anticipated City Requirements (Under Consideration)

Based on council discussions, future requirements may include:

  • STR Operating Permit: Annual permit with renewal fees
  • Annual Safety Inspection: Similar to hotel/motel standards
  • Local Contact Person: 24/7 availability requirement
  • Parking Compliance: Adherence to specified parking standards
  • Special Event Restrictions: Prohibition on certain events

Property Standards

While not yet codified, property operators should anticipate:

  • Life Safety Equipment: Smoke detectors, carbon monoxide detectors, fire extinguishers
  • Property Maintenance: Compliance with city property maintenance codes
  • Maximum Occupancy: Limits based on property size and safety standards

Specific Regulations by Jurisdiction

City of Nacogdoches (Current Status)

No Active Regulations: As of March 2025, Nacogdoches has no specific STR ordinances in place.

Under Consideration:

  • Permit system with annual renewals
  • Mandatory safety inspections
  • Parking regulations
  • Special event restrictions
  • Enhanced tax compliance enforcement

Nacogdoches County

No County-Level STR Regulations: County government has not implemented separate STR requirements.

State of Texas Requirements

Hotel Occupancy Tax:

  • Rate: 6% of room charges
  • Collection: Mandatory for rentals under 30 days
  • Remittance: Monthly to Texas Comptroller
  • Registration: Sales tax permit required

Business Registration:

  • Sole proprietors: No additional registration required
  • LLCs/Corporations: Standard business entity requirements

Safety Standards:

  • While not STR-specific, properties must comply with state fire safety, building, and health codes

Contact Information for Local Authority

City of Nacogdoches Development Department

  • Director: Mike Neu, Executive Director of Development
  • Address: City Hall, Nacogdoches, TX
  • Phone: (936) 559-2500
  • Website: www.nactx.us

City Attorney's Office

  • City Attorney: Jerry Baker
  • Phone: (936) 559-2500
  • Address: City Hall, Nacogdoches, TX

Convention and Visitors Bureau

  • Executive Director: Ashley Morgan
  • Purpose: Tourism promotion and STR tracking
  • Phone: (936) 564-7351
  • Website: Visit Nacogdoches

Texas Comptroller's Office

  • Hotel Occupancy Tax: (800) 252-5555
  • Website: comptroller.texas.gov
  • Purpose: Sales tax permits and hotel occupancy tax compliance

Market Context and Considerations

Current Market Performance

  • Existing STRs: 74 properties identified within city limits
  • Growth Rate: 37% increase over the past year
  • Occupancy Rate: 39% (as of 2025)
  • Average Daily Rate: $187
  • Monthly Revenue Potential: $15,509

Key Influencing Factors

  • Stephen F. Austin State University: Drives consistent demand from students, faculty, and visitors
  • Tourism Growth: Increasing popularity of East Texas destinations
  • Proximity to Major Cities: Accessibility from Houston, Dallas, and other Texas metros

Compliance Timeline and Next Steps

Immediate Actions for Operators

  1. Secure Texas Sales Tax Permit immediately
  2. Begin collecting hotel occupancy tax (6% rate)
  3. Implement basic safety measures in anticipation of future requirements
  4. Maintain detailed records for tax and compliance purposes

Monitoring Regulatory Development

  • City Council Agendas: Regular monitoring of STR ordinance progress
  • Public Meetings: Attend council meetings when STR regulations are discussed
  • Professional Consultation: Engage with local attorneys familiar with Texas STR law

Anticipated Implementation

Based on council discussions, regulations may be implemented within 6-12 months. Operators should prepare for:

  • Permit application processes
  • Inspection scheduling
  • Fee payment obligations
  • Ongoing compliance requirements

Sources and Additional Resources

  1. KTRE News Report (March 19, 2025): City considers STR regulations

  2. Daily Sentinel Coverage (March 19, 2025): City may opt to regulate short-term rentals

  3. RedAwning Market Analysis: Nacogdoches STR market overview

  4. STRisker Regulatory Bulletin: STR regulatory updates

  5. Citizen Portal AI: City Council meeting coverage

Investment Recommendation

Nacogdoches presents a moderate-risk, moderate-opportunity STR market. While currently unregulated, the rapidly evolving regulatory environment requires careful monitoring. The 37% growth rate and strong market metrics (39% occupancy, $187 ADR) suggest investment viability, but operators must prepare for upcoming compliance requirements.

Key Success Factors:

  • Proactive compliance with existing tax obligations
  • Preparation for permit and inspection requirements
  • Strong local management capabilities
  • Understanding of university-driven seasonal demand patterns

This guide represents current information as of March 2025. STR regulations are evolving rapidly, and investors should consult with local authorities and legal professionals before making investment decisions.

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Nacogdoches

Market Saturation Score

036912
Mild Saturation
4/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
View Full Nacogdoches Market Analysis

Photos of Nacogdoches

Overview of Nacogdoches

Nacogdoches is a small but historically rich city in the Piney Woods region of East Texas, serving as the seat of Nacogdoches County. With a population of approximately 33,000 residents, it carries the longstanding nickname of the "Oldest Town in Texas," with roots tracing to Spanish mission settlements in the early eighteenth century. The presence of Stephen F. Austin State University, the area's dense forests, and its well-preserved 19th-century downtown give the town a college-town-meets-frontier character. Nacogdoches sits roughly 140 miles north of Houston and about 170 miles southeast of Dallas, making it a convenient stopover for travelers exploring East Texas or driving between the state's two largest metros.

The historic downtown square is one of the most photographed parts of the city and home to the Sterne-Hoya House Museum, a stately brick residence built in the 1830s that offers guided tours focused on early Texas-era life. The museum sits within walking distance of brick-lined streets, locally owned shops, and a town plaza that hosts seasonal events. Visitors can typically reach the downtown square in just a few minutes from anywhere in town.

On the campus of Stephen F. Austin State University, the Stone Fort Museum is a replica of a 1779 Spanish fort that once stood on the hilltop and gives the city its name. Adjacent to it, the Mast Arboretum and the Ruby M. Mize Azalea Garden showcase thousands of native and ornamental plants, with peak color in March and April when the town's annual Azalea Trail draws visitors from across the region. The campus is a short drive from any lodging in the city.

About 20 miles northwest of Nacogdoches, Mission Tejas State Park preserves a replica of Mission San Francisco de los Tejas, the first Spanish mission in the region, set among loblolly pines and hardwoods. The park offers hiking trails, fishing, and a quiet escape into the East Texas forest. For those willing to drive farther, Sam Rayburn Reservoir, one of the largest man-made lakes in the country, lies roughly an hour to the southeast, providing boating, fishing, and lakeside recreation.

Nacogdoches works well as a short-term-rental base because it combines genuine historical character with easy access to outdoor destinations. Guests can spend mornings exploring antebellum homes and the university grounds, afternoons hiking or boating in nearby forests and lakes, and evenings back in a walkable downtown, all while remaining within a few hours of either Houston or Dallas.

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